Senator CHRIS EVANS (2:00 PM) —My question is directed to Senator Hill, the Minister for Defence. Can the minister confirm reports that there is a $12 billion funding black hole in the current Defence Capability Plan, barely two years after the government endorsed it? Minister, given that there are serious doubts about the capacity to deliver many existing projects in the DCP, how does the government intend to fund the additional $500 million to $750 million that it estimates it needs to buy replacement tanks for the ADF? Does this new spending mean that there will need to be severe cutbacks to existing projects, or will the government be injecting substantial extra funding to support the DCP? Given the minister's earlier comments that the revised DCP would be finalised in October, can we expect it to be released today or tomorrow?

Senator HILL (Minister for Defence) —There is no black hole in the Defence Capability Plan. There are some cost pressures; that is true. They arise out of the fact that the DCP included projections for equipment many years ahead of the date on which the document was written. There are no replacement tanks in the current DCP. In relation to extra funding, that is not for me to say. It is a whole-of-government issue. Defence has been adequately and appropriately funded for its tasks. As honourable senators will know, it has been supplemented for the cost of operations. It received additional funding in the last budget towards the extra logistics costs arising out of the high rate of operational tempo. It received extra money for the new special forces command and for special forces equipment, in particular the second TAG on the east coast. As needs have arisen, this government has always been prepared to meet what are proper defence requirements. I would expect that it would continue to do so.

Senator CHRIS EVANS —Mr President, I ask a supplementary question. I thank the minister for his answer, although he did not actually answer any of the questions put to him. I would appreciate it if he could make it clear what is going to happen with the review of the DCP, given that he said it was going to be announced in October. Does the minister accept that a clear statement of Australia's strategic priorities must underpin any revisions to the DCP? Minister, isn't the failure to provide Defence with a clear strategic direction largely due to the conflict you have with the Prime Minister about plans for an expeditionary ADF at the expense of Australia's core defence needs? Is the government any closer to finally resolving the internal conflicts that are inhibiting our long-term defence planning?

Senator HILL (Minister for Defence) —That is, of course, a nonsense. There are no internal differences within the government. We are a happy team, working in one direction. We did an update of the strategic environment in February of this year, which was published. Our latest strategic guidance builds on the white paper and takes into account global terrorism, the proliferation of weapons of mass destruction and extra tasks within our region. In relation to the timing of the review, consideration of an updated DCP is currently being undertaken on a whole-of-government basis.