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Implementing the White Paper

The Defence White Paper, Defence 2000: Our Future Defence Force, released in December 2000, set the Government's long-term direction and capability enhancement framework for Defence embodied in the Defence Capability Plan.

In February 2003, the Minister for Defence released Australia's National Security: A Defence Update 2003. The review identified the emergence of new and more immediate threats from terrorism, a renewed attention to the consequences of failing and failed states in our region, and increased concerns about the proliferation of weapons of mass destruction as the major changes to our strategic environment.

The review canvassed the implications of the changed strategic environment for Australia's defence posture and concluded that it called for an increased emphasis on readiness and mobility, interoperability, the development and enhancement of important new capabilities and, where sensible and prudent, a reduced emphasis on capabilities of less importance.

In light of these recommendations, recent operational experience and more mature costings of equipment projects, Defence re-examined its capabilities and the Defence Capability Plan through the Defence Capability Review to ensure that the plan continued to reflect our capability requirements in the changed strategic environment. The Government announced the outcomes of the Defence Capability Review in November 2003.

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Overview of 2003-04

In 2003-04, the Defence Capability Review reaffirmed that the defence of Australia and regional requirements should be the primary drivers of force structure. Tasks such as the protection of Australia's borders remain as important as ever.

In relation to force structure, the review process identified areas requiring a rebalancing of capability and expenditure. These included an increased requirement to strengthen the effectiveness and sustainability of the Army, to provide air defence protection to deploying forces and to enhance their operational and strategic mobility.

In considering the review, the Government sought to strike the right balance between maintaining near-term preparedness and longer-term capability. The Government made a number of decisions during the Defence Capability Review that have resulted in some rebalancing of the Defence Capability Plan released in February 2004.

In addition to the Defence Capability Plan, which covers the acquisition of new equipment, Defence also takes into account other fundamental inputs to capability, through investment in personnel, facilities, training, doctrine, command and management, organisational and materiel support.

A list of the acquisition projects approved by the Government in 2003-04 is provided in the table below.

Table 1.1 List of Major Capital Equipment Projects Approved by the Government in 2003-04(1)(2)(3)
Project No Phase Name Project Cost
Band $m		 Status as at
30 June 04
Support to the development of the Major Capital Equipment Program
JP 2089 Phase 1 Tactical Information Exchange Domain - Project Definition Study Less than $10m 1
SEA 4000 Phase 1C Air Warfare Destroyer Study $10m to $20m 1
Capability Technology Demonstrators $10m to $20m Various
Project Development Funding $10m to $20m Various
First Pass Approval
LAND 121 Phase 3A Overland-Field Vehicle and Trailer Fleet - First Pass Funding $10m to $20m 4
Second Pass Approval
AIR 5077 Phase 3 Airborne Early Warning and Control $250m to $350m 1
AIR 5276 Phase 5A AP-3C Orion Enhancement $10m to $20m 1
AIR 5276 Phase 8A AP-3C Orion Electronic Support Measures $10m to $20m 2
AIR 5376 Phase 2.3 F/A-18 Hornet Electronic Warfare Self-Protection Upgrade $250m to $350m Various
AIR 5376 Phase 3.1A F/A-18 Hornet Structural Refurbishment $50m to $75m 1
AIR 5376 Phase 3.2B F/A-18 Hornet Structural Refurbishment $150m to $200m 3
AIR 5409 Phase 1 Bomb Improvement Program $50m to $75m 4
AIR 5416 Phase 3 Enhanced Electronic Warfare Self Protection for F-111 $30m to $50m 4
AIR 5416 Phase 4A C-130J Electronic Warfare Self Protection $20m to $30m Various
DEF 224 Phase 2B Force Level Electronic Warfare $150m to $200m 4
JP 1 Phase R Harpoon Missiles Replacement $30m to $50m FMS purchase(4)
JP 2025 Phase 5 Jindalee Operational Radar Network Upgrade $50m to $75m 4
JP 2047 Phase 2A Defence Wide Area Communications Network $10m to $20m 4
JP 2048 Phase 4A HMAS Tobruk Replacement (Risk Reduction/Design Activity) Less than $10m 4
JP 2065 Phase 1 Integrated Broadcast System $10m to $20m 4
JP 2070 Phase 3 Lightweight Torpedo $200m to $250m Alliance contract not yet achieved
JP 2080 Phase 2A Defence Management Systems Improvement Less than $10m 4
JP 2085 Phase 1B Explosive Ordnance Warstock $150m to $200m Various
JP 8001 Phase 2B.1 Headquarters Joint Operations Command Collocation $250m to $350m 4
LAND 907 Phase 1 Main Battle Tank Replacement $450m to $600m FMS purchase(4)
SEA 1102 Phase 3A Laser Airborne Depth Sounder Replacement $10m to $20m 4
SEA 1442 Phase 3 Maritime Communications and Information Management Architecture Modernisation $30m to $50m 4
SEA 1448 Phase 2A ANZAC Anti-Ship Missile Defence $450m to $600m 1
SEA 1654 Phase 2A HMAS Westralia Replacement $100m to $150m 1

Notes

  1. This list excludes highly classified projects.
  2. This list includes a number of projects that were originally planned for approval in 2001-02 or 2002-03.
  3. This list excludes a number of projects that support the development of the new major capital equipment program.
  4. Foreign Military Sales.
Key to Project Status Categories
1. Project under way (contract signed).
2. Tender closed.
3. Out to tender.
4. Yet to go to tender.

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