Defence Capability Plan 2009 – Supporting Australian Defence Industry

Thursday, Jul 02, 2009

The Minister for Defence, Senator John Faulkner, today released the Defence Capability Plan 2009 (the DCP) which will strengthen the partnership between Defence and defence industries to secure Australia’s strategic future.

Senator Faulkner said the Defence Capability Plan (DCP) contains a large number of opportunities for Australian industry and the Government remains committed to ensuring that local industry is capable of supporting the Australian Defence Force (ADF).

The DCP contains a detailed account of major capital equipment proposals that are planned for Government consideration (either first or second pass approval) over the period 2009/10 to 2012/13 fiscal years, and foreshadows substantial demand beyond that period.

“This DCP contains 110 capability projects or phases with a total budget of over $60 billion which is more than the total expenditure in the 2006-2016 Public DCP,” Senator Faulkner said.

Additionally, there is a summary of some of the major programs expected beyond 2013.

Senator Faulkner said the average annual growth expected across the next four years is about 4 percent per annum, translating to nearly 5000 new jobs – from 29,000 now to nearly 34,000 in four years.

Defence will also update the web based version of the plan around every six months to reflect government decisions including approval status and revisions to timing or scope.

Priority Industry Capabilities

In driving a more transparent approach to defence industry planning, Senator Faulkner announced that additional information about the Priority Industry Capabilities would be publicly available from today, and PIC’s will be reviewed annually.

The Government’s concern is that these capabilities remain available within Australia, including through overseas based companies basing themselves in Australia or investing in a local workforce and infrastructure.

Planning Information Review

In addition the Government will be commissioning a consultancy to consider how defence planning information can be more usefully provided to industry.

“The Government will consider how the DCP can be enhanced as a tool for industry, in the context of the new approach involving five yearly White Papers,” Senator Faulkner said.

The Government is seeking to improve the content, quality, presentation and utility of the information made available publicly relating to its current and forward capability planning. The Government’s objective is to provide the defence industry with substantive and reliable information about intended capability acquisitions, to help inform future investment decisions and to facilitate quality tenders for upcoming projects.

Growth Opportunities

Mr Combet said: “The industry sector charts of this DCP provide clear signals as to where the growth opportunities are for Australian industry.

“While growth will vary from sector to sector the local expenditure in the maritime sector for example is projected to grow by over 8 per cent per annum over the next four years due to projects such as the Air Warfare Destroyer and the LHD."

"The ever increasing reliance on electronic systems with complex military equipment will also see a significant increase in local industry expenditure within the Electronic Systems Sector. It is projected that local expenditure in the electronics sector will grow by about 4.8 per cent per annum over the next four years.”

“From modelling that Defence has conducted, this DCP and the ongoing and new sustainment programs provide strong growth opportunities for Australian industry,” he said.

A copy of the Defence Capability Plan 2009 can be found at the following link http://www.defence.gov.au/dmo/

Source: Australian Defence Minister