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Annual Report 2014–15

Volume 1, Part 2 : Performance

Programme 1.1
Office of the Secretary and Chief of the Defence Force

The Secretary of the Department of Defence, Mr Dennis Richardson, AO, is the principal civilian adviser to the Minister for Defence 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 Australian Public Service employees in Defence.

The Chief of the Defence Force (CDF), Air Chief Marshal Mark Binskin, AC, was appointed on 1 July 2014. 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 for Defence and provides advice on matters that relate to military activity, including military operations. The CDF is also responsible for implementing Defence-specific actions in the Australian National Action Plan on Women, Peace and Security 2012–2018, which relates to the role of women in armed conflict and international peace and security efforts. Full details of Defence’s achievements under the plan are included in the 2014 whole-of-government progress report and are available at www.dpmc.gov.au.

The Deputy Secretary Strategy, Mr Peter Baxter, is responsible for providing strategic guidance and policy advice to the Secretary and the CDF, and through their offices to portfolio ministers and the Government. This includes central issues of Australia’s defence policy such as the development and use of Defence capability, Defence international engagement, strategic policy development and the strategic dimension of ADF operations. During 2014–15, Mr Baxter was responsible for managing the development of the Government’s Defence White Paper.

During 2014–15, the Office managed an array of operational, policy, commercial, regulatory, investigatory, risk and other matters associated with the Defence mission of defending Australia and its national interests.

Table 3.2: Programme 1.1 deliverables

Deliverable

Status

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Key

Met

• • •

Substantially met

• •

Partially met

• •

Not met

• • •

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

Status Met • • •

Ensure delivery of the Defence Cooperation Programme within available resources.

Status Met • • •

Lead the development of the Defence White Paper.

Status Met • • •

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

Status 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 Programme.

Status Met • • •

Provide policy advice on strategic issues including strategic risks and core Defence strategy settings, arms control, counter-proliferation, counter-terrorism, international engagement, cyber, space and ballistic missile defence policy, major capability acquisitions, industry and innovation policy.

Status Met • • •

Improve the management of export control of defence and strategic goods.

Status Substantially Met • •

The introduction of an electronic permit system has resulted in a significant improvement in Defence Export Control Office response times.

The office is developing a stakeholder-centric, risk-based approach to export licensing that targets identified exports of concern while streamlining the process for legitimate trade of controlled goods and technologies.

The office is also working with industry, research and government sector stakeholders to produce better e-tools and guidance.

The Defence Trade Controls Amendment Act 2015 reduced the burden associated with new export controls. The office will support stakeholders during the 12-month implementation period, which extends until 1 April 2016.

Further enhancements will be made to the Defence export control operating systems throughout 2015 and 2016.

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

Status Met • • •

Implement the recommendations of the review into the Woomera Prohibited Area.

Status Substantially Met • •

A new legislative framework enabling co-existence between Defence and the resources sector in the Woomera Prohibited Area came into force in August 2014. Implementation of the review’s recommendations and development of associated supporting policy continue.

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

Status 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.

Status Met • • •

Provide investigative and policing advice and deliver investigative services to support discipline within the ADF.

Status Substantially Met • •

The Provost Marshal—ADF provided ADF senior leaders with policing advice to support their responsibilities under the military justice system. This included advice on the strategic alignment of Service Police capability, focused on enhancing effectiveness and efficiency in support of military justice.

Command and control measures were enhanced across the Service Police community to improve Service Police response to events that occur within the ADF.

Service Police records were provided and data support activities were conducted in support of the Defence Abuse Response Taskforce and preparation of responses to questions on notice and media inquiries.

ADF investigators maintained their focus on serious and complex matters in Australia and in deployed locations. A range of activities are in progress to enhance the efficiency and effectiveness of the ADF investigation capability, including reforms to the investigative powers under the Defence Force Discipline Act 1982, and improvements to internal business processes.

Table 3.3: Programme 1.1 key performance indicators

Key performance indicator

Status

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Key

Met

• • •

Substantially met

• •

Partially met

• •

Not met

• • •

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

Status Met • • •

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

Status Met • • •

Delivery of best practice policing and investigative services to the ADF.

Status Met • • •

Defence Cooperation Programme

Overview and objectives

The Defence Cooperation Programme has made a significant contribution to Australia’s international defence engagement since the 1960s. The programme:

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

The Defence Cooperation Programme supports Australia’s strategic interests and its defence relationships with Indonesia, Pakistan, Papua New Guinea and Timor-Leste, and countries in the South-West Pacific, South-East Asia and the Middle East. The objective is to maximise Australia’s security by developing close and enduring links with partners that support their capacity to protect their sovereignty, work effectively with the ADF and contribute to regional security.

