Mr Oakeshott asked the Minister for Defence Personnel, Materiel and Science, in writing, on 23 February 2010:

Further to his answer to question No. 1063 (Hansard, 3 February 2010, page 135), in respect of the estimate of costs to implement the Mortimer Review recommendations: can he (a) detail the basis of the proposed expenditure of (i) $69 million over the decade, and (ii) $28 million over the forward estimates; (b) detail the outcomes to date of the expended $0.5 million; and (c) provide an estimate of any savings from the proposed expenditure of $69 million.

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

1.  
   1.  
      1. and ii. The proposed expenditure of $28 million over the forward estimates and $69 million over the decade provide for the ongoing implementation of the Mortimer reforms. Examples of specific funding requirements include funding the General Manager Commercial position recommended by the Review, the recruitment of a specialist team to provide expert analysis of cost, schedule and risk implications of major project proposals and strengthening the customer supplier agreements between the Department of Defence and the Defence Materiel Organisation.
   2. Salary and other personnel-related expenses have accounted for the majority of expenditure to date. For example, the specialist team providing the analysis of cost, schedule and risk implications of major project proposals has been established.
   3. The Mortimer (Procurement and Sustainment) stream is one of the ‘non-savings streams’ of the Strategic Reform Program. While direct cost savings are not anticipated, the blueprint document entitled “Strategic Reform Program: Delivering Force 2030” released by Defence on 4 June 2009 notes that the non-savings streams “will help to keep costs down through better quality planning, cost estimation and control”. The Mortimer reforms are a critical enabler of efficiencies in major Defence capital equipment acquisitions and in the through-life support of that equipment.

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