AUSTRALIA’S DEFENCE POLICY

 

Speech to the Australian Defence Magazine Congress 2009

17 February 2009

 

Check against delivery

 

 

THE HON. WARREN SNOWDON MP:

 

Introduction

Thank you very much for that kind introduction

 

Australian Defence Magazine is an impressive Defence business magazine…taken seriously by the Government, and Defence leaders, if today’s audience is anything to go by…

 

and I’d like to congratulate ADM on what looks to be a very interesting and successful congress.

 

I’d also like to acknowledge the Ngunnawal people, the traditional owners of this land.

 

And acknowledge also, the Hon. Greg Combet, Parliamentary Secretary for Defence procurement,

 

and much of the Defence leadership team, from Vice Admiral Matt Tripovich, Chief of the Capability Development Group, to the CEO of DMO, Dr Stephen Gumley…

 

I speak in esteemed company.

 

And the topic I have been asked to address today is Australia’s defence policy.

 

I suspect that you will also want me to talk about the new Defence White Paper and what it might mean for Defence policy.

 

In starting this speech, let me refer to the Labor Party’s key Defence election commitments to:

 

•        a new Defence White Paper;

 

•        growth in Defence expenditure; and

 

•        an independent review of the Defence Budget.

 

Defence White Paper

 

As you would be only too aware, last year the Government commissioned a new Defence White Paper. 

 

This new White Paper will shape Australia's future defence.

 

It will clearly set out the Government's plans for the size, capacity and direction of Defence for the next 20 years or more.

 

The last White Paper was released in the year 2000. 

 

·        The world has changed much since then – not only with September 11 and the subsequent terror events in Bali, Jakarta, London and Madrid, and the wars in Iraq and Afghanistan;

 

·        But also the nuclear ambitions of rogue states like North Korea and Iran;

 

 

·        Big shifts in the global distribution of power including the rise of China and India;

 

·        The challenge of fragile states in the South Pacific

 

 

·        The emerging challenges of climate and demographic change, and energy and food security; and

 

·        And the emergence of cyber-warfare and other forms of disruptive technologies that can overcome traditional military capability advantages.

 

Such significant changes demanded a far-reaching review of our current strategic environment and outlook.

 

In fact, it was long overdue.

 

The new Defence White Paper is being prepared to ensure that Australia's Defence capability requirements are achievable and are always guided by our long-term strategic priorities.

 

It begins with a fundamental reassessment of our strategic environment, our strategic interests and, of course, our strategic priorities.

 

The new White Paper will:

 

·        define the roles we expect our Defence Force to undertake based on those strategic assessments;

 

·        determine the optimal force structure to undertake those tasks; and

 

·        provide robust analysis to allow disciplined and cost-effective choices to be made about major capability investments and organisational management.

 

This new White Paper will be unprecedented in its scope and the demands it will place on Defence.

 

It will provide a comprehensive picture across a range of Defence issues – covering strategic policy, force structure, a fully costed Defence Capability Plan, and future directions in defence reform and management improvement.

 

The crucial starting point for the White Paper process has been a wide-ranging review of our security environment, our strategic interests and the roles and tasks which the Government will require the Australian Defence Force to be able to undertake over the next two decades. 

 

If we had not started from this base, future decisions about the ADF's force structure and key defence capabilities could be neither rigorous nor disciplined.

 

As part of the White Paper process the Minister also commissioned a series of companion reviews to be conducted across the Defence organisation, in order that our management and budget structures be well placed to respond to the White Paper's guidance.

 

These background studies play a key role in developing Defence business and budget priorities – linked to our strategic and capability priorities – to the year 2030.

 

Of course, today I have no intention of pre-empting the outcomes of the White Paper. 

 

I am not going to detail the force structure options we are considering, nor do I want to foreshadow any of the major policy announcements that may emerge from the White Paper.

 

Nevertheless, there are some things we can discuss with some certainty.

