Saturday, May 17, 2008

This is the sort of defence statement...

...the Conservative government seems incapable of making. Excerpts from a speech by the Australian parliamentary secretary for defence procurement; I urge you to read the whole thing--and compare it with our government's pathetic efforts (more here). Some observations follow.
...
Firstly some comments about the context in which the budget has been framed.

The government has outlined three main priorities for defence in 2008/09. They are:

1. Operations, including United Nations peacekeeping, regional assistance missions, border protection and domestic security operations;

2. The new defence White Paper, which will lead to clear policy guidance for the defence portfolio [note all the details at the link about how the paper will be done];

3. Efficient and effective administration through defence reform.

With these priorities, the government is seeking to ensure that our strategic objectives are aligned with our capability program and that this is appropriately funded...

Budget Overview

In 2008/09, the Government will invest $21.76 billion in the Australian Defence Force (ADF) to ensure that it is ready to meet the challenges it faces. This represents about 1.8 per cent of GDP.

The Defence Materiel Organisation part of the Defence Budget is equal to $9.6 billion in 2008/09.

Some observers were expecting these figures to be higher. I will explain shortly why they fell short of some expectations. It does not mean any weakening of the Government’s resolve to build defence funding over the forward estimates.

However, it is important to note that this is an increase in the Defence Budget of 7.3 per cent over the 2007/08 forecast outcome of $20.28 billion.

The Government will support Defence by providing real growth of 4 per cent on average over the forward estimates out to 2011/12.

In addition, the Government has renewed its commitment for real growth in the Defence budget at an average of three per cent in real terms every year to 2017-18 – an additional two years funding then previously announced...

ADF Operations

ADF Operations are undoubtedly the ‘core business’ of Defence.

The Budget includes $1.036bn in 2008-09 for our major overseas operations. This commitment includes additional funding of over $668m in 2008/09 for overseas operations in Afghanistan, Iraq, Timor-Leste and the Solomon Islands.

The Government has allocated $618.9 million on Operation Slipper in Afghanistan during 2008/09. This will allow the ADF to undertake reconstruction and community based projects including support through combat patrols, reconnaissance and surveillance in the Oruzgan province.

Over the next 12 months the Reconstruction Task Force will transition into a Mentoring and Reconstruction Task Force with the inclusion of an Operational Mentoring and Liaison team. This new team will help assist Afghan forces in the province to carry out more security and reconstruction tasks.

The Special Operations Task Group in Oruzgan and the Air Force at Kandahar Airfield will also continue their important work...

Providing Clear Policy Guidance

As I have stated the Government is committed to providing clear policy guidance to Defence so that our strategic aims are better aligned with our capability needs.

The White Paper, along with the associated Force Structure Review, Companion Reviews and Savings Program will provide Defence with a firm foundation for the future.

The shape and capability of our forces will be assessed by the Force Structure Review and will take a top down approach to analysing the force structure priorities out to 2030 [emphasis added].

The review will take into account the strategic and security environment and potential tasks for our military to determine the joint capabilities needed and develop options for force structure and capability [will any Canadian government dare take on something so fraught with stepping on the services' toes?--see the latter part of this post]...

Defence International Engagement and Cooperation

The 2008-09 Budget also provides $85 million for military cooperation with Australia’s allies, friends and partners around the world.

In 2008-09, Australia will progress practical initiatives designed to enhance defence cooperation in the areas of defence trade, joint training, interoperability, communications and intelligence collaboration with the United States [can you imagine our government highlighting "interoperability" (Google deeply and one finds this) and "intelligence collaboration" with the, gasp, Americans? Hell, the government is even reluctant to acknowledge cooperation on a Civil Assistance Plan].

The Government will continue to build on the strong defence and security relationship we have with Japan. This will include strategic discussions, high-level visits, ship visits, educational exchanges and working-level exchanges on issues such as peacekeeping, counter-terrorism and disaster relief.

In 2008-09, we will seek to boost regional security cooperation through discussions with our neighbours. We will commit $26 million to defence cooperation in Southeast Asia for extensive training and education of regional militaries and cooperation in counterterrorism exercises.

In the Pacific, Defence will focus on building stability...

Defence Procurement and Sustainment Review

As many of you would be aware on 7 May I announced the Defence Procurement and Sustainment Review which will be conducted by David Mortimer.

I just wanted to outline some of the rationale behind this Review.

The Review is intended to examine the effectiveness of reforms to date and also develop a program of ongoing reforms.

One area that I am keen to see developed is a series of reforms that will move DMO further towards a more businesslike and commercial operation. I believe this is essential if we are to achieve a more effective and efficient defence procurement process...
Surely the Canadian Parliament and people deserve no less. And that's not even the minister speaking.

