Defence: $12.7-billion infusion ;D

[Brad Sallows]

I too am waiting for an analysis which extracts the truth of how much is actually "new money".

I am also skeptical it will survive the next election, or that the next election is very far off.

 

[Kirkhill]

Military gets new helicopters, planes in defence package

OTTAWA (CP) - The federal government promised $12.8 billion in defence spending over five years Wednesday, much of it aimed at badly needed troop helicopters, Arctic aircraft and a new home for Canada's special forces.
However, with the military cancelling programs, docking ships and grounding aircraft, this year's one-time increase is only $500 million, with another $600 million coming next year on a base budget of $13.5 billion.

That far less than the $1.5 billion flat budget increase called for by lobby groups and some senators and members of Parliament.

The government did promise major new expenditures as its long-anticipated defence policy statement kicks in, with total military spending rising to about $20 billion a year by 2009-2010 - if Paul Martin's government lasts that long.

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"In an increasingly uncertain world, Canadians know that we must play our part and shoulder our share," said Finance Minister Ralph Goodale.

"Our responsibility is to make sure that . . . capabilities match the new demands of a new era. The shape of what that role should be is evolving."

The promises over five years include:

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-$3 billion to recruit, train and integrate 5,000 additional full-time soldiers and 3,000 reservists. Only $80 million of those funds will be coming this year.

-$3.2 billion to enhance specialized medical services for returning troops, to address critical supply and repair shortages, and to fix ragged infrastructure like runways and jetties.

-$2.7 billion for transport helicopters, logistics trucks, light utility aircraft and a new base or expansion of the old one for the growing number of Joint Task Force 2 commandoes.

-$3.8 billion, starting in 2007-08, for unannounced initiatives that could include a new amphibious assault ship and revamped emergency response capabilities like those provided by the Disaster Assistance Response Team.


There is no mention of big-ticket items like warships or transport aircraft to replace the aging C-130 Hercules, but there are promises to allocate funds "as needed" to coincide with priorities set by the policy statement.

The promise of big new military spending comes a day after word that Martin has decided against signing on to the controversial U.S. missile defence plan.

U.S. Ambassador Paul Cellucci has repeatedly called for Canada to increase its military spending, recently itemizing a shopping list of items the federal government should buy for its ailing Forces.

But initial spending is limited to unexciting housekeeping items.

The spending blueprint dovetails with comments made by the new chief of defence staff, Gen. Rick Hillier, who has set upgrading supply and infrastructure as an urgent priority.

The document sets aside $420 million in this year's budget and another $500 million next year to address those basic ailments, where woes mounted in recent years as the military focused on post-9/11 overseas deployments.

"Supplies of spare parts and military equipment have been depleted, and repairs, overhauls and upgrading of equipment have been delayed or missed to support the high operational demands," it says.

"Capital pressures and gaps have also become apparent."

Those include replacements for the Chinook transport helicopters Ottawa sold off to the Dutch in the early 1990s, aging trucks used to ferry troops and supplies and the Arctic's fleet of yellow Twin Otter planes used in search-rescue and to transport the Rangers on sovereignty patrols.

The military budget had already factored in this year's nine per cent raises for the enlisted corps as well as the costs of new joint supply ships, maritime helicopters and mobile gun systems.

The costs of modernizing Aurora patrol aircraft and CF-18 fighter-bombers were also factored into the base budget.[/b]

The budget figures do not include the cost of future deployments, which are usually paid for by special dispersements from the government's central treasury.



© The Canadian Press, 2005

http://www.mytelus.com/news/article.do?pageID=canada_home&articleID=1854187

The way that I read this, and it confirms what I believe I heard with last year's budget, that the Supply Ships, MGS, Cyclones as well as the Aurora and CF-18s are ALREADY in the budget.  In other words the CF already had a plan to pay for them but that was running lean on parts and maintenance everywhere else.

This 12.8 Bn is intended to refill the parts bins and buy new kit.  To my understanding this has NOT been already spent.  I could be wrong though - has happened.

The other interesting point is that the release Confirms that deployments will come out of General Revenues and not the CF budget.  Although they state that that is the norm AFAIK with some of the deployments under Chretien they came out of the CF Operational budget contributing to the hole.

