Quotulatiousness

April 16, 2012

A more sensible way to analyze the F-35 issue

Filed under: Cancon, Economics, Military — Tags: , , , — Nicholas @ 09:15

In the National Post, Shaun Francis and John Kelleher offer an easier-to-understand method of analyzing the costs and benefits of the F-35 program:

Consider a car. Let’s say you’re considering buying a subcompact or an SUV, which you plan to hold onto for five years. A subcompact has a one-time purchase cost of $20,000 followed by $7,000 in annual, recurring costs on things like gas and maintenance. Your total costs over five years are therefore $55,000, or $11,000 average cost/year.

Meanwhile, the SUV has a one-time purchase cost of $25,000 and recurring costs of $7,500, leading to a five-year total cost of $62,500, or $12,500 average total cost/year.

To examine whether buying an SUV makes sense, you take the costs of the SUV and you subtract the costs of your next best alternative, the subcompact. Then you ask yourself, is it worth a premium of $1,500 per year to drive an SUV versus a subcompact?

From a decision point of view, it doesn’t make sense to get upset over the $62,500 total cost of the SUV. That’s not the pertinent figure here. You can’t walk to work. You need a car. So the pertinent question is the cost differential — in this example the $7,500 premium between your preferred choice and the next best option.

Canada’s F-35 decision should have been framed in a similar fashion by the Auditor General. The appropriate question? Do we want to pay a premium for the world’s best fighter jet, which will be cutting edge for decades to come, or can we make do with more reasonably priced planes that are bound to become obsolete sooner?

In the article they say “no one is questioning whether Canada needs fighter jets”, which is not actually true. Significant portions of the NDP, the Greens, and even some Liberals feel we should not be buying any military equipment that does not have a primarily humanitarian use. In their view, transport aircraft might be acceptable but combat aircraft would not. Trucks, yes, but tanks, no.

April 15, 2012

Increasing taxes on the “1%” won’t close the gap — and might make it worse

Filed under: Cancon, Economics, Government — Tags: , , , — Nicholas @ 11:13

Joseph Brean in the National Post:

That the rich should contribute more than their current share to the common good is a proposal with popularity. From Paris and London to Nova Scotia and Alberta, “tax the rich” has become a dominant theme in budget debates and elections around the world.

In Ontario, for example, NDP leader Andrea Horwath’s proposal to create a new tax bracket for people who make more than half-a-million dollars a year, illustrates the persistent attraction of such schemes for governments in deficit.

“The issue really is one of perceived fairness,” said Robin Boadway, a taxation expert and professor of economics at Queen’s University, who notes that the income of the highest earners has been increasing much faster than the middle and lower ranks. Taxation, to a great degree, relies on the goodwill and trust of citizens, he said, and inequality in tax codes can violate that trust.

Governments acting like Robin Hood, however, have tended to provoke unforeseen problems, most recently in Britain, where an effort to tax the rich ended up — quite literally — costing the government deeply.

It always seems to be a surprise when people respond to incentives in creative ways … and this applies especially to creative ways to avoid paying higher taxes. People will adjust their behaviour to minimize their tax burden — both legally and not-as-legally. This is after all one of the reasons that there are so many tax provisions: the government wants to encourage certain kinds of behaviour (and so gives a tax credit) and discourage other kinds of behaviour (and so levies a specific tax on it). Flexibility occurs on both the tax-levying and tax-paying sides of the fence.

One of the complaints of middle-class taxpayers is that there are few mechanisms they can use to legally reduce their tax burden, while the wealthy have lots of ways to do this. This isn’t going to change if the government increases the top rate of tax — in fact it will encourage more creative use of the tax-lowering provisions of the law (and lawyers and accountants will benefit by helping their wealthy clients ot take advantage of those provisions).

April 14, 2012

Recent immigrants didn’t come here because “Canada is diverse and signed the Kyoto Protocol”

Filed under: Cancon, Media, Politics — Tags: , , — Nicholas @ 11:43

An interesting aside in this Toronto Star article by Rondi Adamson:

However, what is most interesting about these stories is what they reveal about immigrants and Canadian politics. There was a time when the Liberal party could count on immigrant votes. For years, many immigrants who came to Canada under a Liberal government — which would cover much of the last century — reflexively voted Liberal. Part of this was out of gratitude and part of it because the Conservatives (or Progressive Conservatives) never bothered to court the immigrant vote.

