God we Canadians are a cheap people.
This same attitude lead to the CAF being chronically underfunded
Incorrect. We are a people that manages to mostly vote for parties that create and then underfund massive social programs. That means, by definition, that every new undertaking is competing for borrowed money.
The fiscal criticism is two-fold: that the governmental contributions are not the best use of borrowed money right now compared to other spending pressures; and that once the project is stuck in, governments will be expected to borrow more money to cover pretty much all of whatever the overruns turn out to be (there isn't going to be a lot of additional private capital raised).
Proponents arguing variations of "people just don't want to spend the money" or "people just don't want to invest in/build Canada" are side-stepping those two points because those two points are almost impossible to contradict. It is clear from nightly/weekly news that governments at all levels are severely stressed by social problems: health, housing, homelessness. It is clear by observing the past that governments are the deep pockets of last resort that are expected to kick in under the threat of a project being abandoned by private interests when cost overruns exceed contingency funds.
A third point proponents ignore is that the true cost of anything is the sticker price plus the cost of financing (borrowing). To the extent that any government at any level is not spending money from a position of net surplus, the cost of its share includes the cost of new debt. As I observed facetiously a while back, if a government never fully extinguishes its debt, then the cost of financing goes on forever and the theoretical cost of everything done on borrowed money is infinite.
For people excited by new levels of defence spending, a federal contribution to any project is in direct competition with that exciting new defence spending. Depend on it. When a future crunch comes, which should be abandoned? Given an understanding of Canadian politics, which is most likely to be abandoned? I surmise the best way to protect new levels of defence spending for the next decade is to not undertake any more federal spending commitments greater than approximately chicken-feed.