Cost of the Subs – When the Truth Comes Out

Wait a minute – I thought we didn’t pay a red cent for these decrepit submarines? According to assistant deputy minister, Alan Williams, we’ve actually paid $565-million so far for the subs.

Feds torpedoed deal

The defence department quietly scrapped a deal with the British to barter Canadian training facilities for four used subs and will fork out $812-million for them. The Liberal government has repeatedly assured Canadians that tax dollars have never been spent to purchase the subs. The deal was explained as a cashless exchange of the diesel-electric submarines for the use of Canadian training facilities by the British military.

Canada signed a lease-to-own agreement in 1998 with the British for the four subs. The Canadian Forces have since ordered $60-million in spare parts and inked a $167-million support contract with BAE, bringing the total project costs to more than $1-billion.

Ok, so which is it? Did we or did we not pay cash for these subs? According to Department of National Defence own website,

The project includes $610 million for the acquisition and $140 million for project-related costs. It includes the cost of crew training, simulators, spare parts, Canadian modifications, and project support. To maximize savings and value for Canadian taxpayers, the project involves an innovative eight-year, interest-free, lease-to-buy agreement in which Canada’s lease payments will be ‘bartered’ for the ongoing use of Canadian training facilities by the British forces at Canadian Forces Bases Wainwright, Suffield, and Goose Bay.

Someone is getting screwed, and I think its the Canadian taxpayer.