Canada's Navy is being forced to cut spending to make up for a $100-million defence department budget shortfall. Defence Minister John McCallum says some spending will be put off to ensure his department doesn't go into deficit.

CTV News Staff

Canada's Navy is being forced to cut spending to make up for a $100 million dollar budget shortfall within the defence department. Defence Minister John McCallum says "low-priority" spending will be put off to ensure his department doesn'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 Thursday.

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 maintains the military's top priorities -- including the campaign against terrorism and maritime surveillance -- won't be affected.

He is refusing to identify what the Navy considers low priorities.

Conservative leader Joe Clark says the news is distressing, especially given a recent speech by McCallum calling for more military spending. Clark says the cuts are an indication the minister has failed in his attempts to convince his cabinet colleagues the military needs more money.

The Globe and Mail says the Department of National Defence is negotiating with Finance Canada and other central agencies for emergency cash this fiscal year to make up for a shortfall in the Canadian Forces operations budget.

The Forces have an annual $125-million contingency fund but need more money to deal with financial pressures, a federal source tell s the paper.

The DND is also 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. In the past year, more than 2,000 soldiers, as well as a number of other personnel and ships and planes, were sent into and near Afghanistan.

In a recent speech in Toronto, McCallum said he will fight for more money in the next budget, without stating targets.

It's estimated the Forces need at least another $1 billion more than their $12-billion annual budget to remain effective.