Defence Update

Apart from the $125m per annum in administrative savings, the abolition of the Ready Reserve Scheme (another Coalition policy promise even if some critics consider it a wrong move) also will result in savings which will be reallocated within the portfolio to enhance combat capabilities. The $125m savings are to be achieved by a number of measures. The first is by reducing Defence’s civilian workforce by 1200 or 6% over two years. This is apart from ongoing efficiency initiatives which have averaged 700 staff savings a year since 1990-91.

Property operating expenses are to reduce by 5% ($14.3m) in 1996-97 and 2.5% ($7.2m) in 1997-98. A further $90m is to be shaved off non operational administrative expenses and non operation IT (information technology) equipment and support. The Defence Minister, Mr Ian McLachlan, in announcing the range of ADF/Defence Department initiatives for 1996-97 and in some cases on from that, said the $10 billion Defence funding “fully meets the Coalition’s election commitments”. “The Defence Budget is a concrete expression of the priority which the Government affords to enhancing the combat capabilities and readiness of the Australian Defence Force,” he added.

“The task of defending Australia’s interests is a responsibility that this government takes very seriously. We must develop and maintain a stronger and more capable Defence Force.” Mr McLachlan noted that in total 87% of the Defence Budget outlays are planned to be spent in Australia, which is the same level achieved in 1995-96.

Major capital equipment outlays are estimated at $2.21 billion, with a further $230m to be spent on minor capital equipment. On the military aviation side the current major capital spending this financial year will be for 12 C-130J Hercules strategic airlift aircraft — $306.117m ($243.473m in 1995-96); the 18 P-3C Orion maritime patrol aircraft update implementation — $119.491m ($84.460m), the Jindalee Operational Radar Network (JORN) — $77.303m ($147.601m); and ATC (air traffic control) radars — $55.264m ($32.813m).

The government has approved new major capital projects worth $1410m, although only $27m is expected to be spent in 1996-97. Concentrating on the military aviation side again, these new projects cover the acquisition of an electronic warfare self protection capability for transport aircraft, eg C-130 Hercules and Boeing 707s; enhanced air-to-air weapons capability (Phase 1 will provide an initial training and support capability with captive carriage training missiles); and upgrading the F/A-18 Hornet fighters with GPS (global positioning systems) and IFF (identification friend or foe) equipment; a simulator for the P-3C Orion squadrons; and logistic support to bring into operation four attrition Navy Seahawk helicopters currently in storage.

The 1996-97 year will see key Royal Australian Navy programs further progress. The delivery of HMAS Farncomb, the second of the six Collins class submarines is scheduled for delivery in June 1997. The First-of-Class HMAS Anzac frigate is scheduled to be fully operational by mid 1997 after undergoing post delivery trials. The first two of six Coastal Minehunters, Huon and Hawkesbury will be fitted out, while construction of the next two, Norman and Gascoyne, will get under way.

Some $476m will be spent this financial year on ongoing capital facilities which include further work on the RAAF’s ‘bare’ base, Scherger, near Weipa on Cape York Peninsula, Northern Queensland. The RAAF bases at Darwin and Tindal in the Northern Territory will be further developed to support air operations for air defence; facilities will be built at the naval air station, HMAS Albatross at Nowra on the NSW South Coast for the new helicopters to be acquired for the Anzac frigates; and facilities will be upgraded for the Army’s 4 Aviation Regiment at Townsville, North Queensland to improve the long term sustainability of the Black Hawk and Chinook helicopters.

At the time of going to press decisions were pending on source selection contract awards for FLIR/ESM for the Navy’s Seahawks, a new target vehicle to replace the Jindivik target drone, the lead-in fighter (LIF) to replace the aging Macchi 326s, and the intermediate helicopter for the Anzac frigates. Decisions are still some time off on aircraft projects like AIR 87 and AIR 129 which relate to rotary and fixed wing aerial reconnaissance, surveillance, fire support and troop lift for the Land Force. To a considerable extent they are bound up in the way ahead for the Army 21 Project (the Army in the 21st Century).

In his Budget statement Mr McLachlan said the government “recognised that serious deficiencies have developed in the manning, equipment and readiness of both the Regular and Reserve components of the Australian Army. Accordingly, I have given in principle agreement to, and funding has been provided for, a restructuring of the Army to increase its capabilities, effectiveness and readiness,” he said. He also recorded that some other initiatives will be considered by Cabinet later in the year. “The overall package reflects the key capability development areas identified in our defence policy statement — namely command, control and communications (C3), intelligence, control of the sea-air gap, strategic strike, mobility, and supply and support,” the Minister said.

He noted that particular areas of focus will be reshaping the Army to enhance its operational capabilities, through increased mobility and surveillance, equipment and training. However it should be stressed that Mr McLachlan has not approved the final version of Army 21 which was delivered to him by the Chief of the Defence Force, General John Baker, on August 21, the day after the Budget was introduced in Parliament.