Defence Update

This means that eventually when sufficient PC-9s are available for advanced training at Pearce air base, WA, the Macchis will not be used in that role. In the meantime, the new squadron will use Macchis being flown at Williamtown by the 2 Operational Conversion Unit (OCU) and the F-18 Hornet Squadrons there to convert pilots to the new multi-role fighters.

There are 16 Macchis assigned to Williamtown at present. In a recent interview, Air Vice Marshal Ted Radford, Australia’s Air Commander and Air Officer Commanding Operational Command at Glenbrook, NSW, west of Sydney, outlined the plans for the day fighter squadron following Air Marshal Funnell’s approval to form a new squadron soon. AVM Radford said the decision had been made and all that was required to bring the squadron into being again were the basic organisational directives and the mechanics of implementing the order.

He said that once formed No76 Squadron would have three main responsibilities – the introductory fighter course before pilots moved on to the F-111 strike jets and the F-18 fighters, fleet support and day fighter continuation training. The introductory fighter course would also take in prospective F-111 navigators. The day fighter continuation training would be for those who had been through the course previously but who needed to consolidate that training before going to F-18s.

The formation of a day fighter squadron would have a lot of benefits, Radford explained. Firstly it would improve the phasing of pilots on to F-111s and F-18s. Secondly it would uplift the morale for those young pilots who were waiting to phase on to the better combat aircraft. Their proper continuation training would include all day fighter training, including weapons work, rather than just sitting in a pool waiting for a conversion course.

The Air Vice Marshal said the Macchi 326 was not really an adequate aircraft for the roles he had mentioned but nothing else was available in the short term that had the right systems. (The RAAF acquired 97 Macchi jet trainers between 1967 and 1972. )

The CAS’s decision to grant ‘Wings’ following PC-9 training meant that the Macchis would be removed in time from the advanced flying training system. When the Macchi 326s ultimately were replaced as the lead in day fighter close support aircraft, the RAAF clearly would not have to buy as many replacements as it had at present (about 30). Radford estimated that about 30 replacement jets would be required. He said that obvious contenders at this stage included the Italian Macchi 339 with the big 680 Viper engine, the UK BAe Hawk, CASA C-101 and others with similar performance. The Macchi 339 (which the Air Vice Marshal and other senior RAAF officers flew in Australia earlier this year) was considered a good aircraft, according to Radford, although ideally he would prefer an aircraft with a higher performance. However, bearing in mind the practicalities of resource restraints; he would be delighted to have 30 339s at Williamtown.

The Macchi 326s at Williamtown currently are doing introductory fighter training and fleet support work. The others operate from Pearce (WA) and East Sale (Vic) bases.

Mini Budget Defence Cuts

The Defence Minister, Mr Kim Beazley, put on a brave face in late May about another Defence Budget cut. The fact remains that he has had several hundred million dollars sliced from two successive budgets and early hopes for having a reasonable annual real growth are not being realised. It is perhaps realistic in times of economic restraint for continuing funding cuts to be taken by the Defence Department at a time when other departmental spending also is being curbed. But the rhetoric does not always match actuality. In 1983 the Australian Labor Party promised a Five Year Defence Programme based on an annual real increase of 4. 5%. (NB: ‘Real’ increases reflect extra money after allowing for the inflation rate).

By 1986, with the release of the Dibb Review on Australia’s Defence Capabilities, the Government was talking about a 3% real increase being adequate to meet what became the 1987 Defence White Paper policy. The 1986/87 financial year saw the first decline in defence funding below that 3% figure, and by 1987/88, real growth had gone down to minus 1%. At this stage, first forecast in the 1987 mini Budget, Treasurer Paul Keating, avowed that a planned increase of 1 % in 1988/89 would, for planning guidance, be increased to 1. 5%. When you’re planning such increases you are talking of substantial money because the defence budget is exceeding $7bn a year. And spending on major capital equipment and facilities is taking about $2 billion of it. So when the 1988 mini Budget proclaims that defence spending has been cut back to 0. 5% (or minus $69 million in money terms on what was planned), certain areas are going to be hurt.

The May Economic Statement notes that the Government has further decided to provide future planning guidance of a 1 % real growth in 1989/90 and 2% in 1990/91. In money terms those percentages, compared to previous guidance, represent $145. 8m and $155. 3m.

The mini Budget also reveals extra provision for the replacement of Special Purpose (VIP) aircraft. When expressions of interest went out quite some time ago there was the hope that some of the replacement aircraft, which were to be leased, might be flying about now, and helping to ease the strain of the additional VIP squadron work occasioned by Bicentennial Year events and Expo 88. However it seems the leasing proposals came in somewhat higher than expected and this required a further round of negotiations. The mini Budget shows a change in forward estimates for replacing the VIP aircraft – currently two BAC 111s, three Mysteries and two HS?48s. It estimates additional costs on a lease basis of the new aircraft at a tentative $20m a year, or $10m in 1988/89. This is subject to revision following tender selection and delivery arrangements. But at the time of writing, it also seemed possible that there could be a rethink on the acquisition and that a phased buy programme was possible.

