General Dynamics Warns Trudeau Over Exit Penalties in Saudi Deal

On the same subject

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  October 14, 2022 | Local, Naval

  Construction of navy's new supply ship halted by strike — government unsure how shipbuilding strategy will be affected

  The labour dispute has entered its second month.

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  May 19, 2020 | Local, Aerospace, Naval, Land, C4ISR, Security

  COVID-19 MAY WELL BE THE END OF THE CANADIAN ARMED FORCES AS WE HAVE KNOWN THEM…AND OF OUR EFFECTIVE SOVEREIGNTY

  The lesson from this history is simple. Cutting defence spending in times of austerity is a bipartisan affair in Canada. This is owing less to politics than arithmetic. DND's budget –which typically ranges from 1/5 to 1/4 of total federal departmental discretionary spending –is too big to be excluded from any serious spending restraint initiative. This is well understood by Liberals, Conservatives and the Finance Department. The COVID-19 Recession and its Impact No one knows how deep or how long the COVID-19-induced recession will be. But every serious analyst agrees it will produce the sharpest drop in output since the Great Depression. The International Monetary Fund, for example, projects a 6.2 per cent annualized decline in GDP for Canada,1nearly double that of the 2009 recession. And already the government's fiscal response is without precedent and will lead to the largest deficit in postwar Canadian history (at least 10 per cent of GDP, or over $200 billion). This does not mean that Ottawa will snap into austerity mode next year. The economy will likely be too weak for that kind of action and cutting government spending is not in the Trudeau government's DNA to begin with... One big difference between now and the past is that there will be enormous pressure on Ottawa after the recession to boost spending in a wide range of areas which have been exposed in the pandemic. These include public health funding, medical research, pandemic prevention and mitigation, the social safety net, and industries particularly hard hit during the recession. There are also Liberal election campaign commitments from 2019 to honour –almost none of which had been implemented pre-pandemic –of which national defence is conspicuously absent. ...this could produce a perfect storm for Strong, Secure, Engaged (SSE). This was always a big risk associated with a defence policy that had its funding ramped up gradually over many years. As the Harper government amply demonstrated, it is relatively easy to reduce or eliminate the rate of planned increases to defence funding –the government took almost no flak for doing so in 2010. Making matters worse, DND has failed to come anywhere near meeting the spending trajectory profiled in SSE, as David Perry has analyzed thoroughly. Which means flattening DND's budget ramp is even more tempting for any government in austerity or even re-prioritization mode. Would a change in government matter here? Unlikely. While the Conservatives are more committed to national defence and the Canadian Armed Forces than the Liberals, they would likely see deficit reduction as their top priority, and it is virtually impossible to have meaningful expenditure restraint that doesn't involve national defence [what the Harper government did from 2010 on]. Conclusion Over the past generation, recessions and the fiscal consolidation that has followed them have had a seriously negative impact on DND's budget. The COVID-19 recession could be the most severe Canada has faced in at least 40 years. It has already resulted in the largest peacetime deficit in Canadian history. And, because of the pandemic, government priorities have changed radically overnight. The future for SSE and its associated funding does not look bright. National Defence probably has a year or two before the crunch hits. Now is therefore the time for strategic thinking and serious priority setting among the political, public service and miitary leadership to ensure that the 2020s don't become another decade of darkness. Eugene Lang is Adjunct Professor, School of Policy Studies, Queen's University, and Fellow, Canadian Global Affairs Institute. He was chief of staff to two ministers of National Defence in the Chrétien and Martin governments and served as an official in the Department of Finance. The 2020s most certainly will be “another decade of darkness”. It is not improbable that the Canadian military, if the Liberals win the next election, will effectively end up as a constabulary/militia force with domestic response to natural disasters of various sorts as its primary function along with very token commitments to UN peacekeeping missions. Bye bye to serious numbers of new RCAF fighters, to serious numbers of new RCN frigates, and to the needed large funding to renew NORAD's North Warning System [see this post: “So Will the Canadian Government Put Some Big Bucks into Modernizing NORAD's North Warning System?“]. And bye bye to any meaningful military participation in NATO. Canada will then finally be defenceless against help from the US ( the following quote is from the last sentence of this earlier CGAI paper's Executive Summary: “Throughout its 60-year existence, NORAD has been Canada's “defence against help.”). Any American administration will have no hesitation in demanding the use of Canadian territory and waters for its own defence purposes if our efforts fall well below what the US thinks necessary. US Air Force bases at Cold Lake, Yellowknife, Goose Bay and a US Navy one at St. John's anyone? Take a look at this as an example of an increasingly prevalent Canadian progressive view; and Justin Trudeau's “base” is progressive to the max: Spending $19 billion on fighter jets won't fight COVID-19 or climate change Instead of buying a new weapons system, the federal government should disarm and invest in a Green New Deal There it is. Plus earlier from Mr Lang: Is the “business Liberal” extinct? By the way the photo at the top of the post is of the Avro CF-100 Canuck interceptor, the first jet fighter developed in Canada–to defend against Soviet bombers...and US help. Mark Collins