I still think this is pretty good news.

Cheers.

 

[Edward Campbell]

Kirkhill and CP are right on how it should work ... fill up the bins and 'buy' new, unprogrammed, people, ships, aircraft and, and, and ...

There are obstacles: most of the money is in the 'out' years and one government cannot be bound by the plans of its predecessor â “ even when they are of the same party and have the same leader.   If we have an election before the promised money makes it into the estimates then it is not 'real' money â “ just a promise like â Å“I'll respect you in the morningâ ? and â Å“the cheque's in the mail, honest.â ?.   An election mans a 'new' government with a 'new' mandate and they may decide they have new priorities.

 

[Kirkhill]

http://www.theglobeandmail.com/servlet/story/RTGAM.20050223.wdefence0223/BNStory/specialBudget2005/

Here's the Globe and Mail's take.

The other thing that gives me hope is that if there is an election what is the likely outcome?  Either the Liberals get back in or the Conservatives form the next government.

I accept that you lot have been screwed over many times but just once I would like to think that there is SOME hope out there.

By the way the budget included money for domestic security that could impact on the CF if, for example, the Coast Guard gets some new kit and takes up some tasks, and the Foreign Assistance budget is getting a rise.  That might also indirectly impact you.

Cheers.

 

[Whiskey_Dan]

Well I think the gov't should've just given the CF the entire $10billion all at once ...but I guess it would never be with the Libs.
At least were getting more money though right? I mean Im in the application process right now and I sure hope I dont get screwed over and dont get all the kit I need just because we ran out of money one fiscal year. IMHO....$12billion is still not enough since the military is also adding an extra 8 000 troops to the nominal roll.
Maybe now though we'll have new long-range planes to play around with?
Time for war :threat:

Dan

 

[Mich]

;D God has answered our prayers! Wow, I was so shocked when I heard about this.  I didn't think anyone would actually do anything about the defence budget.  I'm so glad I was proven wrong.  But what about all the talks about Canada not needing more money to support its army or what John McCallum had to say about other 'more important issues' like health care and whatnot? What exactly made the government change its mind?

With more money for the army, does this mean that the chances for getting enrolled are higher?

 

[Scoobie Newbie]

There is a discussion on this already guys.  See my link above

 

[Spartan]

In reading the budget synopsis - it all seems like the whole budget is a shell game - monies previously pledged, leftover money from previously pledged etc.
Isn't quite sitting well with me.

 

[PPCLI Guy]

The budget spoke of an expenditure review, that freed up some money for this budget.   Here is DNDs contribution over the 5 year period (640M) - the numbers are for 05, 06 etc out to 09:

National Defence   34.0   88.0    143.0    172.0   203.0    640.0  

Reallocate Search and Rescue (SAR) Assets   6.0   12.0    25.0    37.0   53.0    133.0  
Reallocate search and rescue assets across Canada and eliminate six C115 Buffalo aircraft and ten CC130 Hercules aircraft as a result of the decision to proceed with the new fixed-wing Search and Rescue aircraft.  

Canadian Parachute Center    -   1.0   3.0    5.0   7.0    16.0  
Training to be provided in partnership with Canada's allies. Skyhawks elite demonstration program will remain.  

Light Armour Tracked Vehicle Fleet (M113s)    -   3.0   7.0    7.0   7.0    24.0  
Accelerate the retirement of the tracked vehicle fleet in line with Army transformation objectives.  

Non-military Vehicle Fleets   3.0   5.0   7.0    7.0   7.0    29.0  
Reduce non-military vehicle fleet size and allow for increased local rental arrangements.
 
National Capital Area Costs   2.0   22.0    42.0    52.0   52.0    170.0  
Reduce overhead costs through converting contractor positions into full time public service positions, elimination of some contracts, and, a reduction in the size of the current NDHQ organization.

Savings from Supply Chain Project   10.0   15.0    20.0    20.0   20.0    85.0  
Reduce inventory management costs, specifically fuel distribution, warehousing and transportation costs.  

Outsource Information Technology Infrastructure Support    -    -   2.0    7.0   20.0    29.0  
Reduce costs by putting in place contracts to provide common technology infrastructure and support.  

