National Fighter Procurement Secretariat Update

Speaking Notes for The Honourable Rona Ambrose, P.C., M.P.
Minister of Public Works and Government Services and Minister for the Status of Women

Press Conference
Parliament Hill, Ottawa, Ontario
December 12, 2012

Check against delivery

Good Afternoon:

In April of this year, the Government of Canada committed to Canadians that we would undertake a comprehensive review of the process to replace Canada’s fleet of CF-18 fighter jets. At the same time, we have an ongoing commitment to ensure our brave men and women of the Canadian Forces have the equipment they need.

We are fulfilling our commitments.

The Government of Canada will ensure that Parliament and Canadians have confidence in the process to replace the CF-18 fleet.

Let me be clear: no money has been spent on the acquisition of fighter jets.

The Auditor General’s Spring report recommended that the Department of National Defence refine its estimates for complete costs related to the full life cycle of the F-35. We agreed with his recommendation and established a Seven-Point Plan that fulfills and exceeds the Auditor General’s recommendation.

Since the release of our Seven-Point Plan the Auditor General has said that we are “taking steps in the right direction.”

To date the Government has:

  1. Frozen the funding envelope for the acquisition of the F-35.
  2. Established a Secretariat within Public Works and Government Services Canada to manage the process.
  3. Today we have received the first annual update from the Department of National Defence on full life cycle cost estimates of the F-35. These estimates have been validated by KPMG.
  4. Today we are releasing the Terms of Reference for the evaluation of options to sustain a Canadian Forces fighter capability.
  5. The Treasury Board Secretariat commissioned an independent review of costs, and that report by KPMG is also released today.
  6. The Treasury Board Secretariat will ensure full compliance with procurement policies prior to approving the project.
  7. Industry Canada has provided its first update to Parliament on Canadian industrial participation in the Joint Strike Fighter Program.

This entire process is being overseen by the National Fighter Procurement Secretariat. I firmly believe in the independence and integrity of the Secretariat’s work.

The Secretariat asked two independent members—Mr. Denis Desautels and Dr. Ken Norrie—to join them to review their work at every phase.

As I indicated, the Secretariat has also benefited from the advice of KPMG on leading practices for estimating life cycle costs.

In addition, KPMG has verified the assumptions and cost estimates in the Annual Update by National Defence. And KPMG’s review of National Defence’s estimates demonstrates that they are sound.

We consider the actions we have taken to date critical to improving the rigour and oversight of the entire process.

The work of the Secretariat is ongoing. The next step is a full review of options. We have hit the reset button and are taking the time to do a complete assessment of all available aircraft.

Consistent with the aims to improve due diligence, oversight and transparency, this work will be informed by a panel of independent reviewers external to government.

Their involvement is meant to ensure that the work performed is both rigorous and impartial. The members of this panel are Mr. Keith Coulter, Dr. Philippe Lagassé, Mr. Jim Mitchell and Mr. Rod Monette.

I want to publicly thank them for agreeing to take on this role.

Let me be clear, the Government of Canada will not proceed with a decision to replace the CF-18 fighter aircraft until all steps of the Plan are completed by the Secretariat.

I will now turn to the Honourable Peter MacKay, the Minister of National Defence.

Thank you.