Defence

14 February 2023

It is pure hypocrisy for the members opposite to be pointing the finger at the former Labor government on defence matters. After all, it was the former coalition government which had six defence ministers and seven defence industry ministers over its time in office. Under former Prime Minister Morrison, there were four defence minister in just four years. The result was chaotic and dysfunctional leadership, with inadequate oversight and focus on the defence portfolio, leaving a significant procurement mess for the Albanese government to fix up. On coming to office last year, we inherited a defence mess. We had to move swiftly to rectify significant and systemic issues in the delivery of crucial defence capabilities left behind by the outgoing government.

A series of major Defence projects with approved budgets totalling more than $69 billion were facing significant schedule delays and budget variations. Of these projects, at least 28 were a combined 97 years behind schedule. At least 18 projects were found to be running over budget and at least $6.5 billion of variations from the approved budgets were identified. This underperformance on Defence projects is due in no small part to the chaotic former coalition government.

Let's have a look at some of the project failures left for the Albanese government to fix. The start of construction on the $44 billion Hunter class frigate program was delayed by four years, with a $15 billion increase in expected costs, hidden from the public by the coalition government. The $1.4 billion C-27J Spartan battlefield airlifters were delivered 4½ years behind schedule and are unable to fly into battlefields. The $3.7 billion offshore patrol vessel project was one year behind schedule. The $356 million evolved Cape class patrol boat was running nearly a year late. The $970 million battlefield command system was three years behind schedule. Several Defence satellite communications projects, worth $906 million, were running between two and four years behind schedule. And, most recently, the Multi-Role Helicopter Program for the MRH-90 Taipan is another project of concern because it's not fit for purpose. Need I remind you it was the Howard government which decided to acquire the Taipan against the advice of Defence to acquire Black Hawks? That's the dazzling track record of the people opposite, yet they have the audacity to point the finger at Labor.

In contrast, the Albanese government is fixing, strengthening and revitalising defence projects. We are doing that in line with six reforms announced by the Deputy Prime Minister and the Minister for Defence Industry last year. We're establishing an independent projects and portfolio management office within Defence. There will be monthly reports on projects of concern and projects of interest to the Minister for Defence and the Minister for Defence Industry. And we're fostering a new culture in Defence, drawing attention to emerging problems and encouraging and enabling early response, and we're providing those troubled projects with extra resources and skills. These things should have been in place under the coalition, but they weren't. Now, under the guidance of our defence minister, things are changing for the better. Last month, we announced the acquisition of 40 Black Hawk helicopters for the Australian Army to replace the current fleet of Taipan helicopters, and we are substantially increasing the ADF's guided weapons, explosive ordinance stocks, naval strike missiles and long range surface-to-surface high-mobility rocket systems—several projects that we are putting in place.

The Albanese government is committed to ensuring Defence can deliver the capabilities ADF personnel need when they need them. In doing so, we build our defence capabilities at home, upskilling our workforce, improving the defence of Australia and, most importantly, protecting our people and our democracy.