David Fawcett (SA, Liberal Party) Share this | Link to this | Hansard source

My question is to the Minister representing the Minister for Defence, Senator Bob Carr. I refer the minister to the recently released 2012-17 defence corporate plan which states, on page 11, that in the 2012-13 budget Defence contributed $5.545 billion to the government fiscal strategy across the forward estimates and that this will necessarily reduce the capabilities that Defence can maintain and the scope of operations that Defence can participate in. Does the minister stand by his earlier statements that these cuts will not hollow out the Defence Force and will not affect Australia's defence capabilities?

Bob Carr (NSW, Australian Labor Party, Minister for Foreign Affairs) Share this | Link to this | Hansard source

I do indeed stand by the comments I made yesterday. Indeed, I can amplify them and they absolutely confirm the position I communicated to the Senate. To be specific, reserve commando special forces training days have not been cut. Due to the different training requirements across the ranks and trades in the Army Reserve, training days are not allocated per se. The minimum number of days each Army Reserve member needs to complete each year is 20. Two commando jungle warfare exercises in Papua New Guinea were cancelled, due to the focus of the PNG DF and ADF on election security issues and logistics in PNG, and when I and colleagues reported on the involvement of ADF on a big scale in election monitoring in Papua New Guinea it was greeted with warm public approbation. People supported it as precisely what Australia should be doing in helping monitor what turned out to be, by PNG standards, a successful exercise in electing their parliament. ADF was involved in it and I am advised that, in response to that involvement, two commando jungle warfare exercises in PNG were cancelled due to the focus of the PNG DF and ADF on that big logistical task of election security and logistics. This had nothing to do with budget—nothing to do with it.

David Fawcett (SA, Liberal Party) Share this | Link to this | Hansard source

Mr President, on a point of order: my question was not about the Papua New Guinea elections. It was about Defence capability and the hollowing out of the force that this government's budget cuts have created.

John Hogg (President) Share this | Link to this | Hansard source

Order, there is no point of order. Your question was broader than that. The answer has finished.

David Fawcett (SA, Liberal Party) Share this | Link to this | Hansard source

Mr President, I ask my first supplementary question. Given that the CDF and Secretary have now stated in writing that these budget cuts announced in May will reduce Australia's defence capability at a time when they highlight that regional militaries are increasing their capability, will the minister guarantee to the Australian people that the government will not further degrade Australia's national security by cutting the Defence budget in MYEFO?

Bob Carr (NSW, Australian Labor Party, Minister for Foreign Affairs) Share this | Link to this | Hansard source

None of the savings will impede our nation's defences. We will maintain an Australian Defence Force able to protect our interests and help maintain the peace and stability of our region. As the government has previously said, most savings come from deferring some Defence acquisitions and adjusting the Defence capital equipment program but also from delivering further operating efficiencies. There is also a planned reduction of 1,000 civilian positions in the Department of Defence to be achieved primarily through natural attrition and tightening of recruitment practices. Notably, (1) there will be no adverse impact on operations; all operations continue to be fully funded.

David Fawcett (SA, Liberal Party) Share this | Link to this | Hansard source

Mr President, on a point of order: the minister should know that current operations are funded by supplementary funding and the question was going to capability from the budget cuts.

John Hogg (President) Share this | Link to this | Hansard source

Order. There is no point of order. The minister is answering the question. The minister has 14 seconds remaining.

Bob Carr (NSW, Australian Labor Party, Minister for Foreign Affairs) Share this | Link to this | Hansard source

Also (2) there will be no adverse impact on military numbers; (3) there will be no adverse implication for kit for forces about to be deployed or on deployment; and (4) there will be no reductions in conditions or entitlements for service personnel. (Time expired)

David Fawcett (SA, Liberal Party) Share this | Link to this | Hansard source

Mr President, I have a second supplementary question. Given that the Australian Strategic Policy Institute has stated that the deferral of Defence funds to beyond 2012-13 has created a five-year period where spending will need to grow in real terms by six per cent a year to regain the promised three per cent real growth over the decade, does the government have plans to bring Defence funding back on track and in what year will that funding come into effect?

Bob Carr (NSW, Australian Labor Party, Minister for Foreign Affairs) Share this | Link to this | Hansard source

Defence funding is not off track. The 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 over $21 billion in total capital investment. This level of funding is expected to maintain Australia's status as No. 13 in world defence expenditure. As a percentage of GDP, it is comparable to Canada, Italy and Germany. In a G7 context—that is the US, UK, France, Canada, Italy, Germany— (Time expired)