defence issues

Budget Review 2008-09 Contents

Budget 2008 09: Defence issues


Laura Rayner and Brooke McDonagh
Foreign Affairs, Defence and Security Section

This year s Defence Budget provides a total defence package of $22.69 billion which is $690 million more than last year s budget. However, the defence budget as a proportion of gross domestic product has actually dropped from 2 per cent to 1.8 per cent and departmental funding is actually $966 million (or 4.1 per cent) less than the estimate for the year provided by the previous Howard Government. In 2008 09, as part of its program to implement efficiencies and identify savings of up to $10 billion over 10 years, Defence has redirected savings of $477 million to other areas, such as partially offsetting the cost of Australian Defence Force (ADF) operations.[2]

Outcomes and Outputs structure

The government says that it is implementing a new outcome and output framework for Defence to increase the Government s and the community s visibility of what Defence delivers .[3] Last year s Portfolio Budget Statements 2007 08 signalled that the outcomes and outputs arrangement against which Defence would report would be revised, with the number of outcomes dropping from seven to three. With some changes to outputs, this is how the structure now appears in the Portfolio Budget Statements 2008 09. This change to outputs reflects the current organisational arrangement and appears to better align with Defence s internal resource allocations and accountabilities .[4] Time will tell whether these changes do actually make Defence budgets more transparent.

However, transparency and clarity in the Defence Budget is not aided by apparent inconsistencies in the Portfolio Budget Statements 2008 09. For instance, are the resources available within the Defence portfolio for 2008 09 really $36 billion the total given in Table 1 Portfolio resources made available in the Budget year ?[5] Or does this $36 billion include intra-departmental transfers made to the Defence Materiel Organisation (DMO) and Defence Housing Australia? Have some funds in this table been double-counted?

Funding of operations

In the 2008 09 Defence Budget, ADF operations, such as Operation Slipper (Afghanistan) and Operation Catalyst (Iraq), will be funded from the defence operations reserve. This reserve will be made up of funds taken from the Department s price indexation supplementation ($826.5 million) and from the Savings and Efficiency Program ($209.4 million). It would appear, therefore, that unlike the funding provided for previous operations, Defence will actually be paying for its military operations from funds originally earmarked for training and sustaining the ADF. As one analyst has suggested, the use of inflation supplements and administrative savings to help fund operations sits oddly with the government s claim that it has no higher priority than defence and security . Rather, it suggests the government s main concern is bringing defence spending under much tighter control .[6]

The increase in the price indexation supplementation has been described as an unprecedented billion-dollar windfall for Defence, coming from the commodities boom.[7] If it is a windfall and outside Defence s budget requirements should Defence be getting it? If it is not a windfall, then Defence will have a legitimate need for the funds. The Defence Department has a legitimate call on Treasury funds to cover known and binding increased contract costs brought on by allowable increases in costs (and separately, variations in foreign exchange). It is unclear which parts of the portfolio the use of price indexation supplementation for operations will affect. If it includes price indexation supplementation paid to Defence to cover contractual obligations to suppliers, Defence will presumably have to find the money to fulfil these obligations from elsewhere in its budget. Funding operations this way would seem to be another way of forcing savings in the Defence Budget. However, unlike the Savings and Efficiency Program, the origin of the operational funds taken from price indexation supplementation is not identified within the Defence Budget, and thus such savings are not transparently being achieved only from non-operational areas or areas which support operations.


The Defence Materiel Organisation s (DMO) share of the 2008 09 Budget is $9.6 billion. DMO is responsible for the management of 236 major projects with a value of over $20 million each, and more than 180 minor projects.

Once again, as in previous years, Defence has large amounts of money for the acquisition of military hardware which it will be unable to spend and will have to reprogram to spend in later years. The 2008 09 Defence Budget has reprogrammed $1.066 billion of the Approved Major Capital Program to later years because of unanticipated contractor delays .[8]

In a speech on 15 May 2008, the Parliamentary Secretary for Defence Procurement, Greg Combet analysed the reasons for the delays, attributing approximately:

  • 53 per cent to industry delays including an inability to meet contracted milestones by payment dates
  • 12 per cent to DMO processes including administrative and contracting requirements
  • 28 per cent to issues related to the United States Military Sales System
  • 4 per cent to the unavailability of platforms for upgrades or work needed , and
  • 3 per cent to cost savings .[9]

Mr Combet cited industry s overestimation of its ability to meet schedules as a cause for some of the delays, but he also pointed to significant capacity constraints within the economy , specifically in the area of skills and infrastructure .[10] Given that 80 per cent of the ADF s warfighting assets will be replaced within the next decade, and that 65 per cent of the acquisition and sustainment budget of more than $100 billion will be spent in Australia, it is likely that reprogramming due to contractor delays will be a feature of Defence acquisition for the foreseeable future, as it has been in the past.