[. . .]

Anyone who thinks people choose Canada because of multiculturalism or bicycle lanes in big cities would do well to remember our last municipal election, when Rob Ford received over 50 per cent of the votes of Torontonians born outside Canada. I can tell you my own tale — a couple of summers ago I taught ESL in a Toronto suburb. My students were teenagers new to Canada. I asked them why their parents came here. Almost down to a kid they said, “Because we couldn’t get into the States.” They did not say, “Because Canada is diverse and signed the Kyoto Protocol.” They did not have a Panglossian view of this country. They saw it as they saw the United States — free and fair — though not as powerful a draw.

It is nice when politicians attend cultural celebrations and clumsily do ethnic dances and don hats that make them look goofy. But new and old Canadians respond positively to substance in the form of sensible policy, as opposed to making a show of being inclusive. It was Chen’s case that brought about support for Bill C-26, intended to expand the right to defend one’s home and property. I am pleased that, since the Maroli case, no politician has proposed a correlated Spice Registry, which may have been their wont a decade ago.

H/T to Blazing Cat Fur for the link.

John Moore thinks that Canada is stupid to consider Vimy Ridge a “defining moment”

Filed under: Cancon, Europe, France, Germany, History, Military, WW1 — Tags: , — Nicholas @ 11:27

Writing in the Pacifist Times National Post, John Moore expresses the opinion that Canada should derive its sense of national pride from “compassion, hard work and character” rather than remembering anything positive from the bravery and sacrifice of Canadian soldiers in the war against Imperial Germany:

The tropes are well known to Vimy devotes. Over four days in April in 1917, Canadian soldiers accomplished through planning, guts and guile what 150,000 dead French and British soldiers had failed to achieve: The capture of seven kilometres of land rising up to a ridge held by the Germans. It was the first time all four divisions of the Canadian Corps had fought together — 3,598 Canadians lay dead; 7,000 were wounded.

But is Vimy really the best of Canada? Does our modern identity and national purpose hinge on the harrowing slaughter of our citizens on a foreign field of mud in a pointless war?

Canada went to war in 1914 at the same moment that Britain did. Britain went to war because they had guaranteed the independence of Belgium, but Germany needed to violate that independence in order to push the massive right wing of their armies past the French frontier forces in an attempt to outflank and destroy the French army. If Canada entering the war was “pointless”, then we should never have taken part in World War 2 (which Moore paints as being “one of the most unambiguously moral wars in history” either.

If anything, modern Canada should reflect on Vimy and our total First World War sacrifice as a national tragedy. Sixty-thousand Canadian men died in a war in which we had no real casus belli and which was largely administered by damnable incompetents. A generation of teachers, milkmen, farm hands, labourers, students and artists died on the field of battle, so hollowing out the population that many of the women they left behind would never marry. One hundred and seventythree thousand returned home suffering from burns, chemical poisoning, amputations and traumatic stress disorder that would leave them depressed and spastic for the remainder of their lives.

So why, 95 years later, do we venerate Vimy? Perhaps because it’s far easier to stir emotions where military matters are concerned. You can’t erect a heroic statue to the civility for which Canada is renowned. Social justice has never been able to muster an inspiring flypast. The national understanding that in Canada we look after each other doesn’t have a solemn bugle call to draw a tear.

So Moore thinks that Canada is defined by social justice and civility? I guess that’s at least a bit better than the even more common notion on the left that Canada is defined only by socialized medicine.

April 13, 2012

Filling in for Envisat: “the CSA’s Radarsats 1 and 2 will try to fill some of the gaps”

Filed under: Cancon, Europe, Science, Space — Tags: , — Nicholas @ 08:43

The European Space Agency is still at a loss on why their flagship Envisat satellite suddenly went silent, but while they’re trying to diagnose and hopefully fix the problem, the Canadian Space Agency is helping to cover some of the gaps:

Controllers say the eight-tonne spacecraft appears to be in a stable condition, but they are not receiving any data at all from it.

Contact was lost with Envisat at the weekend shortly after it downloaded pictures of Spain’s Canary Islands.

A recovery team, which includes experts from industry, is now trying to re-establish contact with the craft.

Mission managers said on Friday that they were working through a number of possible fault scenarios but conceded they had little to go on.

