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Decision on army bases put off

18 Nov, 2009 11:01 AM
The Federal Government has pushed back politically difficult decisions about the rationalisation and possible closure of military bases until after the next federal election.

Defence Minister John Faulkner said yesterday the Government had rejected the recommendations of a key Defence audit for a move towards a new, more cost-effective ''super-base'' model for the Australian Defence Force.

Senator Faulkner announced the Government's decision as he issued the 2008 Defence Budget Audit, prepared by an external consultant, former senior vice-president of Boston Consulting Group, George Pappas.

The Pappas review made a number of recommendations regarding the future of the Defence estate, including consolidating Defence facilities into a ''super-base'' model.

Senator Faulkner said the Government had rejected the recommendations, saying that it would be irresponsible to proceed without further exhaustive studies.

''While acknowledging that any move to a 'super-base' model would have strategic, economic and social impacts, the Defence Budget Audit was focused on financial benefits and therefore did not fully examine these broader issues,'' Senator Faulkner said.

''It would be irresponsible for the Government to agree to base rationalisation without a more comprehensive examination both of national strategic requirements and community considerations.''

Senator Faulkner said the Defence Department had been tasked to undertake a further comprehensive review including ''a strategic assessment of Defence's basing requirements and a detailed financial analysis of long-term costs and efficiency gains of different basing mixes, [and] ... options for changes to the estate over a 25-30 year period''.

Senator Faulkner said that such a detailed study would take 12-18months to complete and that an independent commission would then be appointed to consider the department's recommendations. The commission would also conduct substantial public consultations before reporting back to the Government.

As a consequence, further decisions on the future of military bases would not take place until some time in the middle of the next parliamentary term.

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