With reference to page 197 of the Department of Defence Annual Report 2003-04 would the Minister advise:

(1)   The cost of the project undertaken to develop an innovative and cost-effective solution to correct propeller balance in the C-130J.

(2)   Was this project required as a result of a manufacturing fault, or was it required due to normal wear and tear; if due to a manufacturing fault, what action has been taken to recoup costs from the manufacturer.

(3)   For each of the next five financial years, what is the projected annual saving expected as a result of this solution to correct propeller balance in the C-130J.

(4)   Has the Commonwealth attempted to sell this solution to correct propeller balance in the C-130J to allied nations who also use the C-130J; if not, why not, and if so: (a) which nations have been approached and when; (b) which nations have accepted and when; and (c) what has been the revenue earned to date by the Commonwealth from this solution to correct propeller balance in the C-130J.

(5)   For each of the next five financial years what is the projected revenue to be earned by the Commonwealth from this solution to correct propeller balance in the C-130J.

(1)   Direct cost is forecast at AUD $60,000.

(2)   There is no relevant manufacturing fault with the aircraft.  C-130J propellers are required to be balanced every 60 weeks to ensure the engine does not operate outside prescribed vibration limits.

(3)   Projected annual manpower savings are estimated at 276 man-hours per year ($8,452) or 1380 man-hours ($42,260) over five years.  In addition to the reduced wear on engines because of better balanced propellers, ground engine running time will also be reduced, combining to resulting in increased engine life. The exact value of these savings is still to be determined but expected to significantly out-weigh the minor project cost.

(4)   No.  Australia is a member of the C130J Joint User Group (JUG) which is a collaborative program between allied nations who are users of the C-130J.  Each user shares its activities and problems, in an attempt to maximise efficiency, reduce the common workload between users and reduce the cost of ownership.

(5)   No cash revenue will be forthcoming from this agreement.