What the Liberal-NDP deal could mean for 'aggressive options' on defence spending

On the same subject

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  March 1, 2019 | Local, Aerospace

  Budget officer says used Australian fighter jets will cost Canada over $1 billion — far more than DND claimed

  DAVID PUGLIESE, OTTAWA CITIZEN The purchase of used Australian jets to boost Canada's current fleet of fighter planes could cost taxpayers more than $1 billion, a figure 22-per-cent higher than the Department of National Defence is claiming, according to a new report from parliament's financial watchdog. Parliamentary Budget Officer Yves Giroux examined the cost of buying and upgrading 18 used Australian F-18s and flying them to 2032. His report, released Wednesday, puts the final price tag at between $1.09 billion and $1.15 billion — considerably more than the $895.5 million estimate from DND. “We considered the entire life-cycle cost, from project management up until the very end of the disposal phase,” Giroux said in an interview with Postmedia. “We didn't look at whether it was a good deal.” The PBO's costing included weapons, upgrades needed for the aircraft, annual maintenance fees and the fuel that would be needed over the years of flying the aircraft. We didn't look at whether it was a good deal The Royal Canadian Air Force is using the jets as interim fighters to boost the capability of the current fleet of CF-18s until the purchase of a new generation of aircraft. The RCAF will fly 18 of the Australian jets and use the other seven for parts and testing. The RCAF received its first two used Australian fighter jets at 4 Wing Cold Lake in Alta. on Feb. 16. Deliveries of the jets will continue at regular intervals for the next three years, and the aircraft will be integrated into the CF-18 fleet as modifications are completed, according to the RCAF. The last aircraft are expected to arrive by the end of 2021 and fly until 2032. Giroux said his office used the same figures that DND had but did its own analysis of those cost estimates. “There's no fundamental reason why we should come up with a different number,” he said. “My only sense is that they voluntary budgeted optimistic numbers. The reason why I don't know for sure.” In a statement Wednesday, DND said its cost figures are close to those determined by the Parliamentary Budget Officer. The statement also added that the PBO figures for upgrades of the interim fighter fleet include estimates for CF-18 combat upgrades which the department is still trying to determine. “While we are confident that our methodology is sound, we will continue to work with the PBO, the Auditor General of Canada, and other outside entities as part of our commitment to responsible use of taxpayer dollars,” the statement noted. The Liberal government had planned to buy 18 new Super Hornet fighter jets from U.S. aerospace giant Boeing to augment the Royal Canadian Air Force's CF-18s until new modern aircraft could be purchased in the coming years. But in 2017 Boeing complained to the U.S. Commerce Department that Canadian subsidies for Quebec-based Bombardier allowed it to sell its C-series civilian passenger aircraft in the U.S. at cut-rate prices. As a result, the administration of U.S. President Donald Trump enacted a tariff of almost 300 per cent against the Bombardier aircraft sold in the U.S. In retaliation, Canada cancelled the deal to buy the 18 Super Hornets, which would have cost more than US $5 billion. Instead of buying the new Super Hornets, the Liberals decided to acquire the used Australian jets. In November 2018 the Auditor General's office issued a report noting that the purchase of the extra aircraft would not fix the fundamental weaknesses with the CF-18 fleet which is the aircraft's declining combat capability and a shortage of pilots and maintenance personnel. “The Australian F/A-18s will need modifications and upgrades to allow them to fly until 2032,” the report said. “These modifications will bring the F/A-18s to the same level as the CF-18s but will not improve the CF-18's combat capability.” “In our opinion, purchasing interim aircraft does not bring National Defence closer to consistently meeting the new operational requirement introduced in 2016,” the report added. The Canadian Forces says it is bringing in new initiatives to boost the numbers of pilots and maintenance staff. https://montrealgazette.com/news/canada/budget-officer-says-used-australian-fighter-jets-will-cost-canada-over-1-billion-far-more-than-dnd-claimed/

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  February 22, 2018 | Local, Aerospace

  Approved suppliers for Canada’s new fighter jet

  Publication of the names of entities forming the Suppliers on the Suppliers List This notice is provided in accordance with article 4.2 of the Suppliers List Invitation to publish the names of the entities forming the Suppliers on the Suppliers List. Gouvernement de la République Française - Dassault Aviation (with Thales DMS France SAS and Safran Aircraft Engines) United States Government - Lockheed Martin Corporation (Lockheed Martin Aeronautics Company) United States Government - The Boeing Company Swedish Government - SAAB AB (publ) - Aeronautics Government of the United Kingdom of Great Britain and Northern Ireland - Airbus Defense and Space GmbH https://buyandsell.gc.ca/procurement-data/tender-notice/PW-NGF-002-26574

