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Defence Production Act (R.S.C., 1985, c. D-1)

Act current to 2022-09-22 and last amended on 2017-09-21. Previous Versions

Defence Production Act

R.S.C., 1985, c. D-1

An Act respecting defence production

Short Title

Marginal note:Short title

 This Act may be cited as the Defence Production Act.

  • R.S., c. D-2, s. 1

Interpretation

Marginal note:Definitions

 In this Act,

Account

Account means the Defence Production Loan Account established under section 18; (compte)

associated government

associated government means Her Majesty’s Government in the United Kingdom, any other government of the Commonwealth, the government of a country that is a member of the North Atlantic Treaty Organisation or the government of any other country designated by the Governor in Council as being a country the defence of which is vital to the defence of Canada; (gouvernement associé)

construct

construct includes repair, maintain, improve or extend; (construction)

defence contract

defence contract means

  • (a) a contract with Her Majesty or an agent of Her Majesty, or with an associated government, that in any way relates to defence supplies or to defence projects or to the designing, manufacturing, producing, constructing, finishing, assembling, transporting, repairing, maintaining, servicing or storing of, or dealing in, defence supplies or defence projects, and

  • (b) a defence subcontract; (contrat de défense)

defence projects

defence projects means buildings, aerodromes, airports, dockyards, roads, defence fortifications or other military works, or works required for the production, maintenance or storage of defence supplies; (ouvrages de défense)

defence subcontract

defence subcontract means a contract or arrangement between any persons whomever,

  • (a) to perform all or any part of the work or service or make or furnish any article or material for the purpose of any other defence contract,

  • (b) under which any amount payable is contingent on the entry into of any other defence contract or determined with reference to any amount payable under or otherwise by reference to any other defence contract, or

  • (c) under which any part of the services performed or to be performed consists of soliciting, attempting to negotiate or negotiating any other defence contract or soliciting or negotiating for the purchase or sale of any articles, materials or services required to fulfil any other defence contract,

and, for greater certainty but not so as to limit the foregoing, for the purposes of this definition the expression other defence contract includes a defence subcontract; (sous-contrat de défense)

defence supplies

defence supplies means

  • (a) arms, ammunition, implements of war, vehicles, mechanical and other equipment, watercraft, amphibious craft, aircraft, animals, articles, materials, substances and things required or used for the purposes of the defence of Canada or for cooperative efforts for defence being carried on by Canada and an associated government,

  • (b) ships of all kinds, and

  • (c) articles, materials, substances and things of all kinds used for the production or supply of anything mentioned in paragraph (a) or (b) or for the construction of defence projects; (matériel de défense)

Department

Department means the Department of Public Works and Government Services; (ministère)

government issue

government issue means machinery, machine tools, equipment or defence supplies furnished by the Minister or by an agent of Her Majesty on behalf of Her Majesty or on behalf of an associated government or acquired or purchased on behalf of Her Majesty or on behalf of an associated government with funds provided by the Minister or by an agent of Her Majesty or by an associated government; (fournitures d’État)

Minister

Minister means the Minister of Public Works and Government Services; (ministre)

order

order means a general or specific order, requirement, direction or prescription in writing made or issued under this Act or a regulation; (arrêté ou décret)

price

price includes rate or charge for any service; (prix)

royalties

royalties includes

  • (a) licence fees and all other payments analogous to royalties, whether or not payable under any contract, that are calculated as a percentage of the cost or sale price of defence supplies or as a fixed amount per article produced or that are based on the quantity or number of articles produced or sold or on the volume of business done, and

  • (b) claims for damages for the infringement or use of any registered topography within the meaning of the Integrated Circuit Topography Act or of any patent, certificate of supplementary protection issued under the Patent Act or registered industrial design; (redevances)

sale

sale includes consignment or other disposition of materials and the supplying of any service. (vente)

  • R.S., 1985, c. D-1, s. 2
  • 1994, c. 47, s. 220
  • 1996, c. 16, ss. 60, 61
  • 2004, c. 25, s. 123(F)
  • 2017, c. 6, s. 126

PART 1Procurement of Defence Supplies

Staff

Marginal note:Appointment and employment

  •  (1) Such officers, clerks and employees as are necessary for the proper conduct of the business of the Department under this Act may be appointed in the manner authorized by law but the Minister may

    • (a) with the approval of the Treasury Board, employ such technical or other temporary employees as the Minister deems necessary and, with its approval, fix the remuneration of, and prescribe the travel or other expenses that may be incurred by, those employees; and

    • (b) employ any person to hold a position under this Act for a period not exceeding sixty days and fix the remuneration of, and prescribe the travel or other expenses that may be incurred by, that person.

