The LAV III is well liked by soldiers because of its ease of handling and protection. (Paul Hunter/CBC)

The federal government confirmed Wednesday it will spend $5 billion to purchase new combat vehicles and maintain the existing fleet for the Canadian Forces.

Defence Minister Peter MacKay made the announcement at CFB Gagetown in Oromocto, N.B., after word of the new funding leaked out on Tuesday.

Of the $5 billion, roughly $1 billion will be spent on upgrading and repairing 550 LAV IIIs, with an option to upgrade 80 more.

The rest of the money will be spent on three new types of vehicles, including:

• 108 close-combat vehicles (with an option to buy 30 more) to work with the army's Leopard tanks.
• 500 tactical armoured patrol vehicles (with an option to buy 100 more).
• 13 force mobility enhancement vehicles (with an option to buy five more) to carry equipment such as plows and building materials.

Contracts to manufacture and assemble the new vehicles, as well as long-term contracts to service and maintain them, will be awarded in 2011, said the government.

The first of the new vehicles should be in operation by 2012, with the "fully operational" fleet ready by 2015, said the government. Canada's combat mission in Afghanistan is set to end in 2011.

"Our government is committed to providing the army with the modern robust equipment it needs to fulfil its missions in today's dangerous operating environment," MacKay said.

"Wherever in the world Canadian soldiers find themselves, we owe it to them to give them the protective equipment that they need to do the job we've asked them to do."

LAVs damaged by mission

The chief of Canada's land staff said the new vehicles will play a key role in the army's future.

"These vehicles will provide the army with the modern and robust equipment needed to fulfil its role in today’s increasingly dangerous operating environment," said Lt.-Gen. Andrew Leslie, who addressed the more than 300 soldiers gathered in the base's LAV barn.

Earlier this year, Leslie warned many of the LAV IIIs were worn out or damaged by Canada's participation in the Afghan mission, which started in 2002.

Leslie said repairing the army's fleet of LAV IIIs at plants in London, Ont., and Edmonton could boost the country's sagging manufacturing sector, hit hard by the global recession.

London, Ont.-based General Dynamics Land Systems Canada will be the prime contractor to upgrade the LAVs.

Tom de Faye, the company's director of marketing and business development, said recent missions have taught them a great deal.

"With this upgrade program, we'll now be able to take the lessons learned from the deployment of LAV-IIIs in Afghanistan and the Strykers in Iraq, with over 40 million kilometres of combat experience," he said.

While the LAV III is well liked by soldiers for its ease of handling, it has been criticized for tipping easily.

A 2004 briefing note to the army warned the LAV III was especially prone to tipping on ground with an angle of 30 degrees or greater, and should be driven in the centre of roads in countries with poor highway systems, where edges of roads are prone to break away under heavy weight.

With files from The Canadian Press