Brendan Nelson (Bradfield, Liberal Party, Minister for Defence) Share this | Hansard source

I thank the member for Lindsay for her service to our country in the Royal Australian Air Force and for now doing a magnificent job looking after the mainstream Australians in Western Sydney, in the electorate of Lindsay. The Treasurer last night, in ‘Locking in the gains, investing in Australia’s future’, announced the largest increase in defence investment over the past 30 years for a single budget. Last night it was announced by the Treasurer that defence expenditure will increase by 10.6 per cent over the next year, which will take it to $22 billion. Over the last 11 years, since this government came to office, defence expenditure has increased in real terms by 47 per cent. In fact, when this government came to office in 1996, the deficit inherited from the Labor Party was almost as large as the defence budget in that year alone.

Last night an additional $14 billion was committed by this government to defence over the next 10 years, investing not only in equipment but also in people, who are indeed our most important asset. The $2 billion announced for recruiting and retention includes, for example, a significant increase to the home loan subsidy for Defence personnel, both regulars and reservists. Whereas the home loan subsidy was $136 a month for eligible diggers, it is now going to as much as $470 a month tax free. In addition to that, 18,000 nonofficers, the lower ranks in our military, will receive pay increases of up to some $5,000.

We are also announcing that we will be going into partnership with schools and the private sector to drive apprenticeships and training in the Australian Defence Force. There will also be a significant increase in advertising to make sure that we not only focus on having a very visible presence for our three service uniforms in the Australian community but also get back to promoting service in the Australian Defence Force on the basis of the values represented by the three uniforms. There is also an additional $100 million for cadets, and I encourage all parents—and my own son was in the Army Cadets—to do what they can where possible to get their kids into cadets. Another 1,000 cadets will join as a consequence of this budget.

In addition to that, the Treasurer announced $6 billion over the next 10 years for the acquisition of 24 FA18F Super Hornets, which will enable us to retire the F111 and safely transition to the Joint Strike Fighter in the next decade, and another $4 billion for spares and repairs—logistics so important to ensure that we do not get back to Labor’s defence force, where we ended up having to cannibalise FA18s on the ground to keep ones in the air flying. It is very important to this government that we never return to the days of the Australian Labor Party. It is very important that Australia has a cutting-edge high-end warfare fighting capability, whether it is antisurface ship or air combat, at the same time as preparing the Defence Force for the next decade in security stabilisation, maritime border protection, counterterrorism and security, and humanitarian relief in our region. This budget delivers on the economic dividend of the last 11 years and makes Australia, its interests, its people and its values more secure on our borders, in our region and throughout the world.

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