Madam Speaker, I would like to begin with sincere thanks to the Standing Committee on National Defence and Veterans Affairs for their work on behalf of the Canadian forces.
As hon. members are aware, enhancing the quality of life of armed forces personnel and their families constitutes the number one priority of those in charge of the department and of the Canadian forces.
There is a broad range of questions to be addressed, in particular pay raises for all levels of the military, employee benefits, and housing allowances. We strongly support the committee's efforts aimed at improvements in these areas.
The department does, however, have to meet some sizeable financial challenges if it is to make the desired changes. As the minister has said, it would be very difficult to improve the quality of life for Canadian forces personnel without raising the defence budget.
We are convinced that it would be unproductive to dig into the operating or training budgets to finance new quality of life projects, because all these components are important to operational efficiency. The committee supported this position in our report.
The department and the Canadian forces will continue to manage their resources in order to ensure a balance between these vital areas, including managing materiel as economically as possible.
The size of the Canadian forces has been reduced over the last decade, and consequently some materiel has been declared surplus to present needs. Whenever possible, the department attempts to dispose of surplus materiel, but this is a highly complex process.
In some cases, when it is cost-effective, the department tries to modernize its materiel in order to avoid costly total replacements. This is the only way we will succeed in optimizing operational efficiency and in fulfilling our commitments to all Canadians, our allies and the—