New Money for the Forces?

[big bad john]

From the Ottawa Citizen:

Military leaders confident budget will offer $1B extra
 
Mike Blanchfield and Aileen McCabe
The Ottawa Citizen; with fIles from CanWest News Service and The Canadian Press


February 15, 2005


Military leaders are confident next week's federal budget will contain the necessary $1 billion extra to help the Canadian Forces solve recruiting woes.

But there may not be anything extra in next Wednesday's federal budget for new ships or other heavy equipment. That may come after the long-awaited defence review is tabled later in the spring.

The Forces second-in-command recently told a Senate committee the military lacked the funds to pay for the recruitment of 5,000 new full-time troops and 3,000 part-time reservists that were promised last year by Prime Minister Paul Martin. Vice-Admiral Ron Buck also said the recruitment process wouldn't be finished for another five years.

Senior Defence Department officials say the budget will contain enough funds to kick-start recruitment.

"The price tag for that is $1 billion," a senior Defence Department official said yesterday.

The official said the $1 billion would have to be added to the Forces base budget of $13 billion, and would represent the total cost of recruiting the 8,000 new full- and part-time troops over a five-year period.

The official said the new money would not be going toward new equipment purchases, such as the large supply ship that newly-appointed Chief of Defence Staff Gen. Rick Hillier was waxing on about in a series of weekend interviews.

Defence Minister Bill Graham was in a buoyant mood yesterday, telling the House of Commons: "Watch this budget. We are turning the corner. We will be delivering as we have indicated, the resources our Forces need to provide the role that they do in the world."

Meanwhile, Vice-Admiral Bruce Maclean told the national security and defence committee yesterday the navy is operating tens of millions of dollars in the red and has been for years, inhibiting its role off Canada's coasts and elsewhere.

The navy was underfunded by $142 million last year and faces a similar shortfall this year, leaving its fleet aging and its sailors scrambling, Vice-Admiral Maclean said.

Defence officials say Mr. Graham hasn't yet been told exactly how much defence would be getting, but he hinted yesterday further spending would be tied to the upcoming defence review.

"The prime minister appointed Gen. Hillier precisely because we wanted a strong voice to tell us how we can have the right strategic vision for this country and how we can acquire the assets," Mr. Graham said.

Conservative deputy leader Peter MacKay tried to press Mr. Graham for specifics for reinvigorating the Forces.

"I ask and beg the honourable members to wait until we get the defence review," Mr. Graham replied.

He said he is "absolutely" in agreement with Gen. Hillier's comments about the need for heavy lift helicopters and a big new expeditionary ship.

© The Ottawa Citizen 2005

 

[Highland Lad]

Hmmmm... is it just me?

Sounds to me like we're about to hear the old line that goes something like this:

Step 1
"We are planning on increasing funding for the Canadian Forces, because we do care about our fine men and women in uniform. However, any increase in funding will have to wait until after the next defence review is completed, so that we can more effectively target any spending."

Step 2 (After the "next" defence review)
"We have the results of the defence review in hand, and we are fully prepared to commit the required funds to support our fine men and women in uniform. However, any increase in funding will have to wait until the next budget, as all government spending is currently allocated. In the meantime, we expect that cost savings of (insert ridiculous amount here) can be realized through savings internal to the Department of National Defence."

Step 3 (around the time of the next budget)
Return to step 1.

Just my cynical 2 ¢... but I sure hope that Gen Hillier finds some way to hold the politicos and bureaucrats to the promises made by the PM.

 

[Fishbone Jones]

Well I hope the recruiting money is spent on things like CFRC's and Med pers to open the bottlenecks, not focus and study groups to see what the problems are, we already know that. The money has to go where the rubber meets the road. Induction and training.

 

[Pencil Tech]

"He said he is "absolutely" in agreement with Gen. Hillier's comments about the need for heavy lift helicopters and a big new expeditionary ship."

Well, I understand the cynicism but quite honestly I think the above quote from the Defence Minister, along with the the stream of pretty high-profile coverage of Gen. Hillier's every utterance the last couple of weeks and the fact the there is an appearance that this is because the government might have hired him to do a particular job, are mangaing this media coverage, and he's been telling us what the government policy is going to be (since they had him rip up and rewrite the review that was already in progress); I'm allowing myself to get a little excited here.

And that what he's been talking about, apart from the increase in troop strength, is an expeditionary task force with heavy-lift helicopters, an HMS Albion-type assault ship, some sort of replacement for the Hercs, smart munitions for CF-18s to support the expeditionary force and more coastal defence vessels. 

 

[JasonH]

1 Billion?


Thats it?  :-\

 

[Pencil Tech]

The 1 billion is in the next budget primarily for the recruiting effort. They're saying there will be more for procurement after the defence review (which Rick Hillier is basically writing) is done, and that will be fairly soon.

 

[Cdn Blackshirt]

The 1 billion is in the next budget primarily for the recruiting effort. They're saying there will be more for procurement after the defence review (which Rick Hillier is basically writing) is done, and that will be fairly soon.

Politically, I think it will be hard for the Liberals to increase the budget in one single jump as it would alienate their key voting block - pacificist hippy gay school teachers.