  • Marginal note:Exception

    (2) Where the Governor in Council decides that it is not practicable or is not in the public interest to apply subsection (1) to any position or employee or any class thereof, the Governor in Council may exclude that position or employee or that class in whole or in part from the provisions of subsection (1) and may make such regulations as the Governor in Council deems advisable with respect to employment therein, including appointment, organization, classification, rates of compensation and terms and conditions of employment.

  • R.S., c. D-2, s. 3

Marginal note:Minister’s functions dischargeable by persons deputed by Minister

 The Minister may authorize any person, on behalf and under the control and direction of the Minister, to do any act or thing or to exercise any power that the Minister may do or exercise under this Act.

  • R.S., c. D-2, s. 4

Marginal note:Appointment of persons to advise and aid Minister

 The Governor in Council may appoint advisers and establish advisory and other boards, composed of such members as the Governor in Council may appoint, to advise or aid the Minister, which advisers and boards are to perform such duties and exercise such powers as he may designate, and may fix the remuneration and expenses to be paid to persons appointed under this section.

  • R.S., c. D-2, s. 5

Marginal note:Corporations

  •  (1) If the Minister considers that it is likely to facilitate the carrying out of the purposes and provisions of this Act, the Minister may, with the approval of the Governor in Council, procure the incorporation of any one or more corporations for the purpose of undertaking or carrying out any acts or things that the Minister is authorized to undertake or carry out under this Act.

  • Marginal note:Removal and appointment

    (2) The Minister may remove any members, directors or officers of a corporation incorporated under this section at any time and may appoint others in their stead or may appoint additional persons as members thereof.

  • Marginal note:Agent of Her Majesty

    (3) A corporation incorporated under this section is for all purposes an agent of Her Majesty and it may exercise its powers only as an agent of Her Majesty.

  • R.S., c. D-2, s. 6

Marginal note:Legal proceedings

 Actions, suits or proceedings in respect of any right or obligation that a corporation incorporated under section 6 acquires or incurs on behalf of Her Majesty, whether in its name or in the name of Her Majesty, may be brought or taken by or against the corporation in the name of the corporation in any court that would have jurisdiction if the corporation were not an agent of Her Majesty.

  • R.S., c. D-2, s. 6

Marginal note:Audit

 The accounts of a corporation incorporated under section 6 shall be audited by the Auditor General of Canada.

  • R.S., c. D-2, s. 6
  • 1976-77, c. 34, s. 30(F)

Marginal note:Minister may contract with corporation

  •  (1) Notwithstanding that a corporation is an agent of Her Majesty, the Minister may, on behalf of Her Majesty, enter into a contract under this Act with the corporation as if it were not an agent of Her Majesty.

  • Marginal note:Contract with person to act as agent of Her Majesty

    (2) The Minister may, with the approval of the Governor in Council, enter into a contract with a person authorizing that person to act, under the control and direction of the Minister, as an agent of Her Majesty, for any of the purposes for which the Minister is authorized to act on behalf of Her Majesty under this Act.

  • R.S., c. D-2, s. 7

Powers and Duties of the Minister

Marginal note:Powers relating to all departments

  •  (1) Subject to this Act, the Minister may exercise the powers conferred by this Act on the Minister in relation to defence supplies or defence projects required for the purposes of any department in, or portion of, the federal public administration.

  • Marginal note:Powers relating to National Defence

    (2) The Minister shall have exclusive authority to buy or otherwise acquire defence supplies and construct defence projects required by the Department of National Defence, except

    • (a) defence projects to be constructed by persons in the employ of Her Majesty; and

    • (b) such defence supplies or defence projects as the Minister of National Defence or any other Minister designated by the Governor in Council may procure or construct at the request of the Minister.

  • Marginal note:Powers conferred by other Acts

    (3) The Minister may exercise powers and carry out duties and functions conferred or imposed on the Minister by or pursuant to any other Act.

