Auditor General F-35 Report: Michael Ferguson Attacks Report Critics

CP  |  By Posted: Updated: 05/18/2012 8:09 am

OTTAWA - The auditor general is blasting critics of his report on the Harper government's stealth fighter program.

Michael Ferguson made a repeat appearance Tuesday before the Commons public accounts committee, saying he stands behind the facts and figures in his April 3 audit, which set off a heated political debate.

"I am concerned with suggestions that accurate estimation and the inclusion of personnel, operating and maintenance costs are not important, since they would be incurred regardless of the aircraft selected to replace the CF-18," the auditor told the all-party committee.

His report accuses National Defence of hiding the full cost of the F-35 program by not publicly reporting $10 billion in operational expenses and criticizes Public Works for not demanding more justification for the sole-source purchase.

Ferguson went on to say that cabinet was aware the program would cost over $25 billion when it approved the stealth fighter program in principle in 2008.

In an appearance before the same committee a couple of weeks ago, deputy defence minister Robert Fonberg dismissed the comments by saying the auditor "got it wrong."

He said it is not the practice of National Defence to include all life-cycle costs in project estimates, but the auditor pointed out it is required by the department's own policies and the federal Treasury Board, which sets the standard across government.

Defence Minister Peter MacKay has called the discrepancy an accounting difference.

The auditor general's method of calculating costs, including the service life of the aircraft and operational expenses, has been questioned.

New Democrat procurement critic Matthew Kellway said the government should stop attacking the auditor general.

But Associate Defence Minister Julian Fantino denied the Conservatives were challenging Ferguson.

"We have, as was indicated, accepted the findings. We are acting on the recommendation of the Auditor General," he told the Commons on Tuesday.

Within hours of the report being made public on April 3, the Harper government announced it was taking the procurement away from National Defence and giving it to a secretariat under the umbrella of Public Works.

It established a seven-step process and promised to re-examine the entire troubled fighter program, which has been beset with development delays and massive cost overruns in the U.S.

Despite that officials, including Fonberg and the chief of the air staff say the F-35 remains the only option the government is considering.

Related on HuffPost:

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OTTAWA - The auditor general is blasting critics of his report on the Harper government's stealth fighter program.Michael Ferguson made a repeat appearance Tuesday before the Commons public accounts c...
OTTAWA - The auditor general is blasting critics of his report on the Harper government's stealth fighter program.Michael Ferguson made a repeat appearance Tuesday before the Commons public accounts c...
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BCSLAVE
Got a key?
06:26 AM on 05/20/2012
My fear is, if we ever needed a fighter plane we won't have one that works all thanks to Harper and his blind ideology.

I also have a question: did we include the operation costs when we purchased the CF-18? If yes then be have a lot of charlatans and liars spending our billions on a known Edsel.
HUFFPOST SUPER USER
sfurr
02:06 PM on 05/16/2012
Here's the other specious element of the Harpercrite line that none of the media seems to be able to wrap their heads around (I'm disappointed in the likes of Bob Fife for not picking up on it):

Swallow the specious line (or, more correctly, repeat it without comment, criticism or any validation, which amounts to the same thing) that it's okay to leave out operating costs, maintenance, etc. from the accounting, since they would be incurred anyway.

It would take about 2 minutes with Google and Wikipedia to realize that operating costs are also a key failing of the F35 program. The F35 was originally intended to be one of the cheapest jets to operate in the fleet. It has worked out the opposite. The F35 is shaping up to be just as grossly expensive to maintain and operate as it would be to acquire, projected to be nearly as costly as the F22 (a nightmare).

Now it may come as a surprise, but one fighter jet may cost 4-5 times as much to operate and maintain as another. Considering that the full life cycle costs are actually dominated by operations and maintenance, and the accounting of the F35 looks even worse, not better, especially when compared to the Super Hornet. But DND want to baffle us with bullshit and Peter McKay is too asinine or idiotic to know the difference (he's having way too much fun posing in fighter cockpits) and Harper is too ideological to care.
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BCSLAVE
Got a key?
06:18 AM on 05/20/2012
I fear if we ever need a fighter plane we won't have one...we will have a modern version of a BF-110 over Britain...outclassed and wiped out because its flawed.
This user has chosen to opt out of the Badges program
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12:19 AM on 05/16/2012
BREAKING: AG is considered non-essential as part of austerity program (i.e. make rich richer and kill the poor) and staff are all laid off.

CONservatives are diseased.
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Spanky McFarlane
ILLEGITIMUS NON CARBORUNDUM.
11:31 PM on 05/15/2012
...& the AG's office will soon loose 60 employees as part of 'austerity measures' - go figure?
09:33 PM on 05/15/2012
From last Thursday, the U.K. is having second thoughts, too: "The development of the F35, a stealth fighter bomber made by Lockheed Martin, has been plagued by technical problems and cost overruns for years. Last year, the US senate armed services committee came within one vote of calling for the cancellation of the entire F35 programme." and "The cost has soared over the past few years and each aircraft is now estimated to cost about £60m, more than twice the original estimate." http://www.guardian.co.uk/news/defence-and-security-blog/2012/may/10/defence-fighter-aircraft
GBP 60 = CAD 96.6 MILLION per plane. AND it's not suitable to Canada's needs.
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1846
Deir Yassin Survivor
03:57 AM on 05/17/2012
The UK is only buyng the Vertical take off JSF variant. I think the price you quoted is likely 50 million short of what it is going to be however enough said it is over budget.

The point being however the UK has a very capable twin engine fighter and that is what Canada should look at. It is not in development and there are large numbers in action with our allies.
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HUFFPOST SUPER USER
ConDsenXieN
The Right is usually wrong.
04:06 PM on 05/15/2012
Everybody in Canada is unhappy about the F-35. Those that are well-versed in aviation and fighter jets, even moreso.

And ONCE AGAIN, the CPC tells all of us to shove it and deal with it, because they run the show and clearly, we, the voters, DON'T.

Tell me again why these people get voted in year after year.
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BCSLAVE
Got a key?
06:21 AM on 05/20/2012
Because they rig elections and break the law with immunity.
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HUFFPOST SUPER USER
Doogs62
To see by faith is to shut the eye of reason
02:38 PM on 05/15/2012
So now the price is estimated to be ~ $40 B over 30 years as reported by a U.S. source. It also stated that lifetime maintenance costs are much higher than the CF18 costs. MacKay and Harper also stated we have spent no money on acquisition, but how much have we spent on the program? I'd like to know how much we have invested into this program so far.
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HUFFPOST SUPER USER
arkymorgan
Nobody knows the trouble I've been...
11:16 AM on 05/15/2012
Next Conservative announcement: No need for position of AG, because ''You can look all that stuff up on Wikipedia.''
HUFFPOST SUPER USER
Capital Ottawa
11:43 AM on 05/15/2012
They have already cut the Auditor General department operations budget...
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HUFFPOST SUPER USER
arkymorgan
Nobody knows the trouble I've been...
11:57 AM on 05/15/2012
The first step: starve the office so it can't do its job. Second Step: kill program because it's not doing its job.
HUFFPOST SUPER USER
lulex
Made in Canada
11:05 AM on 05/15/2012
I support the Auditor General's statements and I'm going to let my MP know about it.
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HUFFPOST SUPER USER
arkymorgan
Nobody knows the trouble I've been...
11:17 AM on 05/15/2012
Yup. I like to cc Harper on all of this, as well.

Just so, when the end comes, he can't say he wasn't warned.