Canadian Navy faces procurement shortfalls

Sea Power, Apr 2003

Recent documentation and press coverage continues to reveal that the Canadian Navy (CN) is desperately short of funds, raising the possibility that it will be unable to fulfill its global responsibilities. Current planning calls for funds to be diverted away from important procurement and modernization plans for all the services to fund current operations, which are continuing to increase. The CN also is faced with increased ship deployments at a time when overall defense funding is in decline

In late 2002, the Prime Minister, Chief of Defense Staff, leading Parliamentarians, and Canadian defense experts, made it clear to the Canadian public that action would be needed in the near future, resulting in a larger increase for the 2003 defense budget and beyond. In 2003, the Canadian Armed Forces will enjoy its largest single defense budget increase in a decade.

Funding for 2003 provides the Department of National Defense (DND) with $1.6 billion in new funding in each of the next two fiscal years, and with a sustained annual level of $800 million thereafter. In addition, the Canadian government has renewed its commitment to reassess the future needs of defense following a review of Canada's foreign and defense policy.

The DND has stated that the influx of additional funds will permit the Canadian forces to address the following shortfalls:

* Continue to support ongoing recruiting and training programs;

* Restock spare parts and ease pressure on the defense budget for operational support;

*Support and enhance Canada's reserves;

* Buy new equipment and modernize capabilities in selected areas;

* Address pressing infrastructure maintenance and replacement needs; and

* Ease pressure on Canada's Navy, Army, and Air Force operations both at home and abroad.

As evidenced by the DND's priorities, the annual increases will be used as a catch-up budget for the shortfalls of the past decade as well as future operations and maintenance. It is hardly enough funding for any significant procurement effort. Most of the funding for 2003 will probably be utilized for increased operations including the task force that was recently sent to the Persian Gulf (Operation Apollo).