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Australian Budget 2001-02 - Defence People Win



MEDIA RELEASE Tuesday, 22 May 2001 MIN 144/01


The Minister Assisting the Minister for Defence, Bruce Scott, today welcomed the 2001-02 Budget announcement that $400 million has been allocated over four years, from within the Defence budget, to deal specifically with high priority people issues identified in the Defence White Paper.

Mr Scott said that the money would be spent on Reserves, Cadets, and initiatives to boost retention and recruitment, and that the funding is an addition to the existing Defence Personnel Budget.

"The Government has committed an additional $20 million per annum to the Reserves as part of the White Paper initiatives," he said.

"Additional funding will complement legislative changes, that came into effect in April 2001, to enhance the Reserves' contribution to the total Australian Defence Force capability.

"Funds will be used to introduce an Employer Support Payment (ESP), obtain civil accreditation for Reserves training, enhance the Defence Reserves Support Council, and improve Reserves administration."

Mr Scott said the ESP scheme would be introduced to help defray the costs for employers who release their employee-reservists for peacetime training and deployment.

ESP payments will also be available to self-employed Reservists.

The additional funding will also help Reservists to gain civilian accreditation for the military and non-military skills they gain.

"Reservists will have nationally recognised evidence of the value of their reserve service, which will also be beneficial to the civilian workplace," he said.

The Minister said that the pressing issues of recruitment were also addressed in the Budget.

"Seventy four million of the additional $100 million confirmed in this Budget will make a significant difference to the recruitment and retention of permanent ADF members.

"The funds will promote the ADF as an organisation that offers real assistance to its people, including helping to manage the work/family balance.

"The first two initiatives are announced in this Budget.

"A new Child Care initiative will enhance the current Defence Employer Sponsored Child Care Program by providing additional Vacation Care, Before/After School Care and Family Day Care places in areas where the need for this type of support is greatest. It will provide:

* an additional child care centre in Darwin;

* a replacement and relocated centre in Liverpool;

* a new, larger centre in Williamtown;

* a new centre in Adelaide;

* a new centre at HMAS Stirling; and

* funding to investigate options for a centre in North Sydney.

"This initiative will expand the Employer Sponsored Child Care Program, around Australia, from

* 16 to 21 Long Day Care Centres;

* 4 to 12 Vacation Care Programs;

* 4 to 12 Before and After School Care Programs; and

* 75 to 110 Family Day Care Places in registered private homes."

The initiative will cost $13.2m over the period 2001-02 to 2005-06.

"The Family Support Fund initiative is designed to provide immediate welfare relief and support to families while ADF members are on deployment, or absent from their normal place of residence, for extended periods.

"The Defence Community Organisation's experience to date has demonstrated that ADF members are more likely to be happy in their work environment if they know that their families are being adequately supported while they are absent from home."

The establishment of the Family Support Fund will cost $0.1m in 2001-02.

"This 2001-02 Budget reaffirms the Government's commitment to implementing the White Paper recommendations."


Minister for Defence Media Mail List

MEDIA RELEASE The Hon. Peter Reith Minister for Defence

Tuesday, 22 May 2001 MIN 146/01


I am pleased to announce that 38 major capital equipment projects totalling around $5.5 billion have been approved for Defence in this budget. These projects will generate expenditure of around $509 million in 2001-02.

The Government's major capital equipment package is in line with a Key Finding of the Report of the Defence Community Consultation Team, that 'the public supports an increase in defence funding, and that the majority of the public viewed increased investment in our military capabilities as a prudent insurance measure.'

The package consists of new capabilities and significant enhancements for Navy, Army, Air Force, and Intelligence components of Defence.

The new equipment projects will significantly boost the ability of the ADF to operate effectively within the regional and global environments to serve our strategic interests and achieve our objectives, as set out in the Government's Defence White Paper.

The new capability decisions in the White Paper provide Defence with a plan for the development of Australia's armed forces over the next decade, matched by a commitment to provide the funds required. The Government is now delivering.

