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Monday, 22 August 2011
Page: 5119

Defence: Strategic Reform Program

(Question No. 513)

Senator Johnston asked the Minister representing the Minister for Defence, upon notice, on 21 March 2011:

For the period 1 July to 31 December 2010:

(a) what specific savings of the expected $320 million over the period 2010 to 2019 have been made in Storage and Distribution (Logistics) Reform where the adoption of automated technologies and improved business practices ensure cost effectiveness and efficiency; and

(b) what one-off savings been made.

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

(a) and (b) Strategic Reform Program (SRP) savings are tracked, reported and managed on a stream-by-stream basis; they are not broken up by sub-category of productivity, one-offs or other descriptors.

The Logistics stream comprises several initiatives including: the consolidation and rationalisation of the wholesale storage and distribution network; modernisation of land material maintenance services; and the introduction of automated identification technology to more efficiently track and manage Defence inventory. These initiatives are at various stages of maturity and SRP governance closely monitors the progress of these initiatives against the planned schedule and achievement of agreed cost reductions.

Defence will publish the stream cost reductions achieved for the full financial year in the Defence Annual Report 2010-11 which is expected to be released in late 2011.