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Defence: $12.7-billion infusion ;D

big bad john

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Forces still waiting for new planes
Promised last year: Ageing search and rescue aircraft need to be replaced
 
Chris Wattie
National Post


Monday, February 21, 2005

 
A government promise of $300-million for the purchase of new search and rescue aircraft in last year's budget is stuck in the defence procurement process despite a pledge to fast-track the program.

And critics say that speaks volumes about the sincerity of Liberal promises to increase defence spending in this week's budget, reportedly by $750-million.

"It's a favourite trick," said Dr. David Bercuson, the director of the University of Calgary's Centre for Military and Strategic Studies. "They make a promise and then they spin it out over several years.... It makes you wonder about the promises they're going to make this year, doesn't it?"

In his budget last April, Ralph Goodale, the Finance Minister, promised $300-million to the Canadian Forces to allow them to purchase 15 aircraft "within 12 to 18 months" to replace ageing CC-130 Hercules and CC-150 Buffalos now used for search and rescue duties.

But the air force now says it could be quite a bit longer before new planes are finally delivered to its squadrons.

Captain Jim Hutcheson, a spokesman for the air force, said that for the past year, the project has been stalled in its initial stages, awaiting its "statement of requirement," a technical document listing the performance and other needs that the aircraft must fulfill -- from speed and maximum altitude to cargo capacity and maintenance requirements.

"That part is basically done, pending whatever happens in the defence policy review," he said.

He said the purchase cannot begin to move forward until the Defence Minister introduces a defence policy paper outlining the future direction of the Canadian military, expected sometime next month.

And Capt. Hutcheson acknowledged the prediction in last year's budget that the new aircraft could be bought within a year to 18 months was a bit optimistic. "Yes, it's turning out that way," he said.

"We definitely want it in place by 2010 ... that's when the Buffalo, as it's currently planned, will cease flying. But I know that they want to have it in place before then, because it's a high-priority project and they want to complete it as quickly as possible."

But military analysts say the rescue plane program is symptomatic of an overly complicated purchasing system and time- consuming bureaucracy in the Department of National Defence.

"The procurement process in this country is so drawn-out and convoluted that it's almost impossible for anyone to tell what's going on with any given project at any given time," Dr. Bercuson said.

"The procurement process is broken ... [and] until that's fixed, you cannot do anything to improve the state of our military."

Capt. Hutcheson said once the statement of requirement is completed and approved, a call for bids from aircraft manufacturers will be issued and a contract tendering process will begin, a process that could take more than a year.

After that, the winning company must still build the 15 aircraft and have them tested and accepted by the air force.

Capt. Hutcheson said the entire process is "perfectly do-able by 2010," but could not predict whether the new planes could be delivered earlier or how much earlier.

But Alain Pellerin, the director of the defence lobby group Conference of Defence Associations, said the delays to the project are denying air force pilots of a badly needed new plane.

"Historically in Canada, these large capital projects take 10 to 15 years," he said. "In the meantime, there's more and more pressure on the Hercules fleet. Fewer of them are serviceable every year."

The project is also being slowed by an air force study into how best to meet its cargo and troop-carrying needs in the future. Senior air force officers have reportedly been pushing for the government to purchase new, large cargo aircraft such as the Boeing C-17 Globemaster to replace the Hercules, so far with little success.

However, the new search and rescue aircraft could play a role in supplanting the Hercules for smaller loads and shorter distances.

"It is going to primarily, if not entirely, address search and rescue ... but in addition to doing [that] job, it will have to fit in to the overall airlift solution that the forces is going to have to put into place," Capt. Hutcheson said.

"Whatever aircraft is selected will have to be the appropriate piece in the puzzle in addition to fitting in with other airlift resources, whether it's Herc replacements or whatever."

The fixed-wing search and rescue project has been the top priority for the air force for the past two years, since new aircraft would free up Hercules transport planes that must now be on standby for rescues.

That would reduce the strain on the fleet of 40-year-old cargo planes, which are spending increasing amounts of time in hangars being repaired because of their age and high rate of use.

The search and rescue planes are needed to answer distress calls over 15.5 million square kilometres inside Canadian air space.

The Buffalos went into service in the mid-1960s and were to be phased out in 2002, but their life expectancy was extended. They are currently available only about half the time they are needed.

The Hercules were to be replaced by 2010, but the air force is considering keeping them flying until as late as 2038, when they would be well over 70 years old.

