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Title

QUESTIONS ON NOTICE

Defence (Question No. 780)

Database

Senate Hansard

Date

13-10-2011

Source

Senate

Parl No.

43

Electorate

 

Interjector

 

Page

7482

Party

LP

Presenter

 

Status

Final

Question No.

780

Questioner

Johnston, Sen David

Responder

Evans, Sen Christopher

Speaker

 

Stage

 

Type

 

Context

QUESTIONS ON NOTICE

System Id

chamber/hansards/44a5a46d-a92f-4e32-9264-5bdc1e61282a/0314


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Thursday, 13 October 2011
Page: 7482

Defence

(Question No. 780)


Senator Johnston asked the Minister representing the Minister for Defence, upon notice, on 5 July 2011:

As at 30 June 2011:

(1) Is it still planned to acquire 12 submarines as per the White Paper direction 'the Government takes the view that our future strategic circumstances necessitate a substantially expanded submarine fleet of 12 boats in order to sustain a force at sea' (Defence White Paper 2009, p. 64, paragraph 8.40).

(2) What plans and strategies are in place to man the 12 future submarines given the great difficulty in 2010-2011, of manning and operating our current submarines.

(3) What is the expected cost of acquiring 12 future submarines, over the next: (a) 12 months; (b) 5 years; (c) 10 years; and (d) 15 years.

(4) What funding has been provided to assist in the planning for the 12 future submarines.

(5) When is it expected that the first pass approval will be provided to advance the purchase of the 12 future submarines.

(6) What is the expected through-life support and operating costs of a fleet of 12 future submarines over a 30 year operating period.

(7) When is it envisaged that the first of the 12 future submarines will be launched and fully operational.

(8) What is the expected cost per year of maintaining and operating our 6 Collins Class submarines until they are de-commissioned, broken down by year until 2025.

(9) What is the specific phasing-out program for the existing Collins Class submarines.


Senator Chris Evans: The Minister for Defence has provided the following answer to the honourable senator's question:

You previously asked the same questions under Senate Question on Notice No.504 on 22 March 2011. This response has been provided to you and remains extant. Based on your most recent question, the following update to the response is provided as follows:

(1)   Same as response to QoN 504.

(2)   In 2010 there were three sustainably crewed Collins Class Submarines operating.

In response to the 2008 Submarine Workforce Sustainability Review, the Chief of Navy agreed to implement all the Review's recommendations and in early 2009 established the Submarine Sustainability Program to execute remediation actions, over a five year, five-phase Submarine Sustainability Strategy.

Since the launch of the Submarine Sustainability Program, it has proved to be a highly effective framework for implementing the 29 Review recommendations and realising intended benefits. The Submarine Sustainability Program is primarily concerned with workforce-related reforms that benefit submariners and their families. The Submarine Sustainability Program has implemented more than two-thirds of the 29 recommendations and is still aiming to achieve the objective of growing a fourth submarine crew without undermining workforce growth in other areas critical to maintaining an effective submarine capability. The Submarine Sustainability Program is the foundation for expanding the submarine workforce to meet Future Submarine capability requirements.

(3)   Same as response to QoN 504.

The Minister for Defence has authorised a total of $19.306 million (Dec 11 Price Basis) for the Future Submarines Program.

(5)   Same as response to QoN 504.

(6)   Same as response to QoN 504.

(7)   Same as response to QoN 504.

(8)   The costs provided are the estimates over the 10-year forward period, which is the estimating horizon, employed by Department of Defence.

Table 1 details DMO's maintenance and support costs for the Collins class submarine, which are primarily incurred for contracted services to support the platform. These costs also include provision of Escape and Rescue Services, the Submarine Escape and Rescue Training Facility and support to the combat system.

Table 1. Current Funded DMFP FYs 2011-12 to 2020-21

 

2011-12

2012-13

2013-14

2014-15

2015-16

2016-17

2017-18

2018-19

2019-20

2020-21

Sustainment Product

$'m

$'m

$'m

$'m

$'m

$'m

$'m

$'m

$'m

$'m

Collins Class Submarine

435.1

402.8

353.4

343.8

337.8

380.8

390.6

406.2

416.2

426.9

Reference: CN 10 Milestone 20120120 (DMO)

The expected operating budget for the six Collins Class submarines in each of the financial years 2011-12 to 2020-21 is detailed in the Table 2. The methodology used is consistent with the recent answer to QON 76 (asked by Senator Johnstone on 31 May 2011). The Operating costs include the cost of suppliers, facilities and personnel in both Defence and DMO deemed to directly contribute to the submarine capability along with rations, fuel, and EO (firings and sustainment costs).

This table does not include sustainment and project costs.

Table 2. Estimated Future Submarine Capability Operating Costs

 

2011-12

2012-13

2013-14

2014-15

2015-16

2016-17

2017-18

2018-19

2019-20

2020-21

 

$'m

$'m

$'m

$'m

$'m

$'m

$'m

$'m

$'m

$'m

Estimated Operating Costs

183.1

183.9

200.7

202.6

213.4

224.0

239.5

255.9

278.8

308.3

Note: Excludes Sustainment Costs for Collins Class (CN10)

(9)   Current planning is for the first Collins Class submarine to be withdrawn from service in 2026. It is intended that the Collins Class submarine withdrawal program will be closely coordinated with the introduction into service of the Future Submarines; the schedule for which is yet to be determined. The transition plan will be designed to minimise the impact on overall submarine availability, the period of transition and the associated costs.