I have a couple of points, Mr. Chairman.
First of all to the good question, we have not put off increases in the defence budget until 2017. The budget will continue to benefit from the 2% automatic escalator between now and then. It will continue to benefit from the accrual budget that is set is aside, which itself has benefited from the roughly $5 billion Canada First defence strategy baseline increase, which has resulted in the successful acquisition and upgrading of this equipment that I just listed.
Moreover, the PBO report, as mentioned, does not take into account even the 2% escalator, let alone the additional 1% for the full 3% escalator. As Mr. Rochette mentioned, we always have the ability to reallocate resources to where they will be spent most effectively, so that is what we are doing currently in the defence renewal strategy where we are seeking to reallocate roughly $1 billion in spending from low priority to high priority areas—to use the vernacular, from tail to tooth. Those are factors not taken into account by the PBO, or indeed I believe by Mr. Perry.
We believe we can continue to operate one of the highest quality, medium-sized, multi-platform militaries in the world with the kind of reference levels that are presented in budget 2015.