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Thursday, 16 August 2012
Page: 5701

Defence: Equipment

(Question No. 1623)

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

With reference to the Government commissioned report, 2008 Audit of the Defence Budget which identified that ‘a real growth rate of 3.5% in capital expenditure on SME [Specialised Military Equipment] [is required] just to replace today’s equipment. To deliver the capabilities proposed in the recommended Force Structure Option requires a growth rate of 4.2%’: As at 31 December 2011, what will be the amount required to fund, in nominal dollars, the major capital equipment program each year from 2010 11 to 2029 30, so as to fund the White Paper ‘Force 2030’ initiatives.

Senator Bob Carr: The Minister for Defence has provided the following answer to the honourable senator’s question:

At the time of the 2009 Defence White paper, and at the Senate Estimates hearing on Wednesday 3 June 2009, Defence outlined that the estimated overall cost of buying the capability outlined in the White Paper would be between $245-$275 billion out to 2030.

However, this has been revised down to approximately $200-$230 billion out to 2030 due to the appreciation of the Australian Dollar against the US Dollar.