Defence Update

The Royal Australian Air Force has fared moderately well in these new project approvals because they also encompass a further phase of the P-3C Orion ECM modernisation of the second squadron of the aircraft, Control and Reporting Units, the Macchi repair programme, the F/A-18 Radar Evaluation Facility, Computer-Aided Maintenance Management for the Air Force, and a Boeing 707 Simulator. No sign though of the acquisition of Airborne Early Warning and Control (AEW&C) planes.

The P-3C update is designed to extend the life-of-type of the 19 Orlons, and improve their sensor capabilities including navigation and communications equipment. The programme involves reducing the weight of the equipment carried in the P-3Cs so that the fatigue life of the aircraft can be increased.

The project is considered the biggest RAAF undertaking since the acquisition of the F/A-18 fighters through the 1980s, and is said to the bigger in monetary terms than the F-lllC avionics update programme.

A draft Request for Tender (RFT), which is attracting interest worldwide, is expected to be released in December or January. This will give industry in Australia and overseas the opportunity to comment on the proposals, and made suggestions as to possible variations. The final RFT then is expected to be issued in the first half of 1993. The RAAF’s Project Director is Group Captain Jock Wilkie.

The 1992/93 Defence Budget allocation is $9,885m, which maintains Defence funding in real terms and equates to zero growth after the allowance for inflation. It represents 2. 4% of Gross Domestic Product (GDP)-the same as in 1991/92, and is 9. 0% of total Commonwealth Budget outlays. This is down 0. 1% on 1991-92.

The Defence Minister, Senator Robert Ray said the allocation demonstrated the Labor Government’s record of commitment and achievement in support of Australia’s defence. He added that the Budget brought forward $66m of programmed Defence expenditure from subsequent years, and included an extra $28m in loan funds to support the Government’s Strategy for Employment and Growth in the 1990s.

“The additional expenditure will fund important Defence requirements with a high employment content, such as housing construction and capital works, building repairs, motor vehicles and an increase in recruitment for the Ready Reserve. (This last item is designed to recruit 300 Ready Reservists in Victoria and South Australia).

Senator Ray noted that 88% of the Defence budget would be spent in Australia, and Defence remained committed to the 1991 Force Structure Review which includes emphasis on relocating more forces to northern and western Australia, making better use of Reserve forces, maximising combat capabilities by reducing support costs, and making better use of Australian industry.

The down side in future is that the Government has reduced Defence guidance by 0. 5% for 1993/94, and will maintain this level in the following years. This means minus real growth over those years.

For 1992/93 “Investment” in the Budget outlays stands at 27. 3% compared with 27. 7% the previous year. Personnel costs represent 43%, as against 41. 6%, and operating costs are put at 29. 7% as against 30. 7%. The Air Force has been allocated $1. 637 billion in 1992/93 as against $1. 983bn for the Army, and $1. 32lbn for the Navy. Staff years (down in all cases) are Navy 18,996, Army 38,223 and Air Force 23,519.

The Budget papers set out that as far as the RAAF is concerned, capital works programmes continuing include medium works at RAAF Edinburgh base at Elizabeth, SA, additional pavements and taxiways as part of base development at RAAF Tindal, Katherine; and the advancement of early stages of construction of a new airfield at RAAF Scherger, Cape York Peninsula near Weipa, North Queensland.

Routine maintenance activity and minor works also will be carried out at RAAF Williams, Victoria ($2m) and RAAF Pearce, WA ($2m). Some $23. 5m has been provided for the construction of 125 dwellings, and the development of 400 allotments, principally at Laverton, Victoria.

An indication of the extent to which Navy projects are eating up the Capital Equipment vote can be gauged from the overall major projects expenditure for 1992/93: Collins Class Submarines $720m; Anzac frigates $443m; Jindalee Operational Radar Network $193m; F/A-18 Hornet $12lm; Raven HF/VHF Radios $105m; F-111 Avionics Update $86m; FFG Frigate $79m; Supply Systems Redevelopment Project $48m; Seahawk helicopters $37m; P-3C Orion ESM $25m; Small Arms Replacement Project $24m.