[. . .]

Of more immediate concern are the operational and scientific projects that rely on Envisat data.

The satellite’s information is used daily to monitor for oil spills at sea, to check on iceberg hazards, and to provide information for meteorological forecasts, among a wide range of services.

All this had now been disrupted, said Prof Liebig.

“What we have done is [activate] the contingency agreement we have with the Canadian Space Agency (CSA) which we have had for many, many years. Canada has responded very positively. So, for a certain time, the CSA’s Radarsats 1 and 2 will try to fill some of the gaps.”

April 11, 2012

HMCS Windsor scheduled to return to the water today

Filed under: Cancon, Military — Tags: , , , — Nicholas @ 00:07

One of the Royal Canadian Navy’s four submarines, HMCS Windsor, is supposed to be getting wet again later today:

Good news, of a sort: One of Canada’s four Victoria-class submarines is set to achieve a major milestone Wednesday. It’s going to be in the water. Huzzah!

After years of extensive refit work, HMCS Windsor is set to be lowered — lowered “extremely slowly,” but lowered — into the Atlantic Ocean. Assuming it does not instantly sink, explode or simply dissolve like a giant, oddly shaped sugar cube, the Windsor will then begin a long series of tests at sea. It is hoped that the sub will be fully operational by early 2013. Fingers crossed. Canada should have submarines. They are a useful part of a modern navy’s arsenal, and Canada has an enormous coastline. Although the subs have had an uneven history, to say the very least, they finally seem to be getting to a state where they’ll be useful to us. There had been speculation before last month’s federal budget that they’d be scrapped, but at this late point, that would be wasteful. It’s cost a lot to get these incredibly complicated machines as operational as they are (again, fingers crossed).

[. . .]

Purchased second-hand from the British for the rock-bottom price of $750-million in 1998, they’ve fallen well short of expectations. They only entered Canadian service in 2003, and have proven glitchy and outright dangerous — HMCS Chicoutimi caught fire during its maiden voyage in 2004. Lt. Chris Saunders was killed fighting the blaze, and the sub has been out of service undergoing repairs ever since. It, too, is hoped to be back in service next year. All told, the subs have been at sea, collectively, only 900 days since 2003, and have cost billions of dollars to bring up to spec — money the cash-strapped navy didn’t really have. Costly, under-performing, sucking up needed resources … sound familiar?

April 10, 2012

Jack Granatstein calls for the heads of the deputy and associate deputy minister of defence

Filed under: Bureaucracy, Cancon, Media, Military — Tags: , , , , — Nicholas @ 10:24

Jack Granatstein is very well respected as a military historian and analyst. His interpretation of the F-35 situation leads him to — in effect — call for the dismissal of people whose names are not generally being bandied about in the media:

Then let us look at the decision-making process in the Department of National Defence. Almost all the commentary in the media and Parliament has pointed fingers at the CDS, Gen. Natynzcyk. But he is only the military leader of the department, not the sole ruler. Co-equal to him — and, in fact, in most knowledgeable observers’ judgment substantially more than that — is the deputy minister, Robert Fonberg, in his post since 2007. The associate deputy minister materiel, responsible for all procurement projects, reports to Mr. Fonberg, and the deputy determines what his minister, Peter MacKay, and eventually the cabinet sees. The public messaging in the department is handled by the assistant deputy minister (public affairs), who also reports to Mr. Fonberg. The civilian defence bureaucrats truly wield the power.

The point is this: The uniformed officers of the department provide the best military advice they can. Sometimes they are incorrect; most times they pray they are right because they know their decisions will affect their comrades’ lives. But the estimates of costs, and the spin that has so exercised the Auditor-General, the media and the Opposition, are shaped and massaged by the deputy minister, in effect DND’s chief financial officer, who advises the minister of national defence.

No one comes out of the F-35 affair smelling like a rose. Mr. MacKay undoubtedly made mistakes in overselling the aircraft, and Gen. Natynzcyk likely did as well. But it would be a miscarriage of justice if these two lost their heads to the vengeful axe demanded by an aroused media, and the deputy minister and his civilian bureaucrats escaped unscathed.

