CORRECTING THE RECORD
The Facts | Letters to Editors
On this page, we set the record straight to correct any inaccuracies in media reporting of DMO issues.
6 July 2009
In his article of 6 July 09 in the Sun Herald, Adelaide Advertiser, Courier Mail and Daily Telegraph, Mr Ian McPhedran:
Asserts that local companies and governments are reluctant to join the JSF’s global supply chain.
Asserts the Government has refused to assist companies wanting to join the JSF Program.
Quotes sources that imply that the Australian Government should have heavily subsidised local companies against a viable business case.
In response:
Securing opportunities for Australian industry was one of the key benefits identified in Australia becoming a partner in the JSF Program. Some 60 Australian companies remain very actively engaged in the JSF Program as part of JSF Team Australia (i.e. all-of-Government and all-of-industry working together) to maximise returns from our involvement in the JSF Program. To date, 25 Australian companies have won about A$220 million in JSF design and production contracts. Future JSF work is estimated at many billions of dollars over the total global JSF production run – expected to be over 3,000 aircraft. This prospective work includes several major opportunities and a large number of smaller opportunities ideally suited to Australian SMEs. Also, in the future, JSF sustainment and JSF follow-on development will provide several billion dollars worth of work for Australian industry.
Federal and State Governments have worked closely with Australian industry throughout our involvement in the JSF Program. A key role for Government has been to open doors and remove obstacles for Australian companies trying to enter the global supply chain for the JSF – this has been particularly important for SMEs competing in a very competitive international market. Australian companies have acknowledged, and appreciated, the level of facilitation support from Government.
Recognising that the traditional ‘offsets’ approach is not an efficient way to develop long term industry capability, Government has for JSF since 2002, focused on facilitating Australian industry's engagement in the JSF global supply chain on a best value basis. Australian companies decide if the business case attendant in particular opportunities is commercially viable, which in some instances, they decide are not. Government has provided some financial support but will only consider such financial support where there is a commercially viable, long-term proposition.
Air Vice-Marshal J.P. Harvey
Program Manager New Air Combat Capability
7 Jul 2009
3 July 2009
In his article of 3 July 09 in the Australian, Mr Mark Dodd:
Suggests that RAAF Base Amberley will ‘play host’ to the Joint Strike Fighter (JSF) in 2017.
Reports Australia has ‘tentatively ordered’ 100 JSF, and infers that ‘the bulk of the new aircraft are expected to be deployed to Amberley with the remaining warplanes sent to RAAF Tindal’.
Reports statements that ‘it is well documented that the JSF will be at least twice as loud as the aircraft it is replacing’ (i.e. F-111 and F/A-18A/B).
In response:
While it is expected that one operational squadron of JSF will eventually be based at RAAF Base Amberley, this is not likely to happen before about 2020. A final decision on when the JSF will be based at RAAF Amberley will be made in conjunction with a decision on the life of the Super Hornet aircraft that will be based at RAAF Amberley from 2010. The majority of JSF are expected to be based at RAAF Williamtown and RAAF Tindal, similar to current basing arrangements for the F/A-18A/B Hornets.
No order for JSF aircraft has yet been placed by the Australian Government. A formal acquisition decision on the JSF, and specific timings for the JSF’s introduction, will be made when the Government considers Second Pass approval for the New Air Combat Capability project, currently planned for late 2009.
In regard to JSF noise levels, Defence funded extensive noise testing in late 2008—the most extensive noise testing ever conducted for a combat aircraft. The tests indicate that while the JSF will be noisier than current F/A-18 A/B Hornet aircraft in some phases of flight, it will be less noisy in others. For example, the JSF will be quieter than the ‘classic’ Hornet in cruise and approach but will be noisier than the ‘classic’ Hornet on take-off.
Defence plans to publicly release available noise data as part of a consolidated information package about the expected environmental impacts resulting from the introduction of the JSF. Consideration of any impact on local communities will be undertaken during a consultative and transparent Public Environment Report and Environmental Impact Assessment process, currently planned to start in September 2009. Air Force will continue to take all possible measures to minimise the effects on the community whilst ensuring its operational effectiveness. Defence will ensure communities are involved in the planning process, know what to expect and understand the timeline for implementation.
