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Public Accounts committee What we told the Canadian public was exactly what the government has told the Canadian public—
May 1st, 2012Committee meeting
Robert Fonberg
Public Accounts committee I believe it is.
May 1st, 2012Committee meeting
Robert Fonberg
Public Accounts committee One is acquisition sustainment, which is the way we have reported on each of our acquisitions over the last four major airframe assets. The other one includes operating costs, which we haven't reported on publicly because it's included in the base budget of the Department of National Defence.
May 1st, 2012Committee meeting
Robert Fonberg
May 1st, 2012Committee meeting
Robert Fonberg
Public Accounts committee Was what reported publicly?
May 1st, 2012Committee meeting
Robert Fonberg
Public Accounts committee No. In June 2010 we reported the right-hand column. The left-hand column was for decision-making.
May 1st, 2012Committee meeting
Robert Fonberg
Public Accounts committee There was one book. The column on the left-hand side went to cabinet for decision-making purposes. The government decided to communicate exactly the same way they have communicated since 2004 on the acquisition of major airframe assets—acquisition costs and sustainment costs. We were not seeking incremental funding from cabinet at the time for operating costs, nor do we expect to seek incremental funding for operating costs.
May 1st, 2012Committee meeting
Robert Fonberg
Public Accounts committee The CFO may want to comment on this. Just to be clear, the numbers we used, very clearly, Mr. Chairman, were the $9 billion acquisition envelope, $5.7 billion for sustainment for 20 years, and operating cost estimates of $10 billion within our base budget for a 20-year period.
May 1st, 2012Committee meeting
Robert Fonberg
Public Accounts committee Again, to be clear, I believe the report the member is referring to is November 2010, not June 2010—
May 1st, 2012Committee meeting
Robert Fonberg
Public Accounts committee —which came some time after we did our estimates. As I said, we accepted the Auditor General's recommendation on producing appropriate life-cycle costs 60 days after we receive our information from the United States. I don't have an answer to the question about if we went back and tried to apply the methodology—
May 1st, 2012Committee meeting
Robert Fonberg
Public Accounts committee I guess I just need some clarification, Mr. Chairman.
May 1st, 2012Committee meeting
Robert Fonberg
Public Accounts committee Yes, I actually—
May 1st, 2012Committee meeting
Robert Fonberg
Public Accounts committee Okay. In November 2010 we provided a management action plan to respond to the recommendation of the Auditor General's report. We have been working, in a very clear and deliberate manner, on developing the methodologies for life-cycle costing in response to that report. On the question of whether we have provided alternative estimates since that time, I'd have to go back and look at the record.
May 1st, 2012Committee meeting
Robert Fonberg
Public Accounts committee As an estimate, it's the best estimate we have right now, yes.
May 1st, 2012Committee meeting
Robert Fonberg
Public Accounts committee No. What I said was that for decision purposes we informed cabinet and the decision-makers that we thought the operating costs of the F-35 would be in a zone similar to those of the F-18 fleet. I believe that's what I said.
May 1st, 2012Committee meeting
Robert Fonberg