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The Defence Budget [superthread]

From the Ottawa citizen today.  Spending estimates were released yesterday.  Recruiting, basic training and soem MAT stuff is going to take a hit.

http://www.ottawacitizen.com/news/Tory+spending+estimates+include+upcoming+cuts/6224218/story.html
 
Follow the money:

http://finance.sympatico.ca/galleries/military_money



Canada        $560 / person

Canada is 20th in the ranking of per capita military spending. The $20 billion spent on the Armed Forces make up 1.5% of GDP, which lands Canada 84th on the GDP list. Voluntary service can start at 17 years with parental consent. The service obligation is three to nine years. Reserve or military college applicants can be as young as 16.



Top end:

United Arab Emirates        $2,653 / person

The seven emirates of the UAE are on the peninsula that separates the Persian Gulf from the Arabian Sea. Despite a moderate foreign policy, UAE's armed forces consume 7.3% of the oil-rich country's GDP. It is completely volunteer service. The forces consist of army, navy, including Marines, air force, air defense, border and coast guard directorate. The $15 billion of spending is the 16th highest military budget in the world.


followed by:

United States        $2,141 / person

In a league of its own when it comes to military spending, the United States spends more than $687 billion as the world's remaining ''superpower.'' That is more than half a trillion above the next highest spender, China. This huge expenditure covers the branches of the Army, Navy, including the Marines, Air Force and coast guard. There is no conscription but voluntary service comes with an obligation of eight years of service, including two to five years of active duty depending on the branch. To keep the military spending in perspective, it is 4.7% of the U.S. GDP.
 
Crantor said:
From the Ottawa citizen today.  Spending estimates were released yesterday.  Recruiting, basic training and soem MAT stuff is going to take a hit.

http://www.ottawacitizen.com/news/Tory+spending+estimates+include+upcoming+cuts/6224218/story.html

Other news reports say that retention is at a high in the Reg F, and that the force expansion targets for the Reg F have been met.

So, with fewer people leaving, and with no need for increased recruiting and basic training to fill new positions, it's no surprise that the CF would spend less on recruiting and basic training.  Seems almost, well, logical.
 
...leading to an unsurge in whininess in the Recruiting threads, as even more people have their brilliance and superstar abilities overlooked by the mean, nasty system.

    :pop:
 
And for further digging, here's DND's section of the Main Estimates.....
 
Next piece of the puzzle - the budget:
The federal government will unveil its much-awaited austerity budget on March 29, although Finance Minister Jim Flaherty said those expecting a detailed schedule of spending cuts may be disappointed.

Flaherty said Wednesday the budget will not lay out in specifics where the government plans to find between $4 billion and $8 billion in annual savings over the next three years.

"There’s not going to be intricate detail," he told reporters in Ottawa.

"But there'll be enough information that it'll be comprehensible, that it will describe what we're doing in terms of the deficit reduction action plan, and much more than that, this is a jobs and growth budget." ....
The Canadian Press, 29 Feb 12

While the Treasury Board says, "the close proximity of the tabling of the Budget to the Main Estimates means the Estimates do not reflect new Budget initiatives and priorities", DND's Main Estimates look like a fair bit of cutting is being envisioned (~8% by my take of the document attached to the post before this one?) at this point in the process.  Who knows what the Budget will bring to change that, though.
 
More on the defence budget and, specifically, the deeply flawed Canada First Defence Strategy, in this article which is reproduced under the Fair Dealing provisions of the Globe and Mail:

http://www.theglobeandmail.com/news/politics/tories-plan-to-revamp-defence-spending/article4227726/
Tories plan to revamp defence spending

MURRAY BREWSTER
Ottawa — The Canadian Press

Published Sunday, Jun. 03 2012

The Harper government is redrafting its extensive, multi-billion shopping list of equipment for the Canadian military in an exercise many observers believe will set more sober expectations in a time of austerity.


The revision to the Canada First Defence Strategy is slated to be complete and ready for public consumption by fall, multiple sources have told The Canadian Press.

Although Defence Minister Peter MacKay describes the hallmark plan as a “living document,” the reset comes at a time when the government has been hammered politically over the F-35 stealth fighter, an issue that tarnished the fiscally responsible image that the Conservatives try to project.

