DTN News - CANADA DEFENSE NEWS: Canadian Defence Minister Peter MacKay Goes Defensive Account F-35 Costs

DTN News - CANADA DEFENSE NEWS: Canadian Defence Minister Peter MacKay Goes Defensive Account F-35 Costs

(NSI News Source Info) TORONTO, Canada - April 8, 2012: Defence Minister Peter MacKay stood up for himself and his department Sunday, insisting the F-35 fiscal flub outlined in a recent auditor general's report was a miscommunication matter.

Auditor general Michael Ferguson published his debut report last week, indicated the stealth fighter jets would cost $25 billion -- not $15 billion as indicated by the federal government.

But in an interview with CTV's Question Period, MacKay blamed accounting issues for a $10 billion gap between the government's account of F-35 costs and the auditor general's projections.

"The $10 billion is money we are paying right now," MacKay said. "That is the money that goes to pay the pilots of the F-18 program and fuel, oil, upkeep of the existing fleet."

MacKay said he knew the full estimated cost of the jets in 2010 but insists Canadians were not misled.

"We have included that figure in estimates and information provided to the auditor general and that information goes back to 2010. Those figures are there for all to see," he said. "I don't agree that there was a manipulation of information."

Opposition parties disagree.

"We're talking about mismanagement here as well as dishonesty," NDP defence critic Jack Harris said on the same Sunday broadcast.

MacKay said the government and the auditor general worked from different timelines, causing the confusion.

The auditor general and a parliamentary budget officer used a 36-year model for their evaluations of the fighter jet program, but the Department of National Defence used a 20-year period.

http://defense-technologynews.blogspot.ca/2012/04/dtn-news-canada-defense-news-canadian.html

DTN News - CANADA DEFENSE NEWS: Canada May Re-Think Acquisition Of F-35 JSF On Damning Report By Auditor General

DTN News - CANADA DEFENSE NEWS: Canada May Re-Think Acquisition Of F-35 JSF On Damning Report By Auditor General 

(NSI News Source Info) TORONTO, Canada - April 4, 2012: The Harper government froze spending Tuesday on the multi-billion-dollar plan to buy new jet fighters minutes after the auditor general produced a withering report accusing the Department of National Defence of keeping Parliament in the dark about spiralling problems with the F-35 purchase.

The government also announced it would take away DND's ability to buy new weapons systems and hand it to Public Works — all in an effort to shield itself from the ensuing assault in the House of Commons that followed the release of the report by new Auditor General Michael Ferguson.

The Defence Department faced wide-ranging scorn over its management of the a plan to buy 65 new F-35 radar-evading stealth fighters for what the military initially insisted would cost $9 billion. The cost of the purchase, which is already the largest single purchase of military hardware in Canadian history, will almost certainly be far higher than originally budgeted, Ferguson said.

He added that Public Works should have done a better job of overseeing the purchase, but Ferguson was particularly scathing about DND's failure to come clean on potential problems with buying the F-35.

“Briefing material did not inform senior decision makers, central agencies, and the Minister of the problems and associated risks of relying on the F-35 to replace the CF-18," Ferguson said in his report. "Nor did National Defence provide complete cost information to parliamentarians."

DND pointedly rejected criticism that it did not exercise due diligence in managing the project.

The auditor general's criticism does not mean the government will scrap the F-35 purchase or even consider opening up the sole-source procurement to other competitive bids.

Ferguson's mandate limits his criticism to the conduct of bureaucrats, but his findings could be incendiary for the Harper government. The audit came just one week after Finance Minister Jim Flaherty announced $5.2 billion in cuts to public spending in his deficit-fighting budget.

http://defense-technologynews.blogspot.ca/2012/04/dtn-news-canada-defense-news-canada-may.html

DTN News - CHINA DEFENSE NEWS: China Military Budget Tops $100 Billion

DTN News - CHINA DEFENSE NEWS: China Military Budget Tops $100 Billion

(NSI News Source Info) TORONTO, Canada - March 4, 2012: China's official defence spending will rise by 11.2% in 2012, pushing it above $100bn (£65bn) for the first time, the government has announced.

Beijing's defence budget has risen each year for two decades to become the world's second-biggest, behind the US.

It is developing an aircraft carrier, a stealth fighter jet, and missiles that can shoot down satellites.

The US promised to bolster its presence in the region last year, in a move seen as countering China's dominance.

Washington, which spends about $740bn on defence each year, already has bases housing thousands of American troops across the region.

The BBC's Martin Patience in Beijing says Chinese officials remain wary about growing American influence in the region, and believe Washington wants to encircle China.

'Peaceful development'

China's emerging military might has especially worried its near neighbours.