April 9, 2012

The Royal Canadian Mint: now they’re just poking fun at US espionage agencies

Filed under: Cancon, Media, Randomness — Tags: , , — Nicholas @ 13:44

Remember the last time that a Canadian coin was the subject of an espionage warning from the US Department of Defence because the poppy appeared to be “filled with something man-made that looked like nano-technology”? The Royal Canadian Mint may get a radiation warning for their newest coin:

The image of a dinosaur whose remains were discovered in Alberta’s Peace Country will be featured on our newest quarter — the first Canadian coin with a glow-in-the dark picture.

The quarter, being released by the Royal Canadian Mint April 16, features Pachyrhinosaurus lakustai, a large herbivore whose bone fragments were discovered by Grande Prairie, Alta., science teacher Al Lakusta in 1974.

He plans to pick up one of the new coins for his 10-year-old grandson.

“I think almost anybody who reads about it thinks, ‘We can’t wait to try this,’ ” he said Sunday from his Grande Prairie home.

April 8, 2012

The F-35 program is “Military Keynesianism”

Filed under: Bureaucracy, Cancon, Economics, Military — Tags: , , , , , , — Nicholas @ 11:25

Wayne K. Spear explains the ordinary and the extraordinary parts of a military procurement process, as illustrated by the F-35 project:

A straight-shooting bureaucrat will admit that procurement processes are often initiated with the final selection a foregone conclusion. If you know in advance what you need, and you furthermore know who’s most qualified to deliver, then formalities intended to promote transparency and accountability are at best inconveniences to circumnavigate — and every public servant knows well how to steer that ship. That this occurs regularly within the bureaucracy is an open secret.

The Joint Strike Force program, at the centre of which is a proposed purchase of F-35 fighters, introduces disturbing wrinkles to an otherwise unremarkable bureaucratic occurrence. On military matters I refer to the self-described “prolific Ottawa blogger” Mark Collins , who has been training his keen eye on this fiasco for years. At his site you’ll find links to a range of useful resources, for example a DND PowerPoint which makes it clear that military leaders chose the F-35 and only later manufactured the selection criteria. Again, not unusual in procurement. The department however did so on grounds no one has yet admitted, never mind defended. That’s only one of many problems.

Reviewing the Auditor General’s report and the media coverage of this issue, I infer that the F-35 achieved the status of a foregone conclusion for the following reasons. 1) Canada had invested millions of dollars into the F-35 program as early as the 1990s; 2) Lockheed Martin Aeronautics lobbied aggressively, and more effectively, than its rivals (and employed Prospectus Associates, a consultancy firm with the inner track to Defence Minister Peter MacKay); and 3) the F-35 series of fighters — although years from completion and with many important details unclear and ever-changing (including year of completion, engine cost, cost to maintain) — were the only “fifth generation” fighters on the table. As the Auditor General points out, fifth generation “is not a description of an operational requirement.” My own research suggests this phrase means something like ”Ooo!” — which is what I often say when I see a jet fighter in action.

It’s a given that the Royal Canadian Air Force needs to address the rapidly aging CF-18 fleet before 2020 (the estimated end-of-life for the current fighters). The choice had appeared to be simple: follow on our pre-existing development deal with a purchase of F-35 fighters. The problems were that the development schedule had slipped multiple times, the estimated costs had climbed and climbed again, and the technical “teething” issues were still promising longer delays and higher costs. Canada had intended to buy 65 aircraft — in my opinion at least 33% less than the RCAF actually needed — at a “fixed” cost.

The F-35 is still years away from being in service in any air force, there’s no way to be sure that the government’s budget will be enough to buy the minimum number of aircraft, and the CF-18 isn’t getting any younger.

We need (some) new fighter aircraft in the next eight years, but the F-35 is no longer the automatic choice to fill that role.

There’s another root problem, and it’s also to be found in the 2012 federal budget. This document superstitiously relies on the notion that everything the feds do creates jobs. Every spending initiative in the budget creates jobs. Every departmental trim, and every restraint, ditto. Having gone through the budget, I wonder if Mr. Flaherty thinks a job is created when he sneezes. At the same time I was reading the budget, I was reviewing the federal government’s 2010 F-35 sales pitch — which, coincidentally, was the DND’s and Lockheed Martin’s sales pitch. Again, it’s all about “industrial benefits.” Lo and behold: the F-35 program creates jobs!

