Thursday, March 10, 2011

Canada Opposition Unhappy With F-35's Costs


OTTAWA - Canada significantly overpaid for new fighter jets jointly developed with the United States and its allies, a parliamentary watchdog said March 10.
Parliamentary Budget Officer Kevin Page said in a report that Canada should expect to dole out as much as C$29.3 billion ($30 billion) for the purchase and maintenance of 65 F-35 Lightning II Joint Strike Fighter over 30 years.
The estimate is nearly double the amount suggested by the government, and opposition parties pounced on the report to criticize Prime Minister Stephen Harper's Conservatives.
The Lockheed Martin F-35 fighter jet, set to replace a large part of the U.S. and Canadian warplane fleets, has become the most expensive weapons program ever, drawing increased scrutiny at a time of tight public finances.
The fifth-generation fighter was built with features designed to help avoid enemy radar and ensure supremacy in the skies for decades.
But it has been criticized for a series of cost overruns and delays, and now there is potential competition from China, which in January unveiled its first radar-evading combat aircraft.
At the same time, the contract awarded in 2001 had been planned to last 10 years, but has been extended to 2016 because of testing and design issues.
The United States is covering 90 percent of its development costs but has participation from Britain, Italy, Turkey, the Netherlands, Denmark, Norway, Australia and Canada.
Other nations, including Israel and Singapore, have signed contracts to buy the plane.
Canada's main opposition Liberals, which committed to the F-35 program when in power in 1997, are now using the lack of open competition to replace Canada's aging fleet of fighter jets to press for a change in government.
Jay Paxton, spokesman for Defense Minister Peter MacKay, however stood by the government's procurement cost projections of C$9 billion ($9.2 billion) to buy and C$250-300 million ($256-308 million) annually to maintain over 20 years.
"The F-35 is the only jet that can meet the needs of the Air Force, as noted by Mr. Page," Paxton added. "Simply put, this is the best plane for the best price."

Britain in Eurofighter Talks with Indonesia: Report

LONDON - Britain is in talks with Indonesia on the possible sale of Eurofighter Typhoon aircraft despite concerns over Jakarta's human rights record, The Times newspaper reported March 10.
Britain is reportedly in talks to sell 24 Eurofighter Typhoon jets to Indonesia for about 5 billion pounds ($8.1 billion, 5.8 billion euros). (RAF)
Indonesia informally approached Britain over the potential acquisition of up to 24 jets. The previous Labour government banned defense exports to the country in 1999 amid claims it had used British-made planes to bomb civilians.
The sale would be worth around 5 billion pounds ($8.1 billion dollars, 5.8 billion euros) in total, the paper said, but would be hugely controversial in light of current concern over the source of weapons being used against Arab rebels.
British military company BAE Systems has separately offered to upgrade Indonesia's fleet of Hawk jets, it said.
Gerald Howarth, a British defense minister, will discuss the potential sale when he attends a defense summit in Jakarta later this month, the Times said.
"I fully expect that to be the case," Howarth told the paper. "Typhoon is on their agenda. Their interest shows the extent of interest by countries around the world in what is one of the most sophisticated aircraft anywhere."
Human rights group Amnesty International accuses Indonesia of rights violations including police torture and a restricted media.
Former Prime Minister Tony Blair's Labour government blocked the sale of jets after it was claimed that Indonesia's Hawk fleet had bombed East Timor rebels.
Kaye Stearman, a spokeswoman for Campaign Against Arms Trade, told the Times: "From 1994 to 1999 Indonesia bought half of its military equipment from the U.K., backed by U.K. export credits.
"The people of Indonesia have accumulated huge debts which they are still paying off. The Hawk jets and other British-made weaponry were used by Indonesia in East Timor, West Papua and Aceh.
"With such a dreadful record, BAE and the British government should not be trying to sell more weapons to Indonesia," she added.
Eurofighters were grounded last year in several countries due to the problematic ejectors after a crash killed a Saudi pilot.

NATO Sends Ships to Monitor Libya Arms Embargo

BRUSSELS, Belgium - NATO's defense ministers have decided to send more alliance-member ships to the central Mediterranean, which will help keep an eye on the situation, NATO's Secretary General Anders Fogh Rasmussen told reporters here March 10.
Rasmussen said the assets would help monitor - not enforce - compliance with the arms embargo against Libya established by United Nations Resolution 1970.
For enforcement, "NATO would require a new U.N. Security Council resolution," he said.
He would not reveal any operational details about the assets.
He denied that there had been any discussion of air strikes on Libya and refused to comment on whether France was proposing direct military action against Libya's airfields, dismissing it as an "unconfirmed rumor from anonymous sources."
Rasmussen did say that the idea of imposing a no-fly zone had been discussed but that, for any NATO operation, there would need to be a demonstrable need; a clear legal basis, probably in the form of U.N. mandate; and firm regional support.
"I can't imagine the international community and the U.N. standing idly by if Gaddafi continues attacking his people systematically," he said.
He also expressed concern that, in Libya, there was "a risk of seeing a failed state that could be a breeding ground for extremism and terrorism."
"We urge the Libyan government to stop the violence and allow a peaceful transition to democracy," he added.