Canada partners with Australia on $6-billion Arctic radar

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The Liberal government has turned its back on made-in-Canada technology for a new radar system, instead partnering with Australia for the $6-billion project.

D-TA Systems of Ottawa has been a leader in producing over-the-horizon radar systems for the Department of National Defence and for companies who supply the U.S. military.

But when Prime Minister Mark Carney announced on March 18 that Canada was purchasing such a system to detect incoming missiles over the Arctic, he turned to the Australians and the British firm, BAE, to provide the technology.

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“It was a slap in the face,” said Dipak Roy, chairman of D-TA Systems. “We seem to have a problem in this country buying our own made-in-Canada solutions. It’s a lack of national pride.”

D-TA Systems was established in 2007 and has been involved in defence projects in the U.S., Canada and other NATO nations as well as Japan. The firm has been working on over-the-horizon radar since 2011 for various DND and U.S. military projects.

DND has already spent $30 million with the firm to successfully create the capability, Roy said. A number of systems have already been delivered.

Roy pointed out that the Australian government will own the intellectual property rights for the system that Canada will purchase. In the case of the D-TA radars, Canada has full control over such rights.

Prime Minister Mark Carney’s office did not respond to a request for comment. Defence Minister Bill Blair’s press secretary, Laurent de Casanove, did not respond to a request for comment. DND officials did not provide comment before deadline.

Over-the-horizon radar has the ability to conduct surveillance at far greater ranges than regular radar technology as it extends the distance of its capabilities by bouncing signals off the ionosphere — a layer of the Earth’s atmosphere that reflects radio waves. It’s estimated that the minimum range for the radar will be 500 kilometres, while the maximum range could be more than 3,000 kilometres. The system would be able to track aircraft, missiles and surface ships.

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DND originally estimated the cost of the over-the-horizon radar would be under $1 billion. In 2024, it estimated it could be as much as $3 billion. Carney’s announcement put the cost at $6 billion but there was no explanation for the significant budget increase.

Australian media outlets have pointed to the Canadian project as the largest defence export deal in Australian history. Australian Defence Minister Richard Marles told the Australian Broadcasting Corp. the contract will significantly boost the country’s defence firms.

Roy said Canadian firms will be left with support work if they’re lucky. “DND thinks Canadian companies should be happy with secondary work, doing logistics or setting up antennas,” he noted.

Roy said that D-TA was not consulted by the federal government in any meaningful way about the over-the horizon-radar project despite receiving funding to develop such a system. The Canadian government has also promoted D-TA, labelling it as a success story with its development of unique industrial technologies.

D-TA Systems, which has around 50 employees, has already delivered a working radar to Defence Research and Development Canada, the Ottawa-based science agency for DND.

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Australia’s military currently has the Jindalee Operational Radar Network, an over-the-horizon system which can monitor air and sea movements up to 3,000 km. In 2018, the Australian government announced it would spend more than $1 billion upgrading the system. BAE Australia is working on that project.

There is growing frustration among some domestic aerospace and defence companies that the Liberal government has been passing over Canadian technology, instead opting for foreign systems.

Industry officials point to the lack of Canadian-built systems on board the new Canadian Surface Combatant ships. Originally those vessels were to be outfitted with a Canadian-developed command system, called the CMS-330. But instead the Liberal government approved the use of an American radar and command system, giving the U.S. full control over a critical capability for the Canadian fleet.

The Ottawa Citizen reported in December 2020 that Canadian defence industry officials had previously warned Jody Thomas, then the deputy minister at DND, and Bill Matthews, then deputy minister at the procurement department, about the potential dangers of U.S.-controlled technology and the lack of Canadian content onboard the Canadian Surface Combatants. But those concerns were dismissed by department officials.

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Canada has been under pressure from the U.S. to spend more on defence. Since 2023, the Liberal government has awarded more than $30 billion in defence contracts, with most of those going to U.S. firms.

But that has done little to placate the U.S.

U.S President Donald Trump has continually singled out Canada, claiming it has not spent enough on defence and provides nothing of value to his country. Trump has threatened to damage Canada’s economy and argues that the country should become the 51st state.

David Pugliese is an award-winning journalist covering Canadian Forces and military issues in Canada. To support his work, including exclusive content for subscribers only, sign up here: ottawacitizen.com/subscribe

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