  • R.S., 1985, c. D-1, s. 10
  • 2003, c. 22, s. 158(E)

Marginal note:Acts on behalf of associated government

 The Minister, if authorized by the Governor in Council to do so, may do or undertake, on behalf of an associated government, any act or thing that the Minister is authorized to do or undertake by this Act on behalf of Her Majesty.

  • R.S., c. D-2, s. 9

Organization of Industry for Defence

Marginal note:Duties of Minister

 The Minister shall examine into, organize, mobilize and conserve the resources of Canada contributory to, and the sources of supply of, defence supplies and the agencies and facilities available for the supply thereof and for the construction of defence projects and shall explore, estimate and provide for the fulfilment of the needs, present and prospective, of the Government and the community with respect thereto and generally shall take steps to mobilize, conserve and coordinate all economic and industrial facilities in respect of defence supplies and defence projects and the supply or construction thereof.

  • R.S., c. D-2, s. 10

Marginal note:Minister may require returns to be made

  •  (1) The Minister may, by notice in writing, require any person referred to in subsection (2) to make periodical or other returns, at such times and containing such particulars as may be specified in the notice, with respect to defence supplies produced, dealt in or controlled by the person or that the person holds, has contracted for or contemplates acquiring, and the sources of supply thereof, and with respect to the facilities or accommodation that the person has available for or that are adaptable to the production or storage of defence supplies or the construction of defence projects.

  • Marginal note:Persons who are to make returns

    (2) The Minister may require the returns referred to in subsection (1) to be made by any person who

    • (a) produces, deals in or has control of defence supplies or constructing defence projects; or

    • (b) carries on a business or possesses accommodation or facilities that, in the opinion of the Minister, is or are suitable for or can be adapted to producing, dealing in or storing defence supplies or constructing defence projects.

  • R.S., c. D-2, s. 11

Marginal note:Other departments to assist Minister in obtaining information

 Where a Government department has, under or pursuant to any Act, power to obtain, for any purpose, information as to matters with respect to which the Minister is empowered to require returns to be made, that department shall, if so required by the Minister, exercise that power for the purpose of assisting the Minister in obtaining any such information.

  • R.S., c. D-2, s. 12

Marginal note:Stock-piling

 The Minister may, on behalf of Her Majesty and subject to this Act, acquire, store, maintain, transport, sell, exchange or otherwise dispose of such materials or substances as may be designated by the Governor in Council as materials or substances essential to the needs of the community of which it is advisable to maintain stocks in order to safeguard against possible shortages thereof.

  • R.S., 1985, c. D-1, s. 15
  • 2004, c. 25, s. 124(F)

Defence Procurement

Marginal note:Ministerial powers of procurement and disposal

 The Minister may, on behalf of Her Majesty and subject to this Act,

  • (a) buy or otherwise acquire, utilize, store, transport, sell, exchange or otherwise dispose of defence supplies;

  • (b) manufacture or otherwise produce, finish, assemble, process, develop, repair, maintain or service defence supplies or manage and operate facilities therefor;

  • (c) construct or acquire defence projects and sell, exchange or otherwise dispose of them;

  • (d) arrange for the performance of professional or commercial services;

  • (e) purchase or otherwise acquire, sell, exchange or otherwise dispose of real or personal property or any interest in real or personal property, or an immovable or a movable or any right in an immovable or a movable, that, in the opinion of the Minister, is or is likely to be necessary or desirable for any of the purposes mentioned in paragraph (a), (b) or (c);

  • (f) make loans or advances to or guarantee repayment of loans or advances made to a person

    • (i) for the purpose of providing assistance for the construction, acquisition, extension or improvement of capital equipment or works by, or to provide working capital for, that person for the manufacture, production, finishing, assembling, processing, development, storage, transportation, repairing, maintenance or servicing of defence supplies or for the construction or operation of defence projects, or

    • (ii) by way of advance payment on account of or to enable that person to carry out any contract entered into with the Minister under this Act or any defence contract; and

  • (g) do all such things as appear to the Minister to be incidental to or necessary or expedient for the matters referred to in the foregoing provisions of this section or as may be authorized by the Governor in Council with respect to the procurement, construction or disposal of defence supplies or defence projects.

  • R.S., 1985, c. D-1, s. 16
  • 2004, c. 25, s. 125
 
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