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

Media reports today do highlight concerns about a number of defence contracts and question whether the expenditure was legitimate. I can assure the Senate that the government will examine all those claims fully. Until then I do not think that anyone should jump to the conclusion that the expenditure was unjustified. For example, the hiring of a Leopard tank in Spain is questioned. Yet I am advised that it was the cheapest option to test weight limits on the water craft for the new LHDs. And, as for the question about the hiring of the Learjet, it was in support of critical combat equipment testing.

But, regardless, I do say that defence expenditures do warrant scrutiny and action and I can assure the Senate that this is happening. The government conducted a comprehensive independent audit of defence expenditure, carried out by Mr George Pappas. We launched an ambitious Strategic Reform Program spanning 10 years to deliver $20 billion in direct savings. The SRP covers multiple streams including workforce and shared services, ICT, logistics and non-equipment procurement, and it will instil a much more cost-conscious culture in defence. This is the first year of a 10-year program. I can assure the Senate that we are on track to meet this year’s target and deliver $797 million of savings under the Strategic Reform Program.