One name for this line of argument is “Military Keynesianism,” the idea that a brilliant and effective way to create jobs and boost the economy is to give folks like Lockheed Martin billions of dollars of public money. In the 1980s, the American public heard many Pentagon procurement stories concerning $40 staplers and $200 hammers, all part of a federal stimulus effort which by 1988 had tripled the nation’s deficit. There are distinctions to be made between this and the present case. Nonetheless, these staplers and hammers came to my mind as I dug down into the bogus F-35 procurement process and my shovel chipped the Reagan-era bedrock.

April 7, 2012

“[Dalton] McGuinty … has led Ontario from the commanding heights almost to the low-rent district of the Canadian economy”

Filed under: Cancon, Economics, Government — Tags: , , , , , , — Nicholas @ 11:11

Conrad Black, on the dangers of regional politics played out at the national and international level:

One of the points I was trying to make in last week’s column, in general support of Pierre Trudeau’s efforts to make both official languages present in all parts of the country, was that in any federal state, some concessions to particular regional concerns are necessary or the country will fall apart, or even atomize. In a little over a century, this fate has split Norway from Sweden, Singapore from Malaysia, Bangladesh from Pakistan, the Czechs from the Slovaks and, most painfully, the Sudanese and South Sudanese.

This was what made the Quebec separatist threat so dangerous; though there was never much prospect of heavy violence, there was a danger of the permanent diminution of the country after a prolonged and immobilizing constitutional crisis. Of course, the separatist leaders greatly and treacherously underestimated the complexities and problems of any such step, and aggravated the problem with trick referendum questions about seeking authority to negotiate sovereignty and association with Canada: Simultaneously to eat and retain the same rich cake.

[. . .]

The Copenhagen Environmental Conference of 2009 was probably the most inane and redundant international conference in all history, as every climate alarmist capable of crawling to a television studio or buttonholing a journalist (except perhaps for Canada’s inimitable Gwyn Dyer), competed in foreseeing the imminence, almost literally, of the fall of the sky. But more demeaning by far at Copenhagen was the spectacle of the premiers of Canada’s two most populous provinces, Dalton McGuinty and Jean Charest, attacking Alberta’s oil sands in that over-suggestible ideological environment infested by kooks and charlatans.

The oil sands must be developed, and a pipeline built either into the U.S. or to the West Coast to transport the oil to market. These projects must be managed with great care for the environment. But Canada’s manifest destiny as an energy exporter cannot be held hostage by eco-terrorists, nor by the economic growth of one Canadian region being stunted by the slovenly dependence of other regions on an artificially depreciated Canadian dollar. Intra-Canadian partisanship and regional rivalries must end at the border and the water’s edge.

The antics of McGuinty, who has led Ontario from the commanding heights almost to the low-rent district of the Canadian economy, blaming the prosperity of Alberta for raising the value of the Canadian dollar and inconveniencing Ontario, is an outrage. The new federal NDP leader, Thomas Mulcair, has been uttering something perilously close to the same inexcusable flimflam. Alberta, per capita, has done more than any other province to carry the cost of federalism, including oceanic largesse to Quebec. And all Canadians should rejoice at the prospect of Canada becoming a world energy giant, especially as it entails the prosperity of Newfoundland after centuries of economic struggle, and also the flowering of the hydroelectric wealth and technical sophistication of Quebec.

April 5, 2012

Why government stimulus is usually a bad idea

Filed under: Cancon, Economics, Government — Tags: , , — Nicholas @ 09:12

Mike Milke of the Fraser Institute:

Frum’s praise for Ottawa’s go-slow approach on balanced books is premised on the perception that if Ottawa actually cut spending (as opposed to slowing the rate of growth) such actions would endanger our prosperity: “If you reduce spending too fast, you crimp your economy,” wrote Frum.

But that’s a mistaken notion.

To use just one example from a large body of research, in 2009, leading fiscal policy expert and Harvard University professor Alberto Alesina and his colleague Silvia Ardagna reviewed stimulus initiatives in Canada and 20 other industrialized countries from 1970 to 2007. In the 91 instances where governments tried to stimulate the economy, it turned out the unsuccessful attempts generally were the ones based on increased government spending. Alesina noted that “a one percentage point higher increase in the current [government] spending-to-GDP ratio is associated with a 0.75 percentage point lower growth.”

In other words, stimulus spending doesn’t increase economic growth; it harms it.

