MNI BRIEF: Auditor Criticizes F-35 Costs Amid Carney Review

Canada's federal auditor on Tuesday found the contract to buy 88 F-35 fighter jets from the U.S. will cost at least 50% more than projected, adding focus on a deal at a time when Prime Minister Mark Carney is talking about cutting down American contracts to find more reliable security partners.

The estimated cost of new jets has grown to CAD27.7 billion from CAD18 billion and other costs have grown by at least CAD5.5 billion, according to the report. Despite the urgent need to replace aging aircraft, work on two new facilities to house them are three years behind schedule, Auditor General Karen Horgan said in a statement Tuesday. Defence Minister David McGuinty said in a statement that while costs rose due to global supply chain factors, he also noted the government's broad review of military spending. (See: MNI: Canada Will Struggle To Wean Off U.S. Trade Dependence)