 

Policy Principles

 

The Prime Minister has called for a new approach to national security that brings together all the elements of traditional and non-traditional security capabilities that ensure Australia responds to the full breadth of the threat spectrum that will increasingly confront Australia, including:

 

·        Responding to the increased military modernisation of our own region;

 

·        Dealing with the continuing threat of terrorism;

 

·        Acting on the challenges to sovereignty facing the Pacific Island countries;

 

·        Preparing for the new challenges of energy security; and

 

·        Anticipating the impact of climate change on long-term food and water security.

 

The Prime Minister set out some broad principles for the future development of our defence forces, including

 

·        The need to ensure we are at the forefront of military technology development and acquisition.

·        And for that, we need to further develop key capabilities.

         

We need a first rate and flexible land force – one capable of contributing to everything from high-end military engagements through to delivering post-conflict reconstruction support.

 

We need an enhanced naval capability that can protect our sea lanes and support our land forces as they deploy.

 

And we need an air force that can fill support and combat roles and can deter, defeat and provide assistance to land and maritime forces.

 

Underpinning this vision of our future forces must be a clear vision of what we want to achieve – before developing a strategy to implement that vision.

 

The challenge then is to align vision and strategy with resources.

 

This is critically important because, if the implementation strategy is poor, or if there aren’t enough resources to implement it, even the best policy in the world will fail.

 

This is where Australia’s White Paper will be so valuable.

 

It will set out our strategy and the resources we believe are needed to implement it.

 

These principles – a high level vision backed up by a clear implementation strategy and a secure resource base – form the basis of our White Paper development activities.

 

But it’s not that easy for Defence.

 

Policy making – especially in Defence – is never easy in practice.

 

One of the many things that makes Defence policy so challenging is the fact that Defence planning occurs over a much longer timeframe than most other Government policy making.

 

The acquisition of major capital equipment such as fighter aircraft and submarines can take many years and means that Defence planners must look several decades into the future.

 

This long timeframe adds to our uncertainty – the further out into the future we look, the harder it is to be confident about what will happen and what we can achieve.

 

We have seen in recent years too that crises can emerge quickly and often with few of the traditional indicators or warnings that alert us to things going wrong. 

 

Systems and capabilities that assist us in building our strategic and situational awareness will be critical elements of any future defence force.

 

We also need to be able to adjust our planning to incorporate the changeable future, the lessons learned during operations and our understanding of changing local circumstances.

 

And once we’ve identified the likely tasks and role for our defence force in the future, we need to make sure that we train our personnel to perform these roles, and develop the right capability and force structure to successfully undertake these tasks.

 

One of the key challenges in planning for the future is properly understanding and managing risk…

 

That is, balancing the probability of an event occurring – and the cost of preventing it – against the consequences of that event.

 

For example, while the probability of major conflict may seem low, the consequences are very high.

 

So it is prudent to take steps to mitigate this risk.

 

This is a key reason we are committed to building a strong Australian Defence Force fully capable of protecting Australia and its interests.

 

But this kind of risk mitigation is expensive and governments need to balance the resources devoted to Defence against those spent in other sectors such as health or education.

 

Acquiring Defence capability is very expensive.

 

So too is recruiting, training, equipping and sustaining a high-quality defence force.

 

With this level of investment, Governments rightly demand high quality advice to assure them that they are getting value for the money they spend and that they are spending it in the right areas.

 

Our new White Paper should also highlight some areas where we can use our resources more efficiently so that Australia can focus our expenditure on maintaining and equipping the ADF.

 

These challenges for policy makers – the major consequences of something going wrong, the long timeframes and the high cost of defence capabilities – all add to the complexity of developing defence policy.

 

We must consider such strategic questions as:

 

·        What the international system will look like in 2030?

 

·        Will the era of major inter-state conflict come to an end?

 

·        Could it be superseded by an era of threats from non state actors?

 

·        What role should our armed forces, which are largely geared for war, play in any future environment?

 

·        Will challenges in the planet’s climate and environment create, for example, new sources of tension and conflict?

