Defence Update

The new restrictions only apply to the threeHornet squadrons (at Williamtown, near Newcastle, and Tindal, near Katherine, NT) and the two Strike/Reconnaissance squadrons (at Amberley, south east Queensland), and then are said not to affect general training or conversion courses. The hours flown by the Maritime Group operating P-3C Orions out of Edinburgh, SA, and the Transport Group, flying C-130 Hercules and Caribous, mostly out of Richmond, NSW, are not affected by the Budget cuts.

But it needs to be said that while there may be arguments about the real extent of operational readiness and safety, RAAF flying hours generally have been fairly tightly curbed for some time, given the variety of tasks. There is no real fat in the system unless some specific tasks are deleted or delayed, or some better methods of operating are found.

So post Budget, Air Command has been looking at various options to get the best out of what already was a very tight operational and training schedule.

In his Budget statement, the Minister for Defence, Senator Ray, acknowledged that some reductions in Defence Force capabilities had been required so that funds could be made available for higher priority requirements.

He gave these as including the capital equipment investment program, and measures such as improved living in accommodation and enhanced individual equipment levels.

One of the pluses for the RAAF is that the F-111C avionics update changing the avionics from analog to digital is going ahead. A sum of $65m is allocated in the 1990/91 Budget for this project; $23m was spent in 1989/90. However the contract award to a prime contractor-generally accepted to be Rockwell -had still not been announced at the time of going to press.

The 1990/91 Defence Budget of $8. 97 billion would maintain the current levels of Defence outlays, Senator Ray said. This represents an increase of $494m in money terms or 5. 8% and is considered as zero real growth (using Defence deflators under somewhat complex calculations) and recovers from the negative 0. 5% growth imposed in 1989/90.

Planning guidance for the Forward Estimates for 1991/94 had been set at 1 % for 1990/91, and 2% for the three years after that. But this has now been revised to a more realistic (perhaps) figure of 1 % a year in the current Five Year Defence Program (FYDP). These decisions save$161min the current financial year, and are estimated to save a further $1. 12 billion over the forward estimates period.

Revised treatment of receipts from additional property sales will allow Defence to add to its resources. The Budget papers indicate about $14m in 1990/91 and significantly greater sums over forward years. Minister Ray said, however, that the revised arrangements would allow Defence to retain new revenue up to the value of an additional 1 % of Defence outlays. Total Defence expenditure is estimated at 9. 6% of total Commonwealth outlays and represents 2. 3% of Gross Domestic Product (GDP).

Both the Navy and the Army also suffer in capability cutbacks announced in the Budget on August 21. The survey ship, HMAS Cook, and the destroyer escort, HMAS Stuart, based at Cockburn Sound, WA, are to be paid off early-by late this year. Stuart will be replaced in Western Australia by another DE before the middle of next year. The RAAF and RAN capability and operational reductions will save $9m during 1990/91, and continued savings after that.

The Army’s 22 Construction Squadron, whose recent work has included improving Special Air Services Regiment facilities at Swinburne, WA, is to be disbanded next year. The annual saving from this is about $7. 4m annually. The average Permanent ADF strength is estimated at 68,935 for 1990/91, marginally up on 1989/90, while civilian staffing levels also will be slightly increased to 24,483. The June 30, 1991 target strength for the Reserve Forces training obligations has been put at 28,905, up more than 2,000 on 1989/90.

Expenditure on investment (capital equipment, capital facilities and housing investment) is estimated at 27% of Budget outlays. Personnel expenditure remains constant at 42% and operating costs are envisaged at 31% .

Some 90% of total Defence outlays will be spent in Australia during 1990/91, including 66% of capital equipment expenditure. This compares with 76% spent in Australia in 1984/85, and only 25% then on capital equipment.

Approved capital equipment projects continuing to be funded in 1990/91 are:

Aviation: Royal Australian Air Force: F-18 tactical fighter-$149m (-$60m on previous year); F-111 avionics update-$65m (+$60m); PC-9 basic trainer-$32m (-$13m).

Royal Australian Navy: Seahawk helicopters-$81m (same). Australian Army: Black Hawk utility helicopters-$42m (-$12m).

Other major equipment projects and expenditure in 1990/91 are: Collins Type 471 submarines – $529m; Anzac Frigates – $315; Australian FFG frigates-$155m; RavenHF & VHF radios­ $71m; Army Light Field Vehicles – $48m; small arms replacement-$44m; DOG destroyer modernisation-$28m; FFG modification for Seahawk helicopters-$28m. Joint Projects:

The experimental Jindalee over-the-horizon radar upgrade and operations, and initial development activity for an operational network-$23m; further work on the Defence Integrated Secure Communications System (DISCON) planned for completion by the end of 1992-$20m.

Three new capital equipment projects also have been given the go ahead by the Government. Together they are estimated to cost $186m, of which$29m is likely to be spent in 1990/91. They are:

• Project Parakeet, a secure, automatically switched, digital tactical trunk communications system in the field for high priority elements of the ADF.

• The lease of one or two minehunting sonar systems to allow the new Bay class fibreglass catamarans,HMAS Rushcutter and HMAS Shoalwater, to undertake trials.

• Initial phases of the development and implementation of computer based systems to support all levels of Defence personnel management.

Subject to the outcome of further departmental considerations, decisions will be sought later in 1990/91 on a number of other major projects. These include: The JORN (Jindalee Operational Radar Network), F-111 avionics test equipment (ATE), a computer based support system for ADF Headquarters and further development of a computer based financial management system for the department and the ADF.