China has long-running territorial disputes with Vietnam, the Philippines and Japan, and has also positioned hundreds of missiles for a potential attack on Taiwan, which it views as part of its territory.

http://defense-technologynews.blogspot.com/2012/03/dtn-news-china-defense-news-china.html

DTN News - DEFENSE NEWS: Pentagon Budget Eyes $178.8 Billion For R&D, Procurement

DTN News - DEFENSE NEWS: Pentagon Budget Eyes $178.8 Billion For R&D, Procurement

(NSI News Source Info) TORONTO, Canada - February 12, 2012: The Pentagon's fiscal 2013 budget plan calls for spending of $178.8 billion to develop and buy new warships, fighter jets and other major weapons, a 7.5 percent drop from the level initially projected for the coming year, according to a detailed budget document obtained by Reuters.

The total acquisition amount, which includes $9.1 billion in war-related funding, is down about 12.2 percent from the level requested in last year's budget, the document shows. The fiscal 2012 acquisition request included $15.4 billion in war funding.

The fiscal 2013 plan foresees spending of $109.1 billion for procurement and $69.7 billion for research and development, compared with earlier projections of $117.6 billion for procurement and $75.7 billion for R&D.

The document shows that the U.S. military is maintaining high levels of spending on most aircraft and ships as it shifts its focus to the Asia Pacific region under a new military strategy announced last month by President Barack Obama and Defense Secretary Leon Panetta.

At the same time, the Pentagon will spend $2 billion less on space programs funding for ground vehicle programs will be far lower as the U.S. military reduces the size of the Army and Marine Corps after 10 years of war in Afghanistan and Iraq.

"It doesn't look that bad for the Air Force and Navy procurement accounts, but the Army is clearly getting less money," said Virginia-based defense consultant Jim McAleese.

He said Boeing Co, the No. 2 U.S. weapons maker, fared well in the budget overall, especially given a sharp increase in funding for the KC-46 refueling tanker from $877 mln to $1.82 billion, as did Lockheed Martin Corp, the No. 1 supplier.

Huntington Ingalls Industries, the company spun out of Northrop Grumman Corp last year, also did better than expected, with the Navy adding $781.7 billion for initial construction funding of a new aircraft carrier, and $1.6 billion for the refueling of the USS Abraham Lincoln carrier.

Truck maker Oshkosh Corp was hit hard by the Army's downsizing, losing about $600 million in funding for heavy trucks and a continued slowdown in a medium vehicle program.

Panetta last month gave highlights of the 2013 budget, his first as defense secretary and the first that takes into account a deficit-reducing measure passed by Congress that requires cuts of $487 billion from projected spending over the next decade.

It is also the first Pentagon budget since the September 11, 2001, attacks that requests less funding than the year before.

Weapons makers like Lockheed Martin Corp, Boeing Co, Northrop Grumman Corp, General Dynamics Corp, Huntington Ingalls Corp and Raytheon Co have been anxiously awaiting details about their programs.

The Pentagon is due to formally release the details on Monday when Obama sends his 2013 budget request to Congress, which must approve the spending plan.

http://defense-technologynews.blogspot.com/2012/02/dtn-news-defense-news-pentagon-budget.html

DTN News - DEFENSE NEWS: Italy Widely Expected To Scale Back F-35 Orders

DTN News - DEFENSE NEWS: Italy Widely Expected To Scale Back F-35 Orders

(NSI News Source Info) TORONTO, Canada - February 12, 2012:  Italy seems certain to scale back its major investment in Lockheed Martin Corp's F-35 Joint Strike Fighter, heightening uncertainty over the troubled stealth jet's future.

Defence Minister Giampaolo Di Paola has said repeatedly since January that the country's originally planned order of the 131 supersonic warplanes by 2018 was being "reviewed" because military spending cuts were necessary as part of Prime Minister Mario Monti's austerity plan to shore up public accounts.

General Claudio Debertolis, secretary general of the Defence Ministry and the country's armaments chief, confirmed to lawmakers on Tuesday that cuts were expected.

"There will be a revision of this Joint Strike Fighter programme to align it with disposable resources," he said.

Italy will ask for about 30 fewer planes, Corriere della Sera daily reported on Friday, without citing its source. Panorama magazine gave the same number on Jan. 18.

Government sources and lawmakers told Reuters that it was premature to say how many of the F-35 fighters Italy will order because of uncertainty over the version of the aircraft designed for short take-off and vertical landing (STOVL).

This version is supposed to replace ageing Harrier jets on Italy's new hi-tech Cavour aircraft carrier.

On Tuesday Monti's Cabinet will examine the Defence Ministry's new spending plan that includes reducing F-35 outlays and personnel cuts, according to a government source. The minister will then detail the package to parliament on Wednesday.

The Pentagon's F-35 program office declined comment on Italy's plans, saying all of the partner countries would meet in Australia in March to discuss their production plans.

http://defense-technologynews.blogspot.com/2012/02/dtn-news-defense-news-italy-widely.html

DTN News - US DEFENCE BUDGET CUTS: More Drones But 80,000 Fewer Troops

DTN News - US DEFENCE BUDGET CUTS: More Drones But 80,000 Fewer Troops


(NSI News Source Info) TORONTO, Canada - January 27, 2012: The United States is to increase its fleet of unmanned drones by nearly a third and rely more on small, specially trained ground units as part of a slimmed down military.