 

The role of Science and Technology

 

I’m sure it won’t surprise you that, as the Minister for Defence Science, I turn to the Defence Science and Technology Organisation to assist us in the early identification of trends and the development of responses.

 

If we are to ensure Defence remains technologically advanced, we must make the most of developments in technology, support better, more efficient ways to do business and encourage creativity.

 

Their work is cut out for them when you consider that, over the next decade, Defence will be spending around $110 billion on buying and maintaining military equipment.

 

An investment of this order needs DSTO to keep delivering the research and technical assessments that save Defence many millions of dollars – not least in keeping our equipment operational for longer periods.

 

The challenge for DSTO is also to adapt new technologies to suit the unique operational needs of the ADF.

 

It has a deep understanding of Defence, how it operates, what it requires and the ability to interpret those needs in technology terms.

 

At the same time DSTO’s expertise is supplemented by its partnerships with industry.

 

By collaborating extensively with industry DSTO has been responsible for many advancements in defence capability.

 

The Capability and Technology Demonstrator program, now in its 12^th year, continues to generate innovative capability concepts.

 

Government is committed to the continuation of this program which has now been extended, so that particular successfully demonstrated projects can be transitioned to the next stage of capability development.

 

It is also Defence policy to harness the collective expertise of universities, research agencies and industry to address future capabilities through select technologies.

 

We have implemented this policy initiative with the establishment of the Defence Materials Technology Centre (DMTC), which is the first centre to be created under this innovative program.

 

The new centre comprises leading experts in materials research technology and includes major participants like BAE Systems, Thales Australia, ANSTO, Swinburne University, RMIT and the universities of Melbourne and Queensland. 

 

The DMTC - which I officially launch later this week with my Federal colleagues Minister for Innovation, Industry,  Science and Research, Kim Carr, and Greg Combet Parliamentary Secretary for Defence Procurement – the DMTC will develop futuristic materials for use in ADF ships, aircraft and combat vehicles – materials that will enhance the safety and performance of Defence platforms.

 

In addition, other recent initiatives such as the joint undertaking between the Defence Materiel Organisation (DMO) and DSTO to improve Defence’s systems integration through the establishment of the Defence Systems Integration Technical Advisory unit, and the appointment of the DSTO Advisory Board announced at the end of last year, recognise the importance of Australian innovation in defending our nation. 

 

DSTO is, and should remain, at the forefront of maintaining the ADF’s strategic capability advantage in years to come. 

 

In this regard, we must work hard to build and maintain the critical skills and abilities of our scientists and engineers, and offer them the opportunity to invent, innovate and participate in the world’s high technology military capability developments.

 

 

Developing strong partnerships

 

Of course we can also deal with an uncertain future by developing strong regional and global partnerships.

 

A globalised world is more vulnerable to worldwide shocks and leveraging our capabilities alongside those of partners and allies will be necessary to overcome future challenges.

 

Different countries have varying areas of expertise and by working together we can benefit from each others’ strengths and ideas to address complex situations.

 

And when the costs of meeting a challenge are too high for one country alone, partnerships can help to share this burden.

 

Both DMO and DSTO maintain a number of relationships with allies and other partner nations in order to ensure Australia has access to the world’s best technologies capabilities and systems; promote best practise in defence contracting and to coordinate global responses to commercial behaviours in the international supply chain.

 

The Technical Cooperation Program, in which Australia, through DSTO, collaborates with allied countries to study and address military technical developments is a great example of this type of partnership.

 

Increasingly, multilateral approaches will be needed to address global challenges such as cyber warfare, trans-national crime, climate change and environmental degradation, none of which respect international borders. 

 

Responding to global issues requires global partnerships – building on our shared interests to solve our shared problems.

 

This is not just rhetoric, but a real commitment by Australia to a greater focus on multilateralism.

 

In a speech to the Brookings Institution in March last year, Prime Minister Rudd committed Australia to greater engagement in multilateralism, such as the United Nations and the ASEAN Regional Forum. 

