Australian Government, 2012‑13 Budget
Budget

Part 3: Capital Measures (Continued)

Defence

Bushmaster vehicles — acquisition of long‑lead supplies

Capital ($m)
2011‑12 2012‑13 2013‑14 2014‑15 2015‑16
Department of Defence

The Government will provide $15.6 million in 2012‑13 for the purchase of long‑lead supplies for the acquisition of further Bushmaster vehicles. This purchase, together with further consideration by the Government of the purchase of additional Bushmaster vehicles, will ensure critical skills are retained at Thales Australia's Bendigo factory.

These skills will be required should the Government proceed with the acquisition of Thales Australia's Hawkei vehicle. In December 2011 the Government announced that the Hawkei had been selected as the preferred vehicle for development and testing under Stage 2 of the Manufactured and Supported in Australia option under the Project LAND 121 Phase 4. This project, at a cost of $1.5 billion, will provide up to 1300 light vehicles for the Australian Defence Force. A final decision on the Hawkei is expected in 2015.

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

Further information can be found in the joint press release of 19 March 2012 issued by the Minister for Defence and the Minister for Defence Materiel.

C‑17A Globemaster aircraft — acquisition

Capital ($m)
2011‑12 2012‑13 2013‑14 2014‑15 2015‑16
Department of Defence

The Government will provide $280.4 million over four years from 2011‑12 for the acquisition of a sixth C‑17A Globemaster aircraft and associated equipment. The aircraft is expected to be received and to be operational in 2013.

The acquisition of a C‑17A from the current United States Air Force production line provides the opportunity, within a short time frame, to increase the airlift capability supporting Australian 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.

Further information can be found in the joint press release of 19 March 2012 issued by the Minister for Defence and the Minister for Defence Materiel.

CH‑47D Chinook Fleet — acquisition of two additional helicopters

Capital ($m)
2011‑12 2012‑13 2013‑14 2014‑15 2015‑16
Department of Defence

The Government provided $39.8 million in 2011‑12 for the acquisition of two CH‑47D Chinook aircraft and associated equipment and their modification to meet Australian operational requirements. The aircrafts were purchased from the United States Government in 2011 and both aircrafts are expected to be operational in 2012 and ready to deploy overseas in 2013.

The aircraft will replace the CH‑47D destroyed in Afghanistan in May 2011 and increase the Australian Defence Force Chinook capability from six to seven until 2016 when the entire fleet will be replaced by seven new CH‑47F Chinook helicopters.

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

Further information can be found in the press release of 12 December 2011 issued by the Minister for Defence and the Minister for Defence Materiel.

Defence — efficiencies and reprogramming

Capital ($m)
2011‑12 2012‑13 2013‑14 2014‑15 2015‑16
Department of Defence ‑869.1 ‑1,463.3 ‑1,023.7 ‑1,533.2
Department of Defence ‑96.6 ‑162.6 ‑113.7 ‑170.4

The Government will realise additional savings in the Defence portfolio relating to deferring some Defence acquisitions, adjusting the Defence capital equipment program and delivering further operating efficiencies, while delivering priority 2009 Defence White Paper capabilities. This measure will result in a saving of $5.4 billion over the forward estimates.

A net reduction of the civilian workforce by 1,000 over the forward estimates will be effected primarily through natural attrition and tightening of recruitment practices.

There will be no adverse impact on operations in Afghanistan, East Timor and Solomon Islands. The provision of equipment to Defence personnel deployed or deploying overseas will not be adversely affected. There will be no adverse impact on the number of military personnel in the Australian Defence Force.

Electronic Warfare System — long‑lead item equipment purchase

Capital ($m)
2011‑12 2012‑13 2013‑14 2014‑15 2015‑16
Department of Defence

The Government will provide $19.9 million in 2011‑12 for the purchase of long‑lead item equipment for the potential conversion of twelve of Australia's F‑18 Super Hornets to the EA‑18G Growler electronic warfare system.

The long‑lead items include electronic systems, antennas and high frequency modulation receivers. A decision on whether Australia proceeds with the conversion of some of its Super Hornets to Growler configuration will be made later this calendar year after further assessment by the Government. The decision to purchase long‑lead items at this stage ensures Australia will continue to have access to the Growler technology needed for this potential upgrade.

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

Further information can be found in the joint press release of 29 March 2012 issued by the Minister for Defence and the Minister for Defence Materiel.

Maritime Humanitarian Assistance and Disaster Relief Capability — acquisition of an Offshore Support Vessel

Capital ($m)
2011‑12 2012‑13 2013‑14 2014‑15 2015‑16
Department of Defence

The Government will provide $123 million in 2011‑12 for the acquisition of an amphibious ship, the Skandi Bergen. The Skandi Bergen is expected to be received and operational in 2012.

The Skandi Bergen will provide the Royal Australian Navy with an interim increased heavy amphibious lift capability for humanitarian assistance and disaster relief in our region, pending the arrival of two new Landing Helicopter Dock (LHD) ships in the middle of the decade. The Skandi Bergen complements HMA Choules and HMAS Tobruk as the third ship available to deliver this capability.

The Skandi Bergen will also provide the Australian Customs and Border Protection Service (Customs) with a long term Southern Ocean surveillance and law enforcement capability. The Skandi Bergen will be utilised by Customs from mid‑2014 when the lease on the current vessel ACV Ocean Protector expires. Use of the Skandi Bergen will be shared with Defence in 2014 and 2015. The vessel will be transferred to Customs following the arrival of the second LHD ship, currently scheduled for 2016.

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

Further information can be found in the joint press release of 19 March 2012 issued by the Minister for Defence and the Minister for Defence Materiel.

See also the related expense measure titled Maritime Humanitarian Assistance and Disaster Relief Capability — share arrangement for Southern Ocean surveillance in the Attorney General's portfolio.

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