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  May 25, 2023 | Local, Naval

  Government of Canada announces major investment in Canadian Coast Guard’s small vessels fleet

  Vancouver, British Columbia - Making sure that members of the Canadian Coast Guard have the equipment they need to keep Canada’s waterways navigable and safe is a key priority for the Government of Canada. That includes the Canadian Coast Guard’s small vessels, which play a critical role in our fleet, especially in shallow coastal waters and inland lakes and rivers where larger ships cannot operate. Today, the Honourable Joyce Murray, Minister of Fisheries and Oceans and the Canadian Coast Guard announced a major investment to fund the completion of the renewal of the Canadian Coast Guard’s small vessels fleet. The Honourable Helena Jaczek, Minister of Public Services and Procurement also took part in the announcement from St. John’s, Newfoundland and Labrador, along with Joanne Thompson, Member of Parliament for St. John’s East and Churence Rogers, Member of Parliament for Bonavista—Burin—Trinity. The investment, valued at $2.5 billion, provides for up to 61 small vessels and the ongoing replacement of small craft, barges and work boats with new modern equipment. This investment will help modernize the Canadian Coast Guard’s small vessel fleet, so that they can keep Canadian waterways and Canadians safe, while creating good-paying jobs across Canada. This investment will complete the renewal of the Canadian Coast Guard’s small vessels fleet and enable the Canadian Coast Guard to acquire up to: Six Mid-shore Multi-Mission Vessels; One Near-Shore Fishery Research Vessel; 16 Specialty Vessels comprised of: Two Special NavAids Vessels; Four Special Shallow Draft Buoy Tenders Four Inshore Science Vessels Four Special Enforcement Vessels Two Lake Class Vessels; Four Air Cushion Vehicles; and 34 Cape Class Search and Rescue Lifeboats. The procurement of these small vessels will provide opportunities for smaller shipyards and suppliers across Canada, supporting good-paying jobs in our marine industry. The National Shipbuilding Strategy is creating jobs in Canada’s shipbuilding industry and marine sector, and providing Canadian Coast Guard members with the equipment they need to continue their important work. Under the National Shipbuilding Strategy, 16 small vessels including 14 Search and Rescue lifeboats and two Channel Survey and Sounding Vessels have been delivered to the Canadian Coast Guard. Contracts under the National Shipbuilding Strategy are estimated to have contributed approximately $21.26 billion ($1.93 billion annually) to Canada’s gross domestic product, and created or maintained over 18,000 jobs annually between 2012 and 2022. Quotes “This is a critical investment that will help modernize the Canadian Coast Guard’s small vessel fleet. We are making sure the Canadian Coast Guard has the equipment it needs to keep Canadians and Canada’s waterways safe, while also creating good-paying jobs across the country.” The Honourable Joyce Murray, Minister of Fisheries, Oceans and the Canadian Coast Guard “Through the National Shipbuilding Strategy, the government is providing the members of the Canadian Coast Guard with the ships they need to carry out their important work for Canadians. This significant investment also will create more jobs, generate significant economic benefits and help grow the marine industry throughout Canada.” The Honourable Helena Jaczek, Minister of Public Services and Procurement Quick facts This additional $2.5 billion investment will enable the Canadian Coast Guard to further the renewal of its small vessel fleet through the acquisition of up to 61 small vessels, ensuring the Canadian Coast Guard has the modern equipment it needs to continue to provide vital services to Canadians. Small vessels can provide search and rescue services as well as assistance to disabled vessels and support aid to navigation programs. To date, under the National Shipbuilding Strategy, 16 small vessels have been delivered to Fisheries and Oceans Canada and the Canadian Coast Guard. This includes 14 Search and Rescue lifeboats and two Channel Survey and Sounding Vessels.  The Government of Canada’s National Shipbuilding Strategy is a long-term, multi-billion-dollar program focused on renewing the Canadian Coast Guard and Royal Canadian Navy fleets to ensure that Canada’s marine agencies have the modern ships they need to fulfill their missions, while revitalizing Canada’s marine industry, creating good middle-class jobs and ensuring economic benefits are realized across the country. National Shipbuilding Strategy small vessels construction contracts awarded between 2012 and 2022 are estimated to contribute close to $389.4M ($32.4M annually) to the GDP, and create or maintain 293 jobs annually, through the marine industry and its Canadian suppliers, as well as consumer spending by associated employees. Related products Backgrounder – Timeline of National Shipbuilding Strategy Funding Announcements for the Canadian Coast Guard https://www.canada.ca/en/canadian-coast-guard/news/2023/05/government-of-canada-announces-major-investment-in-canadian-coast-guards-small-vessels-fleet.html