Senate debates

Thursday, 9 February 2012

Questions on Notice

Defence: Strategic Reform Program (Question No. 1443)

Photo of Gary HumphriesGary Humphries (ACT, Liberal Party, Shadow Parliamentary Secretary for Defence Materiel) Share this | | Hansard source

asked the Minister representing the Minister for Defence, upon notice, on 9 November 2011:

In regard to the Strategic Reform Program:

(1) For each of the following financial years: 2009-10, 2010-11, 2011-12 and 2012-13: what are the current gross savings targets, costs and net savings for each reform/savings stream (an updated table, is required, equivalent to p. 27 of the SRP booklet 2009, which includes gross savings targets, stream costs and net savings).

(2) (a) What were the actual figures achieved for each reform/savings stream (gross savings, costs, net savings) for the 2009-10 financial year that led to the achievement of the target gross savings of $797 million; and

(b) what were the total program costs for the 2009-10 financial year (actual) and total savings (net).

(3) (a) What were the actual figures achieved for each reform/savings stream (gross savings, costs, net savings) for the 2010-11 financial year that led to the achievement of the target gross savings of $1.016 billion; and

(b) what were the total program costs for the 2010-11 financial year (actual) and total savings (net).

Photo of Chris EvansChris 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) Investment funds can be allocated to both cost reduction and non-cost reduction streams, and to Groups and Services for a variety of reform activities. Therefore a 'net savings' view is not reflective of the purpose of SRP investment funds as they can not be solely attributable to cost reduction streams.

*Summation variances are due to rounding.

** Strategic Reform Project (SRP) cost provisions are consolidated into a central provision. SRP costs cannot be attributed to streams.

(2) (a) Refer to the Defence Annual Report 2009-10 Volume 1 Department of Defence, Table 1.1 2009-10 SRP Reform Stream cost reductions

(b)—

(3) (a) Refer to the Defence Annual Report 2010-11 Volume 1 Department of Defence, Table 1.1 2010-11 Key SRP Achievements

(b)—