Ottawa commits to spending up to $8 billion on Air Force base in central Labrador

HAPPY VALLEY-GOOSE BAY – The federal government says it will spend a record-setting $8 billion on defence-related projects in Newfoundland and Labrador, though planning remains in the early stages.

The long-term investment for upgrades to 5 Wing Goose Bay, the Royal Canadian Air Force base in central Labrador, would be the largest of its kind in the history of the province, the Defence Department announced Wednesday. 

“These investments at 5 Wing Goose Bay reflect Labrador’s vital role in defending Canada’s north and strengthening our Arctic sovereignty,” Philip Earle, the MP for Labrador, said in a statement.

“At a time when the world is becoming more uncertain, our government is making the serious, long-term investments needed to ensure Canada is prepared, present and resilient in the north.”

The commitment is part of a larger, $32-billion plan to improve airfields, buildings and other infrastructure at four key northern sites used by the Norad military alliance that includes Canada and the United States. The other sites include Inuvik and Yellowknife in the Northwest Territories and Iqaluit, the capital of Nunavut.

The government says improvements to these sites will support Norad missions and allow for rapid mobilization of military resources in the Far North.

The announcement was made by federal Fisheries Minister Joanne Thompson, who is a Newfoundland MP.

Last Thursday, Prime Minister Mark Carney announced $3 billion in new infrastructure and defence spending for Nova Scotia and New Brunswick when he visited a military base in Halifax. 

He made the announcement after confirming Canada is now spending roughly two per cent of its GDP on national defence — a key NATO commitment that Canada has failed to meet in the past, raising the ire of some NATO allies, most notably the United States.

Carney said the new level of funding represented the highest percentage of defence spending relative to the size of the economy since the fall of the Berlin Wall.

Carney’s Liberal government had already committed $63 billion in the past 10 months to reach that target. And on Thursday, he repeated a pledge made in June to invest five per cent of annual GDP on defence by 2035.

“Over the last year, the government of Canada has moved at unprecedented speed and scale to deliver on its plan to rebuild, rearm and reinvest in the Canadian Armed Forces,” the Defence Department’s statement says.

“Meeting (the two per cent target) is not an end point — it is the beginning of a sustained, whole-of-government effort to rebuild the Canadian Armed Forces.”

Part of the $8 billion commitment includes a $187-million upgrade for 5 Wing’s central heating plant by replacing its diesel systems with electric boilers. These upgrades are expected to reduce energy costs by $8.6 million annually, a 77 per cent reduction. Construction will begin in May 2026.

This type of upgrade will help the federal government meet its target of achieving net-zero emissions by 2050, the statement says.

Meanwhile, another $650 million will be spent on similar upgrades across Canada. Projects have already been approved for 9 Wing Gander in central Newfoundland, 17 Wing in Winnipeg and Canadian Forces Base Wainwright in Alberta. Since 2015, the department has completed similar work in 22 locations.

This report by The Canadian Press was first published April 1, 2026.