$ 51 Billion Defence Capability Plan FOR 2006-2016

Today I am releasing to the Australian defence industry, the public version of the Defence Capability Plan (DCP) 2006-16. It outlines more than $51 billion of major capital equipment proposals which are planned to be evaluated by Government over the next decade.

This DCP is fundamentally affordable and achievable. The proposals it contains are essential to deliver the capability required by the Australian Defence Force (ADF) to maintain Australia’s security.

The Budget announced investment of an additional $2.4 billion over financial years 2011-12 to 2015-16. This continues the additional 3 per cent funding over 10 years announced by the Government in the 2000 Defence White Paper.

The additional funding by Government enables the DCP 2006-16 to address the rise in the price of military platforms and technology. Providing a public version of the Defence Capability Plan to Australian industry is a key part of ensuring that the ADF will continue to have the major equipment and systems it needs to do its job

The DCP 2006-16 is a major document produced periodically from an ongoing review of defence capability requirements. Australia’s National Security – A Defence Update 2005 fed into this review process and largely influenced the DCP 2006–16.  This DCP brings our equipment acquisition and capability development strategy over the next decade into line with our increasingly complex security situation.

The DCP will deliver the capabilities required by the ADF to maintain Australia’s security and strengthen our ability to promote our national interests. The DCP is based on advising capability effects and outcomes rather than platform replacement. This change from being solution focused to outcome focused is associated with improved capability development processes under the successful Kinnaird reforms.

This DCP retains a degree of planning flexibility to manage the risk of unforeseeable and uncontrollable events occurring through changes in the strategic environment, technological development and the ability of defence industry to meet global demand.

I look forward to seeing these projects come into being through the capability development and procurement process.  When the projects in this public Defence Capability Plan 2006-16 are realised, our sailors, soldiers and airmen and airwomen will be well placed to counter the future threats to our way of life.  

Some of the major features of this public version of the DCP are:

·         Modifying our helicopter plans to reduce the number of aircraft types and to create a common joint training and management system.  More than $3.7 billion of project funding has been set aside to achieve this aim. 

·         The addition of more than $500 million of new naval surface capability projects to enhance the ANZAC class air search radar system and to develop undersea warfare detection capabilities, and sea mine counter-measures in 2017 to 2019.

·         A 40 per cent boost in funding for Army networking projects as part of the Hardened and Networked Army initiative.  The networking enhancements will support Network Centric Warfare capability and are to be introduced across the majority of Army units. Better understanding of the requirements of the Land 17 phase 1 project means that Army’s 105mm and 155mm artillery replacement will be safely deferred for three years whilst Army’s Ground Based Air Defence capability will be enhanced from around 2018 to 2020 in a new project valued at more than $750 million .

·         Continuing the projects to support Australia’s air combat capability - including a $350 to $450 million mid-life upgrade of the Hawk lead-in fighter in 2017 to 2019 and future upgrades for the Wedgetail Airborne Early Warning and Control aircraft.  Prudent planning sees additional provision made for the F/A-18 Hornet structural refurbishment to ensure sufficient aircraft maintain operational capability in the transition to the New Air Combat Capability.

·         Building on the Government’s recent decision to acquire a heavy airlift capability, the DCP retains around $1 billion to refurbish or replace the C-130H Hercules and Caribou aircraft fleets. More detailed analysis of the lifespan of the Orion AP-3C means that the decision to refurbish or replace the ADF’s maritime patrol aircraft can be deferred for 2 years. This DCP also sees increased funding of more than $250 million for the Multi-Mission UAV project – AIR 7000 Phase 1B.    

·         Greater funding for the ADF’s military satellite communications capability with more than $1 billion to be invested in next generation satellite and ground station infrastructure to ensure continuity of service and flexibility through digital content. 

·         Continued improvements to Defence’s core enterprise systems including a new improved logistics management system project valued at more than $350 million and operational in 2012 to 2014. 

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