Matthew.    ;D

 

[Pencil Tech]

Gawd! Well, in that case then who are the NDP's core voters?

 

[Wizard of OZ]

Politically, I think it will be hard for the Liberals to increase the budget in one single jump as it would alienate their key voting block - pacificist hippy gay school teachers.




Matthew.     ;D

Actually the liberals don't have that much support in BC

 

[MikeM]

Or much of the West for that matter..

 

[Whiskey_Dan]

What a democracy we live in eh?
And if the hippies have been voting for the liberals...whos been giving votes to the NDP?? ???

 

[R031button]

Actually the liberals don't have that much support in BC

Now now, just because we only have navy bases out here...

 

[pbi]

Unfortunately, whether or not they have any support in BC hasn't got much to do with their agenda. Under our current electoral system, they took a plurality and achieved a minority Govt: normally they take a majority, which means that historically a very large number of voters (ie: those who actually cast a ballot) all across Canada go Liberal, with Quebec, Ontario and Manitoba (Winnipeg) returning the greatest numbers.

Cheers

 

[Wizard of OZ]

Which is what scares me if the conservatives bring this government down i think they may actually lose more seats in the next election and give the liberals the majority.  they will win the East with Nfld and NS and more in quebec and Ont will stay red and if they gain any in Man or BC the Cons are in big trouble.

The budget may have a small windfall in it but lets not hold are breath as we need at least another 3 billion to meet all expections on the forces.

 

[big bad john]

Start lowering your expectations.  From todays Ottawa Citizen:

Defence budget expectations are low
Cash infusion is not enough to cover Forces' annual shortfall of $1.6 billion
 
Mike Blanchfield and a journalist
The Ottawa Citizen

February 17, 2005


CREDIT: Stephen Thorne, The Canadian Press
Defence officials are expecting $750 million in new spending in next week's budget, including $250 million to recruit 5,000 new full-time personnel and 3,000 reservists. 


The cash-strapped Canadian Forces are expecting only a modest infusion in next week's federal budget, not enough to meet its massive operating shortfall, let alone buy new ships or transport planes.

Senior defence officials are expecting $750 million in new money from Finance Minister Ralph Goodale in next Wednesday's budget.

Of that, $250 million is to be earmarked for the recruitment of 5,000 new full-time personnel and 3,000 part-time reservists, the first stage in fulfilling last year's election promise to boost the Forces' sagging enlistment.

But that's just one-quarter of the $1 billion needed to recruit those new 8,000 troops.

Defence planners have determined it will eventually cost $1 billion to recruit and train those new personnel, and the process could take up to five years.

But this will allow the Forces to start a recruitment process that has been stalled since last June.

As for plans to purchase large supply ships or transport planes, those remain on hold -- a victim of the overdue international policy review, which is being rewritten after it failed to meet the expectations of the Prime Minister's Office.

The defence review, which is one component of the larger foreign policy review, is also on hold. It is not expected to be ready for public consumption until late next month.

Prime Minister Paul Martin has said the military won't get any new money for big-ticket items until the defence review is completed.

In interviews, the new chief of defence staff, Gen. Rick Hillier, said he wants the Forces to have a large expeditionary warship that could effectively transport Canadian troops to and from domestic and foreign missions.

The Conference of Defence Associations says even if next week's budget does not meet expectations, there are still reasons to be optimistic about future spending once the defence review is completed.

The fact Gen. Hillier used his first speech as defence chief to call for more money, and "nobody has told him to shut up" speaks to the fact he does have the ear of the prime minister and Defence Minister Bill Graham, said Alain Pellerin, the defence association's executive director.

Mr. Pellerin said the government must increase the defence budget to at least cover the Forces' annual operational shortfall of $1.6 billion.

"Before they start to talk about rebuilding and transforming, I think what needs to be done is to stabilize the Forces," said Mr. Pellerin.

"If the government is serious about addressing foreign policy objectives, whether it is the responsibility to protect or other objectives, they need to address the shortfall in the Forces."

The defence association wants a series of $1-billion yearly increases to the base defence budget until it has been increased to $20 billion from the current $13 billion.

That would increase Canadian defence spending to 1.6 per cent of gross domestic product, the average of NATO countries, up from one per cent.

The Martin government will need deep pockets to meet the promises it has already made to the Canadian military, in addition to financing Gen. Hillier's plan to revitalize the forces.

The general's vision could mean an additional several billion dollars to the $7 billion Mr. Martin has promised, but has yet to deliver, for new equipment.

"What Gen. Hillier was articulating sounded awful ambitious," said David Rudd, executive director of the Canadian Institute of Strategic Studies. "But it's going to be very, very difficult to launch any new programs over and above what the government has rhetorically committed to."

Last year, in a series of speeches, Mr. Martin committed to the $7 billion for new equipment, including new maritime helicopters, search-and-rescue aircraft, new supply ships and armoured vehicles. So far, only the $5.2-billion contract for the helicopters has been signed, although the majority of the spending for that won't kick in for several years.

Most of the $7 billion in promised new equipment was made by the previous Chretien government, but Mr. Martin reaffirmed his commitment to those.

