Australian Government, 2011‑12 Budget
Budget

Part 3: Capital Measures (Continued)

Defence

C‑17 Globemaster III Fleet — acquisition of additional aircraft

Capital ($m)
2010‑11 2011‑12 2012‑13 2013‑14 2014‑15
Department of Defence

The Government will provide $251.9 million over four years from 2010‑11 for the acquisition of an additional C‑17 Globemaster aircraft and associated equipment. The aircraft is expected to be received and operational in 2011. The Government will also provide $81.0 million over the period to 2036 for the net personnel and operating costs of the aircraft.

The opportunity to acquire a C‑17 from the 2011 US Air Force production line will enable the Australian Defence Force to increase airlift capability more quickly than previously planned. The additional aircraft will strengthen Australia's heavy airlift capability for military purposes, including support to Australian and International Security Assistance Forces in Afghanistan and the Middle East. It will also enhance Australia's capacity to deliver humanitarian assistance and disaster relief within Australia and the region.

The cost of this measure will be met from within the existing resourcing of the Department of Defence.

As a consequence of this decision the Government has cancelled the Defence Capability Plan project for the acquisition of two additional C‑130J Hercules aircraft.

See also the related capital measure C‑130J Hercules — cancellation of two additional aircraft.

C‑130J Hercules — cancellation of two additional aircraft

Capital ($m)
2010‑11 2011‑12 2012‑13 2013‑14 2014‑15
Department of Defence ‑2.4 ‑3.8 ‑16.9 ‑88.1

The Government has agreed to cancel the acquisition of two additional C‑130J Hercules aircraft. This measure will save $111.3 million over the forward estimates and $520.1 million over the ten years to 2020‑21.

The latest Defence Capability Plan anticipated a final decision on acquisition of additional C‑130J Hercules aircraft in the period 2013‑2015. However, the opportunity to purchase an additional C‑17 Globemaster aircraft from the 2011 United States Air Force production line has obviated the need for the acquisition of the additional Hercules aircraft. The C‑17 will deliver increased lift capability earlier than planned.

See also the related capital measure titled C‑17 Globemaster III Fleet — Acquisition of additional aircraft.

Capital investment reprogramming

Capital ($m)
2010‑11 2011‑12 2012‑13 2013‑14 2014‑15
Department of Defence 85.2 ‑190.7 ‑336.6 ‑695.6
Related expense ($m)
Department of Defence ‑15.4 31.8 12.8 ‑172.4

The Government will reprogram funding for the Defence capital investment program to better align it with Defence's strategic requirements. This will result in savings of $1,280.8 million over four years, to be reprogrammed beyond the forward estimates.

The reprogramming will support the Department of Defence in delivering the military capabilities set out under Force 2030, the 2009 Defence White Paper.

Royal Fleet Auxiliary Largs Bay — acquisition

Capital ($m)
2010‑11 2011‑12 2012‑13 2013‑14 2014‑15
Department of Defence

The Government will provide $104.0 million in 2010‑11 for the acquisition of a British Bay Class amphibious ship, the Royal Fleet Auxiliary (RFA) Largs Bay. Following a successful bid of UK£65 million, and pending sea trials, the acquisition is expected to be finalised by the end of 2011 with the ship operational in early 2012. The Government will also provide $73.4 million over three years commencing 2010‑11 for fit‑out costs and $99.4 million over six years commencing 2011‑12 for net personnel and operating costs.

The Largs Bay will ensure the Royal Australian Navy has the amphibious capacity it needs for operational and humanitarian support in our region in the period leading up to the arrival of the Landing Helicopter Dock ships from 2014.

The cost of this measure will be met from within the existing resourcing of the Department of Defence.

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