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Canadian Forces still facing budget squeeze

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Canadian Forces still facing budget squeeze
By JEFF SALLOT
From Friday‘s Globe and Mail (02 March 2001)

Ottawa — More belt-tightening is in store for the Canadian Forces despite a cash infusion of $624-million Thursday, Defence Minister Art Eggleton says.
Opposition parties say the Liberal government is penny-pinching the military and putting both troops and the public at risk.
Mr. Eggleton acknowledged that there is still a budget crunch at the Department of National Defence and said he hopes to solve it by selling off surplus equipment, buildings and property.
"We are looking for ways to make the organization more efficient," he told reporters.
Despite persistent rumours of more layoffs, Mr. Eggleton said he is determined to hold the line on the size of the Canadian Forces.
A decade ago, as the Cold War was ending, the troop strength of the regular forces was 85,000. Authorized strength is now 60,000. There are no plans to go below that, Mr. Eggleton said.
In fact, the actual size of the Canadian Forces right now is about 58,500 because of problems finding recruits willing to take dangerous jobs for meagre starting wages.
Thursday‘s announcement will improve the wage picture. About 40 per cent of the new cash is earmarked for pay increases and improved benefits.
The one-time cash infusion of $624-million comes on top of the year‘s defence allocation, about $11-billion. The cash infusion was part of a package of new federal spending to use some of the budget surplus before March 31, the end of the fiscal year.
Mr. Eggleton said the additional defence money will help to speed up long-standing plans to acquire new equipment.
Two years ago, Auditor-General Denis Desautels said spending on military equipment was falling short of what the Forces need to do their job. He estimated the shortfall at about $750-million a year.
Mr. Eggleton agreed with the Auditor-General‘s figures, but he said internal economies, such as selling off surplus equipment and property, can bridge the gap.
The opposition parties lambasted the government in the House for what they said was the lamentable state of decay of the Canadian Forces under the Liberals.
Canadian Alliance MPs said Wednesday‘s earthquake on the West Coast showed how exposed British Columbians are because the government closed a military base in Chilliwack.
Art Hanger, the Alliance defence critic, said that in a more disastrous earthquake there would be no military unit nearby to help with search and rescue and with disaster relief.
Mr. Eggleton said soldiers could be flown in from Alberta and other parts of the country.
The Progressive Conservatives tried to embarrass the government for long delays in replacing the aging fleet of Sea King maritime helicopters. In 1993, the Liberals cancelled a helicopter contract signed by the previous Progressive Conservative government and promised to buy replacements for the Sea King at a cheaper price.
Almost eight years later, there are no replacements and no new contract has been signed.
Tory MP Elsie Wayne said the government is putting the Sea King crews at risk by making them fly old and unsafe helicopters.
Public Works Minister Alfonso Gagliano said the new contract will be signed next year, but at the end of the day the government will have saved taxpayers $1.5-billion by cancelling the earlier contract.
 
How long can we sell-off surplus before it is all gone? Using "yard sales" to finance ones living means a rapid decline in that quality of living; the same is true for an organisation. Funny how they sneak this into the news for the day after there big one time infusion of money. And, at a time when public opinion is swining back in our direction (even enviromental groups want increased defence spending).

:cool: Yard Ape
 
Two points to note here:

1. Even with the new cash the new helecopters have been put back again and contracts will not go out until 2002. That is unless someone dies in another Labadour crash (inexcusable) and;

2. Money saved is not money earned. Anything that the Forces saves through selling off and lower infrasructure costs does not come back to us but instead goes back into general revenue. Not exactlly an incentive to save but someone thinks so. So we cut back our operating expenses and our own throats at the same time.
 
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