Chris Evans (WA, Australian Labor Party, Leader of the Government in the Senate) Share this | Hansard source

The Minister for Defence has provided the following answer to the honourable senator's question:

(1) The amount required to fund the major capital equipment program each year from 2010-11 to 2029-30 to deliver the White Paper 'Force 2030' has been previously provided as outlined below:

(a) at the Senate Estimates hearing on Wednesday 3 June 2009, it was stated that the estimated overall cost of buying the capabilities outlined in the White Paper will be between $245-$275 billion out to 2030; and

(b) As at 15 February 2011, Defence revised the cost to $210-$240 billion. This reduction was due to the appreciation of the Australian dollar against the US dollar since that time.

However, since February, the Australian dollar has marginally depreciated against the US dollar and the revised estimate of the amount required to fund the major capital equipment program each year from 2010-11 to 2029-30 to deliver the White Paper 'Force 2030 is between $211-$241 billion.

(2) In the 2009-10 budget, the Government provided Defence with additional funding of $146.1 billion to fund the White Paper over the 21 years to 2029-30 as a result of changing the funding model for Defence. The 2.2 per cent real growth funding beyond 2017-18 is consistent with the inherent long-term cost of Defence, a point highlighted in the 2008 Defence Budget Audit.