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Call for more independence in defence purchases

24 Sep, 2008 01:00 AM
An independent review of Australia's defence procurement systems has recommended that the organisation charged with acquiring and maintaining the nation's military equipment become an executive agency with greater independence.

The report, released yesterday, also recommends the Defence Department increase the rigour with which it assesses projects before they are implemented.

Defence Minister Joel Fitzgibbon said in recent years confidence in the ability of the Commonwealth to provide Australia's defence forces with critical capability had been ''severely undermined'' by troubled projects which had run over budget and late.

These included the ''infamous'' Seasprite helicopter project, along with the Wedgetail early-warning aircraft project and plans to upgrade the Adelaide guided-missile frigates.

A key recommendation of the Going to the Next Level report states Defence's Defence Materiel Organisation be given more independence as an executive agency.

A charter between Defence and the organisation would ''clearly spell out the responsibilities of each agency''.

Mr Fitzgibbon said the concept should be ''further canvassed and considered.

The Defence Minister added, ''I said both in opposition and since the election that I want the DMO to run more like a business and less like a bureaucracy.''

The organisation has a cash budget of more than $9 billion a year and manages more than 230 capital equipment projects. AAP

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