A few comments. Australia's population is 20.5 million; ours is 33 million. Yet the Aussies' 2008-09 defence budget is C$20.6 billion (A$=C$.95). Here's ours (note that capital expenditure is actually down):

Voted and Statutory Items Displayed in the Main Estimates


Vote or
Statutory Item
($Thousands)

Truncated Vote or Statutory Wording

2008-2009
Main Estimates

2007-2008
Main Estimates

1

Operating expenditures

13,519,620

11,848,854

5

Capital expenditures

3,356,705

3,592,868

10

Grants and contributions

192,396

210,451

(S)

Minister of National Defence salary and motor car allowance

76

75

(S)

Payments under the Supplementary Retirement Benefits Acts

6,796

7,020

(S)

Payments under Parts I-IV of the Defence Services Pension Continuation Act (R.S., 1970 c. D-3)

1,493

1,550

(S)

Payments to dependants of certain members of the Royal Canadian Air Force killed while serving as instructors under the British Commonwealth Air Training Plan (Appropriation Act No. 4, 1968)

82

90

(S)

Contributions to employee benefit plans - Members of the Military

938,132

957,396

(S)

Contributions to employee benefit plans

278,456

263,300


Total Department

18,293,756

16,881,605

The Aussies' is 1.8 per cent of GDP; ours is under 1.2 per cent (2007 GDP of $1.558 Trillion will grow somewhat; do the math). "Canada spends $558 per capita on defence...Australia $808."

To repeat from above (yes, those long-term commitments are hardly solid; but I'd put more faith in Aussie governments of either party keeping them than in our parties):
The Government will support Defence by providing real growth of 4 per cent on average over the forward estimates out to 2011/12.

In addition, the Government has renewed its commitment for real growth in the Defence budget at an average of three per cent in real terms every year to 2017-18 – an additional two years funding then previously announced.
This is the commitment of our government in its 2008 budget:
This budget provides the funding stability and predictability that will allow for the successful implementation of the Canada First Defence Strategy by increasing the automatic annual increase on defence spending to 2 per cent (from the current 1.5 per cent) beginning in 2011–12. Over the next 20 years, this is expected to provide the Canadian Forces with an additional $12 billion...
So the Australian Defence Force gets 4 per cent more annually up to 2011-12; the Canadian Forces get 1.5 percent.

More from Senator Colin Kenny, chair of the Senate Committee on National Security and Defence:
...Canada is skimping, and the chickens will soon come home to roost. Our committee's most frugal estimate is that Canada will require a defence budget of $35 billion by 2011 to give our armed forces personnel a reasonable chance of performing the roles assigned to them. It looks like the government intends to fall short by about $14 billion.

The Prime Minister and his minister of defence gave some sleight-of-hand speeches earlier this week suggesting that they have some master plan, involving many billions of dollars over 20 years, to ensure that the Canadian military is well-funded. Their words and numbers add up to a sham. Finance Minister Jim Flaherty's most recent budget boosts military spending by only 2 per cent annually and that is unlikely to even match inflation. The numbers announced by the Prime Minister may look impressive, but defence spending will actually go down as a percentage of GDP, which is the only valid statistic to compare military spending from year to year. The government's announcement and subsequent "clarification" by unnamed senior military officers in media briefings are intended for electoral purposes and not to enhance the Department of Defence's long-term capabilities...
Not much to cheer about, especially in comparison to Australia.

2 Comments:

Blogger fm said...

The 3% real increase in the defence budget is bipartisan policy in Australia and has been about the last three years, so expect it should continue. However there is a little bit of spin evident in the 'new' commitment to 4% increases out to 2011. Some of this is carried over funding from previous under spends (projects like Wedgetail which are running late). $1 billion was unspent last year, for example.

But otherwise, yes, there is not too much politicking going on in the Australian defence portfolio. Not yet anyway. The Defence Capability Plan is reasonably transparent to the public via the DMO website and other public documents and major funding for it is uncontroversial, mostly.

3:02 a.m., May 18, 2008  
Blogger arctic_front said...

I understand the frustration that the blog host feels here. Having the Lib Senator Kenny blasting the Government for under-funding the CAF is so hypocritical. Regardless of what PM SH does, he is damned if he does or doesn't. The wailing from the opposition would drown out anything the CPC could say to support properly funding the military, especially if any funding was cut from some Liberal pet social program such as SOW or arts.

Think of the funding available if there was a way to skim off just the wasted billions that the government or various govmt. departments piss up against the fence for no discernible benefit? Can you say new Frigates, F-35 fighters and Chinook helicopters? Or how About new heavy logistics vehicles and predator drones?

I guess one man's defense dollar is another man's nanny state fuzzy-bunny welfare program.

1:00 p.m., May 18, 2008  

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