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2000 December Report of the Auditor General of Canada

December 2000 Report—Chapter 31

Exhibit 31.6—Mid-Life Refit of the CCGS Cygnus

The CCGS Cygnus is a 62-metre offshore multi-task patrol vessel that operates primarily as a fisheries enforcement vessel. In 1995, the fleet proposed carrying out a mid-life refit of the CCGS Cygnus to extend its useful life to approximately 2017. With the Department undergoing funding reductions at the time, the fleet sought to confirm that the CCGS Cygnus fit into the long-term plans for fisheries management. Prior to planning the refit, the Maritimes Region confirmed that the CCGS Cygnus would be an essential part of the Region's fisheries management strategy. On 24 March 1997, the Deputy Minister approved the project for an amount not to exceed $10 million.

The refit of the CCGS Cygnus ultimately cost $11.3 million and was completed by December 1998. However, shortly after the CCGS Cygnus came back into service, fisheries management priorities changed from offshore to nearshore fisheries; also, the Region had insufficient budget to operate the CCGS Cygnus.

The Base Fleet exercise left the CCGS Cygnus without funding. Although the CCGS Cygnus was not funded, fisheries management provided temporary funding so that the CCGS Cygnus could provide support to fisheries enforcement during the recent disputes over Aboriginal fisheries issues. A final decision about the status of the CCGS Cygnus is on hold while this temporary funding is available.

This case is a good example of the impact that uncertainty in program expectations and funding can have on the cost-effectiveness of the fleet.