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Slideshow Pregnant princess Princess Kate, Duchess of Cambridge, leaves the hospital. Slideshow Sponsored Links Canada says reviewing F-35 report, denies plan to cancel Tweet Share this Email Print Related News Cost of Canada F-35 jets to soar, Ottawa eyes alternatives -CTV network Thu, Dec 6 2012 Pentagon, Lockheed agree deal for 32 more F-35 fighters Fri, Nov 30 2012 UPDATE 3-Pentagon, Lockheed agree deal for 32 more F-35 fighters Fri, Nov 30 2012 Canada's Carney named as Bank of England chief Mon, Nov 26 2012 UPDATE 4-Major Rona shareholder Invesco seeks to replace board Wed, Nov 14 2012 Analysis & Opinion Would you recognize Fed ‘easing’ if you saw it? A battleground for weapons of the future Related Topics World » Investing Simplified » The F-35 Lightning II, also known as the Joint Strike Fighter (JSF), planes arrive at Edwards Air Force Base in California in this May 2010 file photo. Credit: Reuters/Tom Reynolds/Lockheed Martin Corp/Handout OTTAWA | Thu Dec 6, 2012 10:48pm EST OTTAWA (Reuters) - The Canadian government said on Thursday it was reviewing an independent report on the cost of the F-35 Joint Strike Fighter program, but denied that it had decided to cancel its planned purchase of 65 of the Lockheed Martin Corp warplanes. The CTV network reported earlier that the cost of Canada's planned F-35 purchase was set to soar in cost and the government would start looking at alternative planes. The media report was the latest embarrassment over the F-35 for the Conservative government, which announced in July 2010 it would buy 65 of the Joint Strike Fighters for C$9 billion. Ottawa consistently brushed off critics who said the figure was too low, but had to launch a formal review of the project in April after a spending watchdog said the initial decision to buy the jets had been based on bad data from officials who deliberately downplayed the costs and risks. CTV, citing unnamed sources, said the government would next week release an independent study showing the cost of buying and maintaining the jets was in fact around C$40 billion ($40.4 billion), much higher than the initial estimate of C$25 billion for purchase and maintenance. The television network did not say what time period the C$40 billion covered. The C$25 billion estimate was for 20 years. Andrew MacDougall, spokesman for Prime Minister Stephen Harper, said the government was reviewing the report prepared by the accounting firm KPMG, but that reports indicating the government had decided to cancel its F-35 buy were false. He said the government planned a "comprehensive public update" before the House of Commons takes a Christmas break at the end of next week. "We are committed to completing the seven-point plan and moving forward with our comprehensive, transparent approach to replacing Canada's aging CF-18 aircraft." MacDougall told Reuters. CTV said Ottawa would launch a new review of how best to replace its aging fleet of CF-18 fighters, which will be retired in 2020, and could remove a requirement for the new jets to have stealth capability. Possible alternatives include Boeing Co's F-18 Super Hornet. The $396 billion F-35 program, the largest in Pentagon history, is already late and well over budget. The Canadian Defense Ministry did not hold an open competition to replace the CF-18s, saying the F-35 was the only plane that could meet all of Canada's requirements. In April, Ottawa responded to the spending watchdog's criticism by stripping the Defense Ministry of responsibility for buying new jets and handing it to the Public Works Ministry. No one in the office of Public Works Minister Rona Ambrose was immediately available for comment. Lockheed is developing three variants for the U.S. military and eight partner nations: Britain, Canada, Italy, Turkey, Australia, Denmark, Norway and the Netherlands. Neither Lockheed nor the Pentagon's F-35 program office had any immediate comment on the Canadian media reports. ($1=$0.99 Canadian) (Reporting by David Ljunggren in Ottawa and Andrea Shalal-Esa in Washington; Editing by Peter Cooney) World Investing Simplified Related Quotes and News Company Price Related News Tweet this Link this Share this Digg this Email Reprints We welcome comments that advance the story through relevant opinion, anecdotes, links and data. If you see a comment that you believe is irrelevant or inappropriate, you can flag it to our editors by using the report abuse links. Views expressed in the comments do not represent those of Reuters. For more information on our comment policy, see http://blogs.reuters.com/fulldisclosure/2010/09/27/toward-a-more-thoughtful-conversation-on-stories/ Comments (3) GeorgeBrown wrote: Edition: U.S. Arabic Argentina Brazil Canada China France Germany India Italy Japan Latin America Mexico Russia Spain United Kingdom Back to top Reuters.com Business Markets World Politics Technology Opinion Money Pictures Videos Site Index Legal Bankruptcy Law California Legal New York Legal Securities Law Support & Contact Support Corrections Connect with Reuters Twitter Facebook LinkedIn RSS Podcast Newsletters Mobile About Privacy Policy Terms of Use AdChoices Copyright Our Flagship financial information platform incorporating Reuters Insider An ultra-low latency infrastructure for electronic trading and data distribution A connected approach to governance, risk and compliance Our next generation legal research platform Our global tax workstation Thomsonreuters.com About Thomson Reuters Investor Relations Careers Contact Us Thomson Reuters is the world's largest international multimedia news agency, providing investing news, world news, business news, technology news, headline news, small business news, news alerts, personal finance, stock market, and mutual funds information available on Reuters.com, video, mobile, and interactive television platforms. 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