Delayed projects

The government has singled out four projects of concern which have been experiencing industry delays.[11]

Wedgetail (Project AIR 5077 Airborne Early Warning and Control)

Project Wedgetail involves the acquisition and introduction into service of six aircraft, designed as the cornerstone of Australia s surveillance, early warning and detection capability. It was considered to have been a model acquisition project until the Howard Government became aware in 2006 that it was behind schedule. A contract was signed with Boeing in December 2000, and the first aircraft was to be in-service by early 2007. Boeing has attributed the delay to difficulties in integrating complex onboard electronics. DMO s Annual Report 2006 07 stated that the delay had escalated to over two years. In June 2006, the Howard Government announced that it would reserve its contractual rights in regard to liquidated damages. In February 2007 Boeing announced that the program had slipped two years. The new Labor Government has warned Boeing and other Wedgetail contractors that they need to meet production and cost deadlines.[12] In the Defence Portfolio Budget Statements 2008 09, DMO has signalled that there is still residual technical and schedule risk which could threaten Boeing s current plans to deliver the first aircraft in March 2009.[13]

Tiger Armed Reconnaissance Helicopters (Project AIR 87)

Twenty-two Tiger Armed Reconnaissance Helicopters with associated support facilities are being acquired for the Australian Army from Australian Aerospace, a subsidiary of Eurocopter. Operational capability has slipped by two years, due to delays in the parent Franco-German program. On 1 June 2007, DMO stopped payment to Australian Aerospace, and Defence has also claimed more than $10 million in liquidated damages for the late delivery of training devices. The Defence Portfolio Budget Statements 2008 09 report that as at 21 April 2008, eleven helicopters and some associated facilities and systems had been accepted by the Commonwealth. The Commonwealth and the contractor, Australian Aerospace, entered into a formal dispute resolution process in October 2007 which is expected to achieve a resolution through a Contract Change Proposal and the resumption of payments by July 2008.[14] On 22 May 2008, Mr Combet announced that a Deed of Agreement had been signed, resolving contractual issues between the Commonwealth and the contractor. This new Deed of Agreement contains the basis for a Contract Change Proposal that transitions the current support contract to a performance based structure, to reduce cost of ownership to the Commonwealth over time .[15] All deliveries should be complete by the end of 2009.

Tactical UAVs (Project JP 129 Airborne Surveillance for Land Operations)

In December 2005 the then Minister for Defence, Senator Robert Hill, announced that Boeing Australia had been selected as the preferred tenderer to provide the IAI (Israeli Aircraft Industries) I-View 250 UAVs (Unmanned Aerial Vehicles) because it offered the best value for money . In mid-2006, the project reported that the in-service date was to be the latter half of 2008 . The contract was signed in December 2006. The $145 million project will provide two Tactical UAV (TUAV) systems each of which comprise four I-View 250 UAVs, two ground control stations, four remote video terminals and associated tactical support system .[16] The initial operating capability for the first TUAV is now planned for 2011.[17] The project is now reportedly two years behind schedule and it has been suggested that a deadline has been set of the end of next month [June 2008] for the problems to be addressed, otherwise the project will be scrapped .[18]

Guided Missile Frigate upgrade (Project SEA 1390 - FFG UP)

The original scope of the FFG project was to upgrade all six FFG-7 Adelaide Class frigates. In mid 2006 the scope of the original 1999 contract was reduced from six ships to four. The project was the subject of a critical report by the Australian National Audit Office (ANAO) in October 2007 which estimated that the delivery of the last ship will be delayed by four and a half years, until June 2009. The ANAO report highlighted the ongoing difficulties caused by a prime contract which has limited the technical involvement of the Project Authority [DMO] and failed to sufficiently specify test procedures .[19]

Major Projects Report

DMO will produce the first of it planned annual Major Projects Reports at the end of 2008. These reports will contain data and analysis on the schedule, cost and capability of up to 30 major defence equipment projects .[20] The first report will be limited to nine selected projects, hopefully those of greatest concern. The Portfolio Budget Statements do not specify whether the projects will be assessed before or after final government approval ( second pass ). In some cases, analysis of a project by ANAO before government makes its final decision might be quite useful. The production of a Major Projects Report on Australian projects is very similar to the United Kingdom (UK) Government s approach, where the Ministry of Defence provides project summary sheets on 20 of the top approved defence equipment projects and the ten largest projects which are still in their assessment phases. These projects are then analysed by the UK National Audit Office on the basis of cost, time and performance.

