Defence Capability
Over the next 12 to 18 months, Defence is developing First and Second Pass approvals of Defence Capability Plan projects worth over $6 billion.
In addition to the recent decisions to acquire a fifth C-17A Globemaster III heavy lift aircraft and the amphibious ship Largs Bay, approvals will be sought for a range of key capability acquisitions including:
· Air 9000 Phase 8 Future Naval Aviation Combat System
This project will replace the current fleet of Seahawk and cancelled Super Seasprite helicopters with multi-role naval combat helicopters, weapons and related training, infrastructure, logistics and support arrangements.
· Land 121 Phase 3 Project Overlander
Phase 3 will deliver Light and Lightweight unprotected Class vehicles and Medium and Medium Heavy protected and unprotected vehicles for land forces. While this phase of Overlander is post second pass, it will be reconsidered by Government when Defence completes the current tender evaluation activities for Medium and Medium Heavy protected and unprotected vehicles.
· Land 121 Phase 5A Project Overlander
This phase of project Overlander will deliver further Light and Lightweight unprotected Class vehicles for ADF tactical training critical for our personnel in preparation for operations.
· Joint Project 2072 Phase 2A Battlespace communications systems
This project will rollout the communication infrastructure to high readiness land formations and units of the ADF.
· JP 2048 Phase 3 - Replacement Watercraft
This project will provide ship to shore vessels to transport forces and equipment ashore and re-embark them back onto the Canberra Class Amphibious Assault Ships.
The Australian Government is continuing its investment in the package of enhanced force protection capabilities for our troops in Afghanistan.
Over the period 2009-10 to 2012-13, the Australian Government will invest $1.1 billion for these force protection capabilities. This initiative includes $480 million of expenditure in 2011-12. This is in addition to about half a billion dollars of existing force protection measures for a total over the financial period 2009-10 to 2012‑13 of $1.6 billion of enhanced measures for force protection.
Our forces in Afghanistan are performing extremely well in dangerous circumstances on a daily basis and their support and protection is, rightly, our highest priority.
More broadly the Government is continuing its investment in Force 2030, as set out in the 2009 Defence White Paper, Defending Australia in the Asia Pacific Century. A comprehensive package of air, land, maritime and networked information capabilities is being progressed to ensure the Australian Defence Force of the 21st Century will have the capabilities required to meet future strategic challenges.
For more information and access to the Portfolio Budget Statement go to http://www.defence.gov.au/budget/11-12/index.htm
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Defence Budget Overview – Realigning the Budget
In the 2011-12 Budget, Defence will undertake a significant realignment of its budget.
This realignment aims to:
· Ensure that Defence has the funding it needs, when it needs it; and
· Reduce operating expenditure through increased efficiencies.
As a result of the realignment, Defence will return to Government:
· $1.1 billion in 2010-11 and an additional $1.3 billion over the next four years by reprogramming Major Capital Investment Program funding; and
· $0.4 billion in 2010-11 and an additional $1.3 billion over the next four years from reduced operating expenditure, adding to savings from the Strategic Reform Program (SRP);
· $87 million in 2010-11 and an additional $111 million over the next four years for lower than planned costs associated with acquiring the fifth C-17 aircraft.
In total, Defence will reduce its call on the budget by $1.6 billion in 2010-11 and $2.7 billion over the next four years (2011-12 to 2014-15).
The reprogramming is necessary to better reflect realistic achievement of milestone delivery payments by industry for capability and infrastructure projects. This accommodates anticipated delays in project delivery from industry.
In 2010-11, capital expenditure has slipped by $1.1 billion which will have flow-on impacts in future years.
The experience to date with the Strategic Reform Program has demonstrated that reform in Defence is necessary, achievable and sustainable.
With the benefit of this experience, the Government considers that Defence can and should do more to reform.
The White Paper and the workforce and shared services stream of the SRP predicted a net increase in the Defence APS workforce of 1,655 from 2010-11 to 2013-14.
