Canada faces fleet programme dilemmas
Sharon Hobson
* Funding crisis will affect Canadian plans.
* Navy may have to reduce the scope of its upgrade or accelerate replacements.
In the face of limited defence spending, Canada's navy may be forced to make difficult choices on how to fund the future fleet and balance its two major development programmes.
The Department of National Defence (DND) is already struggling with a CAD3 billion (USD2.6 billion) annual shortfall of its CAD14.5 billion budget, and the new Conservative government has made it clear that defence spending is not one of its five priorities.
As a result, the DND has looked at dropping equipment programmes within the navy. Foremost amongst these has been the discussion about cutting back the Halifax-class modernisation (HCM) programme and bringing forward a project to build a Single Class Surface Combatant (SCSC) to replace the service's 12 Halifax-class frigates and three Iroquois-class destroyers.
The CAD3.5 billion HCM consists of several capability enhancement, maintenance and sustainment projects, and an overall Frigate Equipment Life Extension (FELEX) project, which will manage and integrate all of the individual work elements.
Some of the projects are already under way - such as the acquisition and installation of the Evolved Sea Sparrow Missile - and the Request for Proposals for upgraded radars and command-and-control system are expected to be released in the third quarter of this year.
The first of the Halifax-class frigates was delivered in 1992 and the mid-life refits will start in 2008, with completion in 2017, but the cost and the schedule are causing some naval planners to rethink the project.
Retired Rear Admiral Peter Cairns, the president of the Shipbuilding Association of Canada, said there are discussions within the DND "over whether they move SCSC forward".
The current plan is for the first SCSC ship to be delivered in 2019 and bringing the project on stream sooner would require the HCM/FELEX project to be reduced either in scope or number of ships. However, Cairns noted, "no one is going to give up HCM/FELEX until they have money in hand for SCSC".
Captain Peter Ellis, the DND's Director of Maritime Requirements, told Jane's that "we are studying that issue", but as about CAD1 billion of the HCM budget has already been spent or committed continuing with the HCM/FELEX project makes sense.
"To get a good, combat capable ship that will last until 2030, or a dozen, for that price, is still a reasonable investment," he said.
The government is tabling its first budget on 2 May, and while there will probably be an increase in defence spending, many inside and outside the DND are concerned that it will be insufficient. Finance Minister Jim Flaherty has said only that "we have a substantial commitment to the military".