SENATOR JOHN FAULKNER
Minister for Defence
THE HON. GREG COMBET AM MP
Minister for Defence Personnel, Materiel and Science
Wednesday, 1 July 2009
006/2009
DEFENCE CAPABILITY PLAN 2009 – SUPPORTING
AUSTRALIAN DEFENCE INDUSTRY
The Minister for Defence, Senator John Faulkner, today released the Defence
Capability Plan 2009 (the DCP) which will strengthen the partnership between
Defence and defence industries to secure Australia’s strategic future.
Senator Faulkner said the Defence Capability Plan (DCP) contains a large
number of opportunities for Australian industry and the Government remains
committed to ensuring that local industry is capable of supporting the
Australian Defence Force (ADF).
The DCP contains a detailed account of major capital equipment proposals
that are planned for Government consideration (either first or second pass
approval) over the period 2009/10 to 2012/13 fiscal years, and foreshadows
substantial demand beyond that period.
“This DCP contains 110 capability projects or phases with a total budget of
over $60 billion which is more than the total expenditure in the 2006-2016
Public DCP,” Senator Faulkner said.
Additionally, there is a summary of some of the major programs expected
beyond 2013.
Senator Faulkner said the average annual growth expected across the next
four years is about 4 percent per annum, translating to nearly 5000 new jobs –
from 29,000 now to nearly 34,000 in four years.
Defence will also update the web based version of the plan around every six
months to reflect government decisions including approval status and
revisions to timing or scope.
Priority Industry Capabilities
In driving a more transparent approach to defence industry planning, Senator
Faulkner announced that additional information about the Priority Industry
Capabilities would be publicly available from today, and PIC’s will be reviewed
annually.
The Government’s concern is that these capabilities remain available within
Australia, including through overseas based companies basing themselves in
Australia or investing in a local workforce and infrastructure.
Planning Information Review
In addition the Government will be commissioning a consultancy to consider
how defence planning information can be more usefully provided to industry.
“The Government will consider how the DCP can be enhanced as a tool for
industry, in the context of the new approach involving five yearly White
Papers,” Senator Faulkner said.
The Government is seeking to improve the content, quality, presentation and
utility of the information made available publicly relating to its current and
forward capability planning. The Government’s objective is to provide the
defence industry with substantive and reliable information about intended
capability acquisitions, to help inform future investment decisions and to
facilitate quality tenders for upcoming projects.
Growth Opportunities
Mr Combet said: “The industry sector charts of this DCP provide clear signals
as to where the growth opportunities are for Australian industry.
“While growth will vary from sector to sector the local expenditure in the
maritime sector for example is projected to grow by over 8 per cent per annum
over the next four years due to projects such as the Air Warfare Destroyer and
the LHD."
"The ever increasing reliance on electronic systems with complex military
equipment will also see a significant increase in local industry expenditure
within the Electronic Systems Sector. It is projected that local expenditure in
the electronics sector will grow by about 4.8 per cent per annum over the next
four years.”
“From modelling that Defence has conducted, this DCP and the ongoing and
new sustainment programs provide strong growth opportunities for Australian
industry,” he said.
A copy of the Defence Capability Plan 2009 can be found at the following link
Media contacts:
Colin Campbell (John Faulkner):
02 6277 7600 or 0407 787 181
Rod Hilton (Greg Combet)
02 6277 4771 or 0458 276 619
Defence Media Liaison:
02 6265 3343 or 0408 498 664
NEWS 