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  July 6, 2020 | Local, Naval

  DND denies misjudging supply ship cost even though price tag jumped to $4.1 billion

  DAVID PUGLIESE, OTTAWA CITIZEN Updated: July 2, 2020 The defence department denies it ever misjudged the cost of a project to buy new naval ships even though the price tag jumped from $2.3 billion to $4.1 billion in less than two years. And DND admits the cost to taxpayers for the vessels could rise even more in the coming years. The Liberal government acknowledged on June 15 that the cost of the project to buy two Joint Support Ships has increased to $4.1 billion. The vessels are needed by the Royal Canadian Navy as they would provide fuel, ammunition and other supplies to warships at sea. But the $4.1 billion price tag is just the latest in a series of steadily increasing cost figures. In June 2018, the government acknowledged the cost of the ship project had, at that time, jumped from $2.3 billion to $3.4 billion. But Seaspan, the Vancouver shipyard that is to build the vessels, provided a new set of numbers in October 2019 and by February 2020 government approval was received for a new budget of $4.1 billion, DND confirmed in an email to this newspaper. “As with any large-scale procurement project, all project values are best estimates that are based on the data and figures available at the time,” the email added. There has been no misjudging of costs on the JSS project, the department noted. In 2013, the Parliamentary Budget Officer questioned DND's JSS cost estimates and warned that the project would require $4.13 billion. DND stated in its email to this newspaper that taxpayers can be assured they are getting value for money on JSS and that those working on the shipbuilding project in both the department and Public Services and Procurement Canada are top notch. “The Department of National Defence and the Canadian Armed Forces, along with our counterparts at PSPC, have a first-rate cadre of experienced, professional procurement officers, subject matter experts and financial administrators who take great pride in their work and in their accomplishments,” DND said in an email. “Our team has – and will continue to – ensure that Canadians get value from their investments in the Armed Forces.” But DND also acknowledged costs could continue to rise. “While the total project budget includes contingency funding for these types of reasons, some events may happen unexpectedly and thus excel what the contingency funding allowed for,” the DND email noted. “As a result, it's possible that cost estimates may change for a variety of reasons that can't be controlled or predicted.” Conservative MP Kelly McCauley said DND's claim that project costs weren't misjudged is “BS.” “I don't even have faith in their latest cost of $4.1 billion,” added McCauley, who is behind the effort to get the Parliamentary Budget Officer to do a new report looking at JSS. “It's going to go up.” McCauley said the JSS design is based on the Berlin-class, an existing and proven German Navy ship. But he noted that DND and PSPC keep making changes to the ship, driving up costs and adding delays. DND noted that, “it's not uncommon for the cost estimate to change throughout the duration of a project, especially for a first-of-class ship.” DND also pointed out the construction contract with Seaspan may be changed throughout the duration of the project but added that does not necessarily mean the project budget will increase. The Standing Committee on Government Operations and Estimates recently passed McCauley's motion to request the Office of the Parliamentary Budget Officer undertake a costing analysis of building the JSS in Canada as well as the leasing of Asterix, a commercial ship converted into a supply vessel for the Royal Canadian Navy to use. The PBO report will be presented to the committee by Oct. 15. The Asterix, converted by Davie shipyards in Quebec, was at the centre of the two-year legal battle Vice Adm. Mark Norman found himself in when the RCMP charged him with breach of trust. The police force alleged Norman had tipped off Davie that the Liberal government was planning to delay its Asterix deal. The legal case against Norman collapsed in 2019, forcing the federal government to pay the naval officer an undisclosed financial settlement as well as prompting questions about whether the charge had been politically motivated. The Asterix turned out to be a procurement success and since 2018 has been used to refuel and resupply Royal Canadian Navy and allied warships. The Liberal government tried to derail the Asterix project shortly after being elected in the fall of 2015. The move came after cabinet ministers, including Scott Brison and defence minister Harjit Sajjan, received a letter from the Irving family with a complaint that the Irving proposal for a similar supply ship was not examined properly. Irving has denied any suggestion it was involved in political meddling. But after receiving the letter from the Irvings, the Liberals decided to put Asterix on hold. The government, however, had to back off that plan after news of its decision leaked out to the news media. Shortly after, the RCMP began investigating Norman. https://o.canada.com/news/national/defence-watch/dnd-denies-misjudging-supply-ship-cost-even-though-price-tag-jumped-to-4-1-billion/wcm/6743dc85-efb0-457c-90b9-be1b2d204868