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SECD - Standing Committee

National Security, Defence and Veterans Affairs


REPORT OF THE COMMITTEE

TUESDAY, November 12, 2002

The Standing Senate Committee on National Security and Defence

has the honour to table its

SECOND REPORT


Your Committee, which was authorized by the Senate on Wednesday, October 30, 2002, to examine and report on the need for national security policy for Canada, now tables its interim report entitled For an Extra $130 Bucks…Update on Canada’s Military Financial Crisis, A View from the Bottom UP.

Respectfully submitted,

COLIN KENNY
Chair

 


For an Extra $130 Bucks….

Update On Canada’s Military Financial Crisis
A VIEW FROM THE BOTTOM UP

The Standing Senate Committee on National Security and Defence

Committee Members
Sen. Colin Kenny – Chair
Sen. J. Michael Forrestall – Deputy Chair
Sen. Norman K. AtkinsSen. Tommy Banks
Sen. Jane Cordy
Sen. Joseph A. Day
Sen. Michael A. Meighen
Sen. David P. Smith
Sen. John (Jack) Wiebe

Second Session-Thirty-Seventh Parliament

November 2002


MEMBERSHIP

37th Parliament – 2nd Session 

STANDING COMMITTEE ON NATIONAL SECURITY AND DEFENCE 

The Honourable Colin Kenny, Chair
The Honourable J. Michael Forrestall, Deputy Chair 

And 

The Honourable Senators:

Atkins
Banks
Cordy
Day
Meighen
Smith* (Not a member of the Committee during the period that the evidence was gathered)
Wiebe 

*Carstairs, P.C. (or Robichaud, P.C.)
*Lynch-Staunton (or Kinsella)

*Ex Officio Members


TABLE OF CONTENTS

INTRODUCTION

MONEY ISN'T EVERYTHING, BUT ...

WHEN FRUGAL ISN'T SMART

BACKWATER SPENDING

TURNING OUR BACK ON THE WORLD

FOR $130 EXTRA . . .

THE COMMITTEE'S RATIONALE

RECOMMENDATIONS - PART I 
        CASH INJECTION AS A STARTING POINT

RECOMMENDATIONS - PART II 
        STRATEGIC RETREAT: ROPE-A-DOPE REVIVAL

A NEW COMMITMENT TO OUR ALLIES; 
        A NEW COMMITMENT TO THE WORLD

MONEY AND TIME

OUR MILITARY LEADERS HAVE PUBLIC RESPONSIBILITIES

CANADIANS SHOULD KNOW WHAT OUR TROOPS KNOW

LET THEM DO THEIR JOBS

REJUVENATION: THE PROCESS

SOME VERY BASIC NEEDS

NAVY, AIR FORCE, WILL TAKE LONGER

THE BOTTOM LINE

WHAT THE TROOPS TOLD US

 

FIGHTING A WAR ON THREE FRONTS

I. THE PERSONNEL CRISIS: 
        Too Few People, Too Little Training

LACK OF TRAINING CAPACITY 
        BIG PART OF PERSONNEL PROBLEM

WHAT WE HEARD ABOUT 
        THE PERSONNEL CRISIS AT THE BASES

CANADIAN FORCES BASE ESQUIMALT

17 WING WINNIPEG

CFB HALIFAX

CAPE SCOTT

12 WING SHEARWATER

CFB GAGETOWN

CFB KINGSTON

CFB BORDEN

8 WING TRENTON

THE CANADIAN FORCES PARACHUTE CENTRE

CFB PETAWAWA

19 WING COMOX

THE BLACK WATCH


II. THE OPERATIONAL CRISIS: 
        Insufficient Funding for Operations, Maintenance and Infrastructure

CFB ESQUIMALT

17 WING WINNIPEG

CFB HALIFAX

CFB GAGETOWN

CFB KINGSTON

2 ELECTRONIC WARFARE SQUADRON, KINGSTON

CFB BORDEN

8 WING TRENTON

CFB PETAWAWA

THE BLACK WATCH

 

III. THE CAPITAL EQUIPMENT CRISIS: 
        Canada's Antique Road Show

CFB ESQUIMALT AND CFB HALIFAX

SEA KINGS

STRATEGIC LIFT

CANADIAN AIR DIVISION - WINNIPEG

CF18 UPGRADE

AURORA

8 WING TRENTON

CFB GAGETOWN/CFB PETAWAWA

2 ELECTRONIC WARFARE SQUADRON - CFB KINGSTON

THE 1994 WHITE PAPER ON DEFENCE: 
        PROMISES NOT KEPT

CONSEQUENCES: 
       
A NATION DIMINISHED

 

APPENDICES

I

ORDER OF REFERENCE

II.

RECOMMENDATIONS FROM FEBRUARY 2002 REPORT

III.

WHO THE COMMITTEE HEARD FROM

IV.

