Warren Snowdon (Lingiari, Australian Labor Party, Minister for Defence Science and Personnel) Share this | Hansard source

I will just go to the question of the ASPI paper, which has been referred to by the shadow minister. Let us be very clear: the defence appropriation for 2012-13 is $24.2 billion. In the 2009-10 budget, the government for the first time budgeted over $100 billion for defence across the forward estimates. In this budget, the government has again budgeted over $100 billion for defence across the forward estimates. This includes $21 billion in total capital investment. The level of funding is expected to maintain Australia's status, as I referred to earlier, as number 13 in defence expenditure. I referred also to our per capita contribution, which is second only to the United States. In real dollar terms, we spend far more than any regional neighbour. Also, with the appreciation of the foreign exchange rate, we have been able to purchase the same equipment from overseas for less. Thus, whilst announced savings will be difficult, the defence budget—as you well know—remains at historically high levels. Reprioritisation with defence expenditure has been designed to have minimum impact on the delivery of core defence capabilities.

I note that the opposition seems to support the views expressed in the ASPI paper, which asserts that the government has manifestly placed a higher priority on delivering a surplus than on delivering a stronger Defence Force. It is not an either-or situation. The government remains committed to delivering the core capabilities identified in the 2009 white paper and to delivering one of the most capable defence forces in our region, but global and domestic economic circumstances have changed significantly since that white paper, which I am sure is well understood by the shadow minister but perhaps not so well understood by some of his colleagues.

The effects of the global financial crisis have continued to unfold with unexpected severity and duration since the 2009 defence white paper. In response to this, as we have maintained from the get-go, this government is committed to bringing the budget back to surplus in 2012-13. As was made clear before the budget, Defence had to expect to make a contribution. That contribution has been made. The reprioritisation of defence expenditure has been designed to have a minimum impact on the delivery of core defence capabilities.

Another part of that ASPI report says that clearly it is the government's priority for defence that has fallen rather than its absolute ability to pay. That is simply not the case. The 2009 defence white paper noted that the global financial crisis was the most serious global economic and financial crisis in decades and that its strategic impacts were still unfolding. Since the GFC has continued to have a significant impact on the global economy, following the GFC the defence forces of major developed countries have increased efficiencies and reduced their budgets, including the United States, the United Kingdom and Canada. Of course, the other NATO nations in Western Europe have had significant impacts upon their defence budgets. Australia's 2009 defence white paper was completed before the unfolding of these events and the financial circumstances clearly represent a real challenge to the 2013 white paper. In terms of core capabilities, there are some 180 capability projects in the 2009-10 Defence Capability Plan that underpin the 2009 white paper. As I said previously, the vast majority of these remain, with 10 being removed. Most of those 10 have either had their scope reduced or were subsumed by other, related projects or replaced by newer technologies. I said before our commitments in this budget are for the first 14 Joint Strike Fighters, 24 new Navy helicopters, 900 additional G-Wagen trucks, additional Chinooks, military satellite capabilities, counter-IED equipment assistance, towed artillery systems and, of course, communication equipment. In 2011 the government approved a record 49 capability projects. The previous record was 37 in 2006. (Time expired)

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