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Annual Report 2013-14

Volume 1, Part 2 : Performance

Program 1.1: Office of the Secretary and CDF


The Secretary of the Department of Defence, Mr Dennis Richardson, AO, was appointed on 18 October 2012. The Secretary is the principal civilian adviser to the Minister and carries out the functions of an agency head within the APS. As an agency head, the Secretary has, on behalf of the Commonwealth, all the rights, duties and powers of an employer with respect to APS employees in Defence.

The Chief of the Defence Force, Air Chief Marshal Mark Binskin, AC, was appointed CDF on 1 July 2014, following the retirement of General David Hurley. The CDF has primary responsibility for the command of the ADF under the direction of the Minister for Defence. The CDF is also the principal military adviser to the Minister and provides advice on matters that relate to military activity, including military operations.

The Deputy Secretary Strategy, Mr Peter Baxter, was appointed on 28 January 2014. He is responsible for providing strategic guidance and policy advice to the Secretary and CDF, and through their offices to portfolio ministers and the Government, on central issues of Australia’s defence policy, including the development and use of Defence capability, Defence international engagement, strategic policy development and the strategic dimension of ADF operations.


The Office of the Secretary and Chief of the Defence Force’s primary objective in delivering Program 1.1 is to support the Secretary and the Chief of the Defence Force to deliver high-quality policy advice to the Government, drive organisational reform and exercise strategic leadership. The Office is administered, on behalf of the Secretary and the Chief of the Defence Force, by the Chief Operating Officer.

The Office comprises the small personal offices of the Secretary and the Chief of the Defence Force, the Strategy Executive (comprising Strategic Policy and International Policy Divisions), the Audit and Fraud Control Division and a number of military justice agencies.

The Office manages a considerable array of operational, policy, commercial, regulatory, risk and other matters associated with the Defence mission of defending Australia and its national interests.

During 2013–14, the Office continued to drive implementation of a number of strategic reforms across Defence. It implemented new measures to align Defence’s corporate functions with strategic planning and is guiding the development of the 2015 Defence White Paper.

Table 3.2: Program 1.1 deliverables

Deliverable

Status

Provide direction for the contribution of Defence to operations as directed by Government

Met

Ensure delivery of the Defence Cooperation Program within available resources

Met

Oversee implementation of agreed recommendations of the ADF Posture Review

Met

Ensure Defence’s international relationships complement broader foreign policy goals, promote security and enhance productive Defence partnerships, particularly regionally, including through the Defence Cooperation Program

Met

Guide the development of the 2015 Defence White Paper

Met

Ensure Defence strategic policy aligns with Government direction and priorities, including fiscal policy

Met

Provide policy advice on strategic issues including arms control, international collaborative programs, major capability acquisitions, industry and innovation policy

Met

Manage export control of defence and strategic goods

Met

Implementation of the recommendations of the review into the
Woomera Prohibited Area

Substantially met

The Woomera Prohibited Area Bill 2013 passed through the Parliament; the associate rule to enable coexistence is still being finalised.

On behalf of the Secretary and CDF, undertake independent audits of Defence activities, and coordinate Australian National Audit Office activity in Defence

Met

On behalf of the Secretary and CDF, take a leading role in the prevention and detection of fraud, undertake fraud investigations, and produce the Defence Fraud Control Plan

Met

Administer use of the Australia – United States Defence Trade Cooperation Treaty by Australian Government agencies and the defence industry

Met

Table 3.3: Program 1.1 key performance indicators

Key performance indicator

Status

Group-specific outcomes and programs are delivered within allocated resources and meet directed efficiency, economy measures, and economy and cultural measures

Met

Staff skills are developed and personnel management practices successfully balance competing priorities

Met

Policy guidance is forward-looking, timely, innovative and practical

Met

Defence Cooperation Program

Overview and objectives

Since the 1960s, the Defence Cooperation Program (DCP) has made up a significant component of Australia’s international defence engagement. The program:

  1. promotes the capacity of partners
  2. improves Australia’s capacity to work with partners in response to common security challenges
  3. builds strong people-to-people links with regional militaries at the tactical, operational and strategic levels.

Overall, the DCP supports Australia’s strategic interests. In line with those interests, the DCP-priority countries and regions include Papua New Guinea, Indonesia, Timor-Leste, the South West Pacific, South-east Asia, Pakistan and the Middle East. The objective is to maximise Australia’s security through developing close and enduring links with partners that supports their capacity to protect their sovereignty, work effectively with the ADF and contribute to regional security.

To achieve its objectives, the DCP includes a comprehensive suite of activities including education courses, training, personnel exchanges, capacity building, military secondments, strategic dialogues, visits, subject matter expert exchanges, infrastructure support, and exercises and operations. These activities focus on enhancing the ADF’s operational familiarity with different environments, partner capacity in humanitarian assistance and disaster relief, peacekeeping, counter-terrorism, maritime security, and military governance and professionalism.

