MIN 104/96 - Tuesday, 15 October 1996
The Minister for Defence, Mr Ian McLachlan, today announced two major initiatives
in Defence policy - to increase the combat capability of the Australian Army
and details of an efficiency and effectiveness review of the whole Defence organisation.
Mr McLachlan said in a Ministerial statement to Parliament that the Government
initiative 'Restructuring the Australian Army' was designed to make the
Army more responsive, more mobile, better trained and better equipped to handle
a range of military contingencies, from the defence of Australia to offshore
operations.
He said that an internal Defence study, 'Army in the 21st Century', had found
that some Army units were not adequately prepared for combat, some suffered
from shortage of trained personnel and insufficient equipment with shortcomings
in the readiness of much of the Army Reserves.
"We aim to eliminate hollowness in Army units, by reducing the overall number
of units and redistributing personnel and equipment so that the Army can be
deployed within shorter readiness times.
"Readiness will be increased by transferring 1,000 full-time personnel from
non-combat support functions to combat units. (More details of the changes are
contained in the Ministerial statement).
"The number and effectiveness of combat troops will be increased by strengthening
the contribution of reservist soldiers.
"After an initial six weeks full-time training, ongoing training will be boosted
to an average of 50 days a year, while infantry, armour, artillery and engineers
will be organised into Task Forces that will be independent and largely self-contained.
"They will be available for deployment to different regions of Australia, and
be able to perform combat roles necessary to defend these areas.
"While these measures are being trialled and evaluated amongst selected units,
the Special Air Service Regiment's counter-terrorist capability and the Townsville-based
Rapid Deployment Force will be retained at existing high levels of readiness,
to ensure that we can respond to short notice contingencies".
Mr McLachlan said that the approximate cost of the initiatives would be $60
million in 1996/97, $120m next financial year and $200m in 1998/99.
"Costs will be met from within the Defence budget and the Army component of
the $125m cuts to administrative areas, savings from the closure of the Ready
Reserve Scheme and Army budget reallocations.
"These sources will also fund acquisitions to further develop capabilities including
night vision equipment, radios, satellite navigation equipment, laser range
finders and simulators.
"By 2000, the Army's capabilities will be significantly enhanced - the viability
of revitalising part-time Army forces will have been demonstrated in Victoria
and south east Queensland, and units in Queensland and Western Australia will
have been strengthened substantially".
DEFENCE EFFICIENCY REVIEW
The Minister announced details of the Defence Efficiency Review to be headed
by Dr Malcolm McIntosh, Chairman of the CSIRO, to review management and financial
practices to ensure that Defence eliminates unnecessary administrative practices
and focuses on core functions.
Vice Admiral Robert Walls, Vice Chief of the ADF; Dr Richard Brabin Smith, Chief
Defence Scientist; Mr Ian Burgess, AMP Chairman; Mr John Stone, former Treasury
Secretary and Mr Andrew Michelmore, General Manager for Western Mining Corporation,
are the members of the senior review panel. (Further information
in statement)
The Review will examine specific management activities in Defence with a view
to eliminating needless duplication, making appropriate use of commercialisation
options and reflect, where appropriate, modern business practices.
"I have asked that the report of the Defence Efficiency Review be completed
by 10 March, together with an implementation strategy, and I will report to
Parliament after that", Mr McLachlan said.
Further information:
Jim Bonner Ph 0419 438 490