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Thursday, 10 May 2012
Page: 3297

Defence: Strategic Reform Program

(Question No. 1581)

Senator Johnston asked the Minister representing the Minister for Defence, upon notice, on 5 March 2012:

For the period 1 July to 31 December 2011, what specific savings have been made in the Strategic Reform Program (SRP) 'Provisional Savings and Costs - Gross SRP Stream Savings' for:

(a) information and communications technology;

(b) inventory;

(c) logistics;

(d) non equipment procurement;

(e) Reserves;

(f) shared services; and

(g) workforce.

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

Cost reductions under the Strategic Reform Program (SRP) are based on annual budgets. In 2011-12 the cost reductions under the SRP is $1,283.9 million. This will be achieved through initiatives under seven SRP streams distributed as follows:

1. Information and Communication Technologies—$147.5 million;

2. Smart Sustainment (including Inventory)—$ 370.2 million;

3. Logistics—$8.3 million;

4. Non-equipment Procurement—$206.6 million;

5. Reserves—$28.1 million;

6. Workforce and Shared Services—$237.6 million; and

7. Other cost reductions—$285.5 million.

*Summation variances are due to rounding

These figures have been updated since their publication in "Strategic Reform Program: Delivering Force 2030".

The annual budgets for activities targeted through streams have been reduced by amounts that reflect cost reductions agreed by Government. As at 31 December 2011, Defence had expensed 46.1 per cent of annual budgets captured by SRP streams.

Based on an expected pattern of expenditure over the 6 months to end June 2012, Defence is confident it will deliver its required business outcomes within these reduced annual budgets.

Defence will publish the stream cost reductions achieved for the full financial year in the Defence Annual Report 2011-12 which is expected to be released in late 2012.