Reforms to shared services and other efficiency measures means that Defence can reduce this overall forecast APS workforce growth by 1,000 over the next three years.
This includes the application of the Government’s increased efficiency dividend to Defence. Under this whole of Government measure, the efficiency dividend will rise from 1.25 per cent to 1.5 per cent in 2011-12 and 2012-13, before returning to 1.25 per cent for 2013-14 and 2014-15.
Reducing the APS workforce growth will be achieved by natural attrition, not hiring new staff and, if required, some limited voluntary redundancies.
Savings from these reductions to forecast APS growth will be returned to the Budget.
There will be no reductions to the Australian Defence Force military workforce as a result of these changes.
Given priority accorded to maintaining support to operations, improving Navy sustainment and enhancing capability development, the Joint Operations Command (JOC), the Navy and the Capability Development Group (CDG) will be exempt from these additional reductions to their forecast APS workforce.
These reforms will be incorporated into the Strategic Reform Program, including oversight by the Defence Strategic Reform Advisory Board chaired by Mr George Pappas.
For more information and access to the Portfolio Budget Statement go to http://www.defence.gov.au/budget/11-12/index.htm
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Australia’s ongoing commitments to Defence operations in Afghanistan and the wider Middle East, Solomon Islands, and East Timor, will continue with a budget allocation of $1.9 billion in 2011-12.
This includes:
A new measure of $1.1 billion for operations funding in 2011-12; and Previously approved funding of $820 million.
Total funding of $1.2 billion is committed to operations in Afghanistan and the wider Middle East.
Defence will continue to mentor and train the Afghan National Security Forces in Uruzgan to enable a transition to longer-term capacity building for the Afghan authorities and institutions. In recent months we have seen some success with Afghan-led partnered operations in Uruzgan province.
The Australian Government has allocated $160.2 million for its Defence commitment to East Timor to continue the two countries’ mutual commitment to regional security and stability.
East Timor is gradually transferring full security responsibility to the East Timorese authorities. Defence will continue to build its cooperation and capacity-building to support the development of the East Timorese military.
The Regional Assistance Mission to Solomon Islands will continue to be supported with an allocation of $43.5 million.
Australia’s ongoing commitment is critical to combating international terrorism and bringing peace and stability to the people of Afghanistan. Furthermore, building stability in our own region through cooperation with East Timor and Solomon Islands is essential and can only be achieved through investment in Defence operations.
For more information and access to the Portfolio Budget Statement go to http://www.defence.gov.au/budget/11-12/index.htm
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Defence Operations Funding
Australia’s ongoing commitments to Defence operations in Afghanistan and the wider Middle East, Solomon Islands, and East Timor, will continue with a budget allocation of $1.9 billion in 2011-12.
This includes:
A new measure of $1.1 billion for operations funding in 2011-12; and Previously approved funding of $820 million.
Total funding of $1.2 billion is committed to operations in Afghanistan and the wider Middle East.
Defence will continue to mentor and train the Afghan National Security Forces in Uruzgan to enable a transition to longer-term capacity building for the Afghan authorities and institutions. In recent months we have seen some success with Afghan-led partnered operations in Uruzgan province.
The Australian Government has allocated $160.2 million for its Defence commitment to East Timor to continue the two countries’ mutual commitment to regional security and stability.
East Timor is gradually transferring full security responsibility to the East Timorese authorities. Defence will continue to build its cooperation and capacity-building to support the development of the East Timorese military.
The Regional Assistance Mission to Solomon Islands will continue to be supported with an allocation of $43.5 million.
Australia’s ongoing commitment is critical to combating international terrorism and bringing peace and stability to the people of Afghanistan. Furthermore, building stability in our own region through cooperation with East Timor and Solomon Islands is essential and can only be achieved through investment in Defence operations.
For more information and access to the Portfolio Budget Statement go to http://www.defence.gov.au/budget/11-12/index.htm
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