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Speaking Notes
Minister Trevor Taylor
The Senate Standing Committee On National Security and Defence
February 3, 2005


Check against delivery

Opening Remarks

Good morning Senators. Thank you for this opportunity to present the Government of Newfoundland and Labrador�s views on the important issue of national defence in the context of your comprehensive review.

My presentation today will focus on three areas: (i) an overview of military presence in Newfoundland and Labrador; (ii) the three military establishments in the province and associated issues; and (iii) recommendations for your consideration. You will note that I will pay particular attention to the future viability of the foreign military training program at 5-Wing Goose Bay.

II - Historical Perspective and Context

Since September 11, 2001, the world�s focus has been on threats of global terrorism, new and emerging warfare techniques, as well as the changing security environment. Many governments around the world have undertaken to assess their capabilities, both at home and abroad, to respond appropriately to this new era of security and defence requirements. Given our strategic location globally, it is no surprise that so many international flights were diverted to the province�s airports on that day.

  • The geographic location of Newfoundland and Labrador has been strategically important since the 16th century and there is a long-standing history of international military presence in this province. Newfoundland and Labrador hosted the United States Air Force for several decades, at four prominent locations: Goose Bay, Fort Pepperrell in St. John�s, Stephenville, and Argentia. Most recently, the British, Dutch, Italian and German Air Forces maintained permanent detachments in support of the foreign military training program at 5-Wing Goose Bay, a program that has existed in Labrador for two decades.

The Canadian military has also recognized the strategic location of this province as demonstrated through its commitment to NORAD at Goose Bay, the DEW Line/Pine Tree radar sites located here as well as the fact that the Department of National Defence established 5-Wing Goose Bay as a Canadian Forces Base when the United States Air Force no longer required Goose Bay as a location.

Newfoundlanders and Labradorians have answered the call of duty on many occasions as witnessed by the numbers of the province�s men and women who are veterans of both World Wars I and II, the Korean War, and who continue to do so in the War on Terror. As of February, 2003, Newfoundlanders and Labradorians comprised approximately 8% of the Canadian Forces Regular Force. That is astounding given that this province is only 1.6% of the Canadian population. Newfoundlanders and Labradorians also comprise approximately 9.1% of the national Cadet population, approximately 20% of the navy, and approximately 3.1% of reservists.

The Canadian Forces presence in this province is remarkably small. In fiscal year 2003/04, Department of National Defence records indicate that there were 600 regular force, 122 civilian, and 1,022 reservist personnel stationed here with a net expenditure of $128M. This equates to a $250 per capita expenditure, with only two other provinces in Canada, Saskatchewan and Prince Edward Island, being lower. The military presence in Newfoundland and Labrador has been dwindling for some time, with serious attrition beginning with the negative impact of the 1996 program review conducted by the Government of Canada. For example, in 1996/97 there were 267 Regular Force personnel stationed at 5-Wing whereas in 2003/04 there were 94. Similarly, in the case of 9 Wing Gander, Regular Force personnel declined from approximately 187 to 134, while the number of civilian personnel employed at the base has dropped dramatically from 97 to 29 over the same period.

However, I am not here to deliver a critique of past performance, rather the purpose of my comments and recommendations today is to focus on three key areas where the Canadian Forces could enhance its own objectives and foster international cooperation, all within this province.

The Department of National Defence has listed four categories of Corporate Priorities for Defence in 2004-2005 including: (i) adapt to the evolving security environment and enhance strategic relationships; (ii) transform and modernize the Canadian Forces; (iii) develop and support a professional, effective and sustainable defence team; and (iv) maximize effectiveness in the management of resources.

I will refer to the following three specific objectives outlined by the Department of National Defence under its priorities during the remainder of this presentation: (i) promotion of key international defence and security relationships; (ii) a focus on strategic planning efforts on the required capabilities; and (iii) enhancement of the capability to operate effectively in joint, interagency and multi-national environments.

III � The Military Establishments in Newfoundland and Labrador

Canadian Forces Station St. John�s

Following the withdrawal of the United States Air Force from Fort Pepperrell in the 1960s, the need for a permanent Canadian Forces military presence in St. John�s became evident. In 1968, Canadian Forces Station (CFS) St. John�s was formally established. It is responsible for providing support services to naval vessels and other designated units. Approximately 20-30 Canadian naval vessels visit the port of St. John�s each year.

The Station consists of approximately 75 regular force military personnel and 19 part time employees and operates on an overall budget (for the operation and maintenance of the Station, not including supported battalions) of approximately $6.6 million and an annual expenditure of approximately $35-40M (FY 2003/04). The Station also provides support services for 15 lodger units (squadrons//battalions/regiments, etc.), 90 cadet units, 440 regular force (full-time) members, 1,400 reservists, and 5,000 cadets.

