HAIDER
ELITE MEMBER
- Joined
- May 21, 2006
- Messages
- 33,771
- Reaction score
- 14
- Country
- Location
Its another chance for Pakistan to buy some useful hardware. Like before it picked up brand new
mirage with nuclear strike capability.
mirage with nuclear strike capability.
WIith some 85 per cent of its equipment due for replacement or upgrade over the next 15 years, Australia's Department of Defence (DoD) has launched a massive sell-off of its current arsenal.
The disposal programme over the next decade is to include up to 24 naval ships, 70 combat aircraft, 110 other fixed-wing aircraft, 120 helicopters, 600 armoured vehicles and a range of communications systems, weapons and explosive ordnance. Earlier this month, as part of this effort, a request for proposals was issued involving up to 12,000 non-armoured vehicles.
The sell-off is being directed by Mr Ian Donoghue, director-general of the DoD's Defence Disposals Agency (DDA). The overall aim, he said in a telephone interview, is to "maximise the return on our investment".
Australia's 2009 Defence White Paper outlined development of the country's defence force over the next 20 years, including extensive procurements intended to substantially bolster capability. This ambitious agenda is to be funded through 3 per cent real growth in defence spending each year over the forthcoming decade.
Cost-saving steps are another measure. An inaugural Strategic Reform Programme (SRP) was released by the DoD concurrent with the White Paper and is intended to realise A$20.6 billion (US$21.9 billion) in savings over 10 years. A recent evaluation by the Australian Strategic Policy Institute questions the figures but states that the SRP has so far proven effective.
The SRP is concerned with achieving savings through improved planning and enhanced productivity, along with some reductions among support personnel. It deals with areas such as sustainment, maintenance, logistics and support services - but not equipment disposal.
Disposal was traditionally viewed by Canberra as a cost rather than an opportunity. But that attitude has since changed.
"The British government has generated £650 million from military equipment disposals since 1997. Over the same period and with a similar number and type of assets, the disposal of Australian military equipment has cost around A$20 million," Minister for Defence Materiel Jason Clare observed in June.
"That's why I am reforming Australia's system of military disposals - to reduce costs, generate potential revenue and provide opportunities for defence industry involvement."
These changes have been simmering for 12 to 18 months, with completion due around year-end. "We're restructuring our organisation and our processes," Mr Donoghue explained.
One critical reform involves assuming a pro-active approach, which may well prove unique.
"Disposal has so far involved a reactive-type process," said Mr Donoghue. "A decision is made about the withdrawal of a platform, and then analysis is undertaken and a decision made on the best disposal method. What we're doing now is putting in place the mechanisms for disposal before the platform withdraws."
This should allow sales contracts to be in place well before the equipment becomes available - in fact, several years before - under a process Mr Donoghue styles as "hot delivery". A single buyer could commit to obtaining all the naval vessels being decommissioned over the next decade, for example, or different buyers may focus on different ship types.
Pre-planning, the DDA chief argues, should also produce opportunities for Australia's wider defence sector.
"Let's say we have a key defence asset. A ship, for example," he said. "We can add value within Defence by putting together a spares package, or a training package. If the purchaser is another government we could include in the sale any unique weaponry or explosive ordnance.
"Industry could potentially provide an upgrade to the ship, or refurbish it. They might provide a training and support package involving maintenance."
Hardly ground-breaking stuff, but this sort of integrated approach seems new for Australia. And industry could benefit further from additional reforms announced recently by Mr Clare.
Mr Donoghue demurred from citing any projected revenue figures, either for the DoD or for industry. Irrespective of the sums involved, some of the money derived from defence disposals will be channelled back into defence-related projects and some will be swallowed by the government's general fund. Provisions of the Finance Act will determine any result, he said.
On another front, some analysts have raised cost concerns over Australia's planned military build-up. This includes 12 new submarines valued at over A$10 billion and 86 additional Joint Strike Fighters (JSF) costing some A$17 billion to top off 14 already on order, together with other high-ticket items.
With JSF cost over-runs and delivery delays now apparent, Australian Defence Minister Stephen Smith recently announced in Parliament that Canberra may next year review its fighter options. But Mr Donoghue emphasised that the DDA's performance is not a factor in such considerations.
"Procurement decisions will not be based on how much revenue we raise from disposals," he said.Australian military starts big sell-off
and Tejas tooo
