Cost estimate for Canada’s frigate build goes up by $8 billion, PBO says
Cost estimate for Canada’s frigate build goes up by $8 billion, PBO says Cost estimate for Canada’s frigate build goes up by $8 billion, PBO saysA new report from the Parliamentary budget office take the cost for the Canadian Navy’s new Surface combatant program at 8 billion dollars more than its previous estimate. The report says the increase is due in part to the fact that production on the new Fleet at the Irving Shipyard in Halifax will start later than originally planned. Earlier today, I spoke with Eve to root the Parliamentary budget officer. Honest truth, great to see you again, I let me start off with the report that your office has just released and that is around the Navy’s. Uss isn’t essentially revive cost the Navy’s surface combatants. What did you find we found at? The cost has risen by about 10 billion dollars compared to our previous estimate. That was done in 2017, so the cost has risen because of two things. So the first, the Royal Canadian Navy has opted for a ship, that’s or series of shifts 15. To be more precise, that are a bit heavier and in terms of weight, that’s a determining Factor when it comes to costing ships factor is inflation. So when you wait to start a project that spans 20 years and because the project plans are along., It has implications and death are significant and the other thing. And then what about is there? Any sort of government culpability here? Is there any way that that could that increase could having smaller decision to make the decision be made to start earlier with the deferment, the cost would have been cheaper. That’S the main factor and going with a ship that is lighter would make the cost of it. Lower but of course that’s depending on the operational needs of the Royal Canadian Navy and India officials in defense policy experts are in a meter in a much better position to determine whether the ship’s size is appropriate or not. If you look through this experience, though, is their recommendations going forward for other procurement processes when it comes to a timeline that lower the cost is obviously so that’s one very obvious recommendation because delaying making a decision on procurement, if you need the procurement mean to procure The specific tools or equipment delaying does not save you any cost. It’S only increases the cost to another. Subject: climate change plan this weekend and in talking about but his program, he cited the report that you did on pricing Carbon. Let’S have listened to what he said. Budget officer reports that indicated that are approached by highlighting investments in technology, accelerating them and incentivizing them will have a greater impact on Lorraine emissions than the failed carbon tax. So what year was referring to in that report was a section that red under an alternative scenario in which technological advancement and adoption happens, Bass assume emissions could be 101 megatons lower than our Baseline in 20-30, which would better the Paris Target by 22 megatons without requiring Additional carbon pricing, my understanding is, if you actually end up removing that section, why focus of the report was to provide an illustration to can agents in tournament Aaron’s of how much meeting the parents targets would cost if we focused exclusively on carbon pricing, there are other Instruments, regulations being one and subsidies is another one, as well as technological advancements, so because the there were some uncertainties with respect to the assumptions that ECCC environment and climate change, Canada news regarding the various technology improvements, we decided to remove that from the report, because the Assumptions were not super clear in our opinion, and we didn’t want that to become the focus of the report, because the main point of the Ring Weston Price meeting Paris targets using carbon emissions. As an illustration. Of course, we can meet Target Paris targets with technology and regulations, but it’s much more difficult to cost that without knowing specifically technology or which type of Regulation, and that’s why we removed that very short paragraph. Our own decisions, their own plan and then the decision to made it to remove. It was followed those announcements right because there was some uncertainty regarding ecc’s assumptions, what was included in their technology. What was not included, and by having a second and third and fourth look at the report. It wasn’t very clear after couple of readings what was exactly included so because that was very secondary to the report we did not continue to. We did not keep that in the report, but it doesn’t change the rest of the report. They’Re, the conclusions are still the same and they were mean it doesn’t change. Does it change Mr shears citation, though of your report as justification for the effectiveness of what he saying, Paris Targus? So when you – and I know that your plan is for you to analyze various platforms that during the election campaign of the parties, have to decide to submit them to you. But if you were to analyze something like that policy that was announced as a platform, how do you? How will you go about doing that like what would be the the way in which you would unfold what we would see to get details from the political party as to how they want to oppress Mize specific proposals, because making an announcement? Nothing but often the devil is in the details, so you need to figure out exactly how it will be implemented. What are the the timelines and so on? So you can get these details. You use models that it already exists so far sample for carbon emissions. We already have models that exist and have been recognized by other institutions, and you are able to model the cost of specific proposals when it comes to technology. Improvements very difficult to anticipate the future will bring if it’s subsidies much easier. If it’s regulations, you have to have a pretty good sense of their regulations themselves that aren’t being planned quotes of these during during the election. What will they be able to glean? Will they be able to say you know the concert is playing cost this amount? The Liberals cost this cymatics cost that you’re really going to be looking at what type of proposal he’s bring to us if they bring to us. Some specific elements will be costing these elements if they bring to us various elements that comprise it an entire sector, for example, the environmental platform then we’ll be able to cost at so we’ll be able to provide political parties and Canadians the cost of specific measures. I don’t work for another video thanks for watching Canada’s Parliamentary Budget Office is pushing up the cost estimate for Canada’s frigate build by $8 billion. The increase comes partly because the Liberal government selected a design for a warship that is not in service yet.
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