One of the most impressive advancements for the Station is the growth of the Naval Engineering School Detachment at the Marine Institute. Since 2000, the detachment has more than doubled its size to approximately 200 officers training at the Institute. Graduate naval officers from this program are among the most highly trained in the world. Partnerships with local educational facilities can undoubtedly prove beneficial and highly successful. The Marine Institute estimates that the economic impact of this particular program is in excess of $14M annually. This specific example certainly speaks to the DND priority of developing and supporting a professional, effective and sustainable defence team.

Recommendation
The Department of National Defence continue to pursue, develop, and enhance partnerships with educational facilities in Newfoundland and Labrador in accordance with the DND priority of developing and supporting a professional, effective and sustainable defence team. Successful models, such as the Naval Engineering School Detachment at the Marine Institute should be reviewed for their best practices.

Canadian Forces Base Gander � 9Wing

9 Wing Gander, established by the Government of Canada, provides full time search and rescue capabilities and is responsible for a massive area, covering the lower Arctic, the Maritimes, Newfoundland and Labrador and all offshore waters in the region. The Base also provides a comprehensive Canadian Coast Guard Radar facility which delivers timely and accurate information to the Regional/Sector Air Operations Centre based in Nova Scotia.

The primary occupants of the Base include the 103 Search and Rescue Squadron, the 9 Air Reserve Flight Detachment, Canadian Forces Station Leitrim Detachment Gander, the 91 Airfield Engineering Flight, 1 Dental Unit Detachment and the 5 Canadian Ranger and Junior Ranger Patrol Groups.

Since program review in the mid-1990s, 9 Wing Gander, like most bases across Canada, has been forced to scale back its operations significantly. Between the fiscal years 1996/1997 and 2003/2004, the number of regular force members permanently posted to 9 Wing, as I have already mentioned, has declined from approximately 187 to 134, while the number of civilian personnel employed at the Base has dropped dramatically from 97 to 29. In 2003/04 there were 88 reservists supported by 9 Wing. In terms of budget, the available financial resources have dropped from approximately $16.7 million to $8.1 million between 96/97 and 03/04.

The primary capability requirement for 9 Wing is the 103 Search and Rescue Squadron. There has been much speculation over the past several years that the Department of National Defence is considering moving the Squadron from Gander. I understand you reviewed the issue of search and rescue capability requirements extensively yesterday with Lieutenant Colonel MacAleese.

The Government of Newfoundland and Labrador�s view is that the 103 SAR Squadron should remain at Gander and should be adequately resourced to meet its vital mandate. This mandated service is undoubtedly best offered from a central area thereby maximizing the effectiveness of managing resources. It is also related to the DND priority to focus strategic planning efforts on the required capabilities.

Recommendation
The 103 Search and Rescue Squadron at 9 Wing remain stationed at Gander, NL in accordance with DND�s objectives of maximizing the effectiveness of managing resources and focus strategic planning efforts on the required capabilities.

5-Wing Goose Bay

The Government of Newfoundland and Labrador is concerned about the longer term viability of 5-Wing Goose Bay.

The Foreign Military Flight Training Program at Goose Bay, which has operated under a 10 year Memorandum of Understanding (1996 � 2006), is one of the largest economic generators in the Labrador region. In 2002-2003, the military training program generated approximately 1,655 person years of employment (down from 1,880 in 2000-01), contributed $85.95M to the provincial GDP and generated $36.55M in provincial government revenues.

This Agreement is scheduled to expire in early 2006. There are currently no training partners scheduled to train at 5-Wing post 2005. This is a significant issue that is of grave concern to the Government of Newfoundland and Labrador and to the community of Happy Valley � Goose Bay. It has also captured the attention of Premier Danny Williams, Prime Minister Paul Martin, and the Minister of National Defence, Hon. Bill Graham. The Prime Minister and Premier have publicly indicated their commitment to the future viability of foreign military training at 5-Wing. The community has also established a concerned citizen�s organization, the Goose Bay Citizen�s Coalition, which has met with both First Ministers.

Prior to 2004, the Department of National Defence allocated approximately $35 - 40M annually to the operation and maintenance of 5-Wing (including the CF component). The Government of Canada, however, recoups significant corporate and personal income tax and other economic benefits as a result, directly and indirectly, from the economic spin-offs of this program which return to the Consolidated Revenue Fund of Canada, not DND�s budget. For example, Department of National Defence Estimated Expenditures by Electoral District and Province indicate that as much as approximately $65M was recouped as revenue from this program as recently as FY 2000/2001.

