Public Accounts committee  Thank you. I'll ask Mr. Reed to answer that question.

Public Accounts committee  In terms of that being a $9 billion budget amount for the acquisition, I'm not really sure what the term “finite” means, but my understanding is that there has been $9 billion set aside, approved for the acquisition of replacement fighter jets.

Public Accounts committee  The $9 billion as a number for the budget is a known number, but the amount of cost to actually acquire 65 jets is still an estimate.

Public Accounts committee  Thank you. Again, we identified that for acquisition, the government approved $9 billion for acquisition.

Public Accounts committee  Certainly costs going into the future need to be estimates and have to be estimates.

Public Accounts committee  Certainly any costs looking into the future have to be estimates based on the best information known today.

Public Accounts committee  Certainly, again, looking at costs into the future is an estimate process. That's why it's important not only to provide estimates but to provide things like ranges and sensitivity analysis around those estimates and to prepare risk mitigation strategies, in case those types of e

Public Accounts committee  The $25 billion number that we used was the amount of the two budget amounts that were approved, $9 billion and $16 billion. So we used that on the basis that those were amounts that were actually approved, rather than using a number of our own estimate.

Public Accounts committee  I think that is an accurate statement, Mr. Chair.

Public Accounts committee  That's correct.

Public Accounts committee  That's a fair comment.

Public Accounts committee  Thank you. That was based on the anticipated number of flying hours for each aircraft and the number of hours of expected use annually, which came out to a 36-year life cycle.

Public Accounts committee  Certainly it's my understanding that if Canada does not buy the jets, then obviously—other than contracts that are already in place—we would no longer be able to access those additional industrial benefits.

Public Accounts committee  Again, I would just indicate that there have been some contracts signed. Some were already done, which I think obviously would not be reversed, but access to future industrial benefits does depend on Canada purchasing the F-35 as a partner.

Public Accounts committee  That would be that the government—I guess probably represented by cabinet—needs to make sure that the group charged with taking this project from here on in has a very clear statement of purpose.