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

Act current to 2021-05-04 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


Marginal note:Definitions

 In this Act,


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


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 includes rate or charge for any service; (prix)


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 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


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
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