The number of headquarters is being reduced from 18 to 12 and savings of close to 50 percent are being achieved in the resources needed to run them. Prime Minister, you should be aware that between 1991 and 1997 the Canadian Forces will have reduced the number of generals and flag officers from 125 to 72. This represents a cut of 42 percent. Make more organizational changes by 1998 to allow for a further reduction in the number of general and flag officers to fewer than 65. Once this goal is achieved the total reduction in the number of generals and flag officers since 1991 will be at least 50 percent.
Plans are also in hand for restructuring the command structure of the army.
Reduce the rank of army area commanders to brigadier-general and that of brigade group commanders to colonel. A new major-general position will be established in Kingston because of the concentration there of responsibility for all land force doctrine and training, as well as for command of all army units in the area, including 1 Division Headquarters, the Land Force Command and Staff College and the Land Force Training, Doctrine and Lessons Learned staffs. In recent years, military systems have become both increasingly complex and less labour intensive to maintain and support. They require personnel with more training, knowledge and responsibility at all levels. The fact that compensation is tied to rank, rather than to an individual's technical skills, has led to over-ranking.