Redlands18
Well-Known Member
The Australian Government uses the WOLC method and we get people in the General Public complaining about paying $250m per F-35 or $4b per Sub, or $3b per Frigate what they aren’t told is the purchase cost is only roughly about 1/3 of the overall cost,Depends upon how the Canadian govt does their sums. Some govts will cite a sail-away cost whilst others include the sail-away cost plus spares, training, manuals, weapons, infrastructure etc. Some include the WOLC (Whole Of Life Costs) which covers everything. Now when you look at the the sail-away cost plus spares, training, manuals, weapons, infrastructure etc., all govts are different in how they do their sums for this. For example the NZ Govt doesn't include weapons in their capability acquisitions, because in their infinite wisdom many moons back it was decided that weapons will come out of operation expenditure (OPEX) not capital expenditure (CAPEX). Probably a Treasury methodology for being stingy and avoiding paying for advanced (hence expensive) weaponry.
Therefore to get an idea of how the announced costs are structured, would be to ask the DND or the DEFMIN, or see if a breakdown of the project budget is published. Maybe such material could be acquired under the Canadian equivalent of a Freedom Of Information Request.
Governments need to do a better job of explaining costs to the general Public.