Tuesday, May 02, 2006

What will be in the budget?

Three stories (and the answer in the Upperdate):

1) He [Finance Minister Flaherty] has also promised "substantial" new spending on the military, which has been exempted from the government's spending limits.

Sources say the budget will include $2 billion for the purchase of three icebreakers and creation of a deep-sea port in the North to help Canada reinforce its claim of sovereignty over the Arctic.


One hopes the Coast Guard gets the ships, which they need, and not the Navy (and that the port idea is dropped).

2) Front and centre for defence will be a commitment, in keeping with election campaign promises, to purchase a fleet of strategic or long-haul aircraft -- likely four aircraft, sources say -- at a cost of about $250-million (U.S.) apiece...

Defence, though not nominally one of the government's five priorities, will play a significant role in the budget, sources say, if only because the military must buy new planes and ships imminently in order to maintain current operations, including the mission in Afghanistan.

The budget will not likely mention an aircraft by name, out of deference to an open bidding process, but sources say the contract is earmarked for U.S.-based Boeing, maker of the C-17 Globemaster transport.

The first aircraft likely will be in service for Canada within a year, sources say.

In addition, sources say, a long-running struggle between the Chief of the Defence Staff, General Rick Hillier, and Defence Minister Gordon O'Connor will be resolved with an announcement that the government intends to replace the military's aging Hercules C-130 short-haul transports, but not this year.


When, then?

3) The Canadian Forces will receive a "substantial" infusion of new cash in the first Harper government budget, which will be presented next week, Finance Minister Jim Flaherty said Monday [story April 25]...

The Forces have been waiting for the green light to spend billions of dollars on new hardware, including heavy lift helicopters that Gen. Rick Hillier, the defence chief, has said are essential for transporting troops on their current mission. Also on hold is a $4.6-billion plan that would include new short haul tactical lift airplanes to replace the air force's aging fleet of C-130 Hercules transports.

Hillier has said that both pieces of hardware are essential for the Afghanistan mission, and that the Hercules fleet is nearing a total rust-out, which would all but end Canada's ability to mount foreign operations.

On the Tory shopping list is a new fleet of long-haul C-17 transport planes worth more than $1 billion, it is believed. The long-range airlift capability, which Hillier does not view as a priority, would give Canada a capacity comparable to the United States and Britain...


Update: CBC Newsworld reports C-17s, fixed-wing SAR, and maybe supply ships for Navy.

Upperdate: Slim pickins. Very disappointing. Perhaps Minister O'Connor and Gen. Hillier are still at it.

Defence

Canada’s military has a proud tradition of responding to crises while fulfilling the fundamental government role of ensuring our national sovereignty. The international missions now being undertaken call for a new concept, with different force structures, different equipment and different operational requirements. The new international role means Canada’s military and its defence policy need to transform and adapt to a new operational environment. At home, the Government needs a strong Canadian Forces (CF) to provide emergency response for such disasters as floods, storms, earthquakes or the threat of terrorism.

For this reason, the Government will implement its "Canada First" defence plan to strengthen Canada’s independent capacity to defend our national sovereignty and security. Realizing this vision will require large-scale investments in every region of the country to strengthen the CF.

Budget 2006 will increase the National Defence budget base by $5.3 billion over five years to:

* Proceed with the transformation of military operations and defence administration.

* Accelerate the recruitment of 13,000 additional regular forces and 10,000 additional reserve forces personnel.

* Expand training, reduce rank structure overhead, review civilian and military headquarters functions and increase front-line personnel.

* Increase investment in base infrastructure and housing for our forces.

* Acquire equipment needed to support a multi-role, combat-capable maritime, land and air force.

* Increase the CF’s capacity to protect Canada’s Arctic sovereignty and security.

* Restore the regular army presence in British Columbia [Comox? What about the silly battalions for Goose Bay, Bagotville and Trenton--see below, maybe?].

* Initiate the establishment of territorial battalions.

Table 3.12
Budget 2006 Defence Funding (Budgetary Basis)1
2006–07 2007–08
(millions of dollars)
Canada First 400 725
1 The cost of major capital equipment is spread over its life, so the annual budgetary amounts include only a portion of the full capital cost. As was the case with the budgetary increases provided last year, the full cost of capital acquisitions will be provided on a cash basis in the years they are acquired.


Two stories:

1) Defence: Troops get a pittance

2) Budget bolsters defence spending (better, though headline is economical with the truth)

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