It is the guidance document that will be provided to all members of the committee to help them in their deliberations. It does not set out any prescriptions; it simply identifies the issues and helps them frame their deliberations. It is intended to stimulate discussion and focus the work of the committee on the critical issues to be resolved.
To give members a sense on how the government intends to approach the substantive aspects of the review I would like to spend a few minutes reviewing the broad outline in the document I have just tabled.
The document begins an examination of the Canadian defence issues by setting out the international and domestic context of Canadian defence.
In it we note that the cold war has yielded some very real improvements in international security relations. Since 1989 we have seen an astounding chain of events occur, especially in eastern Europe with the dismantling of the former Soviet Union and the re-emergence of states that have not been independent for many years, in some cases for centuries.
There has been significant progress in arms control and the resolution of some of the long-standing regional conflicts. Beyond this we have the rapidity of events unfolding especially in Europe to caution us as to how we deal with the formulation of defence policy.
The guidance document talks about the unpredictability, the volatility and the violence in the international environment. We see this obviously in the former republic of Yugoslavia and the disintegration of that country. However, it is being played out in
the bordering states, the former republics of the Soviet Union, both in Europe and in Central Asia.
I have become much more alarmed at the pattern of events that are occurring in that part of the world with smaller states potentially having the ability to operate nuclear weapon systems which have come into their hands directly because some republics of the former Soviet Union have them on their soil. However, I must admit I am very happy with the agreement which seems to have been put in place in the former republic of Ukraine, now an independent state, for control in dismantling and dismemberment of these weapons.
Many people have been involved in the arms business and the nuclear development business in that part of the world. We know there are regimes that for whatever reason through territorial expansion or other designs of hegemony in the region want to use nuclear weapons to improve their case. We see a very disconcerting scenario unfolding and that should make us vigilant in formulating our defence policy.
What I am trying to say is that the events, the hope and the euphoria in 1990 and 1991 following the collapse of the Soviet empire has given way to a bit more realism, a bit more pragmatism. Yes the world potentially is a better place. We do not have this terrible arms race between the two superpowers, but the fallout, especially in the Soviet Union, in Russia and that area has created a degree of instability we have to be very mindful of. We shall watch the situation in Russia very carefully. Of course Canada is fully behind attempts in that country to organize itself in the most democratic and fair-minded fashion in its new role as an independent country free from any ideology.
From a military point of view Russia does remain a power. It has nuclear weapons. It still has a large armed forces, much of which has been repatriated from the former eastern European states. Events such as the second coup attempt last October and the outcome of the recent elections are of concern to us. They reflect the precarious state of reform in a climate of serious social and economic problems.
Making long-term decisions about the Canadian Armed Forces is difficult enough at the best of times. It is even more difficult when the future of international security is so complex and so uncertain.
The guidance document reminds us of the importance of the national dimension of Canada's defence. As a bare minimum, under the National Defence Act, the forces are required to take action in situations that threaten public order in Canada. The forces still have a role to play in defending Canada and protecting Canadian sovereignty, and this role includes assisting other departments and other levels of government.
Over the years, the government has asked the forces to assist certain government agencies in search and rescue activities and with relief in cases of national disaster and the protection of our marine resources.
In its deliberations, the committee will have to determine what the appropriate national roles for the Canadian Forces are and what level of capability our military people need to fill these roles.
One of the most significant domestic issues affecting the Department of National Defence and Canadian forces is fiscal restraint. This is addressed in the foreword of the guidance document. I have stressed that we have to develop a policy that is realistic and affordable. I want to re-emphasize that point today. Because of the urgency of fiscal restraint, we must set priorities and focus on plans, procurement and operations that are most essential to our needs.
The guidance document sets out three areas where the committee and Canadians need to think carefully about defence priorities in an attempt to design an appropriate defence posture for the 1990s. However in doing so we cannot forget the cost implications.
In that context I would like to address a comment which has been raised by the other parties and by some of my own colleagues. That is the logic of having a defence review when we are about to cut a massive amount from the defence budget. This is something which again was outlined in the red book.
