Australia's defence efforts received another boost in last week's Federal Budget. The Treasurer, Peter Costello, announced increases to meet the cost of our current commitments to the war on terrorism and enhanced domestic security arrangements in the aftermath of the September 11 terrorist attacks in the United States, and for our continued commitment to maritime surveillance and border protection operations.

Overall funding rises

Overall Defence Department funding amounts to $19.3 billion for 2002-03. This is up $711 million compared to the current financial year, 2001-02, which was boosted by $1.1 billion in February after the Government was returned in the November general election. In addition to the costs of the current operations, the increases cover price rises and the impact on the Defence Budget of the depreciation of the Australian dollar.

Border protection significant

Defence Minister Robert Hill said the Budget allocation would continue Australia's contribution to the international coalition against terrorism, including Operation Slipper deployments of Special Forces, an RAN Task Group in the Persian Gulf, and RAAF refuelling aircraft in Kyrgyzstan. He said also the protection of Australia's borders was "one of the Defence Force's most significant responsibilities."

Defence and Customs have funding in the Budget to trial the high frequency surface wave radar that provides over-the-horizon border surveillance.

The Deputy Chief of Navy, RADM Brian Adams, on behalf of CN, released an all ship-all shore signal the day after the Budget was announced to provide information first-hand to describe some of the features of the Budget of direct relevance to Navy.

Capability delivery sustained

RADM Adams said that Navy capabilities would account for $5.8 billion of the funds provided by Government for our defence capabilities, and that Government will expect those capabilities to be delivered "in ways that are financially prudent and sustainable into the future."

Future Navy capabilities are also provided for - a key commitment in the Defence 2000 White Paper was the introduction by about 2013 of at least three Air Warfare Destroyers - Phase 1 studies for this long-term project will examine the ADF's future maritime air warfare capability requirements.

Capital equipment increases

Expenditure on new capital equipment investment budget will increase from $3.5 billion to $4.1 billion, with a number of Navy-related major projects well advanced - the Anzac build program, Huon Class minehunter coastal acquisition, provisional acceptance of HMAS Rankin, the last of the Collins Class new submarines, continued redevelopment of HMAS Albatross - including a helicopter underwater escape trainer and helicopter wash facility, and transition of Navy and Air Force radio network operational capability and staff to the replacement integrated high frequency communications system.

Automated sites will eventually operate in the Riverina, and at Shoal Bay, Townsville and North West Cape. The project for replacement of the Fremantle Class Patrol Boats will continue, and tenders for new ammunition storage facilities at Eden in southern New South Wales are to be called in mid-2002 - construction of the wharf began in March this year.

Recruiting & retention improve

Two weeks ago, the Navy Capability Management Committee (NCMC) met in Canberra to review funding priorities for the coming Budget year. All FEG Commanders attended, together with representatives of Navy Headquarters, Maritime Command, Systems Command, and the DMO - supported by many of their respective Business Managers. Because recruiting and retention rates have now started to improve, RAN numbers are expected to increase in 2002-03 by more than 2% to over 12,800 - the highest level since 1999-2000 - and continue to increase steadily towards the target strength of around 14,000. Funding will permit Systems Command to continue with the ongoing review and civilianisation of non-MRU billets, a commitment made by the Chief of Navy in September 2000.

Budget closely monitored

Despite continuing pressures for logistic and other support funding for Fleet units and shore elements, the NCMC agreed to recommend priority funding for a range of measures intended to strengthen the Navy's management of safety and certification issues.

As always, Navy's budget position will be closely monitored through the coming financial year to ensure funding provided by Government is applied efficiently and effectively to the highest priorities.

The full Budget 2002 Information Kit can be found at

http://www.defence.gov.au/budget/02-03/

By Les Wallace
DG Navy Business Management