Strategic Reform Program To Deliver $1 Billion Of Cost-reductions In 2010-11

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11th May 2010, 09:36pm - Views: 530





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SENATOR JOHN FAULKNER

Minister for Defence




Tuesday, 11 May 2010

044/2010


Budget 2010-11


Strategic Reform Program to Deliver 

$1 Billion of Cost-Reductions in 2010-11


The Defence Strategic Reform Program (SRP) will deliver more than $1 billion

in cost-reductions in 2010-11 for reinvestment in Defence capability and give

Australia a stronger, more agile and harder-hitting Defence Force.  


This builds on the cost-reductions of $797 million Defence will achieve in

2009-10.


The Minister for Defence, Senator John Faulkner, said: “The Strategic Reform

Program is a major public sector reform initiative. The SRP is a decade-long

campaign of reform that engages all areas of Defence. It will transform how

Defence works in fundamental ways. It will deliver real change.”


Over the period 2009-10 to 2018-19, the SRP will reform the way Defence

does business, freeing up internal resources of $20.6 billion to reinvest in the

development of tomorrow’s Australian Defence Force – Force 2030.  


Force 2030 is the Government’s plan to build a stronger Australian Defence

Force.  It will take years of investment and steady building to create the

military capabilities we need for national security in the future.


Senator Faulkner said, “The SRP will ensure that Defence is capable of

delivering and operating Force 2030 over the next 20 years to help keep

Australia secure in the future.”


The $1 billion in cost-reductions in 2010-11 will come from a number of reform

streams, including around $293 million from improved maintenance and

inventory management techniques and around $221 million from better

management of Defence non-equipment procurement.


There will be $384 million invested in reform initiatives in 2010-11 as part of

the SRP.  This is just one component of a $2.3 billion package of investment

provided in the White Paper to enable the implementation of reforms over the

next decade.


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“We are committed to investing the money needed to fix Defence’s ‘broken

backbone’ so that we can achieve long-term reform and cost-reductions to

reinvest in Force 2030.


“The SRP is not just about delivering savings and efficiencies. It is about

fundamental reform.  It is also an integral component of the White Paper. It is

the means by which we will build an organisation capable of delivering and

sustaining Force 2030. To be blunt, achieving Force 2030 in its full potential

will not be possible without achieving the SRP,” said Senator Faulkner.


Media contacts:

Colin Campbell (John Faulkner):

02 6277 7800 or 0407 787 181

Defence Media Liaison:

02 6127 1999 or 0408 498 664











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