Defence Minister, Mr John Moore.

The Federal Government will provide $128Million in additional funding to upgrade two Collins class submarines to an "interim level" of capability by the end of the year.

The Treasurer Mr Peter Costello told of the $128M boost when delivering the 2000-01 Budget earlier this month.

The Defence Minister, Mr John Moore, then expanded on the announcement.

Apart from telling of funding increases for Defence generally, Mr Moore told of some exciting happenings for the Royal Australian Navy.

He said progress to be achieved this year on previously approved major capital equipment projects, include the launch of the sixth Collins submarine RANKIN, delivery of the fifth ANZAC, HMAS WARRAMUNGA, which will be the first ANZAC ship delivered with the integrated evolved Seasparrow missile already installed and the launch of the seventh and eight ANZACs, PARRAMATTA and BALLARAT.

The first three Seasprite helicopters for the ANZACs will be delivered along with the third and fourth coastal minehunters NORMAN and GASCOYNE.

Mr Moore said that the increase in Defence funding announced in the Budget was a clear demonstration of the Coalition Government's continuing commitment to Defence.

"Including East Timor costs, Defence departmental appropriations are up $304M compared to estimated actual expenditure in 1999-00.

"This is in line with the Government's 1998 election commitment to maintain Defence funding in real terms, and Australia's ongoing contribution to peacekeeping operations in East Timor.

"The latest Defence budget will increase the capabilities of the Collins class submarine and improve the capabilities of our Reserves.

"It will also maintain the ADF's capability to sustain a highly ready Army and meet the ADF's Olympic commitments."

Mr Moore said that additional funding of $128M had been provided to upgrade two Collins submarines to an interim level of capability by December 2000."

He said a key feature of the Budget was the Government's commitment to the Reserves.

Through legislative changes the Government wants to make the Reserves more attractive to young Australians and their employers as well as a more integrated and capable component of the ADF.

A Collins class submarine

"We also aim to improve the proficiency of our Reserves so that Australia has greater flexibility to respond at short notice to current and emerging events. With this in mind, funding has been increased by $20 m in the Budget," the minister said.

Mr Moore said total Defence departmental appropriations, excluding the capital use charge, is $12.2 billion which is 1.8 percent of GDP.

Total Defence funding from all sources for 2000-01 is $19.4 billion.

The minister said the Government will later this year release a Defence White Paper which will be a comprehensive statement of the Government's defence policy for the 21st century.

"The white paper will provide a timely contribution to the public debate on defence, in light of significant changes in Australia's strategic environment, increasing demands that are being placed on the ADF and the assessment of future, major equipment decisions.

"For these reasons the Government has taken the responsible step of restricting the number of projects that are to be approved and brought to contract this financial year.

"It is important to note that this Budget includes significant expenditure on capital investment with $3.3 billion of expenditure planned this year on capital equipment and facilities, compared to an estimated achievement of $2.9 billion in 1999-00," Mr Moore said.

He said projects approved in the 2000-01 Budget were military satellite communications ground infrastructure, aircraft self protection in collaboration with the US and support arrangements for the Australian designed NULKA missile decoy system for surface combatants.

Mr Moore listed continuing major capital facilities projects which, for the RAN, included the HMAS ALBATROSS redevelopment, the Navy ammunitioning facility at Eden and the co-location of staff colleges in Canberra.

The Minister also listed funding allocations for the next financial year for RAN projects around Australia.

He said $3.37M will go to redevelopment of the waterfront at HMAS CRESWELL, $177,000 to the remediation of Mary Creek at Jervis Bay, $16.1M for the ammunition facilities at Eden, $24.08M for HMAS ALBATROSS redevelopment, $4.46M for transfer of Naval Aviation Logistics Management Squadron from Sydney to Nowra and $400,000 to upgrade the power support facilities to support ships at HMAS WATERHEN.

On Garden Island, Sydney $35,000 will go towards upgrading facilities for the berthing of Collins submarines and $2.29M for public access to the northern end of the island.

In Darwin $9.5M has been allocated for stage one of the North Australia infrastructure including ship berthing facilities, while across at HMAS CAIRNS $3.7M has been assigned to provide services for two home-ported hydrographic ships.

HMAS STIRLING will receive $39,000 for continued facilities development to support ship basing requirements.