© National Post 2005
 
big bad john said:
The Hercules were to be replaced by 2010, but the air force is considering keeping them flying until as late as 2038, when they would be well over 70 years old.


Can this part really be true? Or has the Air Force finally pre-empted the politicians and assumed they will not be able to replace until then? What's the deal?
 
First the Politicans promise the funds.  Second, they then give you less than promised.  Third, you then have a competition for the best aircraft.  Forth, the pols then over rule the decision to buy the best aircraft to buy the most politically expedient aircraft.  Fifth, they then cut the budget again.  Sixth, you then tender the bid and get a number on the production line.  Remember, the process can be cancelled at any time or you can be made to start over at any time.  Finally you get the aircraft, but only if you are very, very lucky.

I think that I have it right.  Of course I am new to Canada.  Corrections anyone?
 
big bad john said:
First the Politicans promise the funds.   Second, they then give you less than promised.   Third, you then have a competition for the best aircraft.   Forth, the pols then over rule the decision to buy the best aircraft to buy the most politically expedient aircraft.   Fifth, they then cut the budget again.   Sixth, you then tender the bid and get a number on the production line.   Remember, the process can be cancelled at any time or you can be made to start over at any time.   Finally you get the aircraft, but only if you are very, very lucky.

I think that I have it right.   Of course I am new to Canada.   Corrections anyone?
I'll just add one large bottleneck to your listing - Public Works and Government Services Canada who do the actual contracting and procurement for the CF.  Having dealt with their procurement system on numerous occasions for small (less than $1million) projects, I've experienced the time that heavy and ponderous bureaucracy can add to the process.  In the case of a major capital project, it can be several years, especially if the politicians add the old "economic benefits" clause to any procurement, i.e. spreading gubmint cheese to various Liberal ridings by sub-contracting, etc (which is why off-the-shelf purchases for the CF are few).
 
Troops will have to wait for increased funding: Government review of military policy won't be ready in time for tomorrow's budget

--------------------------------------------------------------------------------

The <Canadian> Forces should temper their expectations going into tomorrow's federal budget, partly because the government policy review charting the military's course will not be ready in time, sources say.

Finance Minister Ralph Goodale's second budget will not contain a large, immediate infusion of cash for defence, sources told <Canadian> Press.

Instead, commitments will be made over five years and built upon after the policy review process is complete, said senior defence officials, who spoke on condition of anonymity.

"The defence policy review will look at the next few years, as we expect the budget will," one source said.

"Resources will be there when the time comes."

In the Commons yesterday, Defence Minister Bill Graham said the government will "proceed in an intelligent, measured way to get what the armed forces need."

"I'm confident that the finance minister will be giving us the resources this week in the budget and we will have a defence review which clearly lays out an active, proactive role in defence matters that helps the rest of the world."

Policy planners went back to the drawing board in December after Graham threw out initial drafts of the policy statement and later appointed a new chief of defence staff, Gen. Rick Hillier.

The policy document, which could call for major investments in new ships and aircraft, is in its final stages and will be released soon.

The total cost over five years has been estimated in the $800-million range.

Defence sources suggest the budget will also incorporate raises and the five-year, $1-billion cost of expanding the military by the 5,000 full-time troops and 3,000 reservists the Liberals have promised.

The initial investment in the latter commitment is expected to be about $250 million in the first year, sources said.

The total estimate includes recruiting, training and integrating the new members, most of whom are expected to go to the <army>.

Conservative MP Peter MacKay said the Liberals need to make a statement in tomorrow's budget.

"This Liberal government has systematically dismantled the <Canadian> Forces over the last 12 years," he told the Commons. "The promises to repair the military are hollow, they're repeated year after year.

"Will the budget continue the Liberal trend of dismantling and dithering and delaying, or will we actually see a firm commitment?"

Replied Graham: "This government is committed to rebuilding our forces. We will rebuild the <Canadian> Forces. We will rebuild it in an intelligent, focused and determined way."

The Conference of Defence Associations has called on Ottawa to increase the $13.2-billion defence budget by $1.5 billion this year and by another $1.5 billion annually to a total of $20 billion.

Defence sources said those figures have been rejected as beyond the realm of affordability.

The $20 billion the group is calling for represents 1.6 per cent of <Canada's> gross domestic product, or the average share of defence money among NATO member countries. The current defence budget represents one per cent of <Canada's> GDP.