Returning to the mini Budget itself and the Defence implications, Minister Beazley adopted a positive note by claiming that 0. 5% real growth increase was ‘strong’ at a time of fiscal restraint. He said it demonstrated the Government’s commitment to fulfilling the Defence White Paper programme while establishing a self-reliant defence posture for Australia.

“Large savings continue to be made through economies and improved efficiencies in running the Defence Department and the Australian Defence Force,” Mr Beazley said. ”This will allow us to maintain the momentum of the largest defence investment programme in Australia’s peacetime history,” he added.

Investment in equipment and facilities had been maintained at a very high level in recent years of around 30% of the Defence budget, he noted. Major investment demands, including expenditure on the submarine project, the construction phase of the ANZAC Ship frigates, the build up of mine countermeasures capabilities and the Jindalee OTHR network, would occur during the growth period.

”This growth will also reflect commitments my Government will make to upgrading our F-111 aircraft,” Mr Beazley said. He also announced that subject to the final budget process, the following major Defence equipment and facilities projects were planned for approval in the 1988/89 budget:

• Construction of the first operational Over-the-Horizon Radar;

• Procurement of Inshore Minehunters;

• F-111 avionics update; and

• Further development of RAAF Base, Tindal, NT. (To become operational on October 1 with new F-18 Hornets)

”The Government clearly recognises the importance of Service personnel and has implemented several major advances in conditions of service and family support arrangements in recent months,” the Minister said. “Over 100 personnel for the Australian Defence Force Family Information and Liaison Staff are being recruited to provide community development and education· support for service families,” he said. “In the same area the Government is working towards alleviating educational problems that children may suffer through relocation and a policy of child care support for Service families. ”

Mr Beazley said that more than $330m had been spent on improvements to financial conditions of service this financial year for members of the ADF. ”The Government has demonstrated a determination to tackle the problems of Defence housing,” he said. “We have allocated $120m this financial year to the Defence Housing Authority for capital outlays and essential improvements. This will be underlined by the allocation of $75m in 1988/89 to keep pace with the Government’s commitment of $750m over the next 10 years for capital spending on housing. ” Mr Beazley said civilian numbers in the Defence area would continue to reduce. ”This is despite a continuing programme for civilian personnel to undertake tasks previously performed by Service personnel which will continue ” he said. Service personnel would be redeployed to higher priority tasks, the Minister outlined.

He also said provision would be made for Exercise Kangaroo 89, the largest military exercise to be held in Australia since World War II. “Kangaroo will test many aspects of our Defence of Northern Australia as outlined in the policies and approach of the Defence White Paper,” Beazley said.

“Consistent with pressure for economies and efficiencies the Government has agreed to changes which encourage effective use of Defence property holdings. In the past proceeds from sales of Defence land and buildings have been returned to revenue. New arrangements establish a basis upon which Defence could benefit from a share in proceeds of such disposals,” the Minister said. (Goodbye Schofields. ed. ) Just as Mr Beazley’s views are hardly unexpected, those of the Opposition’s spokesman on Defence, Mr Peter White follow the similar pattern of strong criticism. He said the $69m cut in the Defence Budget “once again demonstrates the Government’s lack of commitment to the Australian Defence Force (ADF)”. Mr White said that once again Mr Beazley intended to progress with his equipment programme at the expense of manpower levels and conditions of service.

“The result will be an even greater increase in wastage rates and a continued decline in the ADF’s operational capability,” he said. The Minister’s White Paper based on a 3% real increase in the Defence budget had not eventuated. He outlined the cuts as set out earlier in this article. Mr White said Mr Beazley’s claim that “Defence spending would increase by half a per cent in 1988/ 89” was a “desperate attempt to hide the fact that his portfolio has suffered a further substantial cut”.

“In addition the Minister’s claim that the Government has spent over $330m on improvements to financial conditions of service in 1987/88 is hardly a matter over which the Government should be boasting. Of the Minister’s $336m, $330m was awarded to ADF personnel by the Defence Force Remuneration Tribunal and represents improvements in salaries and allowances that were gained by Defence Force personnel in return for changed work values and practices. Many of these improvements were opposed by the Government,” Mr White said.

“A miserly $1. 6m therefore can be classed as Government initiatives in areas such as child care, singles’ removals and education allowance – an average of approximately $23 per Defence Force member,” he added. “Once again Defence Force personnel can expect to be asked to take on additional tasks with less manpower and declining conditions of service. The Minister has once again let down Australia’s servicemen and woman,” the Opposition’s Defence spokesman claimed.