Defence sources say there is a baseline expectation that the promises made in the original 2008 document will be mostly kept, but whether the government will be buying in the quantities outlined at the height of the Afghan war when the federal treasury was flush, is another matter.

“We have to do this reset and it would have happened regardless of the recession, regardless of the fiscal realities,” Mr. MacKay insisted during an interview with The Canadian Press.

But the political thinking, according to some defence insiders, is that a redrafted wish list will take some of the bite out of opposition attacks and restore public confidence rattled by the F-35.

When it was announced with much fanfare, the $490-billion, 20-year defence policy was hailed as the prescription for a Canadian military which the Conservatives say was starved for cash.

But delivering on that long laundry list of ships, tanks and planes has turned into an excruciating experience, which found a voice last week in Public Works Minister Rona Ambrose’s declaration that she was “tired of being told why something can’t be done.”

But defence experts, such Phillipe Lagasse at the University of Ottawa, who studies procurement, said he hopes the procedural frustration and the storm over the F-35 doesn’t lend itself to some quick, politically palatable decisions.

“They weren’t able to achieve everything they hoped they could achieve under Canada First, [and] it didn’t happen as smoothly as they hoped,” said Mr. Lagasse, who noted the procurement system wasn’t structured to deal with such an ambitious list.

Aside from the politically-charged stealth fighter program, which has been harshly criticized by the Auditor-General, there are a host of planes and ships that have yet to leave the drawing board, including fixed-wing search aircraft and navy supply tankers.

Sources said the various drafts circulating around National Defence acknowledge that there is some equipment that must “be replaced right away,” but there are other more complicated issues, such as the F-35 and the glitch-plagued Victoria Class submarines.

The navy is currently studying whether the four British-built boats can have their life extended until 2029, but it’s clear that thought is already being given to replacing them.

Sources said the next generation of submarines has already been the subject of high-level briefings within the military and it is expected the redrawn strategy will highlight such a plan.

Mr. Lagasse said the challenge for the government will be to temper the military’s expectations.

Already signs are emerging that Conservatives are looking for long-term economical defence solutions, while those in uniform tend to believe the budget restraint is just temporary.

“Unfortunately, until they’re honest with each other, and I hope that is what this document will do, we’ll be engaged in a dialogue of the deaf,” said Mr. Lagasse.

The mistake the Conservatives made with the first version of their strategy was to raise expectations by being very specific about what they were going to buy, he added.


At the risk of saying "I told you so ..." this was easy to see coming; I will repeat myself and say:

1. Canadians' support for the CF may be a mile wide (all those red T-shirts and yellow ribbons) but it is only an inch deep, especially when it comes to defence spending vs other (social) priorities; and

2. The Canada First Defence Strategy was never anything more than an ill-considered shopping list. It promised a finite decrease in defence spending when projected as a percentage of GDP out to 2035. It could do that by "low baling" costs and being vague, to be charitable, about dollars and cents.

The Conservatives are doing what needs to be done in tough economic times: restraining discretionary spending - and few things are more politically discretionary than national defence. But there still needs to be a plan for our national defence - one that promises real growth in defence spending (as a percentage of GDP) over, say, 20 years, of an order that will buy us the people, the kit and consumables we (all Canadians) need to provide to DND and the CF to guarantee* our own security.


_____
* Not unilaterally - in conjunction with traditional friends and trusted allies
 
Of course it doesn't matter what the defence budget looks like. The NDP will cry that the money should go to healthcare and education, or to "feed the poor".
 
Sourced from TimesColonist.com, 5 June 2012, Link <a href="http://www.timescolonist.com/news/Tories+knew+military+budget+unaffordable+documents/6731123/story.html">Here</a>

Tories knew military budget unaffordable: documents
BY LEE BERTHIAUME, POSTMEDIA NEWS
JUNE 5, 2012 3:03 AM

The Conservative government knew as far back as last year that Defence Department budget cuts had made its multibillion-dollar shopping list of military equipment "unaffordable," Postmedia News has learned.