 

Australia is also committed to a deeper engagement with our friends throughout the Asia-Pacific region, where regional security and prosperity is closely linked to Australia’s own security.

 

Again, Australia’s extensive training and exercise program with regional Defence Forces indicates our strong commitment to the region.

 

But we also need to recognise the importance of another kind of partnership.

 

Increasingly, our partners in disaster relief and humanitarian assistance operations are not government agencies at all, but non-government aid organisations.

 

I was in Queensland yesterday, thanking our Defence personnel in Townsville for their work in support of the flood relief efforts…

 

….and from maintenance staff to pilots they did an incredible job.

 

But the point they made extremely clear to me was the way they fit into the larger Queensland Emergency Services picture; how well information was exchanged, how their work was co-ordinated by Emergency Management Queensland.

 

Both in the North in past weeks, and in the south in fire ravaged Victoria, we have seen writ large the importance not only of our ADF, but it’s function as a partner to offer natural disaster relief. 

 

Strengthening these relationships can only add to the range of options available to governments.

 

A comprehensive, whole-of-government approach

 

Unfortunately, many future challenges will not restrict themselves to the responsibilities of individual government departments, making a whole-of-government approach more important.

 

In some countries, environmental degradation, rising levels of criminality and limited provision of health and education services can all destabilise societies and lead to increasing violence.

 

Responding to these challenges requires a broader, whole-of-government approach – not just a military commitment – to address the underlying causes of violence.

 

This means that defence planners increasingly need to work with other government agencies to respond to these challenges.

 

A whole-of-government approach increases the resources available to develop innovative solutions to complex policy challenges.

 

And it also means that governments have the widest possible range of tools at their disposal to respond to those challenges.

 

Recognising the importance of a whole-of-government approach to security, the Prime Minister made his National Security Statement to Parliament to provide a cohesive and strategic approach to national security policy in the 21st century.

 

It is also the reason why the Government has made an investment in the Asia-Pacific Civil-Military Centre of Excellence.  

 

Being flexible and adaptable

 

From a military perspective, flexibility and adaptability will be key attributes for defence forces in the future.

 

This means developing a force that is capable of undertaking a variety of different operations at short notice and, can adapt quickly to changing circumstances.

 

But it also means developing and maintaining capabilities we will need if a major conflict occurs – because while the risk of such conflict is low, the potential consequences demand we are prepared for that situation and power balances are maintained.

 

This is why Australia is maintaining a strong ADF to protect our territory and our interests.

 

Of course none of us can afford to ignore the benefits offered by technological developments.

 

Incorporating these advances into our capability acquisition and other plans will improve our ability to conduct successful operations.

 

Another important component of being flexible and adaptable is interoperability - Interoperability within the ADF, within the Australian Government and with key international partners, in our case, particularly with the US.

 

Within the ADF, we need to excel at joint operations, which draw on the capabilities of all three services to achieve desired outcomes.

 

And the options being developed and considered as part of Australia’s new White Paper process will be set in the context of joint, interagency and coalition operations.

 

People

 

Flexibility and adaptability is also about having high-quality people who can react quickly when situations change.

 

It means investing in these personnel – training them for the different types of operations they may undertake in the future; supporting them and their families; giving them jobs that are both interesting and rewarding; and providing them with opportunities for advancement and promotion.

 

The skill and professionalism of the men and women of the Australian Defence Force never ceases to impress me.

 

And that skill is critical for success in Defence’s business and operational endeavours – be that overseas on operations, working in support of humanitarian assistance in our region or close to home such as the terrible fires in Victoria and the recent floods in north Queensland, overseeing logistics and other essential support services needed or patrolling our coastlines.

 

Without their hard work and dedication, the ADF would not have the global reputation and respect it does today.

 

But where do we find them? And how do we keep them?

 

Recruitment is no easy matter and Defence cannot simply rely on traditional recruitment methods to attract new recruits, nor expect that the underlying notion of Service to country will be sufficient to sustain a career in the armed forces.