To see how Ottawa’s own stimulus spending was unnecessary, consider how Canada emerged from the last recession and how government stimulus spending had nothing to do with it. Our recession ended in mid-2009; it was only about then that federal and provincial governments started spending extra (borrowed) stimulus cash.

To credit stimulus spending for the end to Canada’s recession, one must argue that extra (borrowed) dollars mostly spent after June 2009 somehow magically rescued the Canadian economy before June 2009.

All the borrowing did have one effect: It added to the existing large federal debt mountain, forecast to hit $614-billion in 2015, up from $457-billion in 2008.

The government’s stimulus spending was demanded by the opposition, but evidence since then indicates that the minority Tories would probably have passed a stimulus budget even if the opposition didn’t give them political cover.

April 4, 2012

The “Three Amigos” are not all that friendly at the moment

Filed under: Americas, Cancon, USA — Tags: , , , , , — Nicholas @ 10:56

A report on the “Three Amigos” meeting where President Barack Obama hosted President Felipe Calderon, and Prime Minister Stephen Harper at the White House:

Obama’s neglect of our nearest neighbors and biggest trade partners has created deteriorating relations, a sign of a president who’s out of touch with reality. Problems are emerging that aren’t being reported.

Fortunately, the Canadian and Mexican press told the real story. Canada’s National Post quoted former Canadian diplomat Colin Robertson as saying the North American Free Trade Agreement and the three-nation alliance it has fostered since 1994 have been so neglected they’re “on life support.”

Energy has become a searing rift between the U.S. and Canada and threatens to leave the U.S. without its top energy supplier.

The Winnipeg Free Press reported that Canadian Prime Minister Stephen Harper warned Obama the U.S. will have to pay market prices for its Canadian oil after Obama’s de facto veto of the Keystone XL pipeline. Canada is preparing to sell its oil to China.

Until now, NAFTA had shielded the U.S. from having to pay global prices for Canadian oil. That’s about to change.

Canada has also all but gone public about something trade watchers have known for a long time: that the U.S. has blocked Canada’s entry to the eight-way free trade agreement known as the Trans-Pacific Partnership, an alliance of the U.S., Australia, New Zealand, Vietnam, Malaysia, Peru, Chile, and Singapore. Both Canada and Mexico want to join and would benefit immensely.

So much for Canadian whingeing, right? Those snowback hosers are never happy. Relations with Mexico must be in better shape, yes? Uh, no:

Things were even worse, if you read the Mexican press accounts of the meeting.

Excelsior of Mexico City reported that President Felipe Calderon bitterly brought up Operation Fast and Furious, a U.S. government operation that permitted Mexican drug cartels to smuggle thousands of weapons into drug-war-torn Mexico. This blunder has wrought mayhem on Mexico and cost thousands of lives.

It’s fortunate for President Obama that the press is generally careful in their reporting … careful, that is, to avoid blaming Obama wherever possible.

Update: Ace has more on the unusually assertive Canadian position.

David Akin: The F-35 fiasco is now a boondoggle

Filed under: Bureaucracy, Cancon, Government, Military — Tags: , , , , , — Nicholas @ 10:21

Nobody in the government or the Department of National Defence comes off well in this politico-techno-bureaucratic mess:

The acquisition process to replace our aging CF-18 fighter jets can now officially be proclaimed as the F-35 boondoggle.

In a damning report Tuesday, Auditor General Michael Ferguson said the whole process in which the Harper Conservatives decided to allocate at least $25 billion over the next 20 years to buy 65 F-35 Lightning II “fifth generation” fighter jets was gummed up by Department of National Defence bureaucrats — and possibly air force officers — who flat out lied to their political masters and to Parliament about the costs and risks associated with the program.

The only good news is we have not yet spent that $25 billion or signed any contracts.

Canada has generally been well served by the civil service (I grit my teeth to say that, as I’m not at all fond of big government), if only in comparison to other countries. One of the better inheritances from Britain is the (relatively) non-political, impartial bureaucracy. In this case, however, the bureaucracy has failed, and failed spectacularly:

But the politicians, like any prime minister or cabinet minister before them, has to be able to rely on the bureaucracy to give them the straight goods.

That did not happen.