The association's recommended initial infusion of $1.5 billion would "stop the decline in CF operational capabilities, and provide an essential firm base for rebuilding and transforming (modernizing) the CF," it said.



Here's your answer folks...more of the same
 
Let's see:

1.      Your Cheque is in the Mail.

2.      I won't ______ in your mouth.

3. ..............

I guess we have heard it all before.......  ::)

What is the wager on how long this Defence Review will take?

 
Let's see .....they'll do the review, Then it will be put on hold because there'll be an election, then the new government will have to conduct it's own review because things have changed since the last review....and then it'll be "Well we'd like to buy all this stuff but we need money for "National Daycare for gay baby whales and harp seals." and so on and so on...... do I sound bitter?
 
I think its alright for  you to feel bitter .  Its hard to do you job when you don't have the right equipment and a Gov that seem's not to care .  Like my Daddy said when it comes to the gov promises don't count on them till there in your hand .
 
Defence to get $13B more over 5 years: CP

Canadian Press
 
Updated: Tue. Feb. 22 2005 9:08 PM ET

OTTAWA - A massive injection of funds totalling $13 billion for Canada's cash-strapped military will be announced in Wednesday's federal budget, sources say.

About one-third of the funding, which will be spread over five years, will be directed towards capital projects and infrastructure for the military, senior sources told The Canadian Press.

The total includes redistribution of some existing funds, as well as new money, with spending likely to ramp up slowly over the coming years.

The budget will also allow Canadians to keep a few more loonies in their pockets, after but harassed parents must wait longer to see relief in the form of a national child-care program. On the personal income tax front, Finance Minister Ralph Goodale will announce an increase totalling almost $2,000 over the next four years in the basic personal amount that one can earn before income tax kicks in.

Sources say that's expected to ultimately bump about 800,000 low-income earners off the federal tax rolls.

The increase to $10,000 in the basic personal exemption by 2009 -- from the 2005 level of about $8,150 and last year's level of $8,012 -- will apply equally to all taxpayers, regardless of income.

Small corporate tax breaks will also be announced as the Liberals reveal their eighth consecutive balanced budget, sources say.

The large budget increase for the military and reduction in personal taxes could help the minority Liberals win some badly needed support from Opposition Conservatives, who have 99 seats in the Commons.

The Conservatives may also be pleased with the Liberal go-slow approach to a national child-care program.

This budget pledges only about $700 million in the coming fiscal year for child-care _ an amount critics say is hardly a promising start to the $5-billion, five-year program that was the centrepiece of the Liberal election platform last June.

Advocates say what's really needed is a yearly commitment of at least $1 billion to kick-start a national child-care plan and lure provinces onside.

The small amount won't go far when spread over several provinces, such as Ontario and Manitoba, that are ready to work with Ottawa.

Struggling families across the country need help fast, says Monica Lysack, executive director of the Child Care Advocacy Association of Canada.

"If you're parenting a two-year-old and a four-year-old ... you need it right now -- not next year.''

The pokey pace on child care won't please the opposition New Democrats, whose 19-seat support is important to the 133 minority Liberals.

But NDP concerns may be assuaged by the pledge of at least $1 billion over five years for a clean energy fund to help Ottawa meet its commitments under the Kyoto environmental accord.

Over that same five-year period, the military will be able to implement pay raises as well as an expansion of personnel, by 5,000 full-time troops and 3,000 reservists. >

Prime Minister Paul Martin and his finance minister want to keep the opposition onside -- they can't forget that the last time a minority government presented a federal budget in 1979, the Conservative government of the day soon fell.

Goodale's document -- titled Delivering On Commitments -- will aim to meet Liberal election promises while setting out what could be Martin's next platform.

Part of that includes tax breaks, however small.

Just what the rise in the basic personal exemption will mean to individuals depends on their incomes.

Still, it helps meet the promise of tax reductions for modest-income earners, made last fall to win Conservative support for the Liberal minority's throne speech.

Goodale's second budget is also expected to:

Spend $400 million to help immigrants settle, with more funding for job training.
Offer $600 million for communities as the first year of a five-year, $5-billion deal. _ Increase benefits for seniors totalling about $500 million over two years.
Cut the number of weeks needed for EI eligibility.
Increase foreign aid.
Spend about $100 million over two years to replace dilapidated native housing. _ Offer roughly $150 million over five years for learning programs on reserves.
Add $20 million for Sport Canada and extend existing programs. With Goodale predicting tight budgets in the next two years, this document will focus on sprinkling small sums of seed money widely across many projects.
The minister insists only tiny federal surpluses of $4.5 billion and $5.9 billion are expected in the next two fiscal years.

