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Operation Slipper

Compared to 2000, the significance of the global strategic and security environment for Australia's defence and security has become much more evident. The global reach of terrorism was demonstrated by the horrific attacks in September 2001 and October 2002. The strategic environment of 2003 is being shaped by the threat of terrorism and the determination to counter it. This determination extends as well to another major global threat - the proliferation of WMD. In these international endeavours, the US with its combination of economic and military might, is increasingly dominant. These are some of the ways in which Australia's strategic environment is different from what it was when the 2000 Defence White Paper was released.

For the present, the prospect of a conventional military attack on Australian territory has diminished, because of the stabilising effect of US determination and willingness to act, the reduction in major power tensions and the increased deterrent effect of the US-Australia alliance flowing from US primacy. The implication is that for the near term there is less likely to be a need for ADF operations in defence of Australia.

Southeast Asia and the South Pacific face major challenges due to political weakness, decline in governance, difficulty in grappling with terrorism and the economic effects of terrorism. If these trends continue, there may be increased calls on the ADF for operations in Australia's immediate neighbourhood.

The changed global strategic environment, and the likelihood that Australian national interests could be affected by events outside of Australia's immediate neighbourhood mean that ADF involvement in coalition operations further afield is somewhat more likely than in the recent past. But involvement in coalition operations is likely to be of the type witnessed in Afghanistan, and which the Government has considered in Iraq if necessary - that is, limited to the provision of important niche capabilities.

In 2000, the Defence White Paper set out a Defence posture for the times, and provided a framework for Defence to structure appropriately to meet the challenges facing Australia. But our strategic circumstances have changed and this has implications for the types of conflict in which Australia might become involved, the types of operations the ADF might have to conduct, and the capabilities it might require. These new circumstances indicate a need for some rebalancing of capabilities and priorities to take account of the new strategic environment, changes which will ensure a more flexible and mobile force, with sufficient levels of readiness and sustainability to achieve outcomes in the national interest.

Incident Response Regiment

The Government has already decided to implement a number of measures as a result of the Australia's new strategic environment. These measures include increasing the size of our Special Forces, the establishment of a Special Operations Command, and enhancements to our Counter Terrorist capabilities, such as raising a new Tactical Assault Group, advancing some intelligence projects and purchasing additional, more capable troop lift helicopters, with an accelerated in- service date. In response to the threat of WMD, the Government has also directed an expansion of Chemical, Biological, Nuclear, Radiological and Explosive defence capabilities through establish- ment of the Incident Response Regiment.

For potential coalition contributions, we have improved communications systems with our allies, enhanced Electronic Warfare Self Protection measures, improved landmine protection, clearance and detection, and improved ballistic protection for some assets. In the longer term, Government decisions on the Joint Strike Fighter, Airborne Early Warning and Control (AEWACs) aircraft and the Collins class submarines will increase our ability to operate with the US and other potential partners.

Consideration of other Defence Capability Plan modifications will be ongoing. Australia's strategic environment has changed. The threats of terrorism and WMD are real and immediate. For the foreseeable future, any ADF operations are likely to occur within the context of regional contingencies, the War on Terror, efforts to counter the proliferation of WMD or to otherwise enhance global security and stability.

Airborne Early Warning and Control aircraft

Joint Strike Fighter