BASES AND UNITS VISITED BY THE COMMITTEE

V.

CANADIAN MILITARY OPERATIONS OVERSEAS

VI.

PEACEKEEPING STATISTICS

VII.

CRITICAL SHORTFALLS

VIII.

EXHIBITS

IX.

STATISTICS

X.

MEDIA ACTIVITIES

XI.

BIOGRAPHIES OF MEMBERS OF THE COMMITTEE

XII.

BIOGRAPHIES OF THE COMMITTEE SECRETARIAT

XIII.

INDEX TO THE REPORT


Introduction

In February 2002, The Standing Senate Committee on National Security and Defence published a report citing severe deficiencies in Canada's military and security preparedness in the wake of 11 September 2002. The Committee stands by the recommendations of that report, including the need to bring the Canadian Forces up to 75,000 trained, effective personnel. This update to that report maintains that we have passed the point when Canada's armed forces can be restored to provide a reasonable level of national defence while continuing to fulfill the manifold missions assigned to it. The Committee is therefore putting forth recommendations that include at least one that might have been unthinkable in more normal times, but which we regard as compelling in the current context of potential world turmoil and Canada's vulnerable position within that context.


WORKING FROM THE BOTTOM UP

 

This update is based on the Committee’s analysis of developments since our first report, plus a wide-ranging series of interviews conducted at 15 military bases and installations across Canada.

 

On our travels we encountered first-hand the agony of committed armed forces personnel endeavouring to protect their country and fulfill commitments with levels of personnel, training and resources that make this mission impossible.


Money Isn’t Everything, But . . .

The Canadian armed forces represent Canadians’ primary defence against instability, terrorism, foreign domination, and many of the other blights that have made life intolerable in so many other lands. Immigrants have been attracted to Canada for as long as any of us can remember because Canada has provided a haven from both turmoil and poverty.

The Canadian armed forces are certainly not this country’s sole defence against turmoil and poverty. But, when push comes to shove – in an increasingly volatile and uncertain world – a healthy military is far from the frill that it has largely been treated as by Canadian governments for some time. When peace and prosperity are two of the most precious treasures that Canadians share, it is foolhardy to leave them unguarded and uninsured.

Our government must not close its eyes to the fact that these treasures were vulnerable during World War II, were vulnerable during the Cold War, and have become increasingly vulnerable as asymmetrical global threats have bubbled to the surface in recent years. A country’s defensive military capacity amounts largely to an insurance policy against the loss of national sovereignty and national interests that are too precious to take for granted.

The question whether the Government of Canada is investing sufficiently in the nation’s insurance policy is essential to what has to be the main question: whether Canadians are being provided with what reasonable risk analysts would deem to be an adequate amount of collective security for their lives, their assets, and their way of life. It is the position of this Committee that they are not.

It is also the position of this Committee that Canadians can move from an unacceptable level of security to a reasonable level of security at a relatively marginal cost.

 

When Frugal Isn’t Smart

In spending on military equipment and personnel – as in most areas of life – there are bargains out there. But the general rule remains that buyers get what they pay for. Although Canada is not a poor country, it has gained international notoriety for trying to defend itself – and what it stands for – on the cheap. Consider these facts:

  • Canada spends approximately $395 per capita on defence.[1]

  • The United Kingdom spends approximately $1,425 per capita on defence.[2]

  • The United States spends approximately $2,000 per capita on defence.[3]

  • Although Canada, in the current context of international terrorism, is clearly much more of a military target than most of the world’s smaller countries, it ranks 153rd in defence spending out of 192 countries based on percentage of GDP.[4]

  • Canada ranked 13th out of 18 NATO nations in per capita defence spending – ahead of Poland, Hungary, the Czech Republic, Turkey and Spain.[5]

  • At approximately 31 million people, Canada has the world’s 34th largest population. It has the 56th-largest regular military forces; the 77th largest military reserves.[6]

  • As of August 31, 2002, Canada ranked 34th in the world in its contribution to world peacekeeping missions, supplying less than 1 per cent of international peacekeepers in action.[7]

 

Backwater Spending

Any way you cut it, Canada’s level of military spending would be more appropriate to a nation hidden away from the fray of global finance, global politics, and global influence. But Canada is too big a country – and too important a country – to hide itself away.

Not only is Canada a player on the world scene, it is a large and vulnerable target. Internationally, it is closely identified with its closest neighbour, the last great superpower. The United States is unquestionably at the bull’s eye of the terrorists’ target, the focus of a global network that is both committed and fanatical. Canada’s affiliation with, and proximity to, the United States locates us on the second inner ring of the target – a hair’s breadth away.

 

Turning Our Back On the World

Beyond its clear commitment to defending its own territory, Canada has a commitment to sharing in the defence of a continent, and the defence of its allies – like-minded nations also targeted by a movement that will find vulnerabilities elsewhere if it cannot find enough of them on American soil. It also has a commitment to assisting in the creation a less turbulent world, where vengeance is less likely to lead to violence.

