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. 

Kenney: RCN could receive as few as 11 CSC's

Last week a report came out regarding the $26 billion dollar budget for the Royal Canadian Navy's Canadian Surface Combatant Fleet which is supposed to replace and modernize the 4 HMCS Iroquois destroyers and the 12 HMCS Halifax-Class Frigates.

The initial CSC order called for 16 vessels to be built under the program. That number was later reduced to 15 due to budgetary constraints.

On Friday, October 2, 2015 Defence Minister Jason Kenney confirmed the bottom number possible. Kenney indicated that the government will not just write a blank check to the CSC program to ensure that 15 vessels are built - inflation and planning are taking their toll on the $26 Billion fixed budget, that is loosing close to $1 million per day in delays.

Kenney confirmed Friday that the $26 billion will purchase between 11 - 15 CSC Vessels. So 11 is now the bottom number. Now the Navy is concerned it will not get enough vessels to maintain its current level of operations; both domestically or internationally.

The lowered number does not come as a surprise to many Navy insiders; who have hinted that the fixed budget could produce as few as 8 CSC vessels.

With 8 to 11 CSC the Navy might have to look elsewhere to find more vessels to increase the size of its fleet. It is the only Navy in the world belonging to a country that borders 3 Oceans - and it might be down to 8 major vessels. That is pretty sad for a Navy that was once the third largest in the world (Post World War Two).