Defence: Projects

Senator Chris Evans asked the Minister for Defence, upon notice, on 10 July 2002:

With reference to question 26 from the 2000-01 additional estimates hearings of the Foreign Affairs, Defence and Trade Legislation Committee (Additional Information Received-Additional Estimates 2000-01, Defence Portfolio, Volume 1, May 2001, pp 55-57): Can an updated response be provided to this question, that is, a table showing the projects subject to delays or cost overruns to date.

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

The question is answered by comparing the table provided in the original answer to the current "Top 20" projects as at 15 September 2002. The "Top 20" projects are the 20 projects with the highest total project approval value as per the 2002/03 Portfolio Budget Statements (December 2002 prices). These "Top 20" projects represent approximately 54% of Defence's total major capital investment program.

In respect of the table relating to real variations to project approved budgets, only one project, Air-to-Air Weapons Capability, appears in both tables. It has not had any real increases to its project approved budget since the last report.

In respect of updating the table for project delays, in terms of current contract schedules, the following information is provided:

1. Project Bushranger negotiated a revised contract and now reports no delays;
2. The New Submarine project - reduction in delays of 12 months;
3. P3C Update Implementation - reduction in delays of 26 months, now on schedule;
4. Australian Defence Air Traffic Control System - reduction in delays of 13 months; and
5. Anzac Ship Helicopter - further delay of 25 months.

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