Budget: Defence Equipment

Senator Chris Evans asked the Minister for Defence, upon notice, on 20 May 2002:

1. Can the Minister confirm that in the 2002-03 Defence Budget $21m of military equipment purchases were cancelled.
2. Can a list be provided of the purchases cancelled.
3. For each purchase, can the following information be provided: (a) the name of the purchase; (b) a brief description of the purchase; (c) the savings gained by the cancellation; (d) the impact of the cancellation on Australian Defence Force capability; (e) whether a contract had been signed with a contractor for this purchase; (f) if a contract has been signed, the name of the organisation that has been contracted and their location; and (g) if a contract has not been signed, the stage the purchase has reached (for example, tender released, tender chosen).
4. If there are purchases where a contract has been signed, can the Minister indicate how the cancellation will be allowed under the contract and whether there is any cost arising to the Commonwealth as a result of the cancellation.
5. If there are purchases where a successful bidder has been chosen, can the Minister indicate whether the Commonwealth will be liable, given the expectations of the bidder, for any damages because of the cancellation.

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

1. -5. $21 million of military equipment purchases were not cancelled in the 2002-03 Defence Budget.

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