Thank you very much, Pierre.
Mr. Chairman, ladies and gentlemen, thank you for this opportunity to address you and to take your questions about the army reserve, or the militia, as it's still known in many circles in Canada.
Reserves 2000 is a nationwide alliance of Canadians who are dedicated to preserving a vital and viable army reserve. Réserve 2000 Québec is Reserves 2000 in the province of Quebec. We may operate in two different languages, but we speak with the same tongue.
A defence review provides a rare opportunity to change Canada's defence establishment, and hopefully, for the better. The army reserve, the vital connection between Canadians and their army, will undoubtably benefit from a fundamental examination of its purpose and current capabilities. In the past 50 years, defence white papers and the products of other defence reviews such as the Canada First defence strategy have said very little about the importance of Canada's reserve forces. Perhaps this was because wide public input was not sought or perhaps the views of reserve supporters were ignored. But today, in light of the post-Afghanistan deployment, the value of Canada's army reserve is recognized as never before. It is vital that a detailed discussion of its future be an integral part of this defence review process.
Part-time soldiers provided over 20% of the soldiers who were deployed to Afghanistan, and they now make up about a half of the total number of soldiers in the Canadian army. They are located in 117 Canadian communities, in 123 units across the country, and have proven their value many times over in recent years in a wide variety of operations at home and abroad. There's no reason the army reserve should not contribute more defence capability, but given the perilous situation reported this month by the Auditor General, it is painfully obvious that the time to re-evaluate assumptions governing the army reserve, which have been in force since the middle of the last century, is long past due.
Army reserve soldiers are cost-effective. All other benefits and attributes aside, the maintenance of part-time army reservists is more cost-effective than that of their full-time counterparts and the civilian employees of the Department of National Defence. The recent Auditor General's report shows that in fiscal year 2014-15 the Canadian army budgeted $243 million of Canada's $20-billion defence budget to pay and train 19,471 part-time soldiers. That's $243 million out of a total budget of $20 billion, which works out to 1.2% of the $20-billion defence budget. A very small portion provides a half of the soldiers in the Canadian army. That works out to $12,480 a soldier. At the same time, the last government stated in the last Canada First defence strategy that the all-in cost of adding one full-time soldier is $150,000.
The Auditor General also reported serious flaws in DND accounting of army reserve costs. He pointed out that flaws in current DND accounting, overheads, the fact that 1,500 full-time army reservists are included in the army reserve budget, unsubstantiated charges for base support to reserve units, and other discrepancies such as monies that were spent on other programs other than the army reserve, yet that money was appropriated for the army reserve; all that obscures the cost of giving a good all-in cost for a part-time soldier. Consequently, his report didn't try to do that. Reserves 2000 has made the calculation that a reasonable all-in cost per year for one part-time soldier should be approximately $25,000. There's the $12,000 or so that I mentioned, which is the pay. The rest of it adds up to somewhere around $25,000 per soldier. In other words, if a regular full-time employee costs $150,000, you could have six part-time soldiers for the price of one full-time.
As some 50% of the current defence budget is consumed by full-time personnel costs, it seems quite clear that shifting more responsibility for defence capability to part-time reservists should be an attractive option for a financially pressed government.
Can the army reserve meet the challenge?
We are well aware of the tired old argument that part-time soldiers, except for an order in council, have no obligation to go to full-time service and therefore cannot be counted upon in an emergency. But over the past two decades, history shows us that army reservists have willingly, and with enthusiasm, turned out in all the numbers required to surpass any demands made on them by the army for missions both at home and abroad.
There's also the argument that a part-time soldier is not as well trained as a full-time soldier. This is particularly important for expeditionary missions. Those missions require a tremendous amount of team building and team integration before any unit can be deployed. Other than the few high-readiness units that the resource-strapped regular army is capable of maintaining on a day-to-day basis, all army units require intense pre-deployment workup. It's been an operationally proven fact that reservists in the ranks of the deployments for Bosnia and Afghanistan were equally as capable as their regular brethren by the time the unit left Canada on deployment.
In domestic operations, the skills of part-time soldiers are abundantly obvious. Reservists maintain high levels of expertise and basic military skills through their regular weekly, monthly, and summer training schedules. They're able to react very quickly to disasters, often because they are already on the scene.
Canadian communities value their units. In addition to adding affordable depth to the Canadian defence establishment, reserve units provide their home communities with many more intangible advantages every day. The army reserve provides all the advantages of timely, available federal infrastructure and organized, well-trained local backup for first responders.
Countless mayors and reeves of Canadian municipalities are on record with ringing endorsements of their local units and are quick to raise substantial objections whenever the future of their unit is threatened. These municipal leaders are also quick to rally all the support at their disposal to drive home the advantages of having reserve units in their communities. These range from being a source of good part-time jobs to good youth employment, providing job-readiness training, leadership, and citizenship training, to being a significant economic driver, which spreads throughout the community. That comes from the payroll of the full-time staff, the part-time jobs, and the substantial purchase of goods and services.
The smaller the community, the more valuable its reserve unit because good part-time jobs are fewer and there's less redundant infrastructure than in larger communities. Taxpayers located outside major metropolitan areas feel they have the same rights to the advantages a reserve unit brings to their town as their urban cousins.
Unfortunately, the army reserve is at a breaking point. The current state of Canada's reserve army is perilous and uncertain. The Auditor General is the authority. He reported that strength has been shrinking by about 5% per year for the last five years. Although 21,000 reserve soldiers were budgeted for in fiscal year 2014-15, the actual number who were trained and attended regular parades was only 13,944.
Active strength is the holy grail of unit viability and many units, especially those in smaller communities, are now in danger of being unable to function due to the shortage of leaders and soldiers. This situation must be changed and bold steps must be taken to maintain this irreplaceable asset and cause it to thrive for all the tomorrows that we can envision.
At the same time, it must be recognized that the cause of shrinking units is not of their own making. The problem lies firmly at the feet of failed national policies that have produced inadequate recruit quotas, failed and highly flawed recruiting policies and procedures, and insufficient summer employment opportunities to give young soldiers who form the bulk of the units enough pay so they can continue to serve on a part-time basis while attending school.
Canadians have demonstrated great affection and support for their local army reserve units. To them, the loss or amalgamation of units would be of great concern and is, quite frankly, unacceptable.
We look to this committee to recommend that the army reserve be revitalized, expanded, nourished, and properly equipped to provide more cost-effective defence capabilities, while at the same time providing communities with the opportunity for individual Canadians to grow while serving their nation on a part-time basis. We ask you not to fail the army reserve.
This committee has great influence on the defence review. From Canada's earliest beginnings, the militia, the citizen soldier, has been the very backbone of our military establishment. Such soldiers are needed today more than ever before. It's time to step up and help these fine, young volunteers who are forever willing to put their lives on hold in the interest of their country. Please do the right thing, and help them remain at the ready.
That concludes my remarks, and I'm very happy to take any questions you may have.