Consolidate Research and Development   4.0   10.0    15.0    15.0   15.0    59.0  
Consolidate research activities in highest priority areas and reduce in-house research costs through greater cooperation with other civilian and military organizations.  

General Administrative Support   2.0   5.0   7.0    7.0   7.0    28.0  
Reduce overhead administrative costs in the ammunition program, Canadian Defence Academy and various small administrative programs.  

Support to Deployed Operations   2.0   4.0   4.0    4.0   4.0    18.0  
Reduce overhead costs by improving efficiencies and streamlining processes.

General Support   1.0   2.0   2.0    2.0   2.0    9.0  
Use of new technology to provide information to employees, allowing for the elimination of paper based pay statements, newsletters, etc.  

Material Acquisition Support Information System   4.0   9.0   9.0    9.0   9.0    40.0  
Reduce overlap and duplication through expanded use of other enterprise information technology systems to provide oversight of program areas.

 

Note that we can play the "outyear" game as well as any one else...

Bottom line is that this budget is way better than a kick in the nuts with a frozen mukluk.   How about we wait and see how it all pans out before we run off crying "foul" and "liberal conspiracy" and "its the CBCs fault".

Dave

 

[GGHG_Cadet]

Canadian Parachute Center  -  1.0  3.0  5.0  7.0  16.0
Training to be provided in partnership with Canada's allies. Skyhawks elite demonstration program will remain.

Does that mean that they are getting rid of the CPC or just not offering jump courses anymore? Or am I completely wrong

 

[SlipStream]

Sounds like this budget just focuses on the army. but the army is not everything you know it would be good to see some new battleships sailing on our coastlines and new planes flying overhead.

 

[Zipper]

Well, it looks encouraging at least. Not the usual pass over like past years.

However! As encouraging as it sounds, I'll keep my eyes open for the policy review. That is the true benchmark.

Good on them though...

 

[Ammo]

Go to http://www.fin.gc.ca/access/budinfoe.html if you want to view the entire budget.
Select Budget 2005 (February 23, 2005) and The Budget Plan

 

[Long in the tooth]

The $12 B is the usual liberal after the fact loading.... the poor CDS still doesn't have any money, but talks a brave talk.   The money isn't set to arrive for 4-5 years.   Just in time for a government (or 2 change).   Perhaps the CDS is just a bit naive?

 

[JAFMA]

Lets remember troops th meat of this budget  is forecasted to happen in the next 4-5 years.  So do you really think that this is going to have any real effect on the CF.  Lets watch and shoot for the next general election and hope that the Tories do better next time round.

UBIQUE

 

[bossi]

Try as I might, I just couldn't stay away from this discussion ...
Having said that:  My "left and right of arc" with respect to DND's budget ... is kinda narrow.
I will however, agree 100% with the boss in the context of evolutionary vice revolutionary change (as well as getting it right the first time ... for a change ...).
"Watch and shoot" is probably one of the best adages for these times.
(P.S. JAFMA posted while I was typing ... chuckle!)

"... We did not get to where we are in the Canadian Forces, in a stress situation, in one year, and it's going to take more than one year, clearly, to get out of that situation ..."

Here's Rubec report (and, as usual, some numpty editor jumps to an incorrect conclusion - i.e. the defence budget is not being "doubled" per se ... which makes me wonder who's got a sugar daddy in the Sun/Quebecor ... but, I digress ...):

Thu, February 24, 2005
Grits toss troops new cash lifeline
MILITARY SPENDING TO DOUBLE BY END OF DECADE
By Stephanie Rubec, Senior Political Reporter (The Sun)

THE LIBERAL government will pump $12.8 billion into Canada's cash-strapped military, ordering up new digs for its anti-terrorism unit and giving the green light for a hi-tech shopping spree. But the military will have to wait for the lion's share of funds, benefiting from only $500-million extra this year and $600-million more next year -- far less than the $1.5 billion annual increase called for by military supporters.

The military won't see a cent of the $2.7-billion earmarked for the purchase of up to 18 new troop-transport helicopters and four Arctic planes to replace their aging Twin Otters until 2007.

The initial flow of funds will serve to buy 1,000 transport trucks to replace the army's rusted-out 2.5-tonne MLVWs.

