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Tuesday, September 22, 2015

RCN Expecting to Receive Fewer Ships than Promised

The procurement of new ships for the Royal Canadian Navy dates back to 2007, when the initial replacement program was announced. The problem with that program is its fixed budget.

The Navy announced a $26 Billion fund to build 15 new surface vessels for the navy - the problem is the budget is fixed. Due to inflation, the Navy is losing about $1 Million/Day of that.

What does that $1 million loss per day do to the plan? It limits the number of ships the Navy can build.

The original announcement called for 15 new surface vessels for the RCN, now it is estimated that they will only get 8 to 10. Those will only happen if building starts soon - or the number will continue to shrink.

ET2015-5043-009
HMCS Winnipeg as part of OP REASSURANCE July 2015. Photo: CF Combat Camera
To get the original 15, the Canadian Surface Combatant Fleet will run over budget - and the program is at risk of doing so just to get the 8 to 10 ships it can currently afford.  Liberal leader Justin Trudeau says he will cancel the F-35 program and spend the extra money on the Navy - which is in desperate need of more money.