Download Fragment

Thursday, 9 February 2012
Page: 703

Defence: Strategic Reform Program

(Question No. 1443)

Senator Humphries asked the Minister representing the Minister for Defence, upon notice, on 9 November 2011:

In regard to the Strategic Reform Program:

(1) For each of the following financial years: 2009-10, 2010-11, 2011-12 and 2012-13: what are the current gross savings targets, costs and net savings for each reform/savings stream (an updated table, is required, equivalent to p. 27 of the SRP booklet 2009, which includes gross savings targets, stream costs and net savings).

(2) (a) What were the actual figures achieved for each reform/savings stream (gross savings, costs, net savings) for the 2009-10 financial year that led to the achievement of the target gross savings of $797 million; and

(b) what were the total program costs for the 2009-10 financial year (actual) and total savings (net).

(3) (a) What were the actual figures achieved for each reform/savings stream (gross savings, costs, net savings) for the 2010-11 financial year that led to the achievement of the target gross savings of $1.016 billion; and

(b) what were the total program costs for the 2010-11 financial year (actual) and total savings (net).

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

(1) Investment funds can be allocated to both cost reduction and non-cost reduction streams, and to Groups and Services for a variety of reform activities. Therefore a 'net savings' view is not reflective of the purpose of SRP investment funds as they can not be solely attributable to cost reduction streams.

Stream	Cost reduction target
	2011-12	2012-13
Information and Communications Technology	$147m	$183m
Smart Sustainment	$370m	$515m
Non-Equipment Procurement	$207m	$260m
Workforce and Shared Services	$238m	$293m
Reserves	$28m	$31m
Logistics	$8m	$19m
Other	$286m	$621m
Total*	$1284m	$1922m

*Summation variances are due to rounding.

SRP	Investment funds
	2011-12	2012-13
SRP investment funds**	$434m	$226m

** Strategic Reform Project (SRP) cost provisions are consolidated into a central provision. SRP costs cannot be attributed to streams.

(2) (a) Refer to the Defence Annual Report 2009-10 Volume 1 Department of Defence, Table 1.1 2009-10 SRP Reform Stream cost reductions

(b)—

SRP	2009-10
Total investment funds	$303m
Total cost reductions	$1022m

(3) (a) Refer to the Defence Annual Report 2010-11 Volume 1 Department of Defence, Table 1.1 2010-11 Key SRP Achievements

(b)—

SRP	2010-11
Total investment funds	$507m
Total cost reductions	$1064m