Defence: Capability Plan

Senator Chris Evans asked the Minister for Defence, upon notice, on 26 April 2002:

With reference to the following statement, 'The Government has reorganised the net additional cost of current operations. Notwithstanding this, there are likely to be some impacts on Defence capability in the near and medium term due to the need to reschedule some planned maintenance and upgrade programs.' (Portfolio Additional Estimates Statements 2001-02: Defence portfolio, page 4):

1. What programs have been affected by the rescheduling indicated in the above paragraph.
2. Can a description of each of the programs be provided, including the platform involved and relevant project under the Defence Capability Plan.
3. For each affected program: (a) what savings will be generated by the rescheduling; (b) exactly what delays are now planned; (c) what was the original timetable for the program; and (d) what impact will the delays have on future capability.analysing the results of each of the censuses.

Senator Hill - The answer to the honourable senator's question is as follows:

1. The cost of funding new measures associated with increased operational commitments in 2001-02 is being met partly through the re-phasing from 2001/02 to 2002/03 of some of the expenditure that was originally planned for a number of approved but not yet in contract major equipment projects. To preserve commercial confidentiality, and to retain flexibility in the management of its capital budget, Defence does not make detailed information on the year by year expenditure provision for particular projects available in the public domain.
2. The re-phasing of expenditure from 2001/02 to 2002/03 was applied across a number of projects. As indicated in the answer to Question 1, detailed information on the year by year expenditure provision for particular projects is not made available in the public domain. The funding reductions that have been applied in 2001/02 have not had a material impact on the timetable for the affected projects, and will not threaten the development of future capability. The funding will be restored to the affected projects in 2002/03.
3. 1. Total expenditure of $60 million was rescheduled from 2001/02, and will be restored in 2002/03, so there is no overall saving.
   2. c. and d. The $60 million is part of the expenditure that was planned for the last quarter of 2001/02. This expenditure will now start in July 2002 so the delays are minor, as are the impacts on project schedules.

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