 

More deep-rooted reform of how we manage our workforce is required.

 

At the heart of that reform is the offer we make to our people and the way we deliver on our promises. 

 

Last month I had both the privilege of meeting with our men and women currently serving in the Middle East, and then, back in Sydney, in attending the appointment ceremony for many of Defence’s new Officer Cadets.

 

I can confidently assure you, not only of the calibre of our current personnel, long may they serve, but also of the strong future of Defence, held as it is in the hands of very impressive new soldiers, sailors, airmen and women.

 

Our obligations must therefore extend to making sure that they are all well-trained, well-equipped and given the support they need to do their jobs today and for the years to come.

 

Oh, and did I mention well-paid.

 

In any workforce, remuneration has always been, and will continue to be, an important driver. 

 

Defence needs to ensure its people are paid competitively, in keeping with the general employment market, and in recognition of not only the national value of what they do, but the danger which their work entails.

 

But getting the remuneration strategy right is only part of creating a committed, flexible ADF.

 

People in Defence stay because of job satisfaction, conditions of service, remuneration, and commitment to the organisation and its values.

 

They leave for reasons because they’re tired of constant moves, or being away from their family such as location instability, or because they are frustrated with and feel uncared for by a large organisation and leadership.

 

So our retention strategies must address those issues for leaving.

 

We need to focus on supporting our personnel as family members – as husbands, as wives, as people with children, as children with aging parents.

 

We need to make sure that their work is valued, that their training is recognised within and outside of Defence, that if they decide to leave that we assist them in adjusting to civilian life and encourage them to return or continue to serve within Reserves.

 

We need to care for them – and to that end too, the Government recently received the completed Dunt Review, because while Defence has well-established mental health programs and services, the Government was concerned that access to, and delivery of, this support has been patchy, with some extra challenges facing those transitioning out of the ADF.

 

Professor Dunt’s report is timely as the ADF’s operational tempo over the last few years has placed a significant demand on mental health program delivery, and the services required to support younger veterans

 

He conducted an independent review of the effectiveness of ADF mental health care and the support that’s available from military service through to the Department of Veterans’ Affairs, and it has highlighted successes and gaps in the delivery of mental health and transition services. 

 

It makes recommendations to improve the delivery of those services and I look forward to some changes once the Government has considering the report and its recommendations.

 

When it comes to our people too we must also encourage diversity.

 

The Australian demographic is changing markedly. 

 

In order to meet its current and future commitments Defence needs to be more representative of the community.

 

Specifically, Defence needs to find new ways to recruit, retain and maximise the effectiveness of women, indigenous people and people from multicultural backgrounds.

 

Capability is not the guns or the warships or the platforms. 

 

It is the people. 

 

People are at the heart of Defence – not just my priority as the Minister for Defence personnel, but a priority for all of Defence’s leaders, at every level, and certainly at the highest level.

 

And I am pleased to say our Service Chiefs through to the Chief of the Defence Force, absolutely recognise this.

 

From the CDF’s External Reference Group on Women through to New Generation Navy, the leaders of Defence are grappling with how to balance both personnel needs and operational demands.

 

I commend them on recognising and committing themselves not only to structural change, but also to the cultural change required.

 

I am personally committed, as the Minister for Defence Science and Personnel, to reform of the Defence approach to personnel matters, and look forward to the White Paper’s discussion of the reforms Joel and I intend to drive, to develop and sustain a professional and capable defence force.

 

It can be done.  It will be done. 

 

But it won’t be easy, and today, I’ve outlined some general principles to guide policy making in difficult circumstances, as well as suggesting some of the ways that Defence Forces can respond to an uncertain future.

 

As I mentioned at the outset, these all represent practical challenges for Australia as we prepare a new Defence White Paper and seek to build our relationships with our friends in the region and further afield.

 

In the final portion of my speech, I want to take a couple of minutes to address any misconception that, during the White Paper’s preparation, we have been sitting on our hands. 

