David Johnston (WA, Liberal Party, Shadow Minister for Defence) Share this | Link to this | Hansard source

asked the Minister representing the Minister for Defence, upon notice, on 21 March 2011:

For the period 1 July to 31 December 2010, what specific savings have been made in the Strategic Reform Program (SRP) 'Provisional Savings and Costs – Gross SRP Stream Savings' for:

(a) information and communications technology;

(b) inventory;

(c) logistics;

(d) non-equipment procurement;

(e) Reserves;

(f) shared services; and

(g) workforce.

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

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

Cost reductions under the Strategic Reform Program (SRP) are based on annual budgets. In 2010-11 the cost reductions under the SRP is $1016 million. This will be achieved through initiatives under seven SRP streams distributed as follows:

1. Information and Communication Technologies—$128 million;

2. Smart Sustainment (including Inventory)—$288 million;

3. Logistics—$6 million;

4. Non-equipment Procurement—$177 million;

5. Reserves—$5 million;

6. Workforce and Shared Services—$171 million; and

7. Other cost reductions—$241 million.

These figures have been updated since their publication in "Strategic Reform Program: Delivering Force 2030".

The annual budgets for activities targeted through streams have been reduced by amounts that reflect cost reductions agreed by Government. As at 31 December 2010, Defence had expensed 45 per cent of annual budgets captured by SRP streams. Based on an expected pattern of expenditure over the six months to end June 2011, Defence is confident it will deliver its required business outcomes within these reduced annual budgets.

Defence will publish the stream cost reductions achieved for the full financial year in the Defence Annual Report 2010-11 which is expected to be released in late 2011.