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

Act current to 2020-07-28 and last amended on 2017-09-21. Previous Versions

PART 1Procurement of Defence Supplies (continued)

Staff (continued)

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

Marginal note:Expenditures from C.R.F.

 There may be expended from the Consolidated Revenue Fund amounts for the following purposes:

  • (a) to pay the cost of acquisition, storage, maintenance or transportation of stocks of materials or substances purchased pursuant to section 15, or stocks of defence supplies acquired under section 16, that the Minister deems it is advisable to maintain; and

  • (b) to pay the cost of acquisition, storage or maintenance of defence supplies requisitioned for payment out of an appropriation or by an agent of Her Majesty or to be paid for by an associated government, such amounts if paid to be recovered from the appropriation or from the agent or associated government.

  • R.S., c. D-2, s. 15
  • 1980-81-82-83, c. 17, s. 12

Marginal note:Expenditures from C.R.F.

  •  (1) There may be paid from the Consolidated Revenue Fund amounts for loans or advances authorized under this Act for any purpose other than to assist in the construction, acquisition, extension or improvement of capital equipment or works by any person.

  • Marginal note:Defence Production Loan Account

    (2) There shall be established in the accounts of Canada, for the purposes of this section, an account to be known as the Defence Production Loan Account and to which shall be charged all moneys to be paid pursuant to subsection (1).

  • 1980-81-82-83, c. 17, s. 12

Marginal note:Limitation on amount expended from C.R.F.

  •  (1) The aggregate of expenditures made pursuant to section 17 and subsection 18(1) shall not at any time exceed by more than one hundred million dollars the aggregate of amounts

    • (a) received by the Receiver General from the disposition by the Minister of materials, substances or defence supplies referred to in paragraph 17(a);

    • (b) charged to another appropriation in respect of costs referred to in paragraph 17(a), where the materials, substances or defence supplies may be acquired under that appropriation;

    • (c) charged to an appropriation or paid by an agent of Her Majesty or by an associated government to pay costs incurred in respect of defence supplies payment for which was made out of the Fund under paragraph 17(b); and

    • (d) received in repayment of a loan or advance referred to in subsection 18(1).

  • Marginal note:No credit of loss against expenditure without appropriation

    (2) No loss sustained in respect of the acquisition and subsequent disposition of any defence supplies or on account of any loan or advance or otherwise may be credited against any expenditure made pursuant to section 17 or subsection 18(1), except pursuant to an appropriation by Parliament for that purpose.

  • R.S., 1985, c. D-1, s. 19
  • 2004, c. 25, s. 126
 
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