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A strategic assessment prepared by Vice-Admiral Drew Robertson and seen by the Ottawa Citizen said naval capacity will be reduced by half between 2013 and 2018 as 40-year-old Iroquois-class destroyers are decommissioned and others are dry-docked for retrofits.

"Even the most expeditious procurement strategy is unlikely to deliver their replacements before we are compelled to retire the last of the three destroyers", the assessment said.

There is an $8.5 billion plan to build new destroyers, and the report urged it be approved by fall, the Citizen said. Regardless, the ships wouldn't be ready for at least 10 years, the assessment said.

Thursday, the newspaper reported on another leaked document from the air force warning of cash shortages grounding CF-18 fighter jets, Hercules transport planes, Sea King helicopters and Aurora patrol aircraft.

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