OUTCOME PERFORMANCE

Reflecting upon the Navy's activities throughout 2005–06, I am immensely proud of our achievements during another year of significant operational demand. The Navy participated in a range of ADF operations, providing the platforms (ships, submarines and aircraft) and people critical to achieving successful outcomes in naval and joint operations in our region and around the world. Our operational achievements have been complemented by an ongoing commitment to develop and implement personnel initiatives leading to a transformation in the way people are managed in the Navy. During 2005–06, the Navy welcomed new platforms into the fleet and continued to prepare for the introduction of new capabilities to meet future operational challenges.

Operations

During 2005–06, the Navy was called upon to respond to a wide range of global peace and law enforcement initiatives, regional security concerns, illegal offshore activities, and the provision of humanitarian aid in response to natural disasters at home and abroad. The Navy's operational performance remains at a very effective level.

Highlights of the Navy's activities throughout 2005–06 included participation in a range of different operations:

• Operation Catalyst. The Navy continued its sixteenth consecutive year of commitment to maritime operations in the Persian Gulf with the deployment of HMA Ships Newcastle, Parramatta and Ballarat as part of the United States-led stabilisation and recovery operations in Iraq. In June 2006, Commodore Peter Lockwood DSC, CSC, RAN assumed command of Task Force 158, as the second Royal Australian Navy commander charged with responsibility for protecting Iraq's key oil infrastructure, conducting maritime interception operations, and training Iraqi forces to assume responsibility for their own maritime security in the future.
• Operation Anode. In April 2006, in response to civil unrest in Solomon Islands, HMA Ships Townsville and Armidale deployed as part of a multinational operation in support of coalition police forces working to restore law and order.
• Operation Astute. In May 2006, the frigate, HMAS Adelaide, pre-positioned off Dili, Timor-Leste in support of stabilisation operations in that country. This was followed by the deployment of a task force of seven ships including HMA Ships Manoora, Kanimbla, Tobruk and Success in response to the deteriorating security situation. Throughout the operation, Navy units provided transport for troops and equipment and logistics support to forces once they were on the ground.

Closer to home and throughout the year, the Navy played a central role in border protection and fisheries patrols, with 160 foreign fishing vessel apprehensions and the conduct of 302 operational boardings. Patrol boats contributed 1,809 patrol days in support of Operations Relex II and Cranberry, the coordination of intelligence and provision of surveillance information to civil authorities, and Operation Breakwater, a period of increased patrol activity conducted in tandem with the Australian Fisheries Management Authority and Customs.

People

Continuing operational commitments and the introduction of new platforms and enhanced capabilities cannot be achieved without first class personnel. The quality of the Navy's people, their dedication to the service of Australia and their outstanding achievements are world class. The Navy remains committed to introducing and implementing programs aimed at improving the work–life balance for the Navy's people and creating a work environment where they wish to remain.

'Sea Change' is a Navy program designed to research, develop and implement a broad range of initiatives aimed at improving Service life with a positive impact on Navy recruitment and retention. Initiatives aimed at keeping sailors in the Navy, especially those with critical skills, are beginning to have positive effect. Attracting the young people we will need to crew future assets such as the Air Warfare Destroyer and amphibious ships remains a key concern in a tight labour market. 'Sea Change' initiatives such as establishing waterfront career management centres and developing five-year career plans have contributed positively to greater certainty for Navy people. Trials of other initiatives—such as flexi-crewing—seek innovative ways to improve Service life by providing sailors with more options for spending time ashore with their families and to undertake training.

Ships, Submarines and Aircraft

New ships and other naval capabilities were introduced into the Navy in 2005–06 with a number of assets being replaced or upgraded. HMAS Sydney, the first Adelaide-class guided missile frigate to be upgraded, returned to the fleet in 2005–06. The replacement of the Fremantle-class patrol boats with the Armidale-class patrol boats commenced in 2005–06. The new patrol boats offer improvements in capability, sea-keeping, and habitability. In addition, the Collins class submarine combat system upgrade program progressed throughout 2005–06, including through the provision of new heavyweight torpedoes. The Sea King helicopter fleet resumed flying in 2005–06 following an intensive maintenance program conducted after the tragic loss of nine ADF members and a Sea King helicopter at Nias, Indonesia during earthquake relief operations.

