A new report out from the Canadian Parliament's budget office estimates that nation's cost of buying and operating 65 F-35 Joint Strike Fighters will be much greater - about $12 billion more -
http://www2.parl.gc.ca/Sites/PBO-DPB/documents/F-35_Cost_Estimate_EN.pdf
than the figures provided by the Conservative government.
The government's plans for buying the F-35, to be built in Fort Worth by Lockheed Martin, have come under considerable fire from the political opposition because there was no formal competition held. The Globe and Mail reports:
http://www.theglobeandmail.com/news/politics/fighter-jet-price-tag-will-approach-30-billion-budget-watchdog-warns/article1936449/
The report by Parliamentary Budget Officer Kevin Page comes at a bad time for the Conservative government, which been dogged by controversy over the acquisition and faces a possible defeat in the weeks ahead.
The budget watchdog’s estimate represents the “total ownership cost” of the stealth jets over 30 years of service and is close to 70 per cent higher than the price tag disclosed by the Tories.
His report was independently peer-reviewed by non-partisan experts at the United States Congressional Budget Office, the Australian Strategic Policy Institute, and Queen’s University. Opposition Liberals, who’ve promised to cancel the F-35 contract if they win office, said Mr. Page’s report is proof the Tories have been hiding the program’s full costs of nearly $30-billion.
“This is an unconscionable amount, and the Harper Conservatives have again misled Canadians and Parliament,” Liberal defence critic Dominic LeBlanc said. “To put this in perspective, $30-billion is equivalent to $1,000 for every man, woman and child in Canada, and equals the entire federal government’s annual spending on health care.” Mr. Page’s report is an effort to get at the full price tag for the 65 F-35 Lightning fighter jets the Conservatives have agreed to purchase from Lockheed Martin. The budget watchdog is also warning there is a “risk that costs may increase” further.
The government has said the per-unit price of each plane is about $70 million to $75-million, while other estimates have pegged them at $91-million each. Government figure sput the total cost of ownership at $17.6-billion.
Mr. Page’s report estimates the jets will cost nearly $149-million each but over their lifetime will run about $450-million per plane in support and maintenance.
- Bob Cox
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