Evidence of meeting #17 for National Defence in the 45th Parliament, 1st session. (The original version is on Parliament’s site, as are the minutes.) The winning word was million.

A video is available from Parliament.

On the agenda

Members speaking

Before the committee

David McGuinty  Minister of National Defence
Moor  Chief Financial Officer, Department of National Defence
Sheehy  Assistant Deputy Minister, Materiel, Department of National Defence
Mes  Deputy Commissioner, Canadian Coast Guard Programs, Department of National Defence
Beck  Deputy Minister, Department of National Defence
Kelsey  Vice Chief of the Defence Staff, Canadian Armed Forces, Department of National Defence
Xavier  Chief, Communications Security Establishment

8:45 a.m.

Conservative

Jeff Kibble Conservative Cowichan—Malahat—Langford, BC

We've heard the review is complete, so are we rereviewing it because there's scuttlebutt and discussion?

David McGuinty Liberal Ottawa South, ON

We're reviewing it because it's a $28-billion acquisition for Canada, and the Prime Minister wants to make absolutely sure that it's the right one.

8:45 a.m.

Conservative

Jeff Kibble Conservative Cowichan—Malahat—Langford, BC

The initial review was not good enough, and we're doing more review. Is that what you're saying?

David McGuinty Liberal Ottawa South, ON

No, we're building on the original.

8:45 a.m.

Conservative

Jeff Kibble Conservative Cowichan—Malahat—Langford, BC

We're building on it. Okay. There's more delay—

David McGuinty Liberal Ottawa South, ON

We're building on it. There's more information coming in on more industrial benefits. There's more discussion.

Jeff Kibble Conservative Cowichan—Malahat—Langford, BC

Could you explain, Minister, what this delay is costing Canada, either by the month or by the year?

David McGuinty Liberal Ottawa South, ON

There's no additional cost, to our knowledge, in taking the time we need to get this right for Canadians.

8:45 a.m.

Conservative

Jeff Kibble Conservative Cowichan—Malahat—Langford, BC

There's no cost in the delay. Okay. Thank you.

Perhaps the price of the fighter jets has increased while we've delayed this over the years. How much is that costing us?

David McGuinty Liberal Ottawa South, ON

No, not to my knowledge. The fighter jet contract is the fighter jet contract. The Auditor General indicated some inflationary pressures, and we've addressed them in our response to the Auditor General's report on the F-35.

Right now, we are waiting for this review to be complete so that we can get it right for Canadians.

8:45 a.m.

Conservative

Jeff Kibble Conservative Cowichan—Malahat—Langford, BC

The initial F-35s that were purchased.... Would the following jets, if that decision is made, be the same price as the initial ones, or will the price go up?

David McGuinty Liberal Ottawa South, ON

I'd like to ask my deputy to give you a bit of insight, if I could.

8:45 a.m.

Conservative

Jeff Kibble Conservative Cowichan—Malahat—Langford, BC

Please.

Stefanie Beck Deputy Minister, Department of National Defence

Thank you for the question.

The prices per aircraft evolve over time, so the price we pay for aircraft number one is not necessarily the same price we pay for aircraft number 10, because of the length of time it takes to produce them. It's not a question of changing our project or changing our estimate.

8:45 a.m.

Conservative

Jeff Kibble Conservative Cowichan—Malahat—Langford, BC

The longer it takes to make a decision, the more the price of the aircraft is going to go up.

8:45 a.m.

Deputy Minister, Department of National Defence

Stefanie Beck

No, because we are continuing with the implementation of the existing arrangement that we have.

8:45 a.m.

Conservative

Jeff Kibble Conservative Cowichan—Malahat—Langford, BC

Okay, so the existing arrangement will keep the prices the same. Even if we delay, there is no cost increase in the program.

8:45 a.m.

Deputy Minister, Department of National Defence

Stefanie Beck

There is no increase to the expected cost, but that does not mean that the cost for aircraft number 16 is the same as the cost for aircraft number four.

8:45 a.m.

Conservative

Jeff Kibble Conservative Cowichan—Malahat—Langford, BC

Okay, but those prices will remain the same, regardless of the amount of time it takes.

8:45 a.m.

Deputy Minister, Department of National Defence

8:45 a.m.

Conservative

Jeff Kibble Conservative Cowichan—Malahat—Langford, BC

That's what I'm trying to get at.

8:45 a.m.

Deputy Minister, Department of National Defence

Stefanie Beck

One does not preclude the other.

8:45 a.m.

Conservative

Jeff Kibble Conservative Cowichan—Malahat—Langford, BC

Okay. Thank you very much.

Minister, you mentioned $476 million that's listed in the supplementary estimates for the fighter jet program, including training and infrastructure. Does this mean that we will be investing in bringing flight training back home to Canada? As you know, our pilots are currently being trained primarily in the U.S. and Italy.

David McGuinty Liberal Ottawa South, ON

That is the plan. Right now, when Canada does take possession of its first F-35s—as you know, we've committed to 16—pilots will be trained in the United States, but with the expansion of the fleet, we'll be looking forward to training those folks back here in Canada.

8:45 a.m.

Conservative

Jeff Kibble Conservative Cowichan—Malahat—Langford, BC

Thank you.