OTTAWA - Defence Minister Peter MacKay says he doesn't expect cost overruns or delays in getting a new fleet of stealth fighter jets for Canada.
The Pentagon, which is the largest buyer of the new jets, has repeatedly expressed concerns about the F-35's rising cost and other production issues. Some Pentagon estimates have pegged the cost of a single F-35 to be upward of $100 million.
But MacKay said he expects the new jets to each have a price "in the mid-70s range" -- over $70 million per plane. He said the U.S. faces special challenges because it is buying a more elaborate model that can perform a vertical take-off.
"There was never any intention to buy that variant. We were always buying the regular take-off model," he said Wednesday from Fort Worth, Texas.
He toured the Lockheed Martin production plant there with Industry Minister Tony Clement and executives of 61 Canadian aerospace companies. The Canadian executives are to hold one-on-one talks with Lockheed Martin officials Thursday.
Canada plans to spend $9 billion on 65 new stealth fighters -- a deal that could cost $16 billion once maintenance is factored in.
Canadian aerospace companies are in the running for billions of dollars in potential spin-offs because of the government's decision to buy the jets.
Ten countries are participating in a program that will see more than 3,000 planes built. Canadian companies will be able to bid on contracts for the entire fleet, not just the 65 aircraft that the Defence Department plans to buy.
Liberal Leader Michael Ignatieff has said if his party forms a government, they would ditch the multibillion-dollar deal and open up a competitive bidding process to find the most cost-effective replacement for the country's aging CF-18s.
Prime Minister Stephen Harper says that would jeopardize the lives of air force personnel and jobs in Canada's aerospace industry.
Officials with two European companies told the Commons defence committee this week that their respective companies could provide a plane that would be suitable to Canada's needs.
But MacKay said that is simply not an option. He said the previous Liberal government committed Canada to the Joint Strike Fighter project nearly a decade ago, and the current Conservative government isn't about to turn back the clock.
"If we don't buy this aircraft now ... it's like hitting restart," he said. "We would have to go back, lose our preferred place in the production line.
"We have made our decision. We are firm in pursuing this course of action and purchasing this aircraft, which will accrue maximum benefits to the air force, the aerospace industry and to Canada."