The major new projects include:

* lightweight anti-submarine warfare torpedoes;

* additional Evolved Seasparrow Missiles (ESSM) for ANZAC frigates;

* an enhanced combat training centre for Army;

* an extension of the working life of the Caribou light tactical airlift; and

* additional point Ground Based Air Defence (GBAD).

These new projects are indicative of the special priority we give to Defence as a core responsibility of Government.

Detailed background information for each of the major new projects listed is attached. A brief description of all 38 projects approved in the Budget is also attached.

Media contact: Minister's media adviser Ross Hampton 0419 484 095 Defence Media Liaison Tim Bloomfield 0404 822 361


Air and surface platform based anti-submarine warfare is an integral part of Australia's anti-submarine defences. Both surface and air based anti-submarine assets employ lightweight anti-submarine torpedoes to counter submarine threats detected in waters of variable depth. This project seeks to acquire lightweight anti-submarine warfare torpedoes to be deployed from platforms such as AP-3C Orion aircraft, Seahawk and Seasprite helicopters, and ANZAC and Guided Missile Frigates (FFGs). The ADF currently employs Mk 46 Mod 1 Phase II and Mk 46 Mod 5A torpedoes from ships and aircraft in the anti-submarine warfare role. The Mod 1 torpedoes are expected to reach the end of their economic life in 2005. The New Lightweight Anti-Submarine torpedoes will provide an enhanced anti-submarine warfare capability and replace ageing torpedo stocks. The first elements of this capability are expected to enter service from 2005.

This project will contribute to Defence Output 2: Navy Capabilities and Defence Output 4: Air Force Capabilities.


The Evolved Seasparrow Missile (ESSM) system incorporates some of the latest technology in anti-ship missile defence. Australia is part of a consortium of 10 nations participating in the development of the ESSM to replace the NATO Seasparrow missile (NSSM) as a primary anti-ship missile defence system.

This phase of the project will integrate the Evolved Seasparrow Missile (ESSM) system into ANZAC ships and purchase missiles stocks. The ESSM system will enhance ship missile defence capabilities by providing both more effective missiles and a larger number of missiles per ship. This will increase the survivability of ANZAC ships and crews by improving defences against next-generation anti-ship missiles.

The purchase and integration of missiles, and the modification of existing vertical launch systems in ANZACs 05-07 (05-WARRAMUNGA, 06-STUART and 07-PARRAMATTA), was previously approved.

This project will acquire and integrate ESSM on the last three ANZACs (08-BALLARAT, 09-TOOWOOMBA and 10-PERTH), and retrofit the system in the first two ANZACs (01-ANZAC and 03-ARUNTA).

The first elements of this capability are expected to enter service from 2004.

This project will contribute to Defence Output 2: Navy Capabilities.


The training conducted at instrumented combat training centres is an important part of developing improved combat unit effectiveness. This is achieved through the use of instrumented data collection for the post-exercise assessment of combat performance and effectiveness, allowing an objective assessment of unit readiness and combat skills, and more focused training.

This project will provide the ADF with an enhanced Combat Training Centre that will provide greater realism in field training than is possible with traditional training methods. This will enhance Army's capability to conduct war-fighting and military support operations.

The proposed capability will include (at company level) instrumented training and a suite of weapons effects simulators for direct and indirect fire weapons systems. The acquisition of this training centre will enable the ADF to develop and maintain a high level of proficiency in contemporary combat skills.

The first elements of this capability are expected to enter service from 2006.

This project will contribute to Defence Output 3: Army Capabilities.


The Caribou aircraft currently performs both troop and cargo transport functions. The most cost-effective means of continuing to provide this light transport and tactical airlift capability for the ADF over the medium-long term is to extend the life of the ADF's Caribou aircraft for ten years. The acquisition of a replacement Light Tactical Airlift Capability (LTAC) will be considered at the end of this decade.

The ADF has 14 Caribou transport aircraft that provide the capability to operate from short airfields with rough or soft surfaces. This capability allows for the supply and resupply of combat forces in locations where larger aircraft are unable to operate due to the limited length or condition of the landing strip, and where rotary aircraft are either unavailable or not appropriate for the nature of the supply task.

