Public Accounts Committee on May 3rd, 2012

Evidence of meeting #42 for Public Accounts in the 41st Parliament, 1st Session. (The original version is on Parliament’s site, as are the minutes.) The winning word was costs.

A recording is available from Parliament.

On the agenda

MPs speaking

Also speaking

  • Kevin Page  Parliamentary Budget Officer, Library of Parliament
  • Sahir Khan  Assistant Parliamentary Budget Officer, Expenditure and Revenue Analysis, Office of the Parliamentary Budget Officer, Library of Parliament
  • Peter Weltman  Senior Director, Expenditure and Revenue Analysis, Office of the Parliamentary Budget Officer, Library of Parliament
  • Michelle d'Auray  Secretary of the Treasury Board of Canada, Treasury Board Secretariat
  • Robert Fonberg  Deputy Minister, Department of National Defence
  • Dan Ross  Assistant Deputy Minister, Materiel, Department of National Defence
  • François Guimont  Deputy Minister, Deputy Receiver General for Canada, Department of Public Works and Government Services
  • André Deschamps  Commander, Royal Canadian Air Force, Department of National Defence
  • Simon Kennedy  Senior Associate Deputy Minister, Department of Industry
  • Kevin Lindsey  Assistant Deputy Minister, Chief Financial Officer, Finance and Corporate Services, Department of National Defence
  • Tom Ring  Assistant Deputy Minister, Acquisitions Branch, Department of Public Works and Government Services

9:35 a.m.

Assistant Parliamentary Budget Officer, Expenditure and Revenue Analysis, Office of the Parliamentary Budget Officer, Library of Parliament

Sahir Khan

Actually, sir, from LRIP one to five.... First of all, there are two issues here. There are actually published figures and they're contracted. The issue is those are actually a price, not a cost—

9:35 a.m.

Conservative

Chris Alexander Ajax—Pickering, ON

Excuse me. There is one figure that has been agreed by the joint program office. Do you know what it is?

9:35 a.m.

Assistant Parliamentary Budget Officer, Expenditure and Revenue Analysis, Office of the Parliamentary Budget Officer, Library of Parliament

Sahir Khan

The LRIP 5.... Which LRIP batch?

9:35 a.m.

Conservative

Chris Alexander Ajax—Pickering, ON

For the low-rate, initial production period, per-aircraft cost.

9:35 a.m.

Assistant Parliamentary Budget Officer, Expenditure and Revenue Analysis, Office of the Parliamentary Budget Officer, Library of Parliament

Sahir Khan

Forgive me. It's just that we're unsure which batch you're referring to, sir.

9:35 a.m.

Conservative

Chris Alexander Ajax—Pickering, ON

The initial production period batch.

9:35 a.m.

Assistant Parliamentary Budget Officer, Expenditure and Revenue Analysis, Office of the Parliamentary Budget Officer, Library of Parliament

Sahir Khan

Sir, there are multiple batches within the LRIPs. Currently we're at—

9:40 a.m.

Conservative

Chris Alexander Ajax—Pickering, ON

You give me all the ones you know and we'll see whether you actually know what the LRIP is.

9:40 a.m.

NDP

The Chair David Christopherson

Order.

9:40 a.m.

Assistant Parliamentary Budget Officer, Expenditure and Revenue Analysis, Office of the Parliamentary Budget Officer, Library of Parliament

Sahir Khan

We have a chart, sir. I just want to know which batch.

9:40 a.m.

Conservative

Chris Alexander Ajax—Pickering, ON

I have—

May 3rd, 2012 / 9:40 a.m.

Peter Weltman Senior Director, Expenditure and Revenue Analysis, Office of the Parliamentary Budget Officer, Library of Parliament

May I respond quickly?

9:40 a.m.

Conservative

Chris Alexander Ajax—Pickering, ON

Please.

9:40 a.m.

Senior Director, Expenditure and Revenue Analysis, Office of the Parliamentary Budget Officer, Library of Parliament

Peter Weltman

There are six LRIP batches in the process right now. Two of them have been negotiated, and the other four are under negotiation and they're cost plus. They're in the SAR. We'd probably have to get back to you on the cost. They are available.

9:40 a.m.

Conservative

Chris Alexander Ajax—Pickering, ON

You'd have to get back to me, all right.

The cost is $100 million, the LRIP cost. Why was the figure that you've used as a fundamental parameter for your estimate over $40 million more than this?