Gillard Government allocates more than $200m to design phase for 12 submarines



THE Gillard Government has allocated more than $200 million to the design phase for 12 new submarines and has fast-tracked a new Defence white paper.


However Defence has had to make deep cuts in order to help Treasurer Wayne Swan return next week’s federal budget to surplus – including postponing the Joint Strike Fighter project and axing another program.

In Canberra this morning Prime Minister Julia Gillard, Defence Minister Stephen Smith and Home Affairs Minister Jason Clare announced the government would provide $214 million for the next stage of the Future Submarine Project.

“This funding will go towards further detailed studies and analysis to inform the government’s decision on the design of Australia’s next submarine,” Ms Gillard said.

The 2009 Defence white paper outlined the government’s commitment to acquire 12 new Future Submarines to be assembled in South Australia over the next three decades.

“The Future Submarine project will be the largest and most complex Defence project ever undertaken by Australia,” Ms Gillard said.

The new submarines would replace the six existing Collins class vessels which are set to reach retirement around 2025.

The government previously has said that any new vessels would not be nuclear powered.

Ms Gillard said because Australia was an island continent, our “maritime capability is pivotal”.

She and Mr Smith also announced the government will start work on a new Defence white paper, to be delivered in the first half of 2013, a year ahead of schedule.

Mr Smith also revealed Defence had not been spared from cuts in next week’s budge, revealing the Joint Strike Fighter project had been put on the backburner, saving around $1.6 billion.

The Defence Minister said the government remained “committed” to the JSF project and was contractually committed to purchasing two jets, which would be delivered in 2014-15 in the US for testing and training purposes.

The government has previously announced a commitment to purchasing a further 12 jets, “and that commitment will occur, but it will occur two years after the previously anticipated timetable”, Mr Smith said.

“The budget effect of that is that it takes out of the forward estimates for this year’s budget between $1.5 and $2 billion, in round terms about $1.6 billion,” Mr Smith said.

Another project the government has decided not to pursue, saving the government $225 million, is the procurement of self-propelled artillery.

“That project has had some difficulties,” Mr Smith said.

Mr Smith revealed there would be more cuts in next week’s budget.
“Defence will make a contribution to the budget bottom line, to returning the budget to surplus. So yes there will be more in the budget,” he said.

But he said Australia’s overseas operations would be quarantined from the cuts, and he said there would be no adverse impact on the number of Defence Force personnel.
 

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