As part of massive cuts to its budget, the army plans to shed 80,000 soldiers over the next few years, defence secretary Leon Panetta announced yesterday.


But he added the enforced belt-tightening would be an opportunity to modernise the military, with a focus on technology and the use of agile, rapid-deployment combat teams.


The US would also be refocusing it attention towards China and the Pacific, while seeking strategic partnerships in areas in which it will be cutting its presence, such as Europe.


The rethink was prompted by the need to find $487 billion (£310bn) in spending cuts over the next decade. Mr Panetta conceded it meant slashing the number of soldiers in the army from about 570,000 to 490,000 over the next decade.


Speaking from the Pentagon, he said: “The military will be smaller and leaner. But it will be agile, flexible, rapidly deployable and technologically advanced. It will be a cutting-edge force”.


He said he refused to allow the “hollowing out” of the US’s military might, and that the new strategy would “emphasise special operation forces”.


The effectiveness of these small, dedicated units was seen in the assassination of terror chief Osama bin Laden last year and the rescue of a US aid worker and her Danish colleague from Somali pirates this week.


The envisaged refocusing on smaller rotational bases will be at the expense of larger military sites, with closures expected to take place as part of the budget cuts.


There will be more money available for technologically advanced weapons and measures to counter cyber-terrorism.


Mr Panetta did not say how many more drones would be developed under the plan, but an increase of about 30 per cent has previously been reported.


Any rise in the use of umanned aircraft is likely to be met with suspicion by those who believe that their use endangers innocent life.


Figures from the London-based Bureau of Investigative Journalism show CIA drones stuck Pakistan 75 times in 2011, causing up to 655 fatalities. The majority of those killed were alleged militants, but as many as 126 civilians may also have lost their lives, the figures suggest.


The shrinking of the US army was signalled earlier this month in comments made by president Barack Obama.


Outlining plans to trim the armed forces, he said the US was ”turning a page on a decade of war”, with the end of hostilities in Iraq and the drawdown of troops in Afghanistan.


http://defense-technologynews.blogspot.com/2012/01/dtn-news-us-defence-budget-cuts-more.html

DTN News - UKRAINE DEFENSE NEWS: Ukraine Boosts Military Budget By 30%

DTN News - UKRAINE DEFENSE NEWS: Ukraine Boosts Military Budget By 30%

 (NSI News Source Info) TORONTO, Canada - January 26, 2012: Ukraine’s 2012 military spending will increase by around 30 percent, to about $2 billion or 1.1 percent of GDP, the Ukrainian Defense Ministry’s financial department said on Wednesday.

The ministry expects to spend about $120 million for purchases and modernization of military equipment, as well as scientific and military design projects, including the production of L-39 Albatros jet trainers and MiG-29 fighter jets. Ukraine’s existing fleet of MiG-29, L-39 and Su-25 close air support aircrafts will also be modernized.

Head of Ukrainian Defense Ministry’s Financial Department Lt. Gen. Yvan Marko said 21 jets, five helicopters and 612 vehicles will be repaired and modernized this year.

Ukraine’s 2012 state defense order will stand at $184 million, four times more than last year, including $54 million to build a corvette-class ship and $13 million for the construction of the Sapsan multifunctional missile system.

Ukraine’s military budget amounted to 0.8 percent of GDP on average over the past few years, substantially less than the average 1.3 percent of other Eastern European states.

http://defense-technologynews.blogspot.com/2012/01/dtn-news-ukraine-defense-news-ukraine.html

DTN News - ISRAEL DEFENSE NEWS: Israel Increases Defence Budget By $700 million

DTN News - ISRAEL DEFENSE NEWS: Israel Increases Defence Budget By $700 million

 (NSI News Source Info) TORONTO, Canada - January 8, 2012: Israeli premier Benjamin Netanyahu announced on Sunday an increase of nearly $700 million in the defence budget, after saying last year that he would cut military spending to finance social reforms.

“We are going to add three million shekels to the defence budget,” Netanyahu told a news conference.

Netanyahu had in October supported the recommendations of a report he commissioned, by respected economist Manuel Trajtenberg, which were intended to address rising frustrations about the cost of living and income disparity in the Jewish state that triggered mass protests last year.

One of the Trajtenberg report’s proposals was to cut a defence budget that amounts to around $14 billion, of which $3 billion comes in annual US military aid, to finance a series of social initiatives without increasing the deficit.

“I have reflected on this question, but in view of what has happened in the region, I have reached the conclusion that cutting the defence budget would be a mistake, even a big mistake,” Netanyahu said.

“Any sensible person can see what is happening around us... All these changes have strategic implications for the national security of the state of Israel, for our ability to face the new challenges and instability,” he told a weekly cabinet meeting, according to a statement from his office.

The Israeli army “is the shield of the country, which is why we must increase its means,” he added.

http://defense-technologynews.blogspot.com/2012/01/dtn-news-israel-defense-news-israel.html