OTTAWA — The parliamentary budget officer accused the Harper government on Thursday of low-balling the cost of the F-35 stealth fighter deal.
In an incendiary report likely to further stoke election speculation, Kevin Page estimated the entire package will cost taxpayers $22.6 billion over 20 years. The total price tag for the 65 high-tech fighters could reach $29.3 billion if maintenance costs are extended over another 10 years to cover the full, expected service life of the aircraft.
The government continued to insist that it expects the cost to run between $14 and $16 billion.
But Page said those numbers are based on outdated information and a healthy dose of wishful thinking, Meanwhile, the public is kept in the dark.
“I don’t think they’ve been transparent,” he said. “I think there’s a lot more that DND could provide.”
Page said there is significant risk to the federal treasury and he doesn’t believe the Conservatives have set aside enough money in their long-term defence plan.
The report, which was reviewed by independent experts in the U.S., Britain, Australia and Canada, picks apart the government’s numbers and assumptions in just about every aspect of the fighter program.
The Defence Department did not include initial set up and logistics costs in its forecast, said Page. It also calculated maintenance over 20 years.
Page said forecasting maintenance costs over 30 years produces a more accurate assessment of the risks taxpayers face, because that’s how long the plane will likely remain flying.
“Most of the experts would say this is what a life cycle would look like for a fighter strike plane,” Page said.
Defence Minister Peter MacKay has said the purchase price is roughly $9 billion. Page disagreed and said the initial buy could run up to $9.7 billion.
“Unless there is compelling evidence to the contrary, it is difficult to see prices reducing to their original level,” the 64-page report said.
The maintenance costs are the biggest unknown.
The budget officer estimates they will total $19.6 billion over 30 years, which includes $3.9 billion in upgrades after 20 years of service.
Prime Minister Stephen Harper brushed aside the report when talking to reporters in Toronto.
“I’m not going to get into a lengthy debate on numbers,” he said.
The F-35 was selected because “it was the only option available,” Harper added. “This is the only fighter available that serves the purposes that our air force needs.”
The Liberals asked Page to look at the cost of the entire deal, including purchase price and maintenance. They said the report confirmed their claims that the government has been hiding the real price.
“The Conservative figures just don’t add up,” said Marc Garneau, the party’s industry critic.
“Hiding the cost of these fighter planes deceives Canadians,” he said. “It also undermines the credibility of the entire budget, which will result in much higher spending than what has been announced.”
Garneau accused the Conservatives of “making up” the numbers.
The Liberals say they would cancel the purchase and hold a competition to replace the air force’s aging CF-18 jets.
“An open competition would reduce costs and support transparency by making the true costs public,” Garneau said..
MacKay has said killing the purchase would cost $1 billion in lost benefits.
But the report said no contract has been signed and there are no penalties.