New-ish tanks now double original cost estimates

Unusually, the government did not merge the capital costs and the support costs of the 100 Dutch Leopard 2 tanks when the original announcement was made. Now the total package is estimated to cost C$1.3 billion, not C$650 million. It's not clear from the article why this acquisition was handled differently than other recent military purchases.

Canada's purchase and long-term support of 100 slightly used Leopard 2A6 battle tanks will be $1.3 billion — roughly double the Conservative government's initial public estimate last month.

As he detailed a laundry list of military hardware the Conservative government plans to buy over the next few years, Defence Minister Gordon O'Connor surprised the Commons by announcing there will be a 20-year, $650-million service contract attached to the tank deal.

"The capital acquistion is $650 million and the support for 20 years is about $650 million; about the same range," he said in reply to an opposition question during debate over Defence Department estimates.

Of course, even at the higher price, it's still a bargain for top-drawer military hardware.