As a result, National Defence officials have been urging the government since May 2011 to push the reset button and re-evaluate "the level of ambition" for its vaunted plan to rebuild the Canadian Forces.

The Canada First Defence Strategy, the centrepiece of the Conservative government's long-term vision for the military, was unveiled with much fanfare in May 2008 and promised to invest $490 billion in new equipment and upgrades over the next 20 years.

"The Canada First Defence Strategy will strengthen our sovereignty and our security," Prime Minister Stephen Harper said at the time.

"Our government will ensure that Canadian Forces have the personnel and equipment they need to do their job, to protect our values and project our interests, to fulfil Canada's international commitments, to keep our true north strong and free."

The long list of projects includes building a fleet of new naval vessels, dozens of new military aircraft and hundreds of vehicles for the army, as well as important upgrades and refits for existing equipment.

But briefing notes prepared for Associate Defence Minister Julian Fantino weeks after the last federal election and obtained through Access to Information show he was warned billions of dollars in spending reductions had rendered the Canada First Defence Strategy impossible to fulfil.

"The funding reductions from Budget 2010 and the reduced funding line going forward will make the Canada First Defence Strategy [CFDS] unaffordable," reads the briefing material.

"The department will be challenged to deliver on the CFDS commitments as a result of forecasted decreases in funding and increased in costs," it adds.

A key part of the Canada First Defence Strategy was annual increases to the defence budget over the next two decades. But the 2010 federal budget cut those increases in half. This past federal budget went further, ordering $1.1 billion in spending reductions over the next three years over and on top of $1.1 billion in budget cuts this year.

The briefing material notes that the government has planned to undertake periodic reviews of the strategy, the first of which was to be undertaken last year. To that end, National Defence officials recommended the government "conduct a CFDS Reset to confirm the level of ambition," among other things.

An official in Defence Minister Peter MacKay's office confirmed Monday that the strategy is being reviewed, but he would not offer specifics, including whether the plan to invest $490 billion over 20 years has changed.

"Minister MacKay is working with Minister Fantino and officials to refresh the Canada First Defence Strategy," Jay Paxton said in an email.

"Until this work is complete, it would be misleading and disingenuous to allocate an investment amount to such an important document."

Philippe Lagasse, an expert on military procurement at the University of Ottawa, said the Conservative government intentionally built up a reputation for supporting the military even though it was hard-pressed to fulfil the commitments laid out in the Canada First Defence Strategy from the beginning.

© Copyright (c) The Victoria Times Colonist
 
ModlrMike said:
Of course it doesn't matter what the defence budget looks like. The NDP will cry that the money should go to healthcare and education, or to "feed the poor".

Or payoff the likes of poor misunderstood Omar......poor little darling....  :rage:
 
The National Post takes a firm editorial stand against cuts to the defence budget.

Here, reproduced under the Fair Dealing provisions of the Copyright Act from the National Post is that editorial:

http://digital.nationalpost.com/epaper/viewer.aspx
Don’t cut the Armed Forces

Saving money on military matériel has its own price: higher casualties during combat

Multiple sources have told The Canadian Press that the federal government intends to revise the Canada First Defence Strategy, initially announced by the Conservatives in 2008. Stung by a recent series of military procurement bungles (the F-35 being the first and foremost), the government will now be looking to find savings in the equipment purchases planned for the next 20 years.

These purchases were to have eventually replaced all of the military’s major fleets of vehicles and weapons, leaving us with a modernized and effective fighting force. But the money ran out, so the government must now scale back some of its promises for future military shopping sprees — especially since the Tories are clearly counting on a return to balanced budgets as the feat that will win them the next election.

But here’s the problem: Even though the price tag for the procurement section of the original Canada First strategy was eyepopping, it was still going to be a fairly modest updating and upgrade of our existing military capabilities. If the government cuts that, it will be cutting the Forces.

As originally laid out, the plan called for $45-billion to $50-billion in “investments” to replace “core military capabilities.” These included 15 new frigates and destroyers, 17 new search-and-rescue planes, 65 “next-generation fighters” (later announced to be the F-35), 10-12 new maritime patrol planes and a new fleet of Army vehicles, both to replace vehicles lost or worn out during operations in Afghanistan. Fiftybillion dollars is a lot of money, no doubt. But when you look at what Canada would actually be getting for that price, you see that it is not a huge amount of equipment.

