Australia Cannot Afford a Defence Gap: Defence Minister

Australia's Deputy Prime Minister and Defense Minister Richard Marles attends a joint press conference with France's defence minister at the castle of Brest, western France, on Sept. 1, 2022. Jean-Francois Monier/AFP via Getty Images

Australia’s defence minister has announced the federal government will be taking a more hands-on approach to defence capability projects after it was revealed that the defence forces were facing the possibility of a significant capability gap because a tranche of projects are facing significant schedule delays and budget variations.

Speaking to ABC Radio on Oct. 10, Defence Minister and Deputy Prime Minister Richard Marles said that the new approach would concentrate on getting the projects back on track and providing accountability.

“We cannot afford capability gaps,” he said. “We’ve got the Hunter Class frigates which are four years behind schedule. And, again, there’s the prospect of a capability gap.”

In a media release on Oct. 10, the defence minister said that projects with approved budgets totalling more than $69 billion (US$43.9 billion) are facing delays and that at least 28 of the projects are a combined 97 years behind schedule. Additionally, at least 18 projects are running over budget, with the government identifying that there had been $6.5 billion in variations from the approved budgets.

Among these programs is the $44 billion Hunter Class Frigate program, which has been delayed by four years and is facing a $15 billion increase in expected costs, and the $1.4 billion C-27J Spartan Battlefield Airlifters, which were delivered four and a half years late and are unable to fly into battlefields.

Additionally, the $3.7 billion Offshore Patrol Vessel project and the $356 million Evolved Cape Class patrol boats are estimated to be running nearly one year behind schedule. While the $970 million Battlefield Command System is three years behind schedule, and several key Defence Satellite Communications projects worth $906 million face a two to four-year delivery delay.

Highlighting the current challenging strategic circumstances Australia faces in the region and the serious pressures facing the economy, Marles said that the federal government would initiate a more hands-on approach to managing the projects.

“It’s not as though we can go onto the battlefield and overwhelm our adversary by waving a copy of the budget papers in their face,” Marles said. “Given the current strategic circumstances we face, we need to be better focused on the quality of spending within defence to ensure we are providing our ADF personnel with the best capability.”

Defence Spending to Face Increased Scrutiny

To instigate the new approach, Marles said in a press conference on Oct. 10 that the Labor government would be establishing an independent project office to oversee the defence projects. They will also seek monthly updates on the projects and designate a criterion by which projects are placed upon the Projects of Interest and the Projects of Concern List.

“There are real challenges for our nation going ahead. Now, we’re confident that we can meet those challenges. We’re confident that we can get projects back on track. But we don’t want to underestimate the size of the task, and it’s very important that the Australian people understand that,” Marles said.

He also signalled that the defence budget would face some scrutiny.

“There will be prudent management of the defence budget because the Albanese Government understands this is the way we'll get submarines in the water faster and get projects like the Offshore Patrol Vessels and the frigates back on track,” he said.

“In doing so, we are building a potent and capable Defence Force which will keep our country safe in the future.”