Throughout 2005–06, the Navy has maintained a demanding tempo of operations, introducing new capabilities and contributing to preparations for a significantly enhanced fleet. We are proud of our collective achievements and of each individual's contribution. The Navy's priorities will continue to be operations, people and platforms as we strive to achieve success in all that we do on behalf of the Australian public.

Capability Performance Information

Output 2.1 Capability for Major Surface Combatant Operations

The surface combatant force provides the Navy with a fleet of surface ships capable of conducting a wide range of surface operations. The surface combatant force possesses combat capabilities in all three primary warfare areas (air, surface and undersea) and provides combined coalition and joint ADF command and control facilities for ADF operations. In 2005–06, the force was made up of five Adelaide-class guided missile frigates and seven Anzac-class frigates.

Adelaide-class guided missile frigates

HMAS Canberra was decommissioned in November 2005, making the Adelaide-class a force of five ships. HMAS Adelaide was planned to decommission at the end of 2006, but will now remain in service until the end of 2007 to provide the Navy with the continuity and flexibility needed to meet operational commitments, regional engagement obligations through the conduct of port visits and exercises with regional nations, and training for surface combatant fleet skills.

The FFG Upgrade Implementation project for four Adelaide-class guided missile frigates will ensure that the frigates can operate effectively in the increasingly sophisticated maritime warfare environment. The FFG upgrade contract was renegotiated with the prime contractor, ADI Limited, in May 2006, formalising the Government's decision to reduce the scope of the upgrade to four ships. The program commenced in 2003. The first ship, HMAS Sydney, returned to the fleet in 2005–06. This program is now rescheduled to be completed in 2009 to take into account the Navy's operational requirements and the terms of the renegotiated contract.

Table 2.13 Capability for Major Surface Combatant Operations

Performance Targets	Performance
Achieve levels of preparedness directed by the Chief of the Defence Force for military response options with a warning time of less than 12 months.	Achieved. Levels were met in accordance with current preparedness directives.
Achieve a level of training that maintains core skills and professional standards across all warfare areas.	Substantially Achieved. Collective and individual training in all disciplines continues to be conducted. Training throughput for some disciplines depends on ship availability.
Achieve mission capability(1) for assigned tasks.	Substantially Achieved. 90 per cent (2,666 days) for the force. Mission capability was not fully achieved due to various systems-related defects. Class achievements:Guided missile frigates—84 per cent (1,014 days).Anzac-class frigates—94 per cent (1,652 days).
5 Adelaide-class guided missile frigates—1,164 Unit Ready Days (URD)(2).	5 guided missile frigates—104 per cent (1,211 URD achieved). The over achievement was due to the early hand-back of HMAS Sydney from upgrade. HMAS Sydney was not fully mission capable, but did have the ability to undertake most tasks, thus providing an overall increase in ship availability.
7 Anzac-class frigates—1,737 URD(3).	7 Anzac-class frigates—101 per cent (1,761 URD achieved). The over achievement was due to a delay in the start of maintenance for HMAS Parramatta, which increased ship availability.

Anzac-class frigates

HMAS Toowoomba, the seventh Anzac-class frigate, was commissioned in October 2005.

The Anzac-class frigates are progressively undergoing capability enhancements including Harpoon missile, mine and obstacle avoidance sonar upgrades, and crew accommodation improvements.