We have written before about how risky it is for the Air Force to consider operating with only 65 fighter jets. The same risks apply to the other equipment. Canada has the world’s longest coastline, so it will be difficult to make do with fewer than 15 warships and 12 patrol planes. This is a huge country, and largely uninhabited, so cutting back on search-andrescue will be tough. The Army can perhaps lower its expectations for how much equipment it needs, and how good that equipment will be, but as Afghanistan showed us, the price of cutting Army equipment before a conflict is higher casualties during that conflict (and also, realistically, more money ultimately spent, as better equipment must be bought suddenly and then rushed into service).

None of the items in the original Canada First plan is exactly a frill. It seems impossible to imagine achieving any big savings without impacting any of these core purchases, or reducing some of the other “pillars” of a strong military that the plan identified — personnel, readiness (training and state of equipment repair) and the military’s general infrastructure.

Sadly, it will likely be personnel that will bear the brunt of any cuts. The Canada First strategy had called for a Canadian Forces of 100,000 members, including 30,000 reservists, and these personnel account for 51% of the military’s spending. Eliminating a plane here or a ship there will be small change next to simply limiting the number of men and women in uniform.

Such a move would be shortsighted. It takes years to train a soldier, and as the military found during the war in Afghanistan, for every soldier you send abroad, you need four others at home, either training to go next or recovering from a recent mission. There is a limit to how small the Canadian Forces can be while still having enough trained personnel ready for deployment to handle all of the jobs the government insists the military be able to accomplish. But as the government hunts for savings, it seems inevitable that a smaller military lies in the country’s future.

This is a shame. Canada should have a moderately sized, well-trained and well-equipped military. A country of 34 million need not raise armies fit to conquer the world, but as a major industrial nation and economic power, Canada needs some muscle to back up its words. Let us hope that even as it hunts for savings in its military spending, the government will remember this fact, and cut only where necessary, and only with great care.


Good on the Post for taking a principled stand. Its position will not be popular, but it is right.
 
Here, courtesy of the National Post is a useful graphic on Canadian defence spending over the past 60+ years:

toronto-na0609_militaryspe-copy.jpg


As I always do, I will argue that spending as a percentage of GDP is a much better measurement than dollars spent. The dollars spent measurement tells us a lot about the inflation rates of military vs general materiel but it doesn't tell us how 'important' we think our national defence is. Looking at the blue line (spending as a % of GDP): the precipitous rise and decline in military spending in the 1950s coincides with a dramatic and fundamental shift in Canadian strategic thinking but the steady decline from 1963 until today reflects the reality of Canada: our fellow citizens, notwithstanding the red T-shirts and yellow ribbons, do not "support the troops" or care, overly, about their own national security and defence.

Here is a partial list of modern democracies and (according to Stockholm International Peace Research Institute) how much (as a % of GDP) they spend on defence:

Israel - 6.3% (they live in a rough neigbourhood)
USA - 4.7%
Singapore - 4.3%
Chile - 3.5%
Greece - 3.2%
South Korea 2.9%
UK - 2.7%
France - 2.7%
India - 2.5%
Taiwan - 2.4%
World Average - 2.2%
Australia - 1.9%
Italy - 1.8%
Germany - 1.8%
Fiji - 1.7%
Brazil - 1.6%
Norway - 1.6%
Finland 1.5%
Canada 1.5%
Netherlands - 1.5%
Denmark - 1.4%
New Zealand - 1.2%
Spain - 1.1%

We can, and should do 'better' than Finland and Fiji and we can afford and should spend something very, very close to the world average (2.1% is my suggestion.)
 
The Greece 3.2% is kind of comical.  I'm no math wiz, but I think 3.2% of 0=0.

Or is their 3.2% just enough to cover these guys.

 
Greece fields a relatively modern force including such items as Leopard 2 tanks and the latest versions of the F-16, mostly out of fear of what the Turks are up to. Now with the current and ongoing fiscal crisis, they might have some difficulty paying their servicemembers and doing upkeep on the shiny kit, but nevertheless,it is still there.

