In the wake of the Auditor General’s warning about the government’s untendered $16-billion F-35 purchase following her devastating critique of Conservative procurement practices, Liberal Leader Michael Ignatieff said that to prevent further abuse, a future Liberal government will cancel the F-35 stealth fighter deal and hold an open competition to replace Canada’s CF-18s.
“When families are having a hard time making ends meet and the Conservatives are already running a record deficit, where’s the oversight from Prime Minister Harper preventing billions of dollars of waste on these massive contracts?” asked Mr. Ignatieff.
“We have been raising questions about this deal, which Mr. Harper has refused to answer, and the Auditor General’s report is the final straw. The only responsible course of action is to cancel this $16-billion dollar deal before taxpayers are left on the hook for billions of dollars more in needless waste.
“We need an open debate about whether these are the right planes, and to make sure we’re getting them for the right price,” he stated.
Yesterday, Auditor General Sheila Fraser warned that the military will suffer a $1-billion budgetary shortfall after the Harper government broke procurement rules on its helicopter purchases, resulting in cost overruns that ran the bill up to $11 billion. Ms. Fraser blamed the cost overrun on the government’s failure to:
- Identify Canada’s defence needs and the operational needs of the military before proceeding with any purchase;
- Open the procurement to competition;
- Account for full life-cycle costs; and
- Sign maintenance contracts in advance of the purchase, before all bargaining power is lost.
“Ms. Fraser found that the Department of National Defence hid escalating costs from the Treasury Board, and made the purchase without identifying the actual mission requirements the Chinooks needed to perform,” said Liberal Defence Critic Dominic LeBlanc.
“But here we go again on the F-35s, with no foreign mission requirements and no cost containment measures. Even when other countries are raising concerns about the F-35s’ increasing costs, the Conservatives are writing a blank cheque we can’t afford.”
As previously announced in the Liberal Global Networks Strategy, a Liberal government will conduct a review of all military procurement upon taking office. As part of this process, Liberals will openly define the mission requirements for Canada’s next fighter jet and conduct an open competition to replace the CF-18s based on those publicly disclosed requirements.
“Minister MacKay has no credibility when he says he’s learned his lesson, while at the same time forging ahead with the same kind of deal for the F-35s,” said Liberal Industry, Science and Technology Critic Marc Garneau.
“After all the delays and cost increases, the Conservatives still don’t know what it will cost to operate and maintain these helicopters. We can’t afford to make the same mistake on our next fighter jet – and only an open, transparent competition will ensure we get the right plane at the right price.”
There is no penalty for cancelling the current deal and holding an open competition for our next fighter jet. A Liberal government would remain committed to the 2006 Memorandum of Understanding that gives Canadian industry access to F-35 contracts, without any obligation to purchase the planes.
- What are the defence priorities and foreign mission requirements that our new fighter jets must be able to support?
- What are the roles, capabilities and operational performance requirements that any new fighter must be able to meet in order to support these future domestic and international priorities and missions?
- What evidence does the government have to demonstrate that their deal gets the right equipment for our Air Force while achieving the lowest cost and best value for taxpayers, as well as guaranteed regional benefits?