Output 2.2 Capability for Naval Aviation Operations

The naval aviation force provides the Navy with helicopters for conducting naval aviation operations and is made up of 16 Seahawks, six Sea Kings and 13 Squirrel helicopters. The introduction of the Super Seasprite helicopters to operational service has been delayed by the need to resolve problems identified during the flight test program. Seahawk helicopters provide the flights for embarkation in either Adelaide-class guided missile frigates or Anzac-class frigates. Squirrel helicopters were unable to meet their training targets due to a tail rotor fault that significantly reduced their availability while this was being rectified. Kalkara target operations in support of Navy and Air Force training and missile testing met all requested tasking assignments.

Table 2.14 Capability for Naval Aviation Operations

Performance Targets	Performance
Achieve levels of preparedness directed by the Chief of the Defence Force for military response options with a warning time of less than 12 months.	Partially Achieved. Preparedness levels for the Sea King were not met. An intensive Maintenance Re-invigoration Plan has impacted on Sea King serviceability and subsequent availability. Further, the reduced size of the Sea King fleet and shortage of aircrew have also had an impact on overall availability. The Maintenance Re-invigoration Plan and aircrew shortages have had a similar effect on the other squadrons.
Achieve a level of training that maintains core skills and professional standards across all warfare areas.	Substantially Achieved. Core skills and professional standards across all warfare areas were maintained. The number of Seahawk flights at sea was reduced to meet individual training and helicopter modification requirements ashore.
Achieve mission capability for assigned tasks.	Substantially Achieved. Embarked flights and detachments were mission capable to meet all but a limited number of assigned tasks.
16 Seahawks—3,300 hours.	16 Seahawks—81 per cent (2,670 hours). Project demands on the Seahawk fleet, the Maintenance Re-invigoration Plan, and a shortage of aircrew have all combined to cause a significant but temporary decline in the achievement of flying hours.
6 Sea Kings—1,200 hours.	6 Sea Kings—82 per cent (980 hours). Sea King hours have been heavily affected by reduced serviceability as a result of the Maintenance Re-invigoration Plan.
13(1) Squirrels—3,700 hours.	13 Squirrels—77 per cent (2,832 hours). Squirrel hours were significantly affected in 2005 by a tail rotor fault that severely limited availability while the fault was being rectified. 600–700 hours were lost during the rectification period. Squirrel serviceability has also declined as a consequence of the additional administrative aspects of the Maintenance Re-invigoration Plan. In addition, a project to fit improved crew seats affected availability.
11(2) Super Seasprites—975 hours.	10 Super Seasprites—17 per cent (168 hours). There was very limited flying achieved until March 2006 when all Super Seasprites were grounded.
10 Kalkaras—available for 39 presentations.(3)	9 Kalkaras—31 per cent (12 presentations). The system was available for 39 presentations as per the contractual requirements. Only 12 were required to support Navy and Air Force training exercises and missile testing during 2005–06. One Kalkara was lost through the year in the course of a missile presentation serial.

Output 2.3 Capability for Patrol Boat Operations

During 2005–06, the patrol boat force was made up of both Fremantle and Armidale-class patrol boats. The patrol boat force continues to make a large and effective contribution to the Civil Surveillance Program (managed by the Joint Offshore Protection Command) for the protection of Australia's sovereignty, covering fisheries, quarantine, immigration and customs duties, and North West Shelf security patrols with emphasis on the protection of offshore oil and gas platforms. Patrol boats also contributed to international engagement and national security through the conduct of operations, port visits and exercises with regional nations.

At the end of 2005–06, ten (of an original 15) Fremantle-class patrol boats were in operation, and three Armidale-class patrol boats were in commission and operational. A further two Armidale-class patrol boats were undergoing operational workup in 2005–06 prior to commissioning in July 2006. The last Fremantle-class patrol boat is scheduled for decommissioning in May 2007. A further nine Armidale-class patrol boats are due to be progressively brought into service by January 2008. The mature Armidale-class patrol boat capability will be supported by a total of 21 crews. This combination of crews and hulls establishes a multi-crewing system that will result in an overall increase in operational availability and flexibility.

