Canada's F-35 Fighter Jets Could Cost $29.3 Billion, Budget Officer Says
Canada’s parliamentary budget officer said plans by Prime Minister Stephen Harper government to acquire 65 of Lockheed Martin Corp.’s F-35 Joint Strike Fighters aircraft may cost about $12 billion more than estimated, fueling speculation opposition parties may seek to bring down the government later this month.
The budget office’s figures show the government is misleading Canadians on the costs of the fighter purchase, undermining the credibility of their budget, lawmakers from the main opposition Liberal Party said.
The report comes a day after the Speaker of the House of Commons found the government violated lawmakers’ privileges by not disclosing information about the cost of some of its proposed legislation. The leader of the main opposition Liberal Party, Michael Ignatieff, said yesterday he is keeping “all options open” including a non-confidence motion that could trigger an early election.
It “hasn’t been a good week” for the government, Liberal lawmaker Dominic Leblanc told reporters today, adding opposition lawmakers will have a “number of occasions” later this month to bring down the government in parliamentary votes.
Budget Officer Report
Canada may spend $29.3 billion if it proceeds to buy 65 of Lockheed Martin Corp. (LMT)’s F-35 Joint Strike Fighters aircraft, Parliament’s budget officer said in a report today. The figure includes the cost to purchase and maintain the aircraft for 30 years. The defense department has estimated a cost of $17.6 billion, the report said.
The Liberals have said they intend to halt any F-35 purchase and start a new competition to replace Canada’s aging fighter jets, should they win the next election.
Speaking to reporters in Toronto today, Harper said the F- 35 is the only airplane that meets Canada’s defense needs.
The Liberals say Harper is withholding information on the costs of its policies that is needed to assess the government’s fiscal plan, which will be released by Finance Minister Jim Flaherty on March 22.
Canada’s government will either give more information on the costs demanded by lawmakers or explain why they can’t be provided, Conservative House Leader John Baird told reporters yesterday.
The governing Conservatives lack a majority of seats in the House of Commons and need the support of at least one opposition party to pass the budget and avoid elections.
Opposition parties can also bring down the government by passing a motion of “non-confidence.”
To contact the reporters on this story: Greg Quinn in Ottawa at gquinn1@bloomberg.net; Theophilos Argitis in Ottawa at targitis@bloomberg.net.
To contact the editors responsible for this story: Christopher Wellisz at cwellisz@bloomberg.net; David Scanlan at dscanlan@bloomberg.net.
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