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In early May 2010, the President of Canada’s Treasury Board, Stockwell Day, announced that 13 departments and agencies, including the Department of National Defence, had been asked to save CAD1.7bn out of the combined CAD35bn they spend a year, following the latest government spending review to reduce the country’s deficit. These savings would amount to around 5% per department. Nevertheless, in June the government announced a massive CAD35bn shipbuilding programme for the country’s navy and coast guard, chiefly to replace ageing destroyers and supply ships, following several years when the navy has been forced by increasing costs to postpone these replacements. The first ships will be built at two shipyards by 2012 or 2013, with the total number intended to supply 28 large ships and 100 smaller ships. Also, the government is to enter negotiations with Lockheed Martin to buy 65 F- 35 Joint Strike Fighter jets on a sole-source contract worth CAD9bn, to replace to replace the air force's ageing CF-18 fighters.
Also in June, a new R&D consortium was announced jointly by Boeing and Canadian industry partners, which intends to reinforce Canada’s competitiveness in advanced composite materials manufacturing, primarily for aerospace.
In June 2010, the controversial results of a public inquiry were published, which investigated the shortcomings of Canada’s security services at the time when an Air India flight bound to London from Vancouver and Montreal was blown up by British Columbia-based Sikh terrorists in 1985, killing 329. The incident meant lessons learned since by Canadian security agencies, whose poor relations during the 1980s were held as a prime factor in intelligence failures before the disaster. Of prime importance for current counterterrorist policy was the report’s claim that Canada’s security systems are still in need of improvement. It recommends enhanced policy-setting powers for the national security adviser to oversee inter-agency communication, as well as improvements to police investigations, intelligence, airport security and the conduct of terrorist trials.
The 2010 Winter Olympic Games held in Vancouver in February 2010 had indeed put Canada under the world’s security spotlight and achieved a high standard for future sporting events. More than 100 Canadian government agencies were involved in border security and measures to protect the events from terrorism, including nonconventional attacks. The Olympics cost the government CAD900mn (US$720mn) and was the country’s biggest ever and most expensive security operation.


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