[The past year] has been a crucial year for the Canadian Forces. It has demonstrated that we are at a crossroads as an institution – a crossroads between the past and the future.

Over the past 12 months, we have witnessed the brutality of terrorism and the potential dangers that a wide range of new asymmetric threats poses to civil society and to Canadians. We have also been reminded of the depth of our relationship with the United States, and the importance and value of working together to ensure the security of our citizens. In addition, we have seen the largest deployment of Canadian forces into international operations since the Korean War.

Recent events have also reinforced the fact that the strategic environment in which we operate has changed over the past decade and that it continues to evolve. Since the end of the Cold War, we have gone from a North Atlantic Treaty Organization force, forward-deployed in Europe, to a force that must be ready to answer the Government's call to action on a global basis, from humanitarian assistance to combat operations.

Closer to home, the past decade has reinforced the Canadian Forces' unique role as Canada’s "force of last resort" and the importance of being prepared to assist the Government, including the protection of Canada’s critical infrastructure. Clearly in the aftermath of September 11^th, both the United States and Canada are moving ahead to strengthen our collective defence and security.

We have recognized the dangers of modern operations and the growing list of new threats to which we must respond. We have invested in a focused and deliberate manner in our people, in training, and in the modern equipment needed to ensure we remain relevant, combat capable and inter-operable with our allies.

The Canadian Forces leadership has also clearly stated that, while our strategy for the future is sound, the status quo is not sustainable. Operational and personnel tempo remain high, we face significant recruiting and retention challenges, we are carrying a significant amount of aging infrastructure, and we need to modernize equipment and capabilities in key areas. Most importantly, and as many of our allies are doing, we need to continue transforming the CF into an organization that has the capabilities needed for the future.

Nor will [more money alone] eliminate the need to make tough choices on how best to optimize and modernize the Canadian Forces. Further, we must recognize that the Government, through Budgets 1999, 2000, and 2001, has authorized increases in defence spending commencing in fiscal year 2001-2002. While these additional resources do not overcome all of our operational, sustainment and modernization challenges, they do provide for a number of personnel initiatives and investment opportunities, and serve to increase our ability to support counter-terrorism and respond to asymmetric threats.

We are making the fourth largest contribution to the campaign against terrorism. Our land forces have played an important combat role in Afghanistan, alongside their U.S. counterparts. Our Navy is fully interoperable with the U.S. and other coalition naval forces in area naval operations. Our Air Force has provided air transport and maritime patrols throughout the campaign. In addition, we are providing air, land and naval forces to 12 other missions around the world including the Balkans and the Middle East.

To remain relevant, however, we must ensure the Canadian Forces are affordable and sustainable in the long term. Given this, and the changes shaping Canada’s security and defence environment, the Government has announced a defence update. This may generate some uncertainty about the future by its very nature, but the core tenets of Canada’s defence policy remain sound. Canada continues to need and benefit from multi-purpose, combat capable forces. However, the update will provide greater clarity and direction into the future.

Our main priority remains, as always, to deliver on operations. Our main function is to provide defence and security for Canadians, and operations are the most visible and important element of that task.

That said, we must continue to put people first. No amount of new technology will compensate for a force without professionalism, expertise and motivation. Our people are our lifeblood, and the military demands more from its people than perhaps any other profession – namely, it asks them to serve anywhere, anytime and with unlimited liability. In other words, we ask our men and women to be prepared to sacrifice their lives as part of their job.

In return, we must keep their needs and those of their families at the forefront of our thinking and decision-making. That means managing our operational tempo and recruiting and retention challenges, continuing to invest in leadership and professional development, and promoting diversity. It also means ensuring our people have the right tools to do their job.

That is why we must modernize and enhance our operational capabilities. We must be able to deploy globally and remain inter-operable with our allies to deal with asymmetric threats. Furthermore, we must support the revitalization and restructuring of the Reserves. And we must ensure our resulting force structure is affordable and sustainable.

Finally, we must be proactive in communications. We have made enormous progress in strengthening our external communications through a series of initiatives including the Canadian Forces Parliamentary Program. We must also do more to enhance our internal communications with the men and women of the Canadian Forces.

Canadian Forces members, Regular Force and Reserve, capably supported by the civilian members of the Defence Team, are doing an outstanding job of serving their country. I am fully confident in the Canadian Forces’ ability to meet the challenges as we continue to provide for the defence and security of Canadians today and concurrently prepare for the future.

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