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Monday, December 17, 2001 Back The Halifax Herald Limited

Budget proves it's time for Eggleton to quit Defence post



Art Eggleton: 'Pleased' with budget.


Tim Krochak / Herald Photo
Defence Minister Art Eggleton greets sailors aboard HMCS Toronto in Halifax Dec. 5. The Halifax-class frigate was embarking on a NATO deployment in the Mediterranean Sea as part of the Standing Naval Force Atlantic.

By Scott Taylor ON TARGET

LAST MONDAY, shortly after Finance Minister Paul Martin tabled his budget in the House of Commons, Esprit de Corps began receiving media requests for comment.

Martin's financial strategy was being hailed by the Liberals as a $12-billion security blanket for Canadians, and the Defence Department was supposedly high on the funding priority list.

Adding to this organized deception, our long-serving defence minister, Art Eggleton, was "pleased" with his department's extra funding, saying that $1.2 billion "really is a sizable increase."

Given such a statement from a member of Parliament, is it any wonder that young reporters were speculating about where this windfall' would best be spent? Once Paul Martin's numbers were digested, it became clear the $1.2 billion is to be applied to the Defence budget over the next five years - which amounts to a 2.4 per cent increase to DND's current $11.2-billion annual budget.

To put this in perspective, over the past two years Treasury Board has had to retroactively allocate "emergency" payments of $500 million (in 1999) and $600 million (in 2000) to cover DND's operating deficit.

One must also consider the $150-million savings in personnel costs that DND realizes by operating well below its authorized level of 60,000. With 57,000 service personnel still officially enrolled and with disability, stress, maternity and retirement leaves factored in, less than 53,000 are considered active.

DND is thus able to save not only on the salaries of those missing, but also on the training and equipment costs for those no longer "soldiering."

When these cost savings are combined with the Treasury Board bailouts (without factoring in any of the equipment replacement programs that remain unfunded), there is an annual budget shortfall of about 6.25 per cent.

Add this figure to the auditor general's recent findings and you begin to see the extent of the military's financial crisis. In 1998 it was reported that over the following five years, DND would need to spend at least $11.5 billion to upgrade its infrastructure and arsenal.

To cover that cost, the policy planners at National Defence budgeted $6.5 billion.

In her report two weeks ago, incumbent Auditor General Sheila Fraser said this $5-billion deficiency was never addressed and that DND now spends nearly 20 per cent of its budget just to maintain its ancient equipment.

In his defence, Eggleton has pointed out that the 1999 and 2000 "one-time top-ups" resulted from unforeseen operational contingencies - namely, peacekeeping missions to Kosovo and East Timor. And his spin doctors have trotted out ambitious young pilots to proclaim how "proud" they are to fix 40-year-old Sea Kings.

Unlike Eggleton, retired major-general Lewis MacKenzie has been quick to grasp the magnitude of the Sept. 11 crisis and the commitment necessary for Canada to play a meaningful role in this war against terror.

In criticizing Martin's budget, MacKenzie recognized that once again the rank and file was being asked to "do even more (while receiving) even less." The commitment of ships, aircraft and the second joint task force to the Middle East already outweighs Canada's contribution to Kosovo and East Timor. And there is still talk of sending 1,000 more peacekeepers into Afghanistan.

Yet nowhere in Martin's budget is there any allowance for such an unforeseen operational contingency. MacKenzie should not have to point out the obvious. In this time of international crisis, Eggleton and his commanders should be banging on desks and putting their jobs on the line to demand that the military finally get its due respect from the Liberal government. Instead, Eggleton says he's "pleased" while Gen. Raymond Henault, Canada's chief of defence staff, says absolutely nothing.

The people of Canada should be outraged by and ashamed of our nation's response to the war against terror.

It took three months for the finance minister to announce a token five-year bailout for our rusted-out military arsenal (no new procurement; just keep the old junk serviceable), while Henault triumphantly proclaimed he had "slowed the civvy street exodus" of his demoralized troops. (As mentioned in a previous column, the brass only achieved this success by invoking a mandatory six-month delay on all releases.)

Within that same time frame, when called upon in two world wars, Canada had already mobilized and equipped entire armies. During the Cold War, Lester B. Pearson's government raised and outfitted two 5,000-man combat brigades (for service in Korea and West Germany). In those cases, the military was not expected to reinvent itself within a modest five-year budget increase, and defence ministers recognized the responsibility of their portfolio.

Even armed with a damning auditor general's report, it is obvious that the minister of national defence does not have sufficient support in cabinet to obtain the necessary funding for his beleaguered department.

Eggleton's pleasure at being snubbed in the budget is further proof he must be removed from his post immediately.

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