Senior Defence leaders gathered in Canberra recently for a two-day summit aimed at building a clear plan for 'Our Strategic Journey' following the release of the Government's Defence White Paper last December.

More than 200 of Defence's highest ranking officials were addressed by keynote speakers including the Defence Minister, Mr Peter Reith; Defence Secretary, Dr Allan Hawke; and Chief of the Defence Force, Admiral Chris Barrie.

Admiral Barrie told the gathering that although the White Paper provided Defence with a policy direction and had committed the necessary funds to build identified capabilities it was up to Defence to implement the policy and make ends meet.

'It is not simply a matter of following an equipment acquisition plan. We [as leaders] have the responsibility of balancing today's needs with those of the future and ensuring that our successors do not inherit a hollow force incapable of conducting the operations directed by Government,' he said.

'We have some difficult choices to make. We will inform those choices by exploring our defence intent, by being frank about our current challenges and by behaving as a united defence team in building our future force.'

Admiral Barrie said the two major challenges facing the ADF were those of people and resources.

'While the Government has funded a significant range of new capabilities we still have a significant problem in balancing our budget.

'Operating-budget shortfalls could be manifested in logistics under-funding which will impact readiness and sustainability.

'Our front-line personnel may have to resort to cannibalising equipment to keep systems running, further exacerbating their workloads and morale.

'If we fail to implement [our] people plan we will in all likelihood face further losses of good people and thus capability.'

He said people were the core of the defence capability today and in the future and if recruiting shortfalls and high loss rates were not addressed then Defence could decay to the point of irrelevance.

'I am painting a serious challenge because it is exactly that - but it is a problem that we can and must address.

'It is within our ability to resolve if we take a whole-of-defence view and leave our tribal interests behind.'

By CPL Brian Hartigan