This project will extend the operation of the Caribou to 2010, from the previously planned withdrawal date of 2002/03. This project provides funds to cover increased maintenance costs associated with supporting a 35 year-old aircraft, and to cover costs associated with sustainment of engines and other aircraft equipment. Funding will also replenish stocks of spares, which were deliberately drawn down in anticipation of the aircraft's withdrawal from service.

Funding will be provided to support this capability from 2001/02.

This project will contribute to Defence Output 4: Air Force Capabilities.


ADF ground elements are vulnerable to air attack. Current ADF ground based air defence (GBAD) systems are able to protect a limited number of ground facilities such as operating bases, airfields or port facilities, and focal points such as a headquarters or logistics units. During sustained operations, land forces would disperse widely away from such protected areas. Additional GBAD equipment will provide these units with the ability to defend themselves against hostile air attack.

The ADF's current GBAD capability is provided by 16th Air Defence Regiment with supporting training, logistics and maintenance organisations. The Land Force component of the capability is represented by batteries of short-range air defence weapons systems. The current weapons systems are:

* Rapier Surface to Air Guided Weapons, and

* RBS 70 Surface to Air Missile System.

Rapier has had its life of type extended from 2000 to 2005, and it is proposed that current in-service RBS 70 equipment will be upgraded to extend its life of type from 2005 to 2015.

The procurement of additional sets of RBS-70 Surface to Air Missile Systems will provide GBAD to additional point assets such as headquarters or logistics units. This will enable point asset protection tasks in a number of areas of operations.

The first elements of this capability are expected to enter service from 2005.

This project will contribute to Defence Output 3: Army Capabilities.




The Caribou aircraft, which provide the ADF's light tactical airlift capability, will undergo a life of type extension to 2010.

Hornet Structural Refurbishment

This phase of the project will provide for the structural refurbishment of the F/A-18 Hornet fighter aircraft to enable the fleet to reach its planned life of 2012-2015.


This phase of the Echidna electronic warfare self protection project will further enhance the ADF's ability to protect aircraft from missile and ballistic threats.


This project will enhance the logistics capabilities of the ADF to better prepare for, deploy, and sustain operations.


This project will establish an ongoing ADF capability to respond to threats of attack from chemical warfare agents, biological agents, and radiological materials. It will provide support to civil authorities and also provide a military response capability.


This project will provide the ADF with the means to transport bulk quantities of fuel and water.


This project will provide the ADF with the capability to produce bulk quantities of potable water from a range of water sources. It will provide a long-term land based water desalination capability sufficient to support all deployable ADF forces.


This project will provide redeveloped tri-service deployable health care capabilities. A study will commence in 01-02, followed by implementation commencing in 03-04.


This project will deliver an operations centre to allow Defence to manage its many communication networks as an integrated system. In addition, it will improve the level of redundancy and the security of the networks.


Air and surface platform based anti-submarine warfare is an integral part of Australia's anti-submarine defences. This project seeks to acquire and deploy anti-submarine warfare lightweight torpedoes from various air and surface-ship platforms to replace the existing Mk 46 torpedo stocks.


This proposal supports a number of initiatives aimed at improving the effectiveness and efficiency of the ADF logistics systems.

Additional point Ground Based Air Defence

This project will provide additional point air defence weapon systems for the ADF, allowing additional units to be protected from air attack.


The RBS-70 is a lightweight man portable short-range air defence system. Its primary task is the provision of point defence to Army assets and critical components of the ADF Air Defence System, such as ground based radar. This project will extend the life of the RBS-70 portable point air defence weapon system to 2015.


This project will provide a deployable task force headquarters to support command of ADF forces deployed in the field.


The Evolved Seasparrow Missile will play a critical role in the anti-ship missile defence of Australia's major surface combatant fleet. This project will integrate the ESSM system into the ANZAC class ships and purchase Evolved Seasparrow missiles for both frigates and ANZAC ships.


This project will develop an enhanced Combat Training Centre that will provide greater realism in field training and enhance Army's capability to conduct war-fighting and military support operations.


This is a study phase to continue concept definition for the F/A-18 Hornet upgrade.


The frigates currently operate the medium range surface to air Standard missiles (SM-1). This proposal seeks to upgrade the current missile test station so that it is able to test both SM-1 and SM-2 missiles.

