Government undershooting costs for military ships
Posted February 28, 2013 2:34 pm.
This article is more than 5 years old.
Ottawa — A new report shows that the Harper government’s budget to buy two new military supply ships is off by $1.5-billion.
According to parliamentary budget officer Kevin Page’s recent report, the original price tag from the government had been set at $2.6-billion.
Now Page estimates the overall tally could be more than $4.1-billion.
This could result in more trouble for the Conservatives as they have had several military equipment projects that have delayed and overrun costs. One of the projects was the F-35 fighter jet.
This support ship program was originally proposed in 1994, however, it has gone through several delays since and replacement ships may not be seen until 2018.
At a technical briefing on Wednesday, senior officials said the vessels are still being designed.
The costs will be reviewed to determine if they are affordable and if any costs could be reduced.