The federal government has announced it will indefinitely defer billions of dollars in planned defence spending, one of the few hints in Tuesday’s budget about how the governing Conservatives intend to approach procurement in the near future.
(Photo courtesy Department of National Defence)
The budget document outlined plans to forego $3.1 billion in spending on “major capital procurements” for national defence that had been planned between 2013 and 2017.
It does not indicate exactly when the spending will be deferred to, other than that it will be “future years in which key purchases are made.”
Finance Minister Jim Flaherty disagreed with the suggestion that the planned spending is being cancelled while speaking to reporters on Tuesday afternoon.
He said there was no point in setting aside money that the armed forces would be unable to use.
The initiative was just one of the measures outlined in the budget that are designed to change how the government makes use of private sector services.
The document reiterated previously announced plans to change how it manages its vast real estate holdings in the capital by “modernizing” its office space management.
It also outlined plans for reducing the “administrative burden on suppliers” by “simplifying processes and reducing administrative process of the government’s procurement system.”
However the document contained few specifics about how it planned to go about doing this.