Although 5-Wing serves as a NORAD CF-18 forward deployment base, military officials have indicated that CFB Goose Bay is not an operational requirement for the Canadian Forces. From a strictly military perspective, the $35 - 40M annual allocation in DND�s budget for Goose Bay is therefore an expenditure which does not advance firm Canadian Forces operational needs.

At its peak under the current MOU, up to approximately 7,000 low-level sorties were flown from 5-Wing. Clearly, the focus on low-level flight training was for Cold-War era purposes and Goose Bay provided an ideal location for such training activities. The Department of National Defence estimates that up to 1,500 � 2,000 sorties may be flown during 2005.

This significant decrease is largely the result of current training partners reducing training and personnel at Goose Bay due to budget restraints and/or operational needs. They all emphasize that reductions are not related to dissatisfaction with training at Goose Bay. Reductions include:

  • Royal Air Force discontinued its permanent detachment at Goose Bay (July, 2004), and has indicated that it is not in a position to enter into an agreement to train at Goose Bay during the 2005 training season;

  • Italian Air Force postponed construction of a $35M hanger. (2002);

  • Royal Netherlands Air Force withdrew from the MOU in 2003; and

  • German Air Force reduced the number of training squadrons flying in 2003, is divesting itself of military assets in Goose Bay and will train at Goose Bay until the end of the current MOU (2005 flying season).

Further to these reductions, the Canadian Force presence at Goose Bay is also decreasing. This fiscal year, for example, there was a staff reduction of approximately 20-25 percent. The stated rationale behind the decision is to recoup costs through additional efficiencies.

As mentioned previously, with the evolving nature of warfare and the current security environment, low-level flight training requirements are decreasing. Goose Bay must be positioned to meet evolving needs to remain an international training venue of significance. There is still a role for Goose Bay where there is unrivalled air space over vastly different terrain than other North American training venues which is geographically closer to Europe and our NATO partners.

The Department of National Defence has initiated several changes to the management and governance model at 5-Wing. Firstly, and primarily in response to expressed concern by partners over the cost and pricing associated with training at 5-Wing, a �hotel model� has been introduced whereby partners no longer are required to hold infrastructure or permanent detachments at Goose Bay. The infrastructure is now held by Canada. Partners can now train for shorter periods of time for specific exercises, reportedly a more convenient and marketable management regime.

A new pricing methodology was reviewed by the federal Operations Committee of Cabinet and released to the current partners for their consideration. The intent would be that bilateral arrangements would be negotiated with Canada for training purposes within the context of a �Standard Level of Service� offered by the Department of National Defence as opposed to the previous multinational arrangement of common and dedicated resources and supported by a complicated and expensive costing regime.

Additional training opportunities are also being examined including: (i) supersonic flight training; (ii) high altitude (surface to 60,000') flight capability; (iii) chaff and flares; and (iv) increased night operations. Other opportunities are also being pursued to expand the menu of options offered at 5-Wing, such as Tactical Transport, Unmanned Aerial Vehicle (UAV) training, survival training, Special Forces training and so on.

The Department of National Defence has also completed some international marketing exercises to expand the level of interest in training at 5-Wing, one of which was participation in the ILA Berlin International Aerospace and Defence Trade Show and Conference. Premier Williams and MHA John Hickey attended.

Despite these significant changes at 5-Wing, the fact remains that there are currently no training plans in place for 5-Wing after the conclusion of this upcoming 2005 season. What will be the outcome in March 2006 is a question that concerns many people whose livelihood is dependant on the training program.

The Goose Bay Citizen�s Coalition has been very proactive in conducting research and reviewing how best the community can contribute to the promoting the future viability of the foreign military flight training program in light of the uncertainty and concerns. They have visited several bases which have faced similar challenges to seek �lessons learned� to guide their own way forward. They have requested financial assistance of the Governments of Canada and Newfoundland and Labrador to conduct four specific research studies to inform future decisions on potential diversification initiatives.

We believe 5-Wing and the international training program can be much better utilized by the Government of Canada to meet its own objectives in areas such as the promotion of key international defence and security relationships and the enhancement of the capability to operate effectively in joint, interagency and multi-national environments.

In this context, I would like to examine, I would like to examine Canada�s commitment to NATO. 5-Wing Goose Bay is clearly a vital component.

