Canada to Remain as part of JSF F-35 Consortium

Undated/Uncaptioned photo of F-35 from The Associated Press

Published by: Steven Chase, The Globe and Mail 

The Canadian government intends to make a payment this spring to remain part of the consortium of F-35 Lightning fighter-jet buyers, despite a Liberal election promise to exclude the aircraft when selecting this country’s next warplane.

The move raises questions about whether the Liberal government is reconsidering its ban on purchasing the controversial F-35 jet.

Prime Minister Justin Trudeau’s party announced during last year’s election campaign that it “no longer makes sense” to buy a fighter with the F-35’s stealth, first-strike capability, citing skyrocketing costs for a plane that has been plagued with development problems. The Liberals vowed instead to buy a “lower-priced” aircraft and funnel the money saved into the Royal Canadian Navy.

This week, however, Department of National Defence spokeswoman Ashley Lemire said Canada plans to pay the latest required annual instalment to the Joint Strike Fighter program. She said the upcoming payment is estimated to be $32.9-million (U.S.)

The contribution would maintain Canada’s membership in the F-35 buyers’ pool. This gives Ottawa the right to buy F-35s at a discount and allows Canadian companies to continue to bid on supply contracts for the plane.

Asked why Canada remains in the Joint Strike Fighter program when the Liberals have eliminated the plane as an option, Defence Minister Harjit Singh Sajjan said the government is still reviewing how it should proceed on replacing the country’s aging CF-18 fighters.

“We can’t just make a very quick decision on something like this. We want to make a responsible decision as we move forward. We have to go through the proper requirements. Once we go through a proper process, decisions will be made at that,” he said.

The annual required contribution to remain in the Joint Strike Fighter program, alongside allies such as the United States and Britain, has varied between $21-million and $48.5-million over the past five years.

Conservative Senator Daniel Lang said the federal government’s decision to stay in the program is puzzling.

“Why would anybody spend millions of dollars to stay in a program they’re not going to participate in?” said Mr. Lang, who chairs the Senate national security and defence committee.

Leaving the Joint Strike Fighter program would hurt Canadian business because companies would no longer be able to bid on contracts to supply parts and software for the plane.

Canadian companies have won more than $750-million in contracts related to the F-35 because Canada has been a partner in the program for decades. Should the Liberals exit the program, Canadian firms’ contracts will wind down and they will not be eligible to bid on further work.

“At this time, Canada remains in the Joint Strike Fighter program, which ensures Canada can continue to benefit from economic opportunities resulting from the partnership while we work to determine the way forward,” the Defence Department’s Ms. Lemire said.

One procurement expert working for the federal government, who spoke on condition of anonymity, said it’s unclear whether Ottawa could successfully defend against legal action should it bar jet maker Lockheed Martin and its F-35 plane from a competition. “They will have to decide whether they want to run a competition or face a lawsuit.… The easiest option for a variety of reasons is to run a competition and run it fairly.”

The Liberals inherit a military purchasing effort plagued by delays and cost overruns, from shipbuilding to aircraft.

“I will be honest with you. Our procurement system is not providing capabilities to [Canadian Forces] members in a timely manner,” Mr. Sajjan told the Senate on Wednesday.

The Trudeau government has created a cabinet committee to oversee defence procurement that will be headed by Natural Resources Minister Jim Carr, who previously served as president and chief executive of the Business Council of Manitoba.

Canadian Surface Combatant Fleet - Is the Program Salvageable?

New questions are being asked about the Canadian National Shipbuilding Program that was instituted by the previous Conservative government.

For years public servants, outside contractors, auditors (including the Auditor General Michael Ferguson) have said that the $26 Billion earmarked for the program would not be enough. Ferguson called the funding, "insufficient" in a 2013 report.

Yesterday, Vice Admiral Mark Norman, head of the Royal Canadian Navy (RCN) told CBC that the warnings from industries about the lack of funding were accurate.

To put it simply - the Canadian Surface Combatant (CSC)  Fleet will cost well above the $26 Billion budget.



The CSC fleet is supposed to be the back bone of the RCN from 2025 to 2035; replacing the Halifax-Class frigates and the Iroquois-class destroyers. The $26 Billion was to build "up to 15" new warships according to the former Harper Government.

During the 2015 election campaign, Stephen Harper continued to dismiss claims that the CSC Fleet could not be built with the $26 Billion. He said the Navy would adjust. A few insiders claimed that as few as 8 or 10 CSC vessels could be built with the $26 billion.

The question now is, under a new government can the CSC Fleet be salvaged?

During the election, Prime Minister Justin Trudeau said that any savings from withdrawing from the F-35 program would be directed to the RCN to ensure it gets the ships it needs.

According to the RCN - it NEEDS at least 15 ships - so if the total number of CSC gets cut, it would dramatically harm its operational capabilities. Although some independent analysts say the RCN will either have to accept fewer ships or the government will need to pony up more money.

Some are saying the RCN should do without an area air defence variant CSC, and settle on a more basic design. Both are a possibility. But, so is asking for more money from the new Liberal government for the CSC is another. It will be a test for the Liberals who promised during the election campaign to ensure that the RCN gets the ships it needs.

According to CBC, to build the proposed 15 ships - it will cost upwards of $42 Billion. 

Australian F-35 in Jeopardy? Senate to Vote on Program after Canada's Withdrawal

By Daniel Flitton 

A push to examine the wisdom of Australia's planned $24 billion fleet of F-35 Joint Strike Fighters - ranking as the nation's largest ever defence purchase - is underway in the Senate.

Greens defence spokesman Peter Whish-Wilson on Friday has urged the Senate's standing committee on foreign affairs and trade to inquire into the suitability of the stealth jet for Australia's strategic interests.

The move comes after the election last month of new Canadian Prime Minister Justin Trudeau on a promise to abandon plans to purchase the troubled fighter.

Officials from Australia's Defence Department told a Senate hearing a Canadian withdrawal from the F-35 project would not have a cost to Australia, only for US Air Force Lieutenant-General Chris Bogdan to soon afterwards estimate the price of each aircraft would likely increase by up to US$1 million.

"This is about the public's right to know how their money is being spent and if we are getting value for money," Senator Whish-Wilson said.

"I would like to see many of the criticisms levelled at this procurement answered by a wide range of experts and discussed in detail at this inquiry."

The F-35 project - which began as a collaboration between the US and eight other nations, including Australia - has been beset by delays, cost overruns and technical difficulties.

The latest concern is a pilot's neck could be snapped by the ejector seat on the warplane.

Australia was forced to purchase additional FA/18 Hornets in 2012 to cover a perceived gap after the expected F-35 delivery date was again delayed.

But in August the US marines announced the first combat ready F-35s would be deployed, and Britain last week committed to buy 24 of the jump-jet variety by 2023 to launch from aircraft carriers.

Former prime minister Tony Abbott was reported to have favoured Australia also acquiring the jump-jet variety of the jet, but this was abandoned in favour of the traditional take-off version.

Senator Whish-Wilson urged the Senate to examine the delays in acquiring the fighters and the cost of the program, and the "air defence needs that the aircraft is intended to fulfil". He also urged potential alternative jets to be considered.

A vote on the proposed inquiry will be held Monday.