Defence Minister John McCallum is denying reports that there will be cuts to the Armed Forces. McCallum says in fact, he will be fighting for more funds to keep the Canadian Forces strong.

CTV News Staff

Defence Minister John McCallum is denying reports that there will be cuts to the Armed Forces. McCallum says in fact, he will be fighting for more funds to keep the Canadian Forces strong.

The Globe and Mail reported last week that Canada's Navy would be forced to cut spending to make up for a $100-million budget shortfall within the Department of National Defence. The Globe said the department is negotiating with Finance Canada for emergency cash to make up for a shortfall in the Canadian Forces operations budget.

But McCallum says the Forces' fiscal problems are not new, and nothing will need be cut.

"The cuts are not really cuts. We have said all along that our budget is overstretched and so we have had to defer some capital projects, that's nothing new," McCallum told Canada AM's Lisa LaFlamme from Bosnia.

"The bottom line is that I'm with the Canadian Forces all the way and as I've said I'll be making a submission to cabinet requesting more funds."

"My purpose is not to cut. My purpose, as I've said many times, is to seek additional resources for the Canadian Forces so they can be more sustainable."

Last week's report came out after McCallum told Parliament that "low-priority" spending would be put off to ensure his department wouldn't go into deficit.

"There are stresses on the defence budget. We are not allowed to run a deficit; therefore some low-priority items in the navy's budget are being postponed as a result of the need to live within our budget," McCallum told the House last Thursday.

He refused to identify what the Navy considers low priorities.

McCallum acknowledged that the Forces are cutting back on secondary tasks to ensure that they have enough funds to fulfill their core mandate. But he maintained the military's top priorities -- including the campaign against terrorism and maritime surveillance -- won't be affected.

In an interview with CTV's Mike Duffy later Monday, McCallum rejected suggestions that peacekeeping operations would be cut.

"Absolutely not," he told Duffy. "I think Canada is peacekeeping. Canada invented peacekeeping under Lester Pearson.

"I think the last thing that Canadians would want us to do is get out of peacekeeping."

The DND is in negotiations over the long-term financial needs of the military, which is struggling to cope with a number of foreign operations, aging equipment and overstretched troops. It's estimated the Forces need at least another $1 billion more than their $12-billion annual budget to remain effective.

Documents obtained last month say the army has only 40 per cent of the money it needs to maintain bases and equipment in 2002-03.