Home' Defence Magazine : Issue 2 2011 Contents 7
Budget 2011-12 held few real surprises
for Defence but, as always, required
‘drilling down’ to filter key details.
The bottom line sees funding of current
operations boosted and all major projects
currently in the pipeline unaffected.
In fact, the Minister for Defence, Stephen
Smith, said that while the government would
at the strategic level undertake a “significant
realignment of the Defence budget”, it would
continue its investment in Force 2030, as set
out in the 2009 Defence White Paper.
“A comprehensive package of air, land,
maritime and networked-information
capabilities is being progressed to ensure
the Australian Defence Force of the 21st
century will have the capabilities required
to meet future challenges,” Mr Smith said.
“Our forces in Afghanistan are performing
extremely well in dangerous circumstances
on a daily basis and their suppor t and
protection is, rightly, our highest priority.
“The government is continuing its
investment in the package of enhanced
Budget bottom line:
By Brian hartigan
Defence’s most recent acquisition is the United
Kingdom’s Bay Class amphibious ship, Largs Bay,
will help ensure Navy has the amphibious capability
it needs for operational and humanitarian support
leading to the arrival of the Landing Helicopter Dock
force-protection capabilities for our
troops in Afghanistan.
“This initiative includes $480 million
of expenditure in 2011-12, [which] is in
addition to about half a billion dollars of
existing force protection measures, for a
total during the financial period 2009-10
to 2012-13 of $1.6 billion of enhanced
measures for force protection.”
Mr Smith said the Defence budget
realignment aimed to ensure Defence had
the funding it needed, when it needed
it and, reduced operating expenditure
through increased efficiencies.
He said, as a result of the realignment,
Defence would return to government:
• $1.1 billion in 2010-11 and an additional
$1.3 billion during the next four years by
reprogramming major capital investment
program funding; and
• $400 million in 2010-11 and an
additional $1.3 billion during the next
four years from reduced operating
expenditure, adding to savings from the
Strategic Reform Program;
• $87 million in 2010-11 that is not
required for the purchase of the C-17
and an additional $111.3 million will
be returned over the forward estimates
due to the government cancelling the
acquisition of two additional C-130J
“In total, Defence will reduce its call on
the budget by $1.6 billion in 2010-11 and
$2.7 billion during the next four years,”
Mr Smith said.
“This reprogramming is necessary to
better reflect realistic achievement of
milestone delivery payments by industry
for capability and infrastructure projects
and accommodates anticipated delays in
project delivery from industry.
“In 2010-11, capital expenditure slipped
by $1.1 billion, which is anticipated and
will have flow-on impacts in future years.”
Mr Smith said experience to date
with the Strategic Reform Program had
demonstrated that reform in Defence was
necessary, achievable and sustainable.
“With the benefit of this experience,
the government considers Defence can
and should do more to reform,” he said.
During the next 12 to 18 months, Defence will progress projects worth more than $6
billion to first and second pass approval stage. In addition to the recent decisions
to purchase a fifth C-17A Globemaster III heavy-lift aircraft and the amphibious ship
Largs Bay, approvals will be sought for a range of key acquisitions, including:
Air 9000 Phase 8 – Future Naval Aviation Combat system
This project will replace the current fleet of Seahawk and cancelled Super Seasprite
helicopters with multi-role naval combat helicopters, weapons and related training,
infrastructure, logistics and support arrangements.
Joint Project 2048 Phase 3 – replacement watercraft
This project will provide ship-to-shore vessels to transport forces and equipment
ashore and re-embark them on Canberra-class amphibious assault ships.
Land 121 Phase 3 – Project Overlander
This phase of project Overlander will deliver light/lightweight unprotected vehicles and
medium/heavy protected and unprotected vehicles for land forces. While this phase of
Overlander is post second pass, it will be reconsidered by government when Defence
completes the current tender evaluation activities for medium/heavy protected and
Land 121 Phase 5A – Project Overlander
This phase will deliver further light/lightweight unprotected vehicles for ADF tactical
training critical for preparation for operations.
Joint Project 2072 Phase 2A – battlespace communications systems
This project will roll out communications infrastructure to high-readiness land
formations and units of the ADF.
enhanced force protection capabilities for troops in Afghanistan
In 2011-12, the government will spend an additional $480 million on force-protection
capabilities, for a total over the financial period 2009-10 to 2012-13 of $1.6 billion.
Links Archive Issue 1 2011 Issue 3 2011 Navigation Previous Page Next Page