Defence Update — New Govt Defence Policy

As promised in the election campaign, the Coalition will maintain annual Defence funding at least at around the present level of $10 billion, and follow the Forward Estimates outlined in the 1995-96 Budget which establish (but do not set in concrete) spending in the next few years. Many Defence policy aspects are of a bipartisan nature, and this will not change. This includes regional and traditional engagement and alliances, and the major re-equipment programmes. There will be a reordering of some priorities, with savings going to them, although the overall funding of capital equipment items underway or in the pipeline is expected to remain virtually intact.

There is concern about manning and experience levels of Australian Defence personnel and that morale is low. There is a strong commitment to restore ADF units to their approved peacetime manning levels (figures released by the former Defence Minister, Senator Robert Ray in Parliament last year revealed a considerable number of instances where units were below authorised strength).

The Ready Reservist scheme under which young people undergo 12 months full time training and four years part-time training in exchange for tertiary education and job opportunities is to be phased out. The creation of a 6th Infantry Battalion in Brisbane is intended to replace this scheme as a more cost effective alternative.

Also of major immediate interest is the Australian Army’s proposals, arising from a series of studies, to establish the way ahead for the Army in the next century. This is generally known as “Army in the 21st Century” or simply Army 21.

The Coalition also has a keen interest in accelerating, if it is possible, the proposal to finally provide the ADF with an airborne early warning and control (AEW&C) system. It also is looking at standoff weapons such as cruise missiles. Such a capability will be under consideration for the six Collins Class conventionally powered submarines as they come into operational service in the closing years of this decade, and through into the early years of the 21st Century.

The Collins submarines may well in effect eventually substitute for the strike power of the Royal Australian Air Force’s F-111 long range jets, which have unique capabilities, given the right weapons. The remaining original 21 C model aircraft are currently undergoing an Avionics Upgrade (AUP) which will sustain their capability at least to the year 2010. What is not clear is whether a suitable and affordable replacement strike plane will be available. Nothing of that nature with long range low level standoff strike capabilities that Australia could afford is on the horizon at present.

As a boost to the length of time the Amberley based F-111 strike/reconnaissance force might remain in operational service, the Air Force is understood to be looking at also upgrading the 15 ex USAF F-111G models.

The background to the new Government’s revised Defence Policy was outlined to the media before the election by the Coalition’s Defence spokeswoman at the time, Senator Jocelyn Newman. The new Defence Minister, Ian McLachlan, is expected to implement the reforms Senator Newman outlined.

Senator Newman said one of the advantages the Australian Defence Force had at present was that it contained well educated, highly trained people. But she believed they were not getting sufficient resources to do their jobs properly, and that caused frustration and difficulties.

Apart from plans to bring the manning levels up to authorised strengths, an additional $100 million is to be devoted to logistics and supply over three years to help ADF personnel carry out their tasks. On reviewing the functions and activities of the Department of Defence, Senator Newman said she wanted Defence to recognise, as Australian industry has, that there is a need for flatter management structures and decision making lower down the track.

“Defence is very committee bound,” she said. “There is very little emphasis on the buck stopping with the decision maker, because there is no decision maker. There’s a committee that protects everyone.”

It seems unlikely that the new Government will move to quickly privatise the Government enterprise, Australian Defence Industries (ADI Ltd). It is more likely that ADI will be allowed to continue its restructuring for a year or two yet.

Senator Newman said the emphasis in determining which defence companies obtained Defence contracts in a large part rested with the companies being able to demonstrate in a practical way their real, long term commitment in Australia. She regarded Commonwealth ownership, or long term access to intellectual property as of major importance, and one that fits in with the self reliance and technology philosophy. She sees Defence buying power as an effective way of setting the way ahead for industry, and sees having only a few prime contractors for various projects as more important than having a lot.

“Shipbuilding is a classic example. You can encourage competition all you like with subcontractors. But with primes we’ve been a bit inclined to think that competition is everything,” the Senator said.

She saw the market as sorting out the number of prime contractor competitors as long as the Government does not prop up some companies, and wants an open book system of competition and the benchmark of best practices overseas.

The Coalition accepts the basic thrust of the Glenn Report on proposed management steps required for ADF personnel and families. It will carry through with the major recommendations which provide for a long term personnel strategy and the principles for developing such a policy.

Senator Newman believed the Australian Defence Force Academy (ADFA) which prepares young officers for the three services should remain in spite of an adverse report last year.

“It’s expensive, and we’ll look at ways of reducing the high cost,” she said. “I think it’s the best hope we’ve got of developing joint thinking in the Defence Force.”

Finally, she was critical of how Reservists were recruited by TV shots depicting them using aircraft, vehicles and other equipment “when they get in they rarely see this equipment. I want them to be given much greater access to it.”