Air Vice-Marshal J.P. Harvey
Program Manager New Air Combat Capability
7 Jul 2009
8 January 2009
In his article of 7 Jan 09 in the Australian Financial Review (AFR), Dr Dennis Jensen MP, Member for Tangney:
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Maintains that Joint Strike Fighter (JSF) advocates continue to cite security restrictions to largely avoid answering questions about JSF capabilities.
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Remains sceptical about Defence’s reporting of JSF costs.
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Supports Air Power Australia (APA)’s recent assessment that the JSF is not as stealthy as claimed and can therefore not perform the missions for which it is designed.
- Argues that the JSF’s reliance on its networking capabilities is flawed.
In response:
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Defence has never claimed that the JSF contains “secret capabilities, the fundamentals of which are not known in the public domain”. Specific performance details of JSF capabilities are, however, highly classified and tightly controlled to protect US technology and avoid compromising a key defence capability.
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Defence JSF cost estimates have been consistent and accurately stated throughout our involvement in the JSF Program. Defence’s New Air Combat Capability Project estimates have been based on official US JSF Program Office estimates plus considerable levels of contingency to cover acknowledged cost risk. Confusion remains in sections of the community, however, because there is no simple JSF project cost description as costs are dependent on what elements are included, the currency used, the exchange rate applicable and the reference year.
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APA’s analysis of the JSF’s stealth characteristics is flawed based on a number of incorrect assumptions, simplistic modelling, lack of operational analysis and lack of knowledge of sensitive performance information.
- Dr Jensen’s statement that ‘networking also requires transmission of data, and any transmissions can be detected and tracked, compromising the stealthiness of the transmitting platform’, is fundamentally incorrect. Read more here.
22 February 2008
The Crikey website yesterday published the following on its 'tips and rumours' section: "Which high paid, senior federal public servant travels each week between Canberra, where he works, and his home and family interstate? He clocks up a lot of airfares, FFs and taxi fares. Who foots the bill? Would he be defensive about answering such questions?" Oh, that's easy. That would be Dr Steven Gumley of the DMO whose salary is higher than even the Secretary of Defence."
- The segment published on the Crickey website's 'tips and rumours' section relating to the head of DMO, Dr Gumley, is a spurious misrepresentation of the facts relating to Dr Gumley's appointment.
- Dr Gumley's salary and the requirement for him to pay his own travel expenses between Canberra and Melbourne are a matter of public record.
- Dr Gumley pays for all his travel between his Canberra workplace and his Melbourne residence out of his own after-tax salary. He does not claim a travel allowance from the Commonwealth for travel between Canberra and his Melbourne residence. There is no benefit to him in respect of tax deductions.
- Dr Gumley's name is Stephen, not Steven, as in the published segment on Crikey.
9th November 2007
The Story: Media reports of a delay in the delivery of the KC-30B tankers, and the RAAF facing an in-flight refueling capability gap.
The Facts: The original contracted date for first aircraft
delivery, as signed in 2004, was December 2008, and this date has since moved
to February 2009 to accommodate cockpit design changes. Read
more here.
30 October 2007
The Story: The Australian Broadcasting Corporation’s Four Corners program on Monday 29 October 2007 featured criticisms of Australia’s air combat capability.
The Facts: The Super Hornet is a battle-proven, multi-role
aircraft that is clearly the only capable, available system which meets Defence’s
requirements in the next 8-10 years. The Super Hornet is the best aircraft to
meet Australia’s bridging air combat requirements as we prepare for a
Joint Strike Fighter-based future, subject to government decision.
Read more here.
21 September 2007
The Story: Defence would like to correct the record, in response to errors made in the ‘Labor takes aim at DMO' article which appeared in the Australian Financial Review on Friday 21 September.
The Facts: In his article, the journalist misinterprets comments made by Mr Kinnaird, Chairman of the 2003 Defence Procurement Review, who said a benefit of DMO reform would include the "establishment of clear separation between capability development and delivery and maintenance of equipment". In his article the journalist paraphrases Mr Kinnaird incorrectly, stating instead, that a benefit of DMO reform would be to separate capability development and maintenance arms of the DMO.
