01 May 2012

News Story: Anger as (Australian) Defence set for $3bn budget hit


MARK DODD

THE Gillard government looks set to save more than $3 billion in the budget by deferring or axing a clutch of defence programs, with the Royal Australian Air Force likely to bear the brunt, experts said yesterday.

A long-delayed decision on a $1bn self-propelled artillery purchase for the army looms as a prime candidate for the budget chopping block.

F-35 Lightning

Bigger savings could be made by deferring other major military programs including the troubled F-35 Joint Strike Fighter.

Analysts say that every year Defence Minister Stephen Smith stalls on the $16bn JSF program, an ambitious acquisition for 100 stealth-equipped strike aircraft, it saves $500m.

C-27J Spartan

Mr Smith is also likely to defer upgrading 12 pre-wired F/A-18F Super Hornets to the EA-18G Growler electronic warfare variant despite buying $19 million of equipment to enable the conversion. 

The government has been dragging its feet on a $1bn replacement for the Caribou transport, a decision complicated by the RAAF's desire for the Italian-made C-27J Spartan ahead of Airbus Military's cheaper off-the-shelf C-295.

Read the full story at The Australian