DTN News - DEFENSE NEWS: Asia's Military Spending To Surpass Europe's For First Time

DTN News - DEFENSE NEWS: Asia's Military Spending To Surpass Europe's For First Time

(NSI News Source Info) TORONTO, Canada - May 26, 2012: 2012 will be a historic moment in the shift of global power from the West to the East. According to expert estimates and figures on military spending, in 2012 Asia's spending on defense will eclipse Europe's for the first time in the modern era.

The International Institute for Strategic Studies, a UK-based think tank focusing on global military and political research and analysis, released its influential "Military Balance 2012" report back in early March.

The report claims that since 2008, financial crises in the West have led to major reductions in defense spending in Europe. Drawdowns in Afghanistan and Iraq will likely contribute to decreasing numbers in the future. Meanwhile, Asia's continued economic growth, and efforts to modernize and build military forces there, have reinforced higher spending. In the IISS calculations, Europe does not include Russia, and Asia does not include the Middle East, but does include Australasia.

While per capita spending in Europe is still higher, press releases form the institute say that "Asian defense spending is likely to exceed that of Europe, in nominal terms, during 2012." The U.S. accounted for nearly half of all worldwide military spending in 2011, a figure which may be in slight decline over the following years due to defense cutbacks.

IISS says that in real terms, declines in defense spending by 16 out of 28 member states of NATO exceeded 10 percent between 2008 and 2010. Asian spending increased almost 3.2 percent in real terms between 2010 to 2011.

http://defense-technologynews.blogspot.ca/2012/05/dtn-news-defense-news-asias-military.html

DTN News - CANADA DEFENSE NEWS: Canadian Defence Minister Peter MacKay Goes Defensive Account F-35 Costs

DTN News - CANADA DEFENSE NEWS: Canadian Defence Minister Peter MacKay Goes Defensive Account F-35 Costs

(NSI News Source Info) TORONTO, Canada - April 8, 2012: Defence Minister Peter MacKay stood up for himself and his department Sunday, insisting the F-35 fiscal flub outlined in a recent auditor general's report was a miscommunication matter.

Auditor general Michael Ferguson published his debut report last week, indicated the stealth fighter jets would cost $25 billion -- not $15 billion as indicated by the federal government.

But in an interview with CTV's Question Period, MacKay blamed accounting issues for a $10 billion gap between the government's account of F-35 costs and the auditor general's projections.

"The $10 billion is money we are paying right now," MacKay said. "That is the money that goes to pay the pilots of the F-18 program and fuel, oil, upkeep of the existing fleet."

MacKay said he knew the full estimated cost of the jets in 2010 but insists Canadians were not misled.

"We have included that figure in estimates and information provided to the auditor general and that information goes back to 2010. Those figures are there for all to see," he said. "I don't agree that there was a manipulation of information."

Opposition parties disagree.

"We're talking about mismanagement here as well as dishonesty," NDP defence critic Jack Harris said on the same Sunday broadcast.

MacKay said the government and the auditor general worked from different timelines, causing the confusion.

The auditor general and a parliamentary budget officer used a 36-year model for their evaluations of the fighter jet program, but the Department of National Defence used a 20-year period.

http://defense-technologynews.blogspot.ca/2012/04/dtn-news-canada-defense-news-canadian.html

DTN News - CANADA DEFENSE NEWS: Canada May Re-Think Acquisition Of F-35 JSF On Damning Report By Auditor General

DTN News - CANADA DEFENSE NEWS: Canada May Re-Think Acquisition Of F-35 JSF On Damning Report By Auditor General 

(NSI News Source Info) TORONTO, Canada - April 4, 2012: The Harper government froze spending Tuesday on the multi-billion-dollar plan to buy new jet fighters minutes after the auditor general produced a withering report accusing the Department of National Defence of keeping Parliament in the dark about spiralling problems with the F-35 purchase.

The government also announced it would take away DND's ability to buy new weapons systems and hand it to Public Works — all in an effort to shield itself from the ensuing assault in the House of Commons that followed the release of the report by new Auditor General Michael Ferguson.

The Defence Department faced wide-ranging scorn over its management of the a plan to buy 65 new F-35 radar-evading stealth fighters for what the military initially insisted would cost $9 billion. The cost of the purchase, which is already the largest single purchase of military hardware in Canadian history, will almost certainly be far higher than originally budgeted, Ferguson said.

He added that Public Works should have done a better job of overseeing the purchase, but Ferguson was particularly scathing about DND's failure to come clean on potential problems with buying the F-35.

“Briefing material did not inform senior decision makers, central agencies, and the Minister of the problems and associated risks of relying on the F-35 to replace the CF-18," Ferguson said in his report. "Nor did National Defence provide complete cost information to parliamentarians."

DND pointedly rejected criticism that it did not exercise due diligence in managing the project.

The auditor general's criticism does not mean the government will scrap the F-35 purchase or even consider opening up the sole-source procurement to other competitive bids.

Ferguson's mandate limits his criticism to the conduct of bureaucrats, but his findings could be incendiary for the Harper government. The audit came just one week after Finance Minister Jim Flaherty announced $5.2 billion in cuts to public spending in his deficit-fighting budget.

http://defense-technologynews.blogspot.ca/2012/04/dtn-news-canada-defense-news-canada-may.html