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Thursday, 10 May 2012
Page: 3298

Defence: Strategic Reform Program

(Question No. 1583)

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 - SRP Stream Net Savings' for:

(a) information and communications technology;

(b) inventory;

(c) smart maintenance;

(d) logistic;

(e) non equipment procurement;

(f) preparedness and personnel and operating costs;

(g) Reserves;

(h) shared services; and

(i) workforce.

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

The cost reduction programs and investment programs are managed separately to ensure that Defence achieves its agreed outcomes and can develop reform projects that will deliver enduring benefits. Investment funds can be allocated to both cost reduction and non-cost reduction SRP reform streams, and to Groups and Services for a variety of reform activities. As such the investment funds can not be solely attributable to cost reduction streams, and thus not considered on a net basis.

Developing a 'net' view by reducing the SRP cost reduction target by the total SRP investment funds is misleading due to the different nature of the programs and their management, as it is not a one-to-one relationship.

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.