 

This is far from the truth.

 

Over the past year, the Government has been very active, and we have committed to the growth in Defence expenditure. 

 

The Prime Minister and the Minister for Defence have previously announced the Government’s commitment to real growth in Defence funding and the strategy of re-investing savings generated through reforms and other savings measures within Defence to do all the things we’ll need to do in the increasingly uncertain strategic environment we face.

 

To assist us to understand the true costs of Defence and put the dysfunctional Defence Budget we inherited back on track, Mr George Pappas has conducted an independent audit of the Defence Budget. 

 

The audit, together with the internal reviews undertaken by Defence, provide a framework for reform of Defence that will ensure we spend more money on Defence each year than at any time in the history of the Federation, and that we spend it more effectively and efficiently. 

 

The full details of this reform agenda will be announced as part of the White Paper.

 

As well as these very significant initiatives, we have

 

·        Launched the Australian Industry Capability Program (as discussed by my colleague, the Parliamentary Secretary for Defence Procurement at last year’s conference)

·        Cancelled the Seasprite helicopter project

·        Established a Navy capability allowance to address retention issues in the Royal Australian Navy

·        Conducted a review of Defence Procurement and Sustainment, conducted by Mr David Mortimer

·        Delivered on election commitments with regard to Defence mental health

·        Commenced a project to investigate Australia’s new submarine capability

·        Established the Defence Materials Technology Centre

·        Given the go ahead for a facilities project at Edinburgh as part of the Hardened and Networked Army process

·        Commenced the Defence Home Ownership Assistance Scheme

·        Enhanced Defence family support initiatives

·        Signed contracts for $350 million worth of new military vehicles

·        put additional investment into Defence skilling in industry

·        opened the Asia Pacific Civil-Military Centre of Excellence

·        launched the national work experience program

·        awarded several large contractors for significant Defence capabilities

·        improved systems integration through the Defence Systems Integration Technical Advisory unit.

·        In a few days time I’ll be in Bendigo to launch  the Defence Materials Technology Centre (DMTC)

·        And I could keep going – it is a substantial work program and a very high performance outcome by any stretch of the imagination.

 

Conclusion

 

But instead let me, in conclusion, stress… Defence is a limited resource.

 

For every choice we make, other choices are no longer available to us.

 

The opportunity cost of decision making means that we need a strategic risk management approach that allows us to make these decisions conscious of the risk involved. 

 

If Defence is, in the future, to provide the quality, professional and highly effective contribution to the security of Australia that we have come to expect, then Defence, as an organisation, needs to have a strategic vision.

 

It must have a set of unifying strategic principles that guide and direct the organisation coherently and create alignment between the individual efforts of personnel – military and civilian. 

 

The Chief of the Defence Force describes his strategic vision for Defence as ‘a balanced, networked and deployable force, manned by dedicated and professional people, which excels at joint and coalition operations’.

 

This is a must. 

 

Ensuring that vision becomes reality in the strategic and resource constrained environment of the future means that Defence must develop new approaches that manage strategic risk between the volatility of today and the uncertainty of tomorrow.

 

There are risks in every day to day choice – for example, allocating resources to one operation means we don’t have those same resources for another, as unrealised requirement. 

 

That is the operational art and Defence does this very well. 

 

But there are also risks in where we strike the balance between preparing for today and investing in tomorrow. 

This is a far less simple choice, in which we must concern ourselves with strategic and policy risk, capability risk, and personnel risk. 

 

We must make judgments about whether we have the management, technical and military capacity to bring into service major new capabilities.

 

We must judge whether these capability choices provide a wider range of military options than other choices, and whether during any capability transition we open ourselves up to strategic risk.

 

The new Defence White Paper will address these issues, for today, for tomorrow and for 2030. 

 

Media contacts:

Kate Sieper (Warren Snowdon):           02 6277 7620 or 0488 484 689

Defence Media Liaison:                         02 6265 3343 or 0408 498 664