As John Manley, currently Canada’s finance minister but recently Canada’s minister of foreign affairs, said on Oct. 4, 2001, Canada faces a “glaring inadequacy” in its defence, intelligence-gathering and foreign aid capabilities that is compromising the country’s ability to live up to its commitments and its international reputation: "You can't just sit at the G8 table and then, when the bill comes, go to the washroom," Mr. Manley said, referring to Canada's membership in the global club of seven rich countries plus Russia. "If you want to play a role in the world, even as a small member of the G8, there's a cost to doing that."

The Government of Canada currently seems unwilling to pay that cost. When Canada was asked to place a battalion of soldiers into Afghanistan, it could only offer up 800 soldiers. It could not transport them there or back, and it could not respond to the request to replace the soldiers when their tour of duty was over. This incident constituted more than a national embarrassment. This incident was indicative of this country’s inability to play a reasonable role in defending itself.  

Are WE the Isolationists?

Thoughtful citizens everywhere support the idea that responsible nations should work in harmony to improve international stability and well-being. Many citizens – including Canadians – have found cause to worry over the years that U.S. leaders might back away from this team responsibility, bending to the strong strain of isolationism that has always run through American political thought.

It would be more useful if thoughtful Canadians started directing their anxiety at the strong strain of isolationism that has been running through Canadian political practice in recent years.

Canada moved to a position of prominence on the world stage at the beginning of the Second World War. Now Canada is on the brink of walking away from its role in the main cast into a secondary role in the chorus. With levels of spending on foreign aid and military preparedness that fall short of past targets and current commitments, Canada is fading into irrelevance at the level at which international problems are solved.

For $130 Extra...

The Committee’s February 2002 report recommended an immediate increase of $4 billion to bring the Department of National Defence’s baseline from $11.8 billion to $15.8 billion, with increases in future years that are realistic, purpose-driven and adjusted for inflation.

The Committee’s recommendation works out to $130 per Canadian.[8]  

This $ 4 billion figure is in line with the recommendations of several other institutions and committees that have studied this issue, including:

A Nation at Risk – Conference of Defence Associations, (October 2002)

The People’s Defence Review, the Council for Canadian Security in the 21st Century (September, 2002)

Facing Our Responsibilities: The State of Readiness of the Canadian Forces, Report of the Standing Committee on National Defence and Veterans Affairs (May, 2002)

Caught in the Middle: an Assessment of the Operational Readiness of the Canadian Forces,Conference of Defence Associations, (October 2001)

Report of the Auditor General of Canada 2001, Chapter 10, “National Defence- In Service Equipment.”

 

The Committee’s Rationale

Some of these reports, perhaps hoping to make their proposals more palatable to those who control the purse strings, have proposed that this kind of increase be introduced over a number of years. At the time, the Committee explained that our experience is that a variety of government exigencies can intervene to constrain or reverse multi-year commitments. Thus our recommendation for an immediate increase of $4 billion to the baseline DND budget with future annual increases that are realistic, purpose-driven, and adjusted for inflation.

With Canada’s progressive fiscal system, of course, the poor would pay much less than $130 apiece. The rich would pay more. Both rich and poor – and everyone in between – would benefit out of all proportion to cost.

Their contribution would go to a more stable, less-threatened country, in a more stable, less-threatened world. In the Committee’s mind, most thoughtful Canadians would find this an even more attractive bargain than a new dress, a night at an NHL game, or most of other extras that so many people find the money for in a free and prosperous society.

This thinking is behind the two recommendations we are putting forward in this Update. The first is a reiteration of our earlier conclusions. The second is a result of a deterioration in the capacity of Canada’s armed forces that demands the government’s full and immediate attention if our broken Forces are to be repaired.


[1] The DND website gives the DND budget for 2001/02 with final supplements as $12.313 billion. DND main estimates for 2002/03 reduce the DND budget to $11.834. 

[2] High Commission of United Kingdom, Ottawa; based on population of 60 million, using conversion rate for 23 Sept, 2002.

[3] Embassy of the United States, Ottawa, 2003 Defence Appropriation $US 378.6 billion; population of 288,123 000 using conversion rate for 23 Ept 2002. 

[4] Canadian Institute of Strategic Studies, Strategic Profile: Canada, 2001

[5] NATO Review, Spring 2001, Table, “Defence Spending per Capita”. 

[6] Canadian Institute of Strategic Studies, Strategic Profile: Canada, 2001. 

[7] United Nations Peacekeeping: Peacekeeping Operations, “August 2002, Summary of Countries”.http://www.un.org/Depts/dpko/Contributors/Aug2002Countrysummary.pfd

[8] Based on an increase of $4 billion and a population of 31 million.


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