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Lakeshore Advance, 2013-01-02, Page 5Wednesda , Jan . 2, 2013 • Lakeshore Advance 5 Community Absolutely no taxpayer money has yet been spent on acquisition costs for a replacement aircraft MP Shipley discusses the F-35 Jet MP Bev Shipley •9shore Advance 'There has been a good deal of discussion over the past year or so concerning our government's plan to replace our aging CF -18 aircraft; which at the time of purchase were the most technically advanced air- craft available. By 2020 our CF - 18's will have reached the end of their useful life. They must be replaced. The men and women of the Canadian Armed Forces need the tools to do their jobs. 'These tools are expen- sive and buying them is often a complex and challenging process involving numerous different fed- eral departments. We must ensure that public monies are well spent, that military needs are met, and that jobs are delivered for Cana- dian workers. In 2010, Ministers McKay, Ambrose and Clement announced our government's intent to pursue a replacement aircraft for the aging CF -18. At that announce- ment, they said we would spend $9 billion, including contingency, to buy 65 aircraft plus spare parts, and weapons. Our involvement in this pro- curementprocess has resulted in significant industrial benefits for e»nadian businesses and job -cre- ators. As I write this, about 70 Bev Shipley, MP Canadian businesses have received approximately 84311 mil- lion in contracts, which in turn have allowed them to create many high tech jobs, not only in the aer- ospace industry, but throughout the supply chain as Well, Further, (:anadian husin'sses will have an opportunity to bid on an addi- tional $9.3 billion in future contracts. Later in the process, they also advised the public of the esti- mated cast of aircrati tnuintenmre over 11 twenty year period. 'These two investments - buying the plan's and maintaining them - would be new expenditures of money. Of course, we would con- tinue to spend on things such as pilot salaries and fuel to operate these new aircraft, just as we do with our current fleet. 'these oper- ating costs are paid today and they will continue to be paid no matter what fighter aircraft Canada buys. Some have questioned why we costed the replacement fighter program over 20 years and not longer. Simply put, past govern- ments and leading officials have considered 20 -years to he a period over which costs could be pre- dicted with confidence. In 2001, Alan Williams, the official in charge of procurement at National Defence at the time stated, "rather than find ourselves in a position where we buy something that looks like a good deal only to find out that the incremental long- term support costs escalate dra- matically, we are saying, no, not this time. We want to know the full cost for 20 years." In 2004, when the former Liberal govern- ment announced the Maritime I Ielieopler Project, they signed off on a 20 -year in-service support contract. Earlier this year, the Sec- retary of the 'Treasury Board stated, "all of the submissions to slate have been presented to the Treasury Board have used a 20 -year cost estimate." So, in esti- mating the program costs over 20 years, We were following the accepted practice for major mili- tary purchases. To date, we have not yet spent a single penny to acquire new fighter plan's. Earlier this year, the Auditor General of Canada recommended that we "provide the actual com- plete costs incurred throughout the full life cycle of the F-35 capa- bility." Our government agreed and we are following a seven step plan to implement the recommen- dation before spending any of your tax dollars on buying fighter aircraft. On December 12th, we presented our results to date, this time estimating costs over a full 42 -year program lifecycle. Never before has a government pre- sented estimates in such a com- prehensive, transparent and long- term Way. These estimates are big numbers. Forty-two years is a long time. What is included in full lifecy- cle cost? 1. lust like buying a new car the price includes the cost of the plane itself, 2. In addition full life -cycle cost includes among other things, the following: a. Fuel and maintenance over 42 years b. The salaries and training of pilots and officers to fly the planes over 42 years. c. The lights, heat, and mainte- nance cost of the hangar where the plan's are parked over 42 years d.' The cost of the runways the plane takes off from and return un. e. The disposal and recycling of the plan' 42 years after we get it. Canadians need to know that the new estimates for the fighter plan' replacement program are just that - estimates. KPMG, a world-class financial firm, says, "Life cycle costing is fundamen- tally a forecasting activity and is therefore imprecise, uncertain and highly sensitive to many fac- tors that may be difficult to quan- tify at the time when the Life Cycle Costing is developed." As such, our estimates will become more definitive as we move forward, and we will report those revised estimates to you every year. In addition, to ensure we are getting maximum value for your tax dollars, our government also announced our intent to open up this procurement and look at all viable alternatives for a replace- ment aircraft. We can do so now because absolutely no taxpayer money has yet been spent on acquisition costs for a replace- ment aircraft. The F35 remains one of the alternatives to replace our current fleet of aging fighter jets. And by the way, just for per- spective at a cost of $46 billion over 42 years the cost of the F-35 is less 111811 what we give to the Cana- dian Broadcasting Company on a year to year basis. But let me be clear: Regardless of what aircraft we end up buying, the purchase cost will be no more than $9 billion. That is the maxi- mum acquisition price Ministers McKay, Ambrose and Clement announced in 2010, and that has not changed. As always I um available if 1 can clarify any of these matters further. Yours truly, Bev Shipley, MP Lambton-Kent-Middlesex Grand Bend Wi to display Hearts of any media A Christmas meal catered by Pauline Barratt of Cen- tralia was enjoyed by Grand Bend Wotnen,s Institute members at their meeting on December 20, 2012. Spe- cial guests attending this meeting were Anne Cottel, President of Huron South District WI and lane Dearing Secretary of Huron South District WL President Donna Lovle presided for the brief business meeting. A monetary donation was given to the Agriculture and Water Festival on April 10. The next display for the Grand fiend Library display will be "Hearts" of any media. The next WI hook dub meeting will review a favourite childhood book, During the social time many Christnitls ornaments were shown by the members. Many of these ornaments were handmade. Some were hand painted, tatted snow- flakes and rug hooked stars, A bubbling heated light was unique, Bach ornament had a family memory. It was noted the custom of decorating Christmas trees began in the early6 pith century in Germany. During the 1800,s hard glass ornaments became popular. The special "cucumber pickle" tree decoration was explained. The next WI meeting is January 17, 2013. Special activities and games will be enjoyed at this time. Did you know the Grand Bend WI Is a part of the world,s largest organization for women who work for the good of all, regardless of race, creed or political beliefs.