Canada needs to sink more money into its navy, if it wants to keep it floating 10 years from now, according to a new report.

The report, Canadian Naval Future: A Necessary Long-Term Planning Framework, was released Monday by the Institute for Research on Public Policy.

According to author Peter Haydon, the navy's current fleet is "verging on obsolescence," and is "inadequate for the full range of tasks that need to be carried out under the prevailing defence policy."

To turn that situation around, the retired naval officer and longtime military analyst suggests Ottawa must follow up on the recent contract to replace aging Sea King helicopters with orders for new destroyers and fleet support ships.

Because it would take at least 10 years to bring any new ships into service, Haydon suggests updating task force-leading frigates, as well as submarines and patrol vessels in the meantime.

In his report, however, the senior research fellow at Dalhousie University's Centre for Foreign Policy Studies does not strike an optimistic tone.

Noting that politicians have not hammered out a comprehensive mission statement for Canada's military since 1994, Haydon writes, "the government does not seem to have grasped the longer-term implications of the present situation."

"Versatile naval forces, as opposed to specialized forces, will continue to be a sound investment in national security, no matter what happens in the future," Haydon writes.

"But Canadian politicians do not seem to be convinced of this."

As it stands, the Canadian fleet consists of a dozen nearly decade-old frigates, four 30-year-old Tribal-class destroyers, a pair of even older supply ships, 12 small coastal defence ships and four used British subs.

During last summer's election campaign the Liberals pledged new support ships for the navy, but have yet to follow up with an official announcement.

Earlier this month, Ottawa did announce a $69.7-million contract for six Orca-class training vessels to be used in the training of junior officers.

British Columbia's Victoria Shipyards Company Ltd. is slated to deliver the first of the 33-metre boats sometime in 2006.