The federal government announced in Tuesday’s budget that it is giving the Canadian Security Intelligence Service more than $667.7-million over eight years to fight foreign interference and bulk up operations at the spy agency’s regional office in Toronto, one of the cities most frequently cited in accounts of meddling in domestic affairs by foreign states.
“To equip CSIS to combat emerging global threats and keep pace with technological developments, further investments in intelligence capabilities and infrastructure are needed,” the budget document says, noting that Canada continues to face threats from “hostile actors” to its democratic institutions, diaspora communities and economy.
The money, the budget adds, will allow CSIS to “enhance its intelligence capabilities, and its presence in Toronto.”
Canada is in the midst of a public inquiry into foreign interference by China, after reports from The Globe and Mail and other media about Beijing’s efforts to meddle in Canadian politics. Last year, Ottawa expelled Chinese diplomat Zhao Wei after The Globe reported he was part of an effort to target MP Michael Chong and his relatives in Hong Kong. Mr. Chong had recently sponsored a parliamentary motion to condemn Beijing’s repression of China’s Uyghur ethnic minority.
Ottawa also announced on Tuesday that it is cutting off financial assistance for Canadian citizens or permanent residents who study at universities in Russia. They “will be ineligible to receive Canada Student Financial Assistance while studying at Russian postsecondary institutions,” the budget says. “This step emphasizes the importance of international law and reaffirms Canada’s unwavering stance against Russia’s full-scale invasion of Ukraine.”
The measure affects six postsecondary institutions in Russia and a small number of Canadians. Russia’s military assault on Ukraine, a Canadian ally, has continued for more than two years.
Canada’s defence budget will receive more than $73-billion over two decades under measures already announced last week, prior to the unveiling of the latest fiscal plan. As detailed on April 7, the amount includes new cash to help fund Canada’s worldwide satellite communications network, new tactical helicopters, long-range missile capabilities, airborne early-warning aircraft and other investments.
This already-announced defence spending infusion also includes more than $900-million over five years for the Department of Global Affairs and the Communications Security Establishment, Canada’s cyberdefence and electronic eavesdropping agency, “to enhance their intelligence and cyber operations programs” to better protect Canada’s economic security and “respond to evolving national security threats.”
The budget also includes an announcement of tens of millions of dollars for training air crews for the arrival of Canada’s Lockheed Martin F-35 Lightning fighters. Ottawa begins taking delivery of the next-generation warplanes in 2026. The government will allocate $66.5-million over five years, starting in 2024-25, for the training program.
In addition, the budget says Ottawa wants to accelerate talks with Canada’s Group of Seven allies about using seized Russian central bank reserves to help Ukraine. About US$280-billion in Russian central bank assets in Canada and allied countries were frozen after Moscow’s February, 2022, military assault. “Canada believes that now is the time to use these resources actively to support Ukraine in its existential fight. It is Canada’s position that these assets can be redirected to benefit Ukraine, consistent with international law,” the budget says.
“Canada is committed to work with allies to explore all possible legal mechanisms to make full use of the assets currently immobilized in our jurisdictions, including for the purpose of increasing support for Ukraine in the short term.” Another idea referenced in the budget is to confiscate the interest earned on frozen Russian assets, for transfer to Ukraine.
It’s not clear precisely how much of the Russian central bank’s reserves are frozen in Canada. The RCMP reported in September that about $135-million in Russian assets have been frozen here, but this includes private Russian holdings.
Finance Minister Chrystia Freeland's latest budget projects spending of $535 billion this year, with a deficit of $39.8 billion. She says the spending plan is aimed at creating generational fairness, which will be funded, in part, by changes to capital gains taxes. (April 16, 2024)
The Canadian Press
Steven Chase