THE HON. JOEL FITZGIBBON MP
Minister for Defence
Tuesday, 12 May 2009
090/2009
BUDGET 2009-10
DEFENCE REMEDIATION
The Minister for Defence Joel Fitzgibbon affirmed today that the Rudd
Government would invest approximately $30 billion over the decade to fill
the holes in the Defence budget that have been inherited from the former
Government.
“The former Government failed to recognise that funding Defence capabilities
is far more complex than simply the purchase price of new equipment,”
Mr Fitzgibbon said.
These shortfalls are a direct result of the failings of the past Government,
which did not properly fund a wide range of critical support areas across
Defence or accurately calculate the costs of maintaining and operating major
military equipment. The Defence White Paper process undertook detailed
examination of all major aspects of the Defence organisation, and revealed
areas that had previously been significantly under-funded and required
remediation. The remediation will occur across three main areas; the Defence
Capability Plan (DCP), budget provisions and the enterprise backbone.
The Government will invest almost $6 billion over the next decade to
remediate the DCP, which includes almost $1 billion within the forward
estimates. The DCP remediation fills critical equipment and capability gaps
that were not previously budgeted for. This includes acquiring both new
technology and replacing current equipment that is reaching obsolescence.
Examples include ensuring that the Navy has Mini Typhoon self defence
systems for the ANZAC frigates, new mortar weapons for Army and the
replacement of Heavy Landing Craft and Ocean-going tugs.
The Government will invest almost $18 billion over the course of the next
decade to remediate budget provisions within Defence; this includes over
$4 billion dollars over the forward estimates. The remediation of Budget
provisions involves the unavoidable costs associated with maintaining the
current force where no, or inadequate, budget provisions had been made in
the past. The largest example being the Net Personnel and Operating
(NPOC) costs for the operation and sustainment of major equipment, which
includes fuel, personnel wages, spare parts, maintenance and facilities
upkeep. The NPOC shortfall totals almost $10 billion over the decade.
The Government will invest almost $6 billion over the next decade to
remediate the enterprise backbone; this includes over $1 billion dollars over
the forward estimates. The support backbone involves remediating critical
support areas of Defence that have been run-down over recent years,
including the Defence estate and information and communications technology
(ICT) systems.
One example of the remediation required in this area is the Townsville wharf.
Townsville is one of two primary locations for mounting Australian Defence
Force operations, and will be essential for the loading and offloading of the
Navy’s Landing Helicopter Dock ships when they enter service from 2014.
The requirement for a berth that could accommodate the new ships was
deliberately not planned or funded by the former Government thereby hiding
future costs associated with the Landing Helicopter Docks ships.
Media contacts:
Christian Taubenschlag (Joel Fitzgibbon):
02 6277 7800 or 0438 595 567
Defence Media Liaison:
02 6265 3343 or 0408 498 664
NEWS 