Lines of engagement

The ADF conducts exercises with other militaries in order to build partner capacity and enhance Australia’s capacity to work with partners in response to regional security contingencies. These exercises are conducted in the air, land and maritime domains and take place both in Australia and across the region. Exercising together promotes interoperability and builds familiarity between our armed forces and those of our regional military partners.

The DCP supports the provision of education and training positions in Australia for international military personnel. Junior and senior officers from regional countries undertake short- and long-term courses at Australian military and civilian educational institutions. This training builds military professionalism by equipping participants with the skills they will use throughout their military careers. International military personnel also return home having developed a better understanding of Australia and having built networks with counterparts in the ADF. These people-to-people links are further maintained through a vibrant cohort of military alumni associations.

Australia maintains regular defence talks with regional countries in order to exchange views on regional security issues and to discuss defence cooperation priorities. The DCP also supports a program of visits by senior defence representatives to and from Australia. Through these visits, Australia gains an improved understanding of regional militaries and the strategic outlook of neighbouring countries.

Through capacity-building activities Defence seeks to develop the institutional and governance frameworks of regional defence organisations as well as the capabilities of their security forces. The DCP achieves these objectives through ADF mobile training teams, support for logistics and infrastructure development, and the posting of Defence personnel as advisers to regional defence and security organisations. Professional and capable militaries are better able to operate with the ADF and to contribute to regional security and stability.

Other Defence engagement

Beyond the Defence Cooperation Program, Australia has a significant program of other defence engagement activities with countries including the United States, New Zealand, Japan, the Republic of Korea, the United Kingdom and China. Multilateral defence engagement also complements bilateral engagement efforts and is achieved through the Five Power Defence Arrangements, the ASEAN Defence Ministers’ Meeting-Plus, the ASEAN regional forum, and contributions to United Nations missions and activities.  

Table W3.2: Defence Cooperation Program expenditure, 2012–13 to 2013–14

2012–13
actual result
$’000
2013–14
budget estimate
$’000
2013–14
revised estimate
$’000
2013–14
actual result
$’000
2014–15
budget estimate
$’000
Papua New Guinea 20,043 27,096 27,096 23,726 25,917
South Pacific Region 31,288 37,122 37,122 35,416 37,553
South-East Asia 16,952 17,049 17,049 14,691 15,822
Other regional activities 5,885 7,121 7,121 5,807 6,807
Defence International Training Centre(1) 5,066 5,498 5,498 4,938 5,855
Total 79,234 93,886 93,886 84,578 91,954

Note

  1. The Defence International Training Centre (DITC) provides training in Australia to the defence forces of South-East Asia and South Pacific nations and to other selected overseas personnel.  The DITC is managed by VCDF Group.

Table W3.3: South Pacific region expenditure, 2012–13 to 2013–14

South Pacific 2012–13
actual result
$’000
2013–14
budget estimate
$’000
2013–14
revised estimate
$’000
2013–14
actual result
$’000
2014–15
budget estimate
$’000
Timor Leste 4,241 3,740 3,740 3,523 3,717
Vanuatu 1,112 986 986 853 878
Solomon Islands 893 924 924 885 851
Tonga(1) 2,728 3,841 3,841 2,723 4,863
Samoa 202 108 108 132 116
Cook Islands 151 134 134 46 98
Republic of the Marshall Islands 142 190 190 139 171
Federates States of Micronesia 94 161 161 159 112
Tuvalu 329 243 243 104 237
Kiribati 360 171 171 133 166
Palau  284 235 235 236 376
DCP Housing 2,731 5,500 5,500 5,335 4,263
Pacific Patrol Boat Program 18,021 20,889 20,889 21,148 21,705
Total 31,288 37,122 37,122 35,416 37,553

Note

  1. The increased budget for Tonga reflects additional costs in 2014-15 for the Tongan Landing Craft acquisition.

Table W3.4: South-East Asia region expenditure, 2012–13 to 2013–14

South-East Asia 2012–13
actual result
$’000
2013–14
budget estimate
$’000
2013–14
revised estimate
$’000
2013–14
actual result
$’000
2014–15
budget estimate
$’000
Singapore 70 82 82 69 72
Philippines 3,574 3,229 3,229 2,626 2,743
Thailand 3,160 2,913 2,913 2,489 2,640
Malaysia 3,599 3,721 3,721 3,131 3,176
Indonesia 3,419 3,730 3,730 3,200 3,796
Vietnam 1,837 1,904 1,904 2,130 1,977
Cambodia and Laos 1,291 1,277 1,277 1,021 1,240
Brunei 2 21 21 5 11
Myanmar   172 172 20 167
Total 16,952 17,049 17,049 14,691 15,822