 

Table 2.15 Capability for Patrol Boat Operations

Performance Targets	Performance
Achieve levels of preparedness directed by the Chief of the Defence Force for military response options with a warning time of less than 12 months.	Substantially Achieved. Slight underachievement due to fluctuations in patrol boat numbers during the phase out of Fremantle-class patrol boats, against the delivery schedule of Armidale-class patrol boats and operational acceptance.
Achieve a level of training that maintains core skills and professional standards across all warfare areas.	Achieved. Levels were met in accordance with current preparedness directives.
Achieve mission capability for assigned tasks.	Achieved. 95 per cent (4,480 days) for the force. Mission capability was not fully achieved due to defect rectification and, to a lesser extent, a lack of available operational relief personnel.Class achievements:Fremantle Class—96 per cent (4,009 days).Armidale Class—92 per cent (471 days).
10(1) Fremantle-class patrol boats—4,179 URD.	10 Fremantle-class patrol boats—100 per cent (4,179 URD achieved).
3(2) Armidale-class patrol boats—546 URD.	3 Armidale-class patrol boats—94 per cent (513 URD achieved), due to late delivery and extension to unit preparation periods.

Output 2.4 Capability for Submarine Operations

This output, compromising six Collins-class submarines, provides the ADF with a capability for submarine operations, including anti-submarine warfare, maritime strike and interdiction, maritime surveillance and intelligence collection, and enhanced joint ADF operations. Two of the six submarines are fitted with augmented combat systems while the remaining four have received platform improvements to maintain capability levels until the completion of the class-wide combat system upgrade package. Installation of this upgrade has commenced with HMAS Waller, which is scheduled to complete a full cycle docking in early 2007. This submarine will be the first to enter operational service with the replacement combat system and heavyweight torpedo.

Table 2.16 Capability for Submarine Operations

Performance Targets	Performance
Achieve levels of preparedness directed by the Chief of the Defence Force for military response options with a warning time of less than 12 months.	Substantially Achieved. Not all submarines have the complete capability enhancements, such as the combat system augmentation and hull improvements, to achieve the full range of preparedness requirements.
Achieve a level of training that maintains core skills and professional standards across all warfare areas.	Achieved. All core warfare skills and professional standards have been maintained.
Achieve mission capability for assigned tasks.	Substantially Achieved. 75 per cent (1,067 days) for the force. Mission capability was not fully achieved due to systems-related defects and operational constraints imposed on HMAS Collins as a result of personnel shortfalls.
6 submarines—1,463 URD(1).	6 Collins-class—98 per cent (1,432 URD achieved). The under achievement was due to HMAS Dechaineux entering full-cycle docking ahead of schedule.

Output 2.5 Capability for Afloat Support

This output provides the Navy with the ability to undertake afloat support activities and is made up of the tanker, HMAS Westralia, and the replenishment ship, HMAS Success.

Table 2.17 Capability for Afloat Support

Performance Targets	Performance
Achieve levels of preparedness directed by the Chief of the Defence Force for military response options with a warning time of less than 12 months.	Achieved. Levels were met in accordance with current preparedness directives.
Achieve a level of training that maintains core skills and professional standards across all warfare areas.	Achieved. Levels were met in accordance with current preparedness directives.
Achieve mission capability for assigned tasks.	Substantially Achieved. 81 per cent (590 days) for the force.Class achievements:Tanker—82 per cent (300 days). Mission capability was not fully achieved due to main engine defects.Replenishment ship—79 per cent (290 days). Mission capability was not fully achieved due to replenishment equipment and system defects.
1 oil tanker—365 URD(1).	1 tanker—100 per cent (365 URD achieved).
1 replenishment ship—365 URD.	1 replenishment ship—100 per cent (365 URD achieved).