Maritime Communication and Information Management Architecture Modernisation

This is a study to define the cost and capability options for enhanced command, control, communications, computing, and intelligence systems for RAN Ships to enable better exchange of information between the land and sea environments.


The Air-to-Surface Standoff Weapon System project will enable the ADF to strike at a range of targets from a significantly greater distance, thus improving the survivability of both the aircraft and crew.

Military Satellite Communications Ground Infrastructure This project will provide the ground infrastructure necessary to utilise the Optus C1 satellite Defence payload to support command and control.


This project will provide secure messaging for sensitive commercial and military data, including the replacement of the current high security messaging system when it reaches the end of its useful life.


This project will replace current air command and control systems at RAAF Bases Tindal and Williamtown. The current capability will be replaced by a more modern system that will allow data to be fused from a number of sensors into an integrated air surveillance picture.


The C-130H Hercules aircraft are the backbone of the ADF's operational troop and equipment air transport capability. Under this phase of the project, minor refurbishment or upgrade will be undertaken to maintain or improve on-line availability of C-130H Hercules.


Project Echidna will provide for improved electronic warfare self protection for selected tactical ADF aircraft, to reduce their vulnerability to attack from ground based missiles and small arms.


This project will provide a full time high readiness commando capability at the 4th Battalion Royal Australian Regiment (4RAR) through the establishment and equipping of two commando companies, an operational support company and a logistic support company along with the provision of appropriate training facilities.


This project includes the acquisition of watercraft to be used in conjunction with the Amphibious Transports HMA Ships MANOORA and KANIMBLA. This enhanced landing capability will assist the ADF in the execution and sustainment of deployments.


This project will provide a new simulation capability for 16 Air Defence Regiment, which is currently equipped with short range air defence weapons systems. This will allow the collective training and evaluation of ground based air defence weapon crews and enable Army ground based Air Defence detachments to improve operational training, assessment and testing of individual and collective skills.


This project will equip the Leopard Tank with thermal sights. The new capability will provide a surveillance and gunnery sight for the Leopard tank commander and gunner by day, night and in conditions of reduced visibility, thereby significantly enhancing gunnery performance and combat capabilities.


Thermal surveillance systems will complement Army's in-service night fighting equipment, increasing the Land Force's ability to detect and monitor potential targets during the day and night, in all weather conditions.


This project will acquire Unattended Ground Sensor systems that will remotely detect, locate and recognise a range of targets from personnel to watercraft at key points of interest such as landing points, road junctions, airfields and choke points.


This project will upgrade selected vehicles and assess options for the upgrade and maintenance of the current fleet of ADF field vehicles and trailers.


The Armed Reconnaissance Helicopter project will acquire sufficient platforms to equip two operational squadrons of six on-line aircraft, plus aircraft for maintenance, training and attrition. These helicopters will have greatly enhanced reconnaissance and fire support capabilities.


This phase of the project will upgrade the F/A-18's cockpit to enable significantly improved capability in short-range aerial combat.


This multi-phase project provides automated command support systems to all the ADF's headquarters.


This is a study phase to develop and select designs for an Individual Soldier Combat System incorporating improved communications, day/night weapons sights, and body armour.


This phase of the project will acquire the HARPOON anti-ship missile system for the ANZAC class ships.


This project will enhance the hydrographic survey suites in the four RAN Survey Motor Launches, and will upgrade Australia's shallow water hydrographic survey capability by increasing the rate of effort and quality of survey.

Minister for Defence Media Mail List



THE HON PETER REITH MP MINISTER FOR DEFENCE Leader of the House of Representatives


Tuesday, 22 May 2001 MIN 143/01

I am happy to announce that the first $4.7 billion of the $23.5 billion promised in the White Paper is now a reality.

This represents the first four years of the 10 year White Paper funding plan.

In the Budget, the $23.5 billion increase for defence has been indexed to around $27.7 billion, to maintain its purchasing power in the face of future price movements.

The Government recognises that the defence of our community from armed attack is one of our highest national priorities.

The White Paper was the culmination of a year of intensive Government review of Australia's defence needs.