High population densities and congested airspace in Europe limit opportunities to conduct mechanized battle group or low-level flying training, in addition to Canada�s specified peacetime commitments. Canada therefore offers Allied forces the opportunity to train at various facilities in Canada. Canada hosts bilateral programs for the armed forces of Germany and the United Kingdom that take advantage of the open spaces of Canadian Forces Base (CFB) Suffield, the Land Force Western Area Training Centre in Wainwright and CFB Goose Bay. Providing these facilities is an important contribution to the military effectiveness of Canada�s Allies and the Alliance.

The NATO Flight Training Program in Canada (NFTC) is another initiative being offered by Canada, in co-operation with industry, to provide NATO nations with military pilot training. Two Canadian Forces bases provide training facilities: Moose Jaw, Saskatchewan, and Cold Lake, Alberta. The first NFTC instructors completed their training in 1999, with the first students following in 2000. Denmark, the United Kingdom and Italy have already joined the program, and other nations are expected to participate.

During the March, 2003, meeting of NATO Heads of State and Government in Prague, members agreed to the �Prague Capabilities Commitment�. They made specific, individual commitments to improve capabilities as quickly as possible, in four key areas: (i) defending against chemical, biological, radiological and nuclear (CBRN) attacks; (ii) ensuring command, communications and information superiority; (iii) improving interoperability of deployed forces and key aspects of combat effectiveness; and (iv) to ensure rapid deployment and sustainment of combat forces.

The concept for the NATO Response Force (NRF) was also endorsed which increases NATO�s ability to respond to threats quickly and decisively, wherever they come from. The NRF will be drawn from the land, sea and air forces of NATO Allies, with pre-identified units training and exercising together to meet common standards and enhance operational capability.

The 5-Wing training facility has been used by international forces to achieve these individual and NATO objectives of joint inter-operability between nations as well as inter-operability and integration of their components: land, air, and sea. The infrastructure at Goose Bay is available and within a short distance from western Europe and the northeast United States. There is currently an opportunity to further enhance the use of 5-Wing toward meeting these objectives, as well as the objectives of the Canadian Forces, in an efficient and effective manner.

The training program at 5-Wing could also be linked to Canada�s other NATO commitments at Cold Lake and Moose Jaw. For example, Goose Bay�s location and program is well positioned to become a �work-up� venue whereby Forces begin their North American training at 5-Wing with a view to ready their personnel for more technical exercises and training at Cold Lake, Moose Jaw or within the U.S. It could also act as a pre-staging ground for Maple Flag exercises and the objective of continued fostering of international relationships.

To ensure that 5-Wing is one of the primary locations for such training in Canada, the Department of National Defence must be provided with adequate financial assistance to �grow the business� of Goose Bay. New training opportunities must be added to the menu of offerings and a dedicated marketing effort must be undertaken. While much has already been accomplished, much work remains ahead of us collectively.

Recommendation
5-Wing Goose Bay be further used in achieving CF and NATO objectives of interoperability and integration through the following:

  1. The Department of National Defence be provided with adequate financial resources to ensure the future viability of a foreign military flight training program over a period of time, for example 3 years, to allow DND to �grow the business�;

  2. The Department of National Defence implement additional training activities at 5-Wing to meet the evolving training needs of the Canadian Forces and international forces;

  3. The Department of National Defence conduct a dedicated marketing effort for 5-Wing Goose Bay; and

  4.  Where appropriate, the Canadian Forces conduct training activities in conjunction with the training partners present at 5-Wing.

III - Recommendations

In conclusion, I would like to take a moment to quickly review the recommendations I have put forth for your consideration.

The Department of National Defence continue to pursue, develop, and enhance partnerships with educational facilities in Newfoundland and Labrador in accordance with the DND priority of developing and supporting a professional, effective and sustainable defence team. Successful models, such as the Naval Engineering School Detachment at the Marine Institute should be reviewed for their best practices.

The 103 Search and Rescue Squadron at 9 Wing remain stationed at Gander, NL in accordance with DND�s objectives of maximizing the effectiveness of managing resources and focus strategic planning efforts on the required capabilities.

5-Wing Goose Bay be further used in achieving CF and NATO objectives of interoperability and integration through the following:

  1. The Department of National Defence be provided with adequate financial resources to ensure the future viability of a foreign military flight training program over a period of time, for example 3 years, to allow DND to �grow the business�;

  2. The Department of National Defence implement additional training activities at 5-Wing to meet the evolving training needs of the Canadian Forces and international forces;

  3. The Department of National Defence conduct a dedicated marketing effort for 5-Wing Goose Bay; and

  4. Where appropriate, the Canadian Forces conduct training activities in conjunction with the training partners present at 5-Wing.

Thank you very much for your time. I look forward to your questions and discussion.


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