With respect to defence we agreed to eliminate the EH-101 helicopter program. It was a sound decision. It was a good decision. That particular piece of equipment was too expensive for our needs. We felt that the former government erred. We said so in the campaign and we have discharged our obligations.
At some point in time our need for replacing the Sea Kings to carry on search and rescue and other naval operations for which some of the EH-101s were intended will have to be addressed. Committee members can help us along when they discuss the role for the forces and their policy suggestions as to the kind of capability we need in search and rescue, in maritime surveillance and the naval force generally where the EH-101 was to be deployed.
Our other promise was to cut $1.6 billion from the defence budget. It is there in the red book. It is not a budget secret. This is public. Of course the Minister of Finance when he brings forward his financial projections will obviously take that into account.
That is a promise we will discharge. I am on the record saying that in speeches and I have mentioned it in the House.
In dealing with this urgent fiscal situation, because the savings have to start clicking in April 1, at the beginning of this fiscal year 1994-95, we had two options. We could have decided to curtail operations. We could have decided to, as I have said not facetiously but honestly, do something that would have seen our F-18 fighter planes fly every seventh day.
We could have our great new frigates which are admired by naval experts around the world just give tours of the Grand Banks instead of going any further and, again being somewhat tongue in cheek, having guns without bullets or armoured personnel carriers that do not function.
We cannot afford that because defence of our country and our vital interest is crucial. We must do this in the best way possible. What we decided to do is to try to take the tough decisions that governments have ignored in the past. They have ignored them in a most irresponsible manner.
As the armed forces budget as a proportion of government spending has decreased from about 24 per cent in 1963-64 to about 8 per cent today and going lower, the number of actual uniformed personnel has decreased from 130,000 to about 77,000 or 78,000. It is going lower because of the cuts that were announced by the previous government. Those are working their way through the system.
We have to decide. The government would be interested obviously in hearing from the committee as to how low we can go to have a real credible defence. If one goes too low, what can one do and what can one not do?
Along those 30 years as we were shedding uniformed personnel we were not in a commensurate way dealing with infrastructure and capacity. We have an administrative and physical infrastructure and capacity which is too much for the more modest armed forces we have today.
As anyone in business knows, if one's market share declines radically one has to cut one's overhead if one wants to stay in business. Unlike some in the House who tried to equate exclusively business with government, we do not do that because government is not a business like any other business. It is a unique institution that has to balance many competing interests.
However, we do owe it to Canadians to try to operate ourselves in a most efficient manner. When we announce our defence cuts, we will do so in such a way as to address this infrastructure imbalance, this inflated administrative overhead that does not really conform with the actual role being discharged by the armed forces today.
It will be very controversial. It will impact on every region of the country. I cannot over-emphasize enough the severity of what we have to do. If we do not do this and do this fast, that is in the next few weeks, then we will have to take the cuts in the operational end which in effect will grind us to a halt. It could even mean that we would have to, notwithstanding the decision of the House about deployment in the former Yugoslavia, the government's decision and the views of the House, concede external operations.
I do not think Canadians want to do that. We have to discharge our obligations whether it is there or elsewhere. We have to continue to operate the business, the plant or service for Canadians that the Canadian Armed Forces brings forward.
It would be very difficult. It would be very controversial and I would ask the members not just in the opposition parties but also my own party to understand the difficulty that we have to face.
In doing it we will deal with individuals affected in a way which is extremely sensitive, which will go beyond what is required in terms of collective agreements and with our personnel. I believe that we will be able to put as good a face on what we are going to do from a human impact position as possible, as realistically as we can. With respect to communities that will be affected, this will be very difficult. Some can absorb job losses, some can absorb the decline in economic activity, but others will not be able to do so readily. We do not want to preside over the dissolution of entire communities in the country.
Even though the government's financial means are severely restricted, we will work with provinces and communities, members of Parliament affected and businesses to try to ensure that the very good plant and capacity that we have in many of our facilities-office buildings, bases, other structures-are used for other purposes. Whether it is business, community projects or provincial government works, we will try as best as is possible to ensure that the economic activity in those communities is not gutted but is maintained to some degree.
