John Faulkner (NSW, Australian Labor Party, Vice-President of the Executive Council) Share this | Hansard source

I thank Senator Johnston for his question. On Tuesday, 12 May, as part of the budget, the government delivered a new financial plan which will fully fund the 2009 Defence white paper. The government will spend approximately $308 billion over the next decade. Let me say this: the government’s new financial plan has two important elements. The first is a new funding model and the second is a comprehensive program of reform and savings.

Let me go to the first. The government’s new funding model for Defence will provide greater long-term funding certainty and will ensure that Defence has the funds it needs when it needs them. The foundation of the funding model is a new, stable indexation arrangement including the maintenance of the government’s commitment to three per cent real growth on average out to 2017-18, followed by a commitment of 2.2 per cent real growth on average for the life of the white paper.

Let me go now to the second element in relation to reform and savings. This program is planned to cut wasteful Defence spending. The strategic reform program, as well as other savings initiatives, will deliver around $20 billion— (Time expired)