Some of the $2.7 billion will also go to buy Canada's JTF-2 commandos a new home. Military officials say they'll either build a second base and keep the Dwyer Hill training centre west of Ottawa or moving the entire unit to a new location.

Chief of Defence Staff Gen. Rick Hillier said he'll use this year's cash injection to improve training and medical care for soldiers, fix crumbling military buildings and address the chronic shortage of spare parts.

"We've got an investment and a commitment from our government to rebuild the Canadian Forces, to give us the necessary resources to be able to transform us here and to allow us to start right now," Hillier said yesterday.

Hillier signed off on the Liberals' decision not to pump the full $12.8-billion into the military at once, explaining that the Forces need time to organize their priorities.

"We did not get to where we are in the Canadian Forces, in a stress situation, in one year, and it's going to take more than one year, clearly, to get out of that situation," he said. By decade's end, Finance Minister Ralph Goodale said he will boost the military's annual budget from $13.2 billion to $19 billion -- the largest increase in two decades.

Of that, almost $4-billion has been earmarked to pay for the hardware the military will need to answer the Liberal priorities to be outlined in the upcoming international policy review.

And $3 billion will pay for a Liberal promise to boost military ranks by 5,000 regular force soldiers and 3,000 reservists over the next five years.

"Our responsibility is to make sure that their capabilities match the new demands of a new era," Goodale said yesterday.

 

[JBP]

Well, we can always be hopeful!!!  :

I mean, say the Conservatives get into power, they certainly won't overlook us in thier budget plan! And if Mr. Martin stays in power for awhile he better stick to his guns/promises (as he knows) or he'll get the boot basically!

I don't see the NDP comming to power anytime soon... Last time was what, in the 40's-50's??? I also don't see the good ole' Block gaining Prime Minister either.... So, don't have to worry on those fronts. 

I think eventually, no matter what over the next couple years, we can depend on seeing at least 1/2 that money regardless. Which is better than, as someone else put it, "A freezing muckluck to the sack!"... Not sure who said that on here but I did read it...

That's what I'll count on anyway. HALF the money...  :-\

 

[pbi]

I say give the CDS a chance before we go back to crying in our beers. The worst possible course of action would have been to dump all the money now: that would have resulted in a feeding frenzy with no opportunity to plan properly, and with half the cash left unspent by end FY. We are a very sick patient: we cannot go from IV to steak dinners in one day. We need to start with toast and ginger ale.

Let's see what happens.

Cheers

 

[Kirkhill]

One other hopeful sign that I saw was that neither Jack Layton nor Bill Blaikie (NDP's defence critic) complained about the increase in the Defence allocation.  Blaikie on CPAC wanted to ensure that the money got spent wisely and that the troops quality of life was well taken care of but supported investing in capabilities to act independently of the Americans.  Layton wanted more money on social programs right enough but I haven't heard him say that they should be at the expense of defence.  He went after Corporate Tax cuts.

All of that, taken together, suggests that all of Canada's politicians, with the possible and likely exception of the Bloc, are in agreement that you guys need support.

I would take that as a good sign.  I think somewhere along the way a corner has been turned.  Now the question for me is what does the road ahead look like.

More interesting times still.  Fearfully hopeful.

 

[FSTO]

While I have little hope that the Liberals will actually go through with their promises, I am going to give the CDS my support towards his vision of an actual joint force.

The CDS will have to drag the Army, Air Force and Navy service chiefs together and force them to agree to his vision. To quote Maximus in Gladiator we must work together to survive.

For example, since graduating from BOTC in 89, only once (during a block french course) have I as a Naval Officer had a chance to interact with an army officer (armoured). When I was in Timor on HMCS PROTECTEUR, it was the RAN that got them to the island. The only time we saw pers from the Van Doos was when a few of them came on board for some RnR. There was no attempt (from either side) to sit and talk. This lack of interaction reflects poorly on a force of less than 60,000.

The CDS would like to have an amphibious capability. Well we better ALL get on the same page very quickly because:
a. We have not done amphib ops since the Scheldt Estuary in 45;
b. The Navy has 0 doctrine on conducting even the most basic over the shore logistics; and
c. Our only aircraft capable of operating in the amphib environment is way past its best before date.

And this is only from a Navy point of view.