Those figures drop below $1 billion after his annual rainy day funds of $4 billion in 2005-06 and $5 billion in 2006-07 are subtracted.

Money is particularly scarce just now, noted Goodale, due to costly promises to provinces last fall -- a $41-billion, 10-year health pact as well as a $33-billion equalization deal over the same period. Opposition finance critics say they don't believe his numbers.

Tuesday, each party presented its own surplus calculations ranging anywhere from $4.1 billion to $12.6 billion for the year 2005-06.




© Copyright 2004 Bell Globemedia Inc.



 
Man oh man this would be so sweet if it was True I hope it is . The Military deserves to have that money and more . The income tax would help me out abit to so good all around but we will just have to wait for it though the worse part i hate waiting LOL . ;D
 
Remember, even if it is true, it has to be passed through parliment. You better hope the conservatives come on side.
 
I think they forgot to add a minus sign before the number. As it is, my bull**** detector is going crazy.

I do hope the military gets more money though. It would definately help a lot.
 
Another Recce Guy said:
Defence to get $13B more over 5 years: CP

Over that same five-year period, the military will be able to implement pay raises as well as an expansion of personnel, by 5,000 full-time troops and 3,000 reservists. >

You still have to take in account there will be about 8,000 more new troops coming into the system... One can only hope the money is spent well -  at least ensuring they receive 2 pairs of combat boots ::). Other than that, they better invest a sufficient amount of money into getting more kit into the system, it's hard as it is with 8,000 less people as you all know. Oh yea, but if actually happens it will be great, just have to watch and shoot I suppose. Imagine if we can one day have the Canadian army at full strength.
 
Two other noteworthy events:

Ottawa and Quebec are putting 750,000,000 into Bell Helicopters at Mirabel to "develop a new civilian helicopter"

Bell is part of the US101 consortium -  should help to soothe damaged feelings about the MHP buy - and could open the way to discussions on Griffon upgrades and possibly even (dreaming) AH-1Zs and/or EH-101s for Tpt.

Also Jerry Schwartz of Onyx (the guy who tried to buy Air Canada and IIRC whose wife owns Indigo/Chapters) just bought a division off of Boeing in Kansas that used to employ 18,000 people.  Intends to supply fuselages to Boeing "and other aircraft manufacturers" like even Airbus for civilian applications.

In the world of governmental quids pro quo does this open the line to buying 747s or C-17s now that Canada has a stake in the US aircraft industry?  Could it also have implications for the Airbus A400M?

Things are looking quite interesting.

At the same time Martin says absolutely no BMD he praises Bush, increases military spending and his Ambassador says Washington has got what it asked for on BMD.

Funny old world.
 
Kirkhill, I was chatting with someone close to things in Mirabel and they said that things look good for Bell Textron getting the US Army's contract for the ARH replacement to today's OH-58D Kiowa Warrior.   A related article is included below, and notes that "The Bell ARH, which will be built at Bell's Military Assembly and Integration Center in Amarillo, Texas, will also draw from a large and talented supplier base for its sophisticated sensors, weapons and defensive systems."   What my contact mentioned was that "built" means "sub"-assemblies made on the current 407 line in Mirabel, then shipped to Amarillo, where the helicopter will be   ;) "built".   Fact is, all the [very expensive] tooling is in Mirabel and would jack costs way too much to duplicate a line in Texas

Bell proposes version of its Model 407 for US Army Armed Reconnaissance Helicopter. and an equally interesting article Analysis of US ARH Program - Flight International

I wonder if there will be any US-101 parts made in Mirabel, then sent down to Texas for finally assembly?   Ah yes, the world gets to be a very complicated place, doesn't it?   ;D

I hope we do get some good news tomorrow...here's hoping, folks!

Cheers,
Duey
 
On the lighter side folks. Once again, Rick Mercer!

http://www.cbc.ca/mondayreport/videos/rick_rant_for_week_of_february_21_2005.wvx
 
Rick was great, last night!  Hey, have we invited him to be an Honourary Colonel for a CF unit, yet???
 
Hmm... that link didn't work for me for some reason, but I found the video.  This one should work for people who can't see the other one.

http://www.cbc.ca/mondayreport/videos/rick_rant_for_week_of_february_21_2005.mov

Rick Mercer is great :)
 
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