Having said that, there will be no more Summersides. We cannot afford it. The former government-no disrespect to my colleagues from Prince Edward Island, there may be one or two in the House today-closed that base and there was an outcry. I understand the outcry. The compensation that the people in Prince Edward Island received was generous by comparison with what we can do today. We just do not have the hundreds of millions of dollars to replace the economic activity.
I want to take the opportunity in this debate to tell my colleagues why we are proceeding in this way. We have to do it now to preserve the fighting edge of the forces, but not to prejudice the outcome of the defence review.
If we mothball equipment and curtail operations, it is still going to mean jobs. If when the defence review is complete, the members have worked hard in their committee and they advocate a certain direction, we may have to say: "Well, we cannot do that any more because we got rid of that piece of equipment, we cut out that unit from the armed forces and to restore it is going to cost hundreds of millions of dollars".
By acting now I believe we are going to preserve the ability of the joint committee and others participating in the review process to effect policy in a meaningful way and at least be able to have a fighting capability at the end of this year that can discharge any obligations the committee thrusts upon it.
I would ask for the co-operation of members when we announce our budget cuts. My colleagues and I will be available on a regional basis to explain what we are doing and to try to mitigate somehow the impact. We will do everything we can to help various communities. But the time has come to address some of these very difficult questions and it must be done now. It cannot wait.
I am going on a little bit longer and I must apologize to my critics on the other side. I have probably told the House more than I have told the cabinet. It is meeting upstairs and I have to go and face the music, which is somewhat unusual in the sense of the House hearing a longer speech on defence than cabinet has already heard. It is meeting now and I apologize to my critics because I will not be here to listen to them. My parliamentary secretary is here. As members know, he is a former distinguished member of the Canadian navy. He will be making notes, plus our officials will be watching the debate on television. Everything that is said here today certainly will be brought to my attention.
In conclusion, the government wants to hear about every aspect of defence policy-our multilateral relations, NATO and NORAD. I think NORAD is up for renegotiation in 1996. We want the committee to be completely unfettered in what it looks into. We want it to be reasonable, obviously, and I think the members will be reasonable. We will be meeting jointly with the foreign affairs committee. I see my colleague from Toronto, the parliamentary secretary of foreign affairs, listening to the debate. There is obviously overlap in some areas but we could hold joint hearings to make sure there is no duplication of work.
I have confidence in the quality of the members that I know are on the House of Commons committee from the three parties. They are knowledgeable, they have spoken in the debates on cruise missile testing and on Bosnia and our role in peacekeeping. They are knowledgeable people and they are sincere. They want Canada's defence policy not to be one of partisan bickering but something upon which we can all agree and something about which we can all feel the kind of pride that we should feel.
The Canadian Armed Forces has a terrific reputation. It goes back decades. It goes back to our participation in world wars, the Korean war and all our peacekeeping ventures. We have just sent over a fact finding tour led by people from foreign affairs. We have one of our senior military people assessing the situation in Bosnia because we have to make a decision very quickly about our engagement. The comments about the conduct of Canadian troops are absolutely outstanding.
I hate to quote one of the belligerents, but one general on the Serbian side when talking about our troops in Srebrenica said: "We want the Canadians to stay. We trust them. We like them". That is probably the only thing the three factions agree on in Bosnia, that the Canadian troops are probably the best that are deployed there under the UN command.
We have a proud institution, terrific people. In many respects it is a shame that we have allowed our armed forces to work hard without having paid much attention to them over the years. The last government dealt with the armed forces in a most reprehensible manner in terms of policy. It issued a white paper without public consultation. It slashed here there and everywhere with no military, operational or logical reason to do so. It certainly shocked the morale of the armed forces.
However, we have professionals. They know what is coming in terms of defence reductions but they have a real faith in this Parliament and the changing attitudes of the Canadian public and the government to try and be fair and honest with them so that they can discharge their obligation in the best interests of everyone in this country.