John Hogg (Queensland, Deputy-President) Share this | Link to this | Hansard source

My question is to Senator Ellison, the Minister representing the Minister for Defence. Can the minister confirm that the defence budget statements show that the $1 billion that was supposed to be spent on new equipment has been delayed for up to four years? Hasn’t spending of hundreds of millions of dollars worth of new equipment been delayed each and every year since the original Defence Capability Plan in 2001? Can the minister explain why the government is so manifestly unable to properly manage defence finances so that personnel get promised new equipment on time? What action is being taken to ensure that the $25 billion of new equipment that is supposed to be delivered over the next four years actually arrives on time rather than years late?

Chris Ellison (WA, Liberal Party, Minister for Human Services) Share this | Link to this | Hansard source

I think that the last time I looked at it the vast majority of defence contracts were on time. Anybody these days who deals with defence procurement across the world realises that it is an area which is complex, involving technology and a number of stakeholders. You cannot assume that in every instance and in every contract everything is going to happen on time. I would challenge anyone to say that any contract under defence procurement is not without its difficulties.

I understand we are on track for the vast majority of our projects and I can say to the Senate that we have in this budget a vast array of announcements which deal with building on acquisition of material. I mention the acquisition of the Super Hornet multi-operational fighter. We have the funding for the Collins class submarines. We have the funding for a number of other logistics backups in relation to the ADF. These are measures that will enhance the operation of the ADF and we will continue with our acquisition programs. We have announced the multi-operational Super Hornet aircraft and we are on track for our Joint Strike Fighter. They are the most progressive purchase contracts for the defence of this country and its Air Force that have been announced. We also have—

Kerry O'Brien (Tasmania, Australian Labor Party, Shadow Minister for Primary Industries, Fisheries and Forestry) Share this | Link to this | Hansard source

They’re just incompetently delayed!

Kim Carr (Victoria, Australian Labor Party, Shadow Minister for Industry) Share this | Link to this | Hansard source

Do you have a model to put on your desk yet?

Chris Ellison (WA, Liberal Party, Minister for Human Services) Share this | Link to this | Hansard source

Out of the capital that has been put to defence procurement for equipment none of the projects has been deliberately delayed. In fact the government’s decision to reprogram just over $1 billion in capital expenditure over the forward estimates is not a reduction for defence but a change in timing, which is appropriate.

Kim Carr (Victoria, Australian Labor Party, Shadow Minister for Industry) Share this | Link to this | Hansard source

Senator Carr interjecting—

Paul Calvert (President) Share this | Link to this | Hansard source

Order! Senator Carr, come to order!

John Hogg (Queensland, Deputy-President) Share this | Link to this | Hansard source

Mr President, I ask a supplementary question. Seeing the minister now has a brief, he might be able to address the supplementary question. Can the minister confirm that defence is still waiting for additional new equipment such as troop lift helicopters to be delivered? Didn’t the Prime Minister say after the Bali bombings in 2002 that these helicopters would get fast-tracked and be delivered in 2006 because of the threat of terrorism? Why has the government failed to deliver this key antiterrorism capability on time, which is so essential for our national security? When will these helicopters be delivered?

Chris Ellison (WA, Liberal Party, Minister for Human Services) Share this | Link to this | Hansard source

As I understand it, the phase 2 contract for 12 helicopters was signed in June 2005 with delivery for December 2007, thereby meeting the government commitment to an inservice date of 2007. These aircraft are essential for troop airlifts and for the security of this country and, as I understand it, they are online for meeting the government’s commission for in-line service by 2007.