The federal government is stalling the release of internal documents that outline the looming financial crisis, but military sources said the reports indicate that in the fiscal year beginning on April 1, the air force expects to be $150-million short of funds needed to fulfill its commitments, the navy will be $150-million shy of its needs and the army will be as much as $200-million short.
The military sources, who spoke on condition of anonymity, said the reports foresee a situation so dire that they recommend curtailing operations, dry-docking ships and mothballing vehicles or aircraft and closing at least four Canadian Forces bases.
Unless additional funding is awarded by the government, the air force is suggesting closing bases at Goose Bay, Nfld., Bagotville, Que., North Bay and Winnipeg, the sources said.
Further, the air force report says that unless its fleet of ageing CC-130 Hercules transport planes is replaced or modernized, the main transport base at Trenton should be closed within 10 years. "There won't be enough Hercs flying by then to justify keeping that base open," one air force source said.
"We will not be able to meet our domestic defence obligations," one naval officer said.
The army is said to be in the worst financial state of all three branches of the Canadian Forces. "Everyone knows that the army's broke and has been for a couple of years," said one military source familiar with the reports.
"Nobody has ever seen a bankrupt military in a developed country.... This year I predict we will see that in Canada."
Defence officials this week turned down a request by the National Post and the influential defence publication Jane's Defence Weekly to see the reports under access to information legislation.
