Public Accounts committee  Fine. On the matter of costing, Mr. Chairman, there are three key components: acquisition, sustainment, and operating. For the F-35 the acquisition envelope has been set at $9 billion. Sustainment and operating costs are estimated at $5.7 billion and $10 billion respectively for 20 years, beginning when the aircraft would be acquired later in this decade.

Public Accounts committee  Thank you, Mr. Chairman. I can actually speak quickly. With me I have Lieutenant-General André Deschamps, Commander of the Royal Canadian Air Force; Kevin Lindsey, Chief Financial Officer; and Dan Ross, ADM Materiel. Mr. Chairman and members of the committee, thank you for this opportunity this morning.

Public Accounts committee  I absolutely agree, Mr. Chairman. If you would like a substantive answer to the question--

Public Accounts committee  Let me turn it back over to Dave or Kevin. Do you want to answer that question?

Public Accounts committee  Well, the short answer is that we're always cognizant of trying to balance what's essentially a contingent workforce against a full-time workforce. There was a question about how much of a backlog we actually had, and how many people it would actually take and over what period of time.

Public Accounts committee  I believe the reference was to investment income, Mr. Chairman.

Public Accounts committee  Mr. Chairman, I'll turn to the rear admiral on that question.

Public Accounts committee  Thank you, Mr. Chairman. Good afternoon, committee members. Thank you very much for this opportunity to discuss chapter 3 of the spring 2011 report of the Auditor General pertaining to the reserve force pension plan. I'll introduce my colleagues. With me today are Vice-Admiral Bruce Donaldson, the vice-chief of defence staff; Rear-Admiral Andrew Smith, the chief of military personnel; Kevin Lindsey, the chief financial officer; and Mr.

National Defence committee  Mr. Chairman, do you need us for these votes?

National Defence committee  Thank you very much.

National Defence committee  Can I add one point, Mr. Chairman? When the Department of Finance put their budget forecasts together, they have an overall view on what the exchange rate will be for the forecast year. But only the Department of Finance can hedge on behalf of all of us through the Bank of Canada.

National Defence committee  Well, Mr. Chairman, I'm happy to make that statement. We have taken into account virtually all of what the Auditor General had to say and we have indeed improved. I think, as the CFO has tried to explain, a number of events last year drove us into the lapse situation that we had—some well beyond our control.

National Defence committee  I have just two other quick points to make, Mr. Chairman. One was the work of the public accounts committee, at that time, actually--

National Defence committee  --led the department--

National Defence committee  One point the member just mentioned, Mr. Chair, was the work of the public accounts committee to encourage our friends in the central agencies to carry forward more than 1%. As the CFO said, there is nobody in this country running any kind of an organization anywhere near the size and complexity of ours that could ever get to within these numbers.