Output 2.6 Capability for Mine Warfare

Six Huon-class coastal mine hunters, two auxiliary minesweepers and two clearance diving teams provide the Navy with a mine warfare capability. The Huon-class coastal mine hunters provided mine countermeasures capability and also contributed to maritime surveillance and patrol operations. The Government decided, following the Defence Capability Review 2003, that two mine hunters were to be placed in extended readiness (a change in operational status) in January and April 2006 with the ability to bring them back into service should the need arise. The two coastal mine hunters that were planned to be put into extended readiness were reactivated and re-roled for surveillance and patrolling of Australia's maritime approaches. Two auxiliary minesweepers provided essential national tasking, route survey support and mine warfare training. The two clearance diving teams supported the full spectrum of mine warfare missions and also provided capability for explosive ordnance and improvised explosive device disposal.

Table 2.18 Capability for Mine Warfare

Performance Targets	Performance
Achieve levels of preparedness directed by the Chief of the Defence Force for military response options with a warning time of less than 12 months.	Achieved. Levels were met in accordance with current preparedness directives.
Achieve a level of training that maintains core skills and professional standards across all warfare areas.	Achieved. Levels were met in accordance with current preparedness directives.
Achieve mission capability for assigned tasks.	Achieved. 99 per cent (3,446 days) for the force. Class achievements:Coastal mine hunters—99 per cent (1,992 days).Auxiliary minesweepers—99 per cent (724 days).Clearance diving teams—100 per cent (730 days).
6(1) coastal mine hunters—1,937 URD.	6 coastal mine hunters—104 per cent (2,016 URD achieved). The overachievement was due to the two coastal mine hunters being reactivated.
2 auxiliary minesweepers—730 URD.	2 auxiliary minesweepers—100 per cent (730 URD achieved).
2 clearance diving teams—730 URD.	2 clearance diving teams—100 per cent (730 URD achieved).

Output 2.7 Capability for Amphibious Lift

This output provides the Navy with an amphibious capability and is made up of two amphibious landing ships, a heavy landing ship and six heavy landing craft. The amphibious landing ship, HMAS Kanimbla, completed a major maintenance activity in 2005–06. Despite the heavy maintenance load associated with the age of these vessels, the amphibious lift force demonstrated its preparedness for short notice contingency tasking with both amphibious landing ships, the heavy landing ship and four of the heavy landing craft assigned at various times during 2005–06 to Operation Astute. The Navy's amphibious lift capability continued to be developed through collective joint training with participation in Exercises Sea Lion 05, Sea Eagle 06 and Croix de Sud 06.

 

Table 2.19 Capability for Amphibious Lift

Performance Targets	Performance
Achieve levels of preparedness directed by the Chief of the Defence Force for military response options with a warning time of less than 12 months.	Achieved. Levels were met in accordance with current preparedness directives.
Achieve a level of training that maintains core skills and professional standards across all warfare areas.	Achieved. Levels were met in accordance with current preparedness directives.
Achieve mission capability for assigned tasks.	Achieved. 96 per cent (2,447 days) for the force. Class achievements: Heavy landing ship—86 per cent (196 days). Propulsion system, diesel generation, power distribution and air conditioning defects reduced mission capability. Amphibious landing ships—99 per cent (548 days). Propulsion system and equipment defects reduced mission capability. Heavy landing craft—96 per cent (1,703 days). Communication, support craft and propulsion system defects reduced mission capability.
1 heavy landing ship—227 URD.	1 heavy landing ship—100 per cent (227 URD achieved).
2 amphibious landing ships—535 URD.	2 amphibious landing ships—103 per cent (551 URD achieved). HMAS Kanimbla's work-up was brought forward, resulting in the slight overachievement.
6 heavy landing craft—1,800 URD.	6 heavy landing craft—98 per cent (1,769 URD achieved). HMAS Betano's refit was extended due to delay in provision of material caused by Cyclone Larry.

