http://www.publicdomainpictures.net/view-image.php?image=3264&picture=old-submarine
Canada bought a 'pig in a poke' and the taxpayer bears the burden while the politicians ramble on. The venerable CBC shines the light on the mismanagement of the purchase and the finger pointing begins = business as usual.
Used U.K. submarines prompted compensation demand
Used U.K. submarines prompted compensation demand - Nova Scotia - CBC NewsCanada demanded compensation for its glitch-prone, second-hand submarines just four years after they were bought from the British, CBC News has learned.
In a letter obtained by CBC News, the British junior minister of defence wrote the Canadian government first asked for compensation for the submarines in 2002.
"I can confirm that in 2002 and 2004, the Canadian government asked for compensation to be paid for the submarines due to concerns about their condition and ability to meet the Canadian requirements," wrote Peter Luff.
"The Ministry of Defence did not pay any compensation; however, an amendment to the contract was agreed where the cost of the final submarine was reduced by £2 million as an act of good faith and without liability."
After that compensation demand, the final price of the submarines was about $746 million. Since then, the Department of National Defense has pumped more than $1 billion into repairing and converting them for Canadian use.
Successive governments and Royal Canadian Navy officials have staunchly defended the sale of the subs, but one British MP said the fact that Canada asked for compensation tells a different story.
Hancock has been vocally questioning the submarine sale. The vessels had been based in his Portsmouth riding before they were decommissioned in 1993 when the U.K. decided to focus solely on nuclear subs.
More details and videos can be found at CBC.ca
The four used Victoria-class Royal Navy submarines were bought from the U.K. in 1998 for a price of $750 million.
In a letter obtained by CBC News, the British junior minister of defence wrote the Canadian government first asked for compensation for the submarines in 2002.
"I can confirm that in 2002 and 2004, the Canadian government asked for compensation to be paid for the submarines due to concerns about their condition and ability to meet the Canadian requirements," wrote Peter Luff.
"The Ministry of Defence did not pay any compensation; however, an amendment to the contract was agreed where the cost of the final submarine was reduced by £2 million as an act of good faith and without liability."
After that compensation demand, the final price of the submarines was about $746 million. Since then, the Department of National Defense has pumped more than $1 billion into repairing and converting them for Canadian use.
The submarines have been beset with problems, including a fatal fire aboard one boat and another that was damaged when it ran aground.
Successive governments and Royal Canadian Navy officials have staunchly defended the sale of the subs, but one British MP said the fact that Canada asked for compensation tells a different story.
'Canada was shafted'
"It just shows you how badly Canada was shafted," said Mike Hancock, the Liberal Democrat MP for Portsmouth South.
Hancock has been vocally questioning the submarine sale. The vessels had been based in his Portsmouth riding before they were decommissioned in 1993 when the U.K. decided to focus solely on nuclear subs.
Hancock said the letter he received from Luff in mid-April confirmed his worst suspicions.
"They flog you some dead ducks of submarines and won't give you compensation and then give you £2 million to go away and be quiet," he told CBC News.
Source:
http://www.cbc.ca/news/canada/nova-scotia/story/2012/05/02/ns-subs-compensation-letter.html
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