Minister for Defence - Press Conference, Washington DC, Thursday 5 October AEDT

Subjects: Force Posture Agreement, Joint Strike Fighter

MINISTER FOR DEFENCE:

I am very pleased to have met with US Defense Secretary Ash Carter today and we are able to announce the in principle conclusion of the cost sharing negotiations in relation to the Force Posture arrangements, which is a very important step for both Australia and the United States.

It is the culmination of discussions over about the last 12 months and means that as the implementation agreement is attached to the Force Posture Agreement that we’ll be able to start the infrastructure construction and look forward to seeing the engagement increase.

REPORTER:

Does that mean the full deployment of two and a half thousand troops could be brought forward from 2020?

MINISTER FOR DEFENCE:

The target is still 2020. There were 1,250 marines in the Northern Territory this year, including a number taking part in some of our key exercises, which was a really important step. So it remains 2020 and I look forward to continuing to work with the United States and Secretary Carter on the development of that process and also on our air interactions as well.

REPORTER:

With the in principle agreement how is the cost sharing going to be split? Will it be a 50-50 cost burden on both countries?

MINISTER FOR DEFENCE:

What it’s actually described as is a cost sharing arrangement that is well considered, that is sustainable and that is based on proportionate use. So those things which are for the use of the United States are paid for by them, those things which are shared are paid for by Defence. But what we’ve done is taken a really considered approach to the whole thing, as it’s developed over the last few months basically making sure that it is appropriately shared and one that will exist over the twenty-five-year life of the agreement.

REPORTER:

Can you put a figure on it now or will you be able to put a figure on it or is it just going to be something ongoing?

MINISTER FOR DEFENCE:

There are two aspects to that. In the Integrated Investment Program, you’ll see that it is costed at $2.5B and that is the infrastructure cost but there are annual costs associated as well for both sides and that is part of the ongoing process over the twenty-five years. But the basis is the more than $2B agreement.

REPORTER:

So when the in principle agreement is formalised will there be actual numbers?

MINISTER FOR DEFENCE:

There will be but the arrangements will actually be a confidential document, given the nature of the undertakings that we’re engaged in.

REPORTER:

In terms of a bit more of a breakdown in detail – what the Americans will use, what we will use – does that mean that the permanent infrastructure that could stay there beyond the life span of the troop rotations would be paid for by Australia and it’s the ongoing operational costs for the US?

MINISTER FOR DEFENCE:

So it’s a combination. Part of the infrastructure will be dedicated to airfields, to aprons, to accommodation, to gyms, to messes, those sorts of things. So they will remain but they will in large part be paid for by the United States and then, as I said, those which are shared will be at the cost of Defence.

REPORTER:

This is an in principle agreement. Do you have a timeline on when it will actually be formalised and signed-off on?

MINISTER FOR DEFENCE:

It’s an implementation arrangement that will sit under the Force Posture Agreement and that will happen, I would have thought, during 2017.

REPORTER:

There was a bit of a worry that it wouldn’t get resolved before the November election here in the US and not knowing who the next Administration is, it could be problematic. Do you see this withstanding the test of time regardless of what happens on November 8?

MINISTER FOR DEFENCE:

Well I don’t think Secretary Carter and I were worried about that. I think that worry was perhaps held externally, but yes I do. This is a very important undertaking and it’s an important part of the US force posture in the Asia-Pacific. It is a valuable opportunity for us in terms of our interoperability, our collaboration, our engagement with our most important ally and I certainly see it standing the test of time.

REPORTER:

In terms of other meetings that you and Minister Pyne are having today and tomorrow, have you had any chats about what Mr Pyne mentioned about trying to increase Australia’s role in the maintenance of the JSF based in Australia?

MINISTER FOR DEFENCE:

Yes, indeed. That is a matter which he’ll be taking up enthusiastically with the Administration tomorrow, both with the relevant Deputy Secretaries and others in terms of what opportunities there may be for Australia in terms of Defence Industry, something to which this government is very, very committed and I look forward to hearing the outcome of his discussions.