Here’s Ferguson in his report: “National Defence told parliamentarians (last year) that cost data provided by U.S. authorities had been validated by U.S. experts and partner countries which was not accurate at the time. At the time of its response, National Defence knew the costs were likely to increase but did not so inform parliamentarians.”

In other words, DND bureaucrats lied. Full stop. Period.

Here’s another paragraph from Ferguson: “Briefing materials did not inform senior decision-makers, central agencies, and the Minister [of National Defence] of the problems and associated risks of relying on the F-35 to replace the CF-18.”

And another: “We found that the ministers of National Defence and Industry Canada and those ministers on the Treasury Board were not fully informed (in 2006) about the procurement implications.”

I’ve been less-than-fully-supportive of the F-35 acquisition, as a quick perusal of F-35 related posts will show, but this is now much more important than the question of what aircraft (if any) the RCAF will be purchasing. It’s now a case of finding out how deep the rot is in the DND and whether the RCAF actively aided the deception. If so, heads must roll.

Update: MILNEWS.ca has a round-up of reporting on the Auditor General’s report, focusing on the F-35 program.

April 3, 2012

Eliminating inter-provincial barriers to trade

Filed under: Cancon, Economics, Law, Liberty, Wine — Tags: , , , , — Nicholas @ 10:43

Confederation in 1867 was supposed to create a single nation out of a group of separate British colonies in North America. In spite of that, in some areas, individual provinces treat one another as foreign entities for trading purposes. Alcohol, for example, is one product that gets special treatment for inter-provincial sales — almost always to interfere with or even prevent the purchase of alcohol in one province for consumption in another. 680News reports on the latest effort to harmonize the rules regarding alcohol sales across provincial borders:

Free my grapes will be the rallying cry on Parliament Hill on Tuesday as a committee hears from supporters of a private member’s bill seeking to erase a 1928 rule that restricts individuals from bringing wine across provincial borders.

Shirley-Ann George ran into that problem when she was visiting B.C. and then tried to join a wine club through a vineyard there, only to be told the vineyard couldn’t ship to her home in Ontario.

She decided to start up the Alliance of Canadian Wine Consumers to try to change it.

“You’ve got to be kidding,” is the most common refrain from people first learning about the rule, George said.

“Most Canadians don’t even know it is illegal. They think it’s silly, archaic and it’s time that the government started to think in the 21st century.”

Of course, the provinces are not keen to allow individuals to buy wine directly — that might threaten their respective monopolies (and the juicy profits they derive from being “the only game in town”). One of their current arguments against the bill is that it will somehow give Canadian wines an unfair advantage and that could cause issues with our international trade partners. I’m not sure how it benefits Canadian wineries to be shut out of selling to Canadian wine drinkers in other provinces, but I’m sure that they have some cockamamie statistical “proof” that they’ll trot out to bolster their argument.

April 2, 2012

Kelly McParland: Judge Harper not on what he says, but what he does

Filed under: Cancon, Economics, Government — Tags: , , — Nicholas @ 09:14

In the National Post, Kelly McParland scrutinizes the entrails of the federal budget to determine what Prime Minister Stephen Harper is really thinking:

It’s pretty self-evident that prime ministers reveal a lot of their own character in the content of their budgets, but it may be particularly so for Stephen Harper. The guy is an economist, after all. Messing around with graphs and figures was what he planned to do with his life, if seizing control of the country’s government didn’t work out. And since we know he’s a bit of a micro-manager, it’s probably safe to say there’s at least as much Harper as there is Jim Flaherty in the nitty gritty of the latest budget document. So let’s use it to figure out what Stephen Harper believes — really believes — when it comes to running the country.

We know what he says he believes in: smaller government, fewer bureaucrats, restrained spending, less intrusion, an end to taxpayer-financed welfare for businesses and governments. Accountability, prudence, fairness. Individual responsibility rather than the smothering embrace of the nanny state. No more currying favour with every special-interest advocacy group that captures the attention of congenitally correct.

Maybe on some plane he does honestly hold those values dear to his heart. But we all profess to believe in ideals we never quite get around to displaying. Mr. Harper has been Prime Minister for six years, and since last May has had the majority needed to have his way with legislation. Yet, as Andrew Coyne has so clearly demonstrated on more than one occasion, Mr. Harper’s actions habitually belie his words. If he were applying for membership in the True Conservative Believers Club of Canada, they’d turn him away as unqualified.

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