Defence Update – Federal Budget Analysis

Although not Air Force, but on the military aviation side, the 1995/96 Budget also approved the project to provide 14 intermediate helicopters for the Navy’s eight Anzac frigates. Although yet to be given formal approval, the intention is to buy further helicopters for the RAN’s yet to be approved Offshore Patrol Combatants (OPCs). They will have commonality with whichever type is chosen for the Anzacs. The 1995/96 Defence outlay of $9.992 billion, a cut of $48 million on 1994/95, represents about 2% of gross domestic product (GDP), the lowest in GDP terms for some 50 years; is 8.1% of total Federal Government expenditure; and while it is not seen as cutting into the overall capital re-equipment programme, represents another 0.5% reduction in real terms. The slide began with a cut of 0.75% in 1993/94, and 0.5% in 1994/95, and another 0.5% decline is programmed for 1996/97. In line with the Government’s overall deficit reduction strategy for all departments, 1.0% was lopped off the Defence Department’s running costs. This amounted to almost $20 million.

The major Budget expenditure continues for the Anzac frigates ($421.0 million) and the Collins submarines ($266.1 million), followed by the P-3C update programme ($154.3 million), the coastal minehunter acquisition ($152.5 million), the Jindalee Operational Radar Network – JORN ($150.2 million) and the Army’s Australian Light Armoured Vehicles project – ASLAV ($124.6 million).

Budget outlays also provide for Raven field communication ($41.1m), the F-111 Avionics Upgrade ($45.5m), P-3C Orion electronic support measures (ESM – $43.1m), Sea King maritime utility helicopter upgrade ($34.2m), Parakeet field digital communications ($32.3m), Bushranger infantry mobility vehicles ($27.9m), the F/A-18 Hornet upgrade ($21.6m), the Army’s AUSTACCS Command and Control system ($20.9m), a continuing small arms replacement programme ($20.5m), Army light support weapons ($16.5m), and the previously mentioned OPC helicopters ($14.9m).

On the facilities side, major capital funds of nearly $500 million will go mainly on the Russell Defence Offices redevelopment in Canberra, large scale works in Darwin in support of the increased Army presence in the north, and further progress in the preparation of the RAAF “bare bones” base Scherger, near Weipa in northern Queensland. Spending on facilities is more than $50m less than the previous financial year.

Australian Aviation July 1995

At the time of going to press, the RAAF’s Lead-In Fighter (LIF) Project Office, under Wing Commander Stu Cameron, was continuing to work long hours to prepare the Request for Tender (RFT) for issue in June. An industry briefing in Canberra follows. The RFT will close three months after issue, and will then come under analysis and evaluation. This may include further flight testing overseas. It is hoped to sign the source selection contract in mid 1996.

The schedule to achieve that is tight, as is the delivery schedule to follow. The first aircraft is required to be delivered in mid 1999, and sufficient numbers are then required for the Air Force to start LIF training in January 2000. The number of aircraft required is not specified, and will be left to tenderers to suggest on the basis of what number of aircraft will be required to perform the tasks outlined in the user and fatigue statement.

The first phase of the F/A-18 Upgrade in the 1995/96 period covers the communications systems, computers and a Project Definition Study (PDS) for further upgrades. Phase 2, to be decided in 1996/97, involves upgrades to radar, electronic warfare (EW), and navigational systems, and further communications system upgrades. The project is likely to stretch into the early years of the 21st century. The RAAF is also expected to get approval next financial year to maintain its air-to-air weapons capability.

The F-111Cs will have their active ECM capability restored, and adds to approvals in the 1994/95 year to fit Missile Approach Warner and countermeasures dispenser sets.

The F-111C Avionics Update (AUP) prototype aircraft flew in the United States last December and completed further testing with Rockwell in April. It is now undergoing Air Force flight testing for about a year from the US Air Force’s McClellan Base. Two F-111Cs are also now undergoing kit proofing by Rockwell Systems Australia and Hawker de Havilland at their Amberley base in southern Queensland. This is the beginning of the fleet modifications programme in Australia.

The RAAF’s C-130E Hercules transport replacement project with the C-130J, which already has been approved, reached another milestone in April with the Air Force issuing its Request for Quotation to the manufacturer.

The newly merged Lockheed Martin group is required to respond by the end of July, and a contract is expected to be signed by early 1996.