Defence planners have some figures for the equipment Gen. Hillier has talked about. The Hercules transport aircraft replacement price tag is around $2.2 billion. Last year, they also looked at the purchase of an amphibious assault ship and determined that surplus ships could be bought from the U.S. navy for about $400 million. If the plan is to buy new, then two ships could be purchased for about $1 billion. New heavy lift helicopters would probably cost another $1 billion.

Conservative defence critic Gordon O'Connor said he expects the Liberals to provide just enough money to make it look like they are fixing the problem of an underfunded armed forces. And he doubts they would find the money to fund Gen. Hillier's plan.

"To do that, you'd have to ramp up defence spending to what most people have been talking about in the past and that is three or four billion dollars more a year," said Mr. O'Connor.

© The Ottawa Citizen 2005

 

[Fishbone Jones]

I've had the opportunity to work with S Thorne. I found him both succinct and accurate in his writing and appraisals.

 

[Highland Lad]

See my post above (page 1).... it's starting already, isn't it?

It's almost enough to make a grown man cry, except that it's happened so many times before that I'm barely even disappointed, much less surprised; just a little bit ashamed that something that is so important is mistreated so badly.

 

[onecat]

"And if the hippies have been voting for the liberals...whos been giving votes to the NDP??"

At least the NPD would be more honest and up front about where they would take the CF.  The Liberals have a long very long history of being dishonest when it comes to defence.  Seeing the budget will be interesting but I doubt much will be given to the CF, if they do give 1 billion that would be nice if its over and above budget increase stated in the last budget.  I think any big ticket items will come at the cost of something else being cut.

 

[GGboy]

A little interesting math from someone much smarter than me:
$750 million works out to about 5.5% of the current DND budget
The rate of inflation last year was about 2%
The national gross domestic product (GDP) grew by about 3.5%

Leaving us ... ummm ... exactly where we were in defence spending as a percentage of GDP. Always assuming that the budget doesn't give us LESS than $750 mil ...

 

[big bad john]

Todays Ottawa Citizen:

Budget includes pay raise for military
 
Murray Brewster 
Canadian Press

February 17, 2005

HALIFAX (CP) -- Canada's soldiers, sailors and aircrew can look forward to a healthy pay increase in next week's federal budget.

Defence sources in Halifax and Ottawa told the news agency Thursday that Finance Minister Ralph Goodale's fiscal plan, to be released Wednesday, is expected to contain a 6.5 per cent across-the-board increase that will be retroactive to April 1 of last year.

The pay hike is to be one component of a multi-pronged effort by the Liberal minority government of Prime Minister Paul Martin to revitalize the military, said a high-level source who asked not to be named.

"Better pay certainly makes it more attractive to find recruits and keep the people you need,'' said the official.

Martin promised during last spring's federal election to add 5,000 active members to the Canadian Forces and 3,000 to the reserves.

But the pledge has been tempered by the reality that all branches of the service have had a difficult time holding on to trained personnel, especially in high-tech fields, where private-sectors companies are "willing to come up with boatloads of cash,'' said the source.

Over the last five years, the Forces has also been required to pay handsome bonuses to hold on pilots, doctors and other such professionals.

The blanket pay increase builds on measures in last year's budget, where Martin's Liberals granted income tax-free status to personnel serving in war zones around the world.

Non-commissioned members, no matter how long they serve in theatres such as Afghanistan and Congo, are exempted from paying up to $6,000 in income tax.

Improving the lot of existing members of the Forces will go a long way to improving morale, said a former commander of the army.

"This will get the attention of people who are thinking of joining,'' Jim Fox, a retired lieutenant-general, said from his home in Chester, N.S.

"But this will be very much welcomed by those already there and taken as a sign'' of confidence in the military as whole.

Troops, sailors and aircrew, who have been exposed to a dizzying array of overseas deployments since the Sept. 11, 2001, terrorist attacks on the United States "have been really pushed'' and the pay increase "will be very appreciated individually,'' he said.

But Fox, who spent roughly 30 years in uniform, said more pocket money and tax perks will not go very far unless they are coupled with additional funding for better equipment.

"These troops are professional and all three services have their views on what's required to restore the capability of Forces,'' he said. "They'll be looking for long-term investments in not only equipment but also to increase the numbers to better spread the workload.''

In the wake of last fall's deadly fire aboard HMCS Chicoutimi, the prime minister restated his election promise, saying more money will be spent on the Forces.

Just how much will be added to the Defence Department's $13-billion annual budget remains to be seen, given the fact the government is still engaged in a formal defence review.

Recently, Liberal Senator Colin Kenny, head of the Senate defence committee, urged Ottawa to boost military spending by 30 per cent in its next budget.

Last year's budget promised to speed up the already planned replacement of older Hercules search-and-rescue aircraft.

It also committed to finding the navy new supply ships that could double as troop transports _ a proposal that has been around for a decade.

The new chief of defence staff, Gen. Rick Hillier, recently added heavy-lift helicopters, capable of transporting troops and equipment around war zones, to the Forces' wish list.

© Canadian Press 2005