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National

Defence delivery delays hit 63 years

December 20, 2011
Defence delivery delays hit 63 years

The combined scheduled delivery delays of defence hardware have blown out to total 63 years, further exposing gaps in Australia's defence capability.

An Australian National Audit Office report, published yesterday, revealed that major defence equipment acquisition projects continued to run behind schedule and over budget. The 2010-11 major projects report covers 28 of the largest defence projects in the country, worth a total of $46.1 billion.

Scheduled project delays have blown out to 760 months (63 years) in total - up from 688 months in 2009-10.

Projects developed or modified domestically continue to cause the greatest headaches, slipping by 74per cent and 24per cent respectively. The worst performers included the Collins class submarine replacement combat system (73per cent), Anzac Anti-Ship Missile Defence (74per cent), and Guided Missile Frigates upgrades (92per cent).

The Federal Opposition claimed the problems confirmed the Government's inability to equip the armed forces for the future.

But it wasn't all bad news.

Australian Strategic Policy Institute operations and capability director Andrew Davies said the cost and capability of the projects were on target. The report found a favourable foreign exchange rate had offset a $1.1billion increase in the budgeted cost due to price indexation.

''The performance of the equipment will be as wanted and expected, the bad news is entirely within the schedule,'' Mr Davies said. ''The moral is, if we can buy stuff off the shelf that does what we want or near enough to it, we should.

''The more we modify things or development, the harder it is and the longer it takes.''

Mr Davies said the worst performing projects were the oldest.

These included projects which were commissioned before the 2005 demerger of the Defence Materiel Organisation from Defence.

Shadow Parliamentary Secretary for Defence Materiel, Senator Gary Humphries, said Government mismanagement was putting future capability at risk.

''This has flow-on effects for the safety of our troops in war and for our national security,'' he said.

While Senator Humphries admitted current troops on overseas deployment were not at risk, he said that unless these projects were brought back under control, the Australian Defence Force of the future would be less flexible and less capable.

This reporter is on Twitter: @mickinman