Defence Materiel Organisation: Mortimer Review

Mr Oakeshott asked the Minister for Defence Personnel, Materiel and Science, in writing, on 29 October 2009:

1. What action has been taken to implement each of the recommendations of the Mortimer Review of the Defence Materiel Organisation.
2. As at 28 October 2009, what sum of money had the Government spent on implementing the recommendations.
3. From 28 October 2009, what does the Government estimate will be the remaining cost of implementing each recommendation

Mr Combet - The answer to the honourable member’s question is as follows:

1. The 2008 Defence Procurement and Sustainment Review (the Mortimer Review) examined the entire capability life cycle for defence equipment across the Department. It was not a review of the Defence Materiel Organisation alone. The Government agreed to 42 of the 46 recommendations in full and to the partial implementation of a further three. The recommendation that DMO be made an Executive Agency was not agreed. Implementation of the Review is progressing, and a number of recommendations have already been fully implemented. These include the creation of an independent sustainment efficiency office with the DMO, the direct appropriation of service fee funding to the DMO, and the codification of arrangements for the management of the DMO workforce.
2. and (3) Defence is unable to provide costing information for the implementation of each individual recommendation. The estimated cost for the implementation of the Mortimer Review as a whole is $28 million over the forward estimates and $69 million over the decade (2009-10 out-turned figures) of this, approximately $0.5m has been expended to date.

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