Output 2.8 Capability for Hydrographic, Meteorological and Oceanographic Operations

This output provides the Navy's hydrographic, meteorological and oceanographic capability and is made up of two Leeuwin-class hydrographic ships and their embarked survey motor boats, four Paluma-class survey motor launches, a laser airborne depth sounder aircraft and the deployable geospatial support team. These are all supported by the Australian Hydrographic Office in Wollongong, New South Wales. Meteorological and Oceanographic support is conducted by the Mobile Meteorological and Oceanographic Teams, the Operational Meteorological and Oceanographic Centre, the Defence Oceanographic Data Centre, the Fleet Weather and Oceanographic Centre in Sydney, and the Naval Air Station Weather and Oceanographic Centre in Nowra, New South Wales.

The Group's nautical products contribute to the maintenance of sovereignty, maritime trade, maritime safety and environmental protection. Additionally, the Group meets Australia's national obligations for provision of hydrographic services under the terms of the United Nations Safety of Life at Sea (SOLAS) Convention 1974 (as amended) and the Navigation Act 1912.

In 2005–06, the Australian Hydrographic Office focused on producing electronic navigation charts to support increasing Defence and commercial use of computer based navigation systems.

Table 2.20 Capability for Hydrographic, Meteorological and Oceanographic Operations

Performance Targets	Performance
Achieve levels of preparedness directed by the Chief of the Defence Force for military response options with a warning time of less than 12 months.	Substantially Achieved. Engine faults and defects in communications systems on hydrographic ships precluded the achievement of all preparedness requirements.
Achieve a level of training that maintains core skills and professional standards to conduct survey tasking, produce navigational information and provision of oceanographic and meteorological support.	Achieved. Core skills were maintained in all units.
Achieve mission capability for assigned tasks.	Substantially Achieved. 90 per cent (1,657 days achieved) for the force.Class achievements: Hydrographic ships—80 per cent (586 days). Engine space faults and minor defects reduced mission capability. Survey motor launches—97 per cent (1,071 days). Minor defects reduced mission capability.
Achieve HydrOcscheme 2004–07 data and surveying tasking requirements to meet national hydrographic surveying and charting obligations.(1)	Substantially Achieved. 93 per cent. Units recorded 818 Survey / Sortie Days Achieved (SDA) from 882 Survey / Sortie Days Planned (SDP). Specific achievements were as follows: Hydrographic ships—90 per cent (270 SDA from 300 SDP). The reduced SDA was due to significant engine space faults in both ships, weather constraints, and unscheduled operational commitments. Survey motor launches—99 per cent (340 SDA from 345 SDP). Laser airborne depth sounder aircraft—96 per cent (136 SDA from 141 SDP). Deployable geospatial survey team—75 per cent (72 SDA from 96 SDP). The reduced availability for HydrOcscheme tasking was due to unscheduled operational commitments.
2 hydrographic ships—730 URD.	2 hydrographic ships—100 per cent (730 URD achieved).
4 survey motor launches—1,105 URD.	4 survey motor launches—100 per cent (1,105 URD achieved).
1 laser airborne depth sounder aircraft—920 flying hours.	1 laser airborne depth sounder aircraft—93 per cent (858 hours achieved). The underachievement was due to minor defects and unsuitable weather in planned survey areas.
1 deployable geospatial support team availability 365 days; with planned deployments 146 days.	1 deployable geospatial support team—365 days availability (100 per cent) and 153 days planned deployments (105 per cent). The overachievement was due to the unscheduled commitment to Operation Astute, and participation in Exercises Dugong and Sea Eagle.
1 Australian Hydrographic Office availability 365 days; with 245 chart production days.	1 Australian Hydrographic Office—365 days availability (100 per cent) and 239 days chart production (98 per cent).
1 Fleet Weather and Oceanographic Centre—availability 365 days.	1 Fleet Weather and Oceanographic Centre—365 days availability (100 per cent).
1 Naval Air Station Weather and Oceanographic Centre—availability 240 days.	1 Naval Air Station Weather and Oceanographic Centre—240 days availability (100 per cent).
1 Mobile Meteorological and Oceanographic Team—availability 730 days; planned deployments 256 days.	1 Mobile Meteorological and Oceanographic Team—730 days availability (100 per cent) and 237 days planned deployments (93 per cent).
Chart Production: New charts/editions—67;	45 new charts/editions (67 per cent). 12 charts were delayed due to a lack of data from external agencies.
New charts/diagrams for use by the Navy—12; and	21 new charts/diagrams for use by the Navy (175 per cent). Emergent Defence requirements exceeded forecasts.
Electronic navigational chart cells—136.	66 electronic navigational chart cells (49 per cent). 32 cells were postponed due to a lack of data from external agencies, workforce restructure and training and ongoing technical problems with the digital hydrographic database. 38 cells were each 90 per cent complete and will be completed in 2006–07.
Environmental brief production: New briefs/updates—8	11 new briefs/updates (138 per cent). Emergent requirements exceeded forecasts.
Exercise-specific briefs—2.	2 exercise-specific briefs (100 per cent).
Oceanographic database production: Complete database updates—24	24 complete database updates (100 per cent).

