Evidence of meeting #59 for National Defence in the 44th Parliament, 1st Session. (The original version is on Parliament’s site, as are the minutes.) The winning word was spending.
A video is available from Parliament.
4:55 p.m.
Conservative
Pat Kelly Conservative Calgary Rocky Ridge, AB
So we don't know how it's going to be replaced, but we do know that these replacements take significant lengths of time and we know the existing system is coming to the end of its operational life.
4:55 p.m.
Deputy Minister, Department of National Defence
What I would say on this, Mr. Chair—and it's a really important question the member is asking, because it is an important capability—is that there are dedicated satellites one can launch with the capability, but the satellite industry itself is also launching satellites into orbit on a daily basis. When we look at possible mitigation measures, there are also scenarios in which we utilize satellites that are already in orbit or will be launched soon. So don't just assume that it will be a bespoke Canadian satellite that fills this gap in advance of RADARSAT. There are other options being examined.
4:55 p.m.
Conservative
Pat Kelly Conservative Calgary Rocky Ridge, AB
On the surface combatants, how much of the fund was spent to date on that project?
4:55 p.m.
Deputy Minister, Department of National Defence
I'm not sure I can give you a quick answer to that one, Mr. Chair. We are still finalizing the design, and that is almost done.
I'm looking at my colleague, Mr. Crosby. If he does not know, we can get back to you in terms of spending to date.
4:55 p.m.
Conservative
Pat Kelly Conservative Calgary Rocky Ridge, AB
Okay. How much has been spent to date? That was the question.
What's the completion date?
4:55 p.m.
Deputy Minister, Department of National Defence
In terms of providing the eventual 15 surface combatants, we are looking at the first ship to be ready in the early 2030s. The most important next milestone one should focus on is the finalization of design. We are planning on low production starting in 2024. You don't jump into a program like that full board.
4:55 p.m.
Conservative
4:55 p.m.
Deputy Minister, Department of National Defence
Give me one second here, Mr. Chair, unless Troy, our CFO, has the answer. I have $90 million in my head, but just give me a moment to confirm that.
4:55 p.m.
Deputy Minister, Department of National Defence
Troy tells me I've got it right.
4:55 p.m.
Deputy Minister, Department of National Defence
Troy tells me he is going to correct me. I'm sorry, Mr. Chair.
4:55 p.m.
Troy Crosby Assistant Deputy Minister, Materiel Group, Department of National Defence
I wouldn't do that, Deputy.
Mr. Chair, in the estimates this year for the Canadian surface combatant, there's approximately $1.1 billion earmarked for the ongoing acquisition of long-lead items, a continuation of the design, and work on associated infrastructure.
4:55 p.m.
Conservative
Pat Kelly Conservative Calgary Rocky Ridge, AB
Thank you for that correction.
The minister talked about the Victoria class submarines. She said it was $3 million, but I presume she meant $3 billion is earmarked for the modernization and operation of the Victoria class submarines.
4:55 p.m.
Deputy Minister, Department of National Defence
I think the minister may have been referring to the amounts in these estimates. The actual project itself has a rough budget of around a billion dollars to modernize, so I think in this—
4:55 p.m.
Conservative
Pat Kelly Conservative Calgary Rocky Ridge, AB
Okay. One billion dollars to modernize and $3 million in these estimates.
4:55 p.m.
Deputy Minister, Department of National Defence
Others may be able to give you an amount that's in these estimates.
Troy says you have it right, so that's correct.
5 p.m.
Conservative
Pat Kelly Conservative Calgary Rocky Ridge, AB
These estimates have less than 1% of the amount necessary to complete that project.
5 p.m.
Deputy Minister, Department of National Defence
Correct, Mr. Chair, because remember that when we're dealing with estimates, we're dealing with the forecasted spend for this year, so this is really the pace at which industry is able to expend resources.
5 p.m.
Conservative
Pat Kelly Conservative Calgary Rocky Ridge, AB
All right.
What's the funding in these estimates on the Arctic patrol ships?
5 p.m.
Deputy Minister, Department of National Defence
On the Arctic offshore patrol ship, there are three remaining ships. I will have to check. I know the total budget of this project, but I have in my head a number of about $345 million this year, Mr. Chair.
Troy again is giving a thumbs up.
5 p.m.
Conservative
Pat Kelly Conservative Calgary Rocky Ridge, AB
Okay. While he is checking that, what's the completion date?
5 p.m.
Deputy Minister, Department of National Defence
He has just confirmed that the $345 million is correct.
5 p.m.
Deputy Minister, Department of National Defence
When you think about the AOPS, think about a rhythm of one ship per year. There will be another one launched toward the end of the summer 2023, one in 2024 and one in 2025. That will bring the six for National Defence, the Royal Canadian Navy, online. Then there are two follow-on ones that are being built for the Coast Guard.