Defence Update- White Paper Analysis

Although the White Paper put on hold a decision to order two more Collins Class submarines on top of the six being constructed by the Australian Submarine Corporation (ASC) in Adelaide, there is some optimism in Defence circles if not within ASC itself, that the start of a five year budget cycle should help such an acquisition announcement in 1996-97. One of the major challenges contained in the White Paper concerns the recruiting and retention of enough high quality personnel for the Armed Forces. A wide ranging review of personnel policies has been initiated to develop new ADF personnel strategies in the future.

Opportunities for increasing Australian industry participation is expected from the range of equipment projects which are designed to enhance Australia’s security preparedness into the next century. “Industry’s contribution to our defence effort will become more important as our strategic environment becomes more demanding,” it also notes. But the paper also says that the capability of Australian industry has changed significantly since the mid 1980s. It outlines that Defence related industries have benefited from measures the Government has taken to improve international competitiveness of Australian industry generally. These have included lower tariff barriers, a more internationally competitive tax structure, deregulated transport and communications sectors, improved industrial relations, reinvigorated public sector research and development, and active pursuit of new export markets.

In the chapter on “Defence and Australian Industry”, the White Paper says that Defence policy for industry has furthered this process by encouraging efficient production and work practices and export oriented Australian manufacturing and services. “Major projects, such as the Collins Class submarines and ANZAC frigates, have transferred new technologies to Australia and enhanced important skills, including managing complex engineering development projects, systems integration and software engineering,” it outlines. “Other projects, such as the Jindalee Operational Radar Network (JORN), have developed new technologies indigenous to Australia. Industry’s capabilities have also been strengthened as Defence has set demanding standards for quality assurance, project cost and schedule control. At the same time, the Commercial Support Programme (CSP)—under which many support functions which do not require military skills can be contracted out commercially—has opened significant areas of activity to Australian industry,” it says.

The White Paper notes that in 1994-95 some 80% of Defence’s expenditure on facilities, equipment, goods and services, will be spent in Australia. This percentage, which represents a major increase over the last decade, results from the high levels of Australian industry involvement in major equipment projects. These projects increased the share of capital equipment expenditure in Australia from 25% in 1984-85 to 64% in 1994-95. The 1994 White Paper, the first for seven years, sets out the key roles the ADF needs to be able to undertake. They are:

Command, control and communications; Intelligence collection and evaluation; Surveillance of maritime areas and northern Australia; Maritime patrol and response; Protection of shipping, and offshore territories; Air defence in maritime areas and northern approaches; Defeat of incursions on Australian territory; Protection of important civil and defence assets, including infrastructure and population centres; and Strategic strike.

In the aviation sphere, the following programmes are mentioned in the White Paper:

(a) Acquisition of eight new helicopters for the ANZAC frigates; and at least eight for the new patrol boats, with commonality seen as an important factor. (b) Replacing the Australian Army’s Kiowa helicopters, and the purchase of additional helicopters for the Army to enhance Land Force tactical mobility will be considered. (c) The RAAF’s 12 C-130E transports will be replaced by new C-130J models, and options considered for replacing the airlift capability provided by the current 12 C-130Hs. (d) The RAAF’s F/A-18 Hornet fighters will be upgraded. (e) A Project Definition Study (PDS) this year (1995) will set the stage for the acquisition of an airborne early warning and control capability (AEW&C). (f) Both fixed and rotary wing aircraft options will be considered in replacing the RAAF’s Caribou light transports. (g) The RAAF’s Macchi MB-326H lead-in fighters will be replaced by the year 2000.

The White Paper also outlines the contract for upgrading the RAAF’s P-3C Orion maritime reconnaissance planes that has been let to the US company, E-Systems, to which Australian companies, ASTA, AWADI and Honeywell Australia, are teamed. It also notes that the RAAF’s F-111 strike/reconnaissance jets are undergoing an avionics update by Rockwell Systems Australia, and that additional precision weapons and self protection systems will be considered as enhancements for the F-111 fleet.