The 2001-02 Budget reaffirms the Government's commitment to implementing the White Paper recommendations.

Defence's funding will increase above existing levels by $0.5 billion in 2001-02, $1.0 billion in 2002-03, $1.4 billion in 2003-04 and $1.9 billion in 2004-05, and will increase overall by an average of three per cent per year between now and 2011.

In this Budget, the Government has confirmed that it will ensure that the purchasing power of the White Paper is protected against currency movements - safeguarding the White Paper's $23.5 billion promised funding into the next decade.

This Government has got Defence right, both the new capabilities and the people who are the key element of the ADF.

The funding allocated in this Budget is a clear message to all Australians and to members of the ADF that the improvements they can expect are real, not just rhetoric.

This Budget will make a real difference to the capability of our Defence force, and to individuals, organisations, and towns whose livelihood depends on supporting the ADF.

The Defence Capability Plan provides greater certainty for Australian industry and this Budget reaffirms the Government's commitment to that plan.

Defence's increasing reliance on industry, both manufacturing and service, will continue, with Defence pursuing new opportunities to integrate Australian business into Defence spending.

New Capabilities New projects outlined in the White Paper and given the go-ahead in this Budget include:

* lightweight anti-submarine warfare torpedoes;

* additional Evolved Seasparrow Missiles (ESSM) for ANZAC guided missile frigates;

* an enhanced combat training centre for Army;

* an extension of the working life of the Caribou light tactical airlift; and

* additional point Ground Based Air Defence (GBAD).

People Initiatives

The 2001-02 Budget confirms the allocation of $400 million over four years, from within the Defence budget, to deal specifically with high priority people issues identified in the Defence White Paper.

The funding will be directed to Reserves, Cadets, and the pressing issues of retention and recruitment.

The Government has made an ongoing commitment of $20 million per year towards improving conditions for members of the Reserves.

Improvements will include accreditation of training, enhancement of the work done by the Defence Reserves Support Council, surveys to find new ways to attract and retain reservists, and the provision of new technology in Reserve units.

Cadets will get a 25 per cent increase in ongoing funding from this year, with funding increased for the Cadet Scheme from $24m per year to $30m per year as a direct result of a review into the Scheme last year.

The White Paper clearly outlined this Government's commitment to expanding the participation of young Australians in the Reserve and the Cadet Scheme, and funding to meet these commitments is now a reality.

Timor and Bougainville

The Government has reaffirmed its support for Defence operations in Timor and Bougainville.

Prior to this Budget, Defence has been supplemented for the cost of operations in East Timor on a no-win, no-loss basis; any surplus funds had to be returned to Government.

The Government has decided, however, that Defence can retain up to $100m of any surplus funds in 2001-02 and $70m in 2002-03 to meet ongoing operating costs.

This will ensure that funding provided to Defence through the White Paper process will be used to provide new and enhanced capabilities, above ongoing defence operating costs.

Australian personnel are currently in Bougainville as part of the multi-nation peace monitoring group and the Budget will provide Defence with additional funding to meet the costs of this continuing operation.

Some $17.3 million is being provided for the cost of operations up until June 2001 and additional supplementation will be provided to Defence for further peace monitoring efforts beyond this date.

Cost Efficiencies

The White Paper identified a new savings target for Defence in addition to already programmed Defence Reform Program savings.

Rather than implement across-the board cuts, the Government decided that the additional savings targets should be achieved through reducing expenditure on non-critical areas without significantly impacting on capability performance.

The first round of initiatives will include a leaner, more efficient Defence commercial vehicle fleet, more cost effective use of professional service providers, continuing to civilianise military positions in non-Service Groups, reductions in energy usage, and reducing the costs of Comcare premiums.

Defence will also generate an estimated additional $440 million in 2001-02 through new sales of property, and return $260 million to the Commonwealth.

Government commitment

In December last year, we announced a new strategic direction for our armed forces, and the funding decisions announced in the White Paper were the most specific long-term defence funding commitment given by any Australian Government in over 25 years.

This Budget puts the money behind the Government's commitment to match defence funding to Australia's strategic objectives.


© Scoop Media

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