Cost to Government

Table 2.21 Outcome Two—Navy Capability for the Defence of Australia and its Interests

	Budget Estimate(1)	Additional Estimate(2)	Actual Result	Variation(3)	Variation(3)
	2005–06	2005–06	2005–06	2005–06	2005–06
	$'000	$'000	$'000	$'000	%
INCOME
Revenue
Goods and services	52,380	76,377	113,987	37,611	49.2
Interest	–	–	10	10	–
Other revenue	41,898	61,682	23,974	–37,709	–61.1
Total Revenue	94,278	138,059	137,972	–88	–0.1
Gains
Net foreign exchange gains	–	–	–	–	–
Assets now recognised	5,328	14,242	87,787	73,545	516.4
Net gains from sale of assets	18,452	–	–	–	–
Other gains	–	–	3,793	3,793	–
Total Gains	23,780	14,242	91,580	77,339	543.0
Total Income	118,058	152,301	229,552	77,251	50.7
Operating Expenses
Employees	1,560,907	1,453,295	1,441,356	–11,940	–0.8
Suppliers	1,921,679	1,959,708	1,824,072	–135,636	–6.9
Grants	297	1,748	1,469	–280	–16.0
Finance Cost	7,749	7,351	18,467	11,117	151.2
Depreciation and amortisation	945,478	1,080,868	1,233,701	152,833	14.1
Write down and impairment of assets	12,654	36,504	419,014	382,509	1,047.8
Net foreign exchange losses	–	–	131	131	–
Net losses from sale of assets	18,452	2,729	1,659	–1,070	–39.2
Other expenses	–	4,094	726	–3,368	–82.3
Total Expenses	4,467,216	4,546,298	4,940,596	394,298	8.7
Price to Government for Outcome Two	4,349,158	4,393,997	4,711,044	317,047	7.2

Table 2.22 Breakdown of Outcome Two by Output

	Budget Estimate(1)	Additional Estimate(2)	Actual Result	Variation(3)	Variation(3)
	2005–06	2005–06	2005–06	2005–06	2005–06
	$'000	$'000	$'000	$'000	%
Output 2.1—Capability for Major Surface Combatant Operations	1,605,701	1,601,949	1,680,156	78,207	4.9
Output 2.2—Capability for Naval Aviation Operations	504,698	507,188	649,394	142,206	28.0
Output 2.3—Capability for Patrol Boat Operations	277,648	282,488	282,476	–13	–0.0
Output 2.4—Capability for Submarine Operations	779,765	776,763	824,639	47,876	6.2
Output 2.5—Capability for Afloat Support	214,290	224,558	251,950	27,392	12.2
Output 2.6—Capability for Mine Warfare	355,832	365,741	354,212	–11,529	–3.2
Output 2.7—Capability for Amphibious Lift	370,160	381,772	438,500	56,727	14.9
Output 2.8—Capability for Hydrographic, Meteorological and Oceanographic Operations	241,063	253,537	229,717	–23,820	–9.4
Price to Geovernment for Outcome Two	4,349,157	4,393,997	4,711,044	317,047	7.2

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