Calgary Herald

Cabinet knew $25-billion cost of F-35s, says auditor general

Ferguson adds fuel to opposition parties’ fire

- LEE BERTHIAUME

Canada’s auditor general dropped a bombshell Thursday when he said the Conservati­ve government would have known before the last election that the F-35 fighter jet program would cost at least $10 billion more than what National Defence was telling Parliament and the public.

Auditor general Michael Ferguson refused to say whether the government allowed Canadians to be misled, but his comments have thrown more fuel onto a raging fire that has already seen the opposition call for House Speaker Andrew Scheer to launch an investigat­ion.

The issue goes back to March 2011, when Parliament­ary Budget Officer Kevin Page released a major report weeks before the last federal election that estimated the F-35 would cost taxpayers nearly $30 billion.

The Defence Department responded by telling Parliament — and Canadians — that the stealth fighter would actually cost even less than the $16 billion budgeted for the program, putting the figure at $14.7 billion.

But the military did not include a number of important costs in its response, and during the course of his own study, Ferguson found the Defence Department had actually estimated as far back as June 2010 that the total cost would be at least $25 billion.

Most of the attention since Ferguson’s report was released Tuesday has been on the bureaucrat­s responsibl­e for the F-35 file.

But the auditor general told report- ers Thursday that the Conservati­ve government would have known about the $10-billion discrepanc­y when National Defence put forward the $14.7-billion figure in March 2011 because they were essential for longterm budget planning.

“I can’t speak to sort of an exact date,” Ferguson said. But “at the point in time, to respond to the Parliament­ary Budget Office’s office, it’s my understand­ing that the government had that number.”

The auditor general, who was appointed by Prime Minister Stephen Harper in November, could not say exactly who would have known the military’s true cost estimates.

But he was clear that by “government,” he was referring to the executive, namely cabinet and other members of the Conservati­ve government, not the bureaucrac­y.

“That $25-billion number was something, I think, that at that time was known to government. It would have been primarily members of the executive, yes.”

The auditor general refused to say whether the government had intentiona­lly withheld informatio­n or misled Parliament, only that it missed an opportunit­y to present its real cost estimates when responding to the parliament­ary budget officer’s report in March 2011.

“I’m not trying to put any sort of value judgment on it,” Ferguson said. “What I’m saying is that was their opportunit­y to come forward with their informatio­n and they didn’t use that.”

Harper and other cabinet ministers refused to answer questions Thursday in the House on when they knew the F-35 cost estimate reached $25 billion.

Opposition parties, however, said Ferguson’s assertions were troubling, especially if the government intentiona­lly lowballed the cost before and during the federal election.

“It’s rare in politics in Canada and elsewhere to have a government that has so intentiona­lly given false informatio­n to government,” said NDP Leader Thomas Mulcair.

Interim Liberal Leader Bob Rae said, if true, “we have a real problem because that means that they were effectivel­y misleading Parliament for many, many, many months.”

 ?? Courtesy, Lockheed Martin ?? A report released weeks before the federal election said the F-35 cost was almost $30 billion.
Courtesy, Lockheed Martin A report released weeks before the federal election said the F-35 cost was almost $30 billion.

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