The other thing that skews the numbers a bit is many of the "high spenders" have relatively small economies, so if you have to buy modern military equipment then in absolute terms you will be paying a greater portion of your budget (even if in reality the unit costs are the same as a nation with a larger economy buying the same stuff). Japan has a very effective and modern force with the most advanced Aegis cruisers as part of the fleet, for example, but they only spend about 1% of their GDP; they have such a huge economy that 1% is an enormous amount of money.
 
The Conservatives are, finally - and for the first time in a looooong time for any Canadian government - being honest about their defence budget priorities according to a report in the Globe and Mail which is headlined: "Tories plan ‘buy Canada’ military budget".

The article says:

http://www.theglobeandmail.com/news/politics/tories-plan-buy-canada-military-budget/article4562844/
The Harper government is embarking on an ambitious effort to develop a Canada-first military purchasing strategy – one that aims to funnel as many procurement dollars as possible to domestic firms with the potential to be leaders in their field.

It is the latest step in the Conservatives’ plans to craft a defence industrial policy for Canada – an effort to harness the power of the military-security budget in the service of long-term jobs and economic growth.

The article goes on to say that:

Ottawa’s not planning to spurn foreign suppliers. But it wants to be smarter about backing Canadian industry where possible – funnelling more of the $240-billion the government plans to spend over 20 years on military acquisitions to domestic suppliers ... but ... This new approach, which Ms. Ambrose has championed throughout government, has its risks and its critics. Some Department of National Defence officials worry it will end up adding costs and delays to military spending.

The article also notes that "The use of procurement to stimulate innovation has been a long-standing practice in other countries, particularly the U.S. with its enormous defence expenditures,” but the existing Canada First Defence Strategy does not promise "enormous defence expenditures," in fact, it (the Tory "Strategy") promises to reduce the defence budget when measured as a percentage of GDP.
 
Ibbitson from the above article:

For instance, flight simulators and munitions – bombs and bullets – are two areas where Canadian companies have become strong international competitors in the defence and security markets.

Ottawa wants to nurture more companies that can become the next CAE Inc. or General Dynamics Ordnance and Tactical Systems Canada.

Perhaps not a Canadian Lockheed Martin but perhaps a Kongsberg.  Not an Arrow but a Penguin.  Not UAVs like Global Hawks but UUVs like those being developed on the West Coast now.  Systems that we can sell and trade on the open market as a one for one exchange for other defense systems - Like the Aussies have done with their Bushmasters and Austal products (JHSVs and LCSs).

Maybe we could take a lead in developing the LTA transport sector as we did with the Bushplanes. Those went from Beaver to Otter to Caribou to Buffalo to DASH 7 to DASH 8 to Bombardier Qs.

Nothing wrong with buying locally if the locals have what you need, at a price you are able and willing to pay.

Canada's problem is that the locals don't have what the DND needs and they can't develop it in a timely fashion.  Nobody can anywhere in the world.  All defence projects, and most government and commercial projects for that matter, take years if not decades to develop new technologies.
 
It wouldn't be the Globe without a counterpoint....
In a breathtaking piece of economic nationalism run amok, the Harper Conservatives are embarking on a new military procurement policy that would see defense dollars used to grow domestic industry.

This is not about picking the best hardware for the military, as National Defense has very valid concerns about this policy increasing cost overruns and delivery delays. It is rather about using defense department dollars as a way for government to support companies that it sees as future economic champions. The policy is based on the flawed premise that a country can create economic growth by overpaying for goods and services.

The proposal has the explicit objective of leveling the playing field with foreign jurisdictions who subsidize their national military hardware producers. But do Canadians gain by trying to one-up foreign governments in the corporate welfare game?

If the Swedish government wants to provide financial subsidies to the Canadian military the Canadian taxpayer should rejoice. This presents no loss to the Canadian economy, as those dollars can be spent on other priorities such as health and education, or be used to lower taxes ....
"Mike Moffatt is an assistant professor at Ivey School of Business at Western University and a regular contributor to Economy Lab.", G&M, 24 Sept 12
 
Three simple terms come to mind:

Pork;

Featherbedding; and

LSVW redux.
 
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