This is incorrect - Kinnaird was talking about the separation of capability development, now led by Lt Gen Hurley and Defence procurement, now led by DMO CEO Dr Stephen Gumley - this separation occurred in 2004. Kinnaird did not intend that the acquisition and maintenance functions within DMO should be separated. Click here to read the full version of the 2003 Defence Procurement Review http://www.defence.gov.au/publications/dpr180903.pdf
The article also uses out of date information - DMO's annual budget is $9.6 billion (roughly half of which is acquisition and half is sustainment) and DMO's current staff level is approximately 7,000 - not 6,000 as reported.
5 September 2007
The Story: In response to the ‘First Word’ article in yesterday’s Sydney Morning Herald, Defence would like to confirm a few facts in relation to the commentary.
The Facts: Firstly, the selection of the Hobart Class destroyer (Australianised F100) was subject to one of the most detailed and intensive analyses ever undertaken by Defence and the Government. Secondly, the Hobart Class will not be an orphan platform but an addition to a five, soon to be six ship class. With its Aegis combat system it is highly interoperable with Australia’s allies and will be able to fully integrate with a United States carrier battle group.
Finally, South Australia is home to some significant Defence capabilities including naval construction, project management and associated systems and integrations companies.
The description of this program as ‘ill-conceived’ is simply not correct. Defence is confident that the Hobart Class destroyer offers the best solution in line with strategic objectives, including capability, cost, schedule and project risk considerations.
16 August 2007
The Story: Today’s edition of the Courier Mail features an article by Mr Ian McPhedran titled ‘Helicopter ship ban: No-flight deck cost $8m.’ Mr McPhedran claims helicopters have been banned from using the flight deck fitted to the Navy’s replenishment ship HMAS Sirius.
The Facts: Aviation modifications were carried out on HMAS Sirius to provide a Vertical Replenishment (VERTREP) capability. This VERTREP capability involves a helicopter hovering over the ship's deck to transfer underslung loads, typically pallets of stores or food. The modification also provides a transfer capability which allows the ability to transfer persons or equipment by the helicopter's winch. The aviation flight deck modifications were designed to accommodate naval helicopter landings in the event of an emergency only, not as part of normal operations.
8 August 2007
The Story: Today's article in the Adelaide Advertiser finishes with the incorrect statement that: This year the DMO's 7000 staff will manage a record $20 billion worth of defence contracts.
The Facts: The $20 billion is the amount of new 'project' approvals DMO expects in 2007 alone. The total portfolio of 'acquisition' projects (approved and unapproved) runs to some $60 billion.
26th July 2007
The Story: Media reports of a communications gap between the new M1A1 Abrams Tanks and the US forces.
The Facts: Australian Abrams tanks can operate safely with and communicate effectively with US and other coalition forces. The vehicle is fitted with two voice radios that are capable of communicating with any coalition radio operating in the same mode and on the same wavelength. Read more here.
13 March 2007
The Report: DMO project schedule and budgets in The Australian Financial Review article ‘Defence faces $10bn project delays’.
The Facts: DMO Chief Executive Officer, Dr Stephen Gumley made the following statement: “DMO intentionally takes on and manages some of the riskiest projects in Australia to provide our war fighters' with the best possible advantage. We are not risk adverse.” Read more here.
March 2007
The Story: Jane’s International Defence Review feature in its March 2007 edition highlights that Australian defence companies work under particularly tight export rules and the shortage of skilled personnel is a continuing local problem.
The Facts: Defence expenditure will increase significantly over the next decade - there is more than sufficient work for Australia 's defence industry base. Read more here
21 February 2007. Program Manager, New Combat Capability Project, Air Vice-Marshal John Harvey, responds to an article suggesting claims that the United States would not sell Australia the F-22 Raptor are bizarre. (The Age, 20 February 2007, p13.) Read the full letter
5 February 2007. Deputy CEO Kim Gillis responds to claims that DMO has been criticised by the audit office over ship defects (HMAS Sirius). (The Age, 5 February 2007). Read the full letter