The Defence Cooperation Programme’s suite of activities includes education courses, training, personnel exchanges, capacity-building, secondments, strategic dialogues, visits, subject matter expert exchanges, infrastructure support, and exercises and operations. These activities focus on building partners’ capacity in humanitarian assistance and disaster relief, peacekeeping, counter-terrorism, maritime security, and military governance and professionalism. The activities also help to maintain the ADF’s familiarity with the region.

Lines of engagement

The ADF conducts exercises with Defence Cooperation Programme partners in order to build their capacity and enhance Australia’s capacity to work with them in response to regional security contingencies. Exercises promote interoperability and build familiarity between armed forces. The programme also supports education and training positions in Australia for international defence and security personnel, who undertake short- and long-term courses at Australian military and civilian educational institutions. This training builds professionalism and allows participants to return home with a better understanding of Australia and with established networks among their counterparts.

Australia engages in regular defence talks with programme partners to exchange views on regional security issues and to discuss defence cooperation priorities. The programme also supports a programme of visits by senior defence representatives to and from Australia to improve our 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 Australia’s partners as well as the capabilities of their security forces. The programme achieves this by providing ADF mobile training teams, supporting logistics and infrastructure development, and supporting the posting of Defence personnel as advisers to partner defence and security organisations.

The Pacific Patrol Boat Programme has been a key element of the Defence Cooperation Programme for nearly 30 years. In that time, Australia has provided 22 patrol boats (with associated personnel and technical assistance) to 12 Pacific island countries to improve their ability to police their maritime zones independently. In 2014–15, Defence released a tender for the construction in Australia of up to 21 steel-hulled replacement patrol vessels for the Pacific Maritime Security Programme.

Defence also enhanced its arrangements for the English Language Programme provided under the Defence Cooperation Programme to Timor-Leste. In Papua New Guinea, Australia gifted the heavy landing craft ex-HMAS Labuan as a training platform to help strengthen the maritime capability of the PNG Defence Force.

Defence contracted an Australian company, Forgacs, to build a medium landing craft for Tonga. The vessel will assist with disaster relief operations and local sealift tasks. Defence cooperation with Fiji was re-established in 2014–15, and will initially focus on training, maritime security and dialogue. In support of relief efforts to Vanuatu and Tuvalu after Cyclone Pam, the programme provided funding to Samoa, Solomon Islands and Tonga to enable their Pacific patrol boats to provide assistance.

Other Defence engagement

Australia engages in a significant way with countries including Japan, New Zealand, the People’s Republic of China, the Republic of Korea, the United Kingdom and the United States. Multilateral defence engagement also complements bilateral engagement efforts and is achieved through the Five Power Defence Arrangements, the Association of Southeast Asian Nations (ASEAN) Defence Ministers’ Meeting-Plus, the ASEAN regional forum, and contributions to United Nations missions and activities.

Web table 3.2: Departmental cost summary for outcome 1

budget
estimate[1] $'000

revised
estimate[2] $'000

actual
result
$'000

Variation
$'000

%

Expenses

Employees

10,467,908

10,227,227

10,247,338

20,111

0

Suppliers

11,803,232

11,833,467

11,443,367

(390,100)

(3)

Grants

6,482

10,514

10,966

452

4

Depreciation and amortisation

4,178,150

4,288,756

4,257,845

(30,911)

(1)

Finance cost

146,644

150,625

137,869

(12,756)

(8)

Write-down of assets and impairment of assets

828,597

956,565

1,421,750

465,185

49

Foreign exchange losses

-

-

2,054

2,054

-

Net losses from sale of assets

-

-

51,643

51,643

-

Other expenses

44,883

25,013

116,734

91,721

367

Total expenses

27,475,896

27,492,167

27,689,566

197,399

1

Income

Revenue

Goods and services

795,316

817,308

849,440

32,132

4

Other revenue

848,812

854,614

790,683

(63,931)

(7)

Total revenue

1,644,128

1,671,922

1,640,123

(31,799)

(2)

Gains

Reversals of previous asset write-downs

339,091

313,518

294,866

(18,652)

(6)

Net gains from sale of assets

24,906

8,893

-

(8,893)

(100)

Other gains

5,254

5,254

37,271

32,017

609

Total gains

369,251

327,665

332,137

4,472

1

Total income

2,013,379

1,999,587

1,972,260

(27,327)

(1)

Departmental cost summary for outcome 1

25,462,517

25,492,580

25,717,306

224,726

1

Notes

  1. This table excludes capital payments for outcomes.
  2. Total aggregation of outcome 1 programmes as published in the Portfolio Budget Statements 2014–15.
  3. Total aggregation of outcome 1 programmes as published in the Portfolio Budget Statements 2015–16.

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