Defence Update – 94/95 Federal Budget Reviewed

The 1994-95 Defence Budget has a new provision for a carryover of up to $100m of planned expenditure on major capital equipment items, and facility projects to the following years if unspent in the particular previous year. There also will be an additional carryover of up to $30m for more general programme appropriations, except running costs (which cover salaries, allowances and administrative expenses).

The size of the Australian Defence Force (ADF) continues to reduce under the 1991 Force Structure Review. The Permanent Defence Force is expected to decline by 1210 or 2% in 1994-95 to 59,375 or more than 10,000 down on not so many years ago. Ready Reserve numbers, mainly Army, should rise by 1256 to 3503 in the financial year, while the General Reserve (again mainly Army) is projected to be relatively static at 30,540 (up 254).

Defence civilian strength is anticipated to decline by 594 to 20,599. These reductions reflect the continuing implementation of the Force Structure Review in 1991, and the Commercial Support Programme (CSP) and related initiatives. In 1994-95 Defence outlays will be absorbed by equipment, facilities and housing “investments” amounting to 27.8%, personnel 38.6% and operating costs 33.6%.

The new equipment project approvals include upgrading the Navy’s ageing Sea Kings to extend their life until the year 2008; new detection and surveillance equipment for the Seahawk helicopters (deferred in the 1993-94 Budget) and the acquisition of a Black Hawk helicopter flight simulator for the Army Aviation Corps. Well may some people ask why a simulator was not included in the earlier Black Hawk orders?

Major spending continues in 1994-95 on a number of Air Force projects such as joint Service Jindalee Operational Radar Network (JORN), which is to provide long distance Over The Horizon Radar (OTHR) surveillance from a long way off the coastline from the north west to the north east of Australia, the F-111 avionics update (which is running quite late) and improvements to the F/A-18 tactical fighter. (A list of the extent of Defence spending on major capital equipment in 1994-95, compared with the previous financial year, is included in this article.)

For example $203m will be spent on the JORN during 1994-95. The two main sites will be near Longreach in central western Queensland and near Laverton in central western Western Australia and linked to the Jindalee Coordination Centre (JCC) at the RAAF’s Edinburgh Base, SA. Construction work at all three sites is well under way though it is believed that this project is also running behind schedule and may now not become fully operational until 1999. The F-111 Avionics Upgrade which is also behind schedule, will take about $71m in the new financial year, and the F/A-18 Tactical Fighter programme $40m.

The Navy purchased the Sea King helicopters in the 1970s basically for anti-submarine warfare (ASW) work from the fleet’s light aircraft carrier, HMAS Melbourne. Later they have been used in utility roles, including coverage of assessed focal points such as major sea port approaches.

In the updated role it is expected the Sea Kings will operate from the two Training and Helicopter Support Ships – THSS – (the surplus US Navy LSTs – Landing Ships Tanks which will be modified) and from the fleet supply ship, HMAS Success. The airframes have been assessed as having considerable life left in them. The updating will occur in the avionics and such systems.

The Seahawk improvements include ECM (electronic counter measures) and FLIR (forward looking infrared).

The new major capital equipment projects approved have a total cost of $1717m. Of this $96m is planned to be spent in the financial year.

(left) New funds in this year’s Budget will see the Navy’s Seahawk fleet fitted with Forward Looking Infrared units (FLIR) and electronic countermeasures (ECM). The FLIR will greatly enhance the Seahawks nighttime detection and surveillance capabilities. (right) Funding continues for the behind schedule F-111 Avionics Update Programme. (Jim Thorn & Defence PR)

The major items are the six Coastal Minehunters (MHCs) estimated to have a project cost of about $1.2 billion and the P-3C Orion maritime reconnaissance patrol aircraft update (around $700m).

It is perhaps interesting to note that expenditure on the Collins Class submarines, estimated at $380.8m, appears to have peaked. The previous year’s outlay was $510m. Spending on the Anzac frigates is expected to come down from $464m in 1993-94 to an estimated $441m in 1994-95.

One of the new items in the Defence Budget is the redevelopment of the Russell Offices in Canberra. This project involves the refurbishment of four buildings, the demolition and replacement of eight older buildings and the construction of three new buildings. Expected to cost $200m over six years, the aim is to consolidate Defence office space in the Australian Capital Territory. Many of these buildings, constructed in the late 1950s and early 1960s, have never even had air conditioning.

Other Defence facilities projects approved in the 1994-95 Budget context include the redevelopment of the Royal Military College, Duntroon, ACT; improved accommodation at Kapooka Barracks, Wagga, NSW; refurbished accommodation at the Naval Training Establishment at Watson’s Bay, Sydney; a transonic wind tunnel at Fishermens Bend, Vic; and decontamination of the Albion Ordnance Facility site, Victoria.

Considerable work in continuing to develop facilities for the enhanced Army Presence in the North (APIN) at Darwin, Northern Territory; the Defence National Storage and Distribution Centre at Moorebank, Sydney; the RAAF Base, Tindal, NT; the modernisation of the mine warfare base at HMAS Waterhen, Sydney and the RAAF Scherger “bare” base near Weipa in far north Queensland.