Canada should not waste military resources on defending the Arctic, but should sign on to the U.S. ballistic missile defence program and double the amount of money it gives for foreign aid, a Senate defence committee report released Thursday says.

The senators also say the Defence Department should get special treatment, suggesting that its minister be empowered to spend up to $500 million on equipment without having to go through the long process of cabinet approval.

Military spending is far too low, the report concludes, saying the projected budget of $20 billion by 2012 is "at least $5-billion short and more probably $15-billion short."

On missile defence, the report criticizes the decision by former prime minister Paul Martin to reject Canadian participation in the program.

"The government should not make the mistake that the last government made by refusing to support the United States in this project."

The report concludes that an effective anti-missile system has the potential to save "hundreds of thousands of Canadian lives."

It dismisses critics who say the system is unworkable, saying there have been recent tests that show promising results.

The report also argues that the system, which is being developed at no cost to Canadians, offers a defence that will act solely as a deterrent and not lead to an arms race in space.

"If there is the tiniest chance that it could [work], why would we turn up our noses at the opportunity to be a partner in this project?"

No threat in Arctic: report

The report also focuses on the Arctic and rejects the use of the military as the primary tool to defend the area and criticizes the government's plan to build three Canadian Forces icebreakers.

'There is no serious threat to Canada through the Arctic.'-Senate defence committee report

"There is no serious threat to Canada through the Arctic," the report says, adding that the chances of the Arctic itself being a military target are "ridiculously low."

Instead, defence of the Arctic should be handled primarily by other agencies, including the Canadian Coast Guard, which should be armed, suggested the report.

The report also urges Ottawa to abandon military bases that have outlived their usefulness, naming Happy Valley-Goose Bay in Labrador.

"There are dozens of examples of wasteful military spending across the country, but Goose Bay has become the poster boy in that the bidding by both parties has gotten out of hand," the report says.

'The likelihood of reducing world turmoil through military responses is a mug's game. Force won't work on its own.'-Senate defence committee report

It slams the Liberals and Conservatives for trying to "buy votes rather than fulfilling a legitimate military mandate."

The report cautions, however, that force alone will not prevent conflict and that to help with world stability, Canada should double its "shamefully low" foreign aid to $5.2 billion by 2015.

"The likelihood of reducing world turmoil through military responses is a mug's game. Force won't work on its own."

"When it comes to diminishing conflicts, winning hearts and minds can often be more important than winning battles."