Defence Update

He announced that in addition to more widely distributed Operating Cost reductions totalling $21m a year, naval establishments at Brisbane (HMAS Moreton), Hobart (HMAS Huon) and Adelaide (HMAS Encounter) would be closed. “While these measures are regrettable, it is important to ensure that Defence resources are directed firstly towards the maintenance of combat forces,” Senator Ray said. He outlined that the foreshadowed construction in Aus- tralia of the helicopter support ship had been cancelled and some projects, such as the Army’s light armoured vehicles (Project Bushranger) and general support vehicles in support of increased infantry mobility in northern Australia, and elec- tronic support measures and forward looking infrared radar (FLIR) for the Navy’s Seahawk helicopters have been de- ferred for at least a year.

About 90% of the total Defence budget will be spent in Australia, including 60% of more than $2160m planned to be spent on major capital equipment. Some $400m also will be spent on capital facilities, including construction of the Defence National Stores and Distribution Centre at Moorebank, Sydney, at the RAAF base, Tindal, NT, and new Army facilities in the Northern Territory.

However a major concern within Defence is that the projected 0. 5% Defence budget cuts for the following three years would see Defence spending drop below 2. 0% of the Gross Domestic Product (GDP). It is estimated at 2. 3% of GDP for this financial year and was between 2. 3% and 2. 6% between 1993/94 and 1992/93, except for 2. 1% in 1988/89.

A drop below 2. 0% is seen in senior Defence circles as being untenable, and representing a major detriment to providing Regular and Reserve Defence Forces the capability to cope with security emergencies in our region, or to meet United Nations peacekeeping duties.

ADF personnel numbers already are steadily reducing under the 1991 Force Structure Review (FSR) and the Commercial Support Programme (CPS). Through 1993/94 Permanent ADF numbers will reduce by 3847 or 5. 9% to 61,241, and civilian numbers in Defence will come down by 1792 to 20,906. This will be partly offset by Ready Reserve numbers rising by 794 to 2247, and General Reserve personnel lifting by 1707 to 30,139.

However the strength of the Permanent ADF is programmed to decline by about 6900 over four years to 1996/97, and the civilian total will reduce by 4300 over the same period. Such manpower reductions are helping to fund the capital equipment programme, and the retention of operational readiness in key units, but there would seem to be a limit as to how much further manpower could be slashed without incurring a heavy cost to efficiency and preparedness. Personnel still are required to operate the new equipment which has come on stream, or are coming on stream through this decade, the big ticket items, and the not so big, but nevertheless important procurements.

The 1993/94 Defence Budget provides for an increase in outlays of $83m or 0. 9% on the previous year to $9786m. This budget has foreshadowed the cancellation of the planned construction in Australia of a Training/Helicopter Support Ship for the Navy and Army to be operational late in the decade. Other less expensive options for a second hand helicopter over the beach capability, and extending the operoverseas built multi purpose ship, with less emphasis on ating life of the training ship HMAS Jervis Bay will be examined by the Headquarters of the Australian Defence Force Development Division and the RAN.

The major New Submarine, ANZAC Frigate and JORN (Jindalee Operational Radar Network) programmes are proceeding as planned, and taking a large slice of the capital equipment budget of $2160m in 1993/94. The Coastal Minehunter (MHC) project to acquire four or six minehunters at a cost of up to $1bn is proceeding a pace, with the preferred tenderer to be chosen by mid 1994. It is estimated that $540. 1m will be spent on the ANZAC Ship Project in 1993-94, compared with $432m in 1992/93. The total cost of the 10 ship programme, including two for New Zealand, is now put at $5. 4bn of which $1. 2bn has been spent so far. Annual payments for the New Submarines, the first of which was launched in Adelaide on August 28, have started to decline with $504m allocated for this financial year as against $704m the previous year. The JORN programme is cranking up with $189. 3m to be spent this year as against $123m last year. The full project cost is now estimated at $1. 073bn, with $247m expended to date.

Other major projects and their current costs in 1993/94 (with figures for the previous year shown in brackets) are estimated at: • F-111 Avionics update – $86. 5m ($117m).

• Supply System Redevelopment Project – $61. 3m ($16m). • Raven HF and VHF field communications- $60. 7m ($63m). F/A-18 tactical fighter – $59. 2m ($93m).

• Destroyer and utility helicopter – $45. 5m ($41m). • Australian Frigate Project – $42. 1m ($97m). • F-111 Attrition Aircraft – $42. 1m ($79. 5m).

• Wheeled Armoured Fighting Vehicles – $35. 1m ($19. 3m). • Field digital trunk communications – $30m ($5m). • P-3C electronic support measures – $28. 7m ($7m). • Black Hawk utility helicopters – $17. 6m ($16m). • F-111 simulator update – $10m ($7m).

• F-111 automatic test equipment – $9. 5m ($5m).

The Budget papers note that supplementation of $78. 3m was provided to Defence in 1992/93 for initial payments for the purchase of 15 surplus second-hand F-111G aircraft from the US Air Force. Defence will meet from its own resources the balance of the costs of acquiring and updating these strike/reconnaissance planes. The papers confirmed that a new strategic review is under way and is expected to be endorsed by the Government later this year. It will further refine strategic and defence policy, maintaining an emphasis on the promotion of security within the region.

A new Defence White Paper is expected to be announced next year, thus replacing the much changed 1987 White Paper which was the basis for major reform and restructuring of Australia’s Defence capabilities, and was refined in the 1991 Force Structure Review.