Recruitment and retention

Targeted recruitment

Defence is facing continuing shortages of skilled military personnel who are being lost to the private sector, especially the booming mining and resources industry.[21] ADF enlistment needs to increase from approximately 4670 per annum to 6500 ... [22] The ADF profile currently does not represent the broader Australian community, with women and indigenous and ethnic communities under-represented.[23] Defence Science and Personnel Minister Warren Snowdon has said that the ADF needs to be more representative of wider Australia , pointing to the fact that the ADF tends to attract young Caucasian males .[24]

Despite stating that the skills shortage is Defence s biggest challenge, the Minister for Defence hinted in January this year that the money provided for recruitment and retention in the 2008 09 Budget would not amount to big figures when he said that success won t so much be determined by the size of the spend but how well we spend .[25] In the end, the size of the spend will be $148.7 million for Defence Force Recruiting programs and operations. It includes targeting Generation Y , women and indigenous and ethnic communities as a source of new recruits.[26] However, it is unclear from the Portfolio Budget Statements
2008 09
just how this money will be allocated.

The only portion of the $148.7 million readily identifiable in the budget papers is $3.381 million for Indigenous Expenditure.[27] There are currently approximately 700 indigenous soldiers in the Australian Army, a number which equates to 1.4 per cent of their force.[28]

An ADF report to federal government in 2001 recommended that women be admitted to combat roles, if their fitness and medical standards were the equivalent of male employees .[29] And while, after a directive late last year, Australian women are now allowed to serve in the Artillery for the first time, women still cannot be employed in direct combat roles jobs that have the potential to expose them to direct combat, including field artillery, infantry, clearance divers and defence guards .[30] Female officers are well aware that combat roles assist officers to move up the chain and to ultimately become chiefs of service.[31] While Defence has ruled out women serving as front-line infantry, if the government is serious about increasing the recruitment of women, further incentives need to be rolled out, including possibly assigning a female mentor to each new recruit and implementing flexible working arrangements .[32]

The government wants to talk to Generation Y in their language, through the mediums they rely upon for their information [33] Recruitment websites give glowing descriptions of lifestyle, sporting facilities, food and opportunities for travel .[34] A variety of other initiatives is being introduced to lure Generation Y, including interactive recruiting centres in capital cities .[35]

Mental health initiative

In 2007, the media reported that 121 ADF personnel were discharged for mental illnesses, including anxiety and depression, after serving in the Middle East .[36] The government has allocated $3.8 million from the Defence budget, over four years, for the introduction of a set of nine strategic mental health initiatives. The package is aimed at improving access to mental health services for current and former ADF members and active reserve personnel. In the continuation of the new government s apparent strategy of funding budget measures from within Defence s existing resourcing, the government has allocated $2.2 million to the Department of Veterans Affairs and the remaining $1.6 million for the mental health initiative will have to be met from within existing resourcing of the Department of Defence.[37]

The package aims to enhance psychological resilience among serving members, ensure successful transition into civilian life and provide effective rehabilitation and support .[38] This initiative cannot come soon enough for many Defence personnel suffering with mental illness some complain they have been denied adequate support and have faced bullying and bastardisation when they sought help for mental health problems.[39] Professor Mark Creamer, the director of the Australian Centre for Post-Traumatic Mental Health, has estimated that 10 per cent of Iraq or Afghanistan veterans have mental health problems and said the ADF s mental health resources are massively under-resourced .[40]

The government will also provide $1.5 million over four years to the Department of Veterans Affairs to provide training and workshops for community mental health workers who treat veterans [to] help improve practitioners ability to identify and treat service-related mental health problems .[41]

ADF family medical and dental care trial

The government s 2008 09 Budget has allocated $12.2 million over four years to trial the provision of free basic GP services and limited dental care to families of ADF members in the rural and remote areas of Singleton (NSW), Katherine (NT), East Sale (Vic), Cairns (QLD) and Karratha/Pilbara (WA). The amount allocated for 2008 09 is $2.4 million.

Aspects of these budget measures on ADF family health which the government has linked to Labor s election commitments differ from statements made during the election campaign which clearly identified the policy as a retention initiative. The Labor Party s defence policy document, Labor s plan for defence, released during the 2007 election campaign, said:

Free medical and dental care for ADF families

ADF families can face significant difficulties obtaining access to general medical and dental care for dependants, especially in regional and remote localities.

Posting to a remote location can mean that ADF families struggle to access the sort of health care that Australians enjoy.

A Rudd Labor Government will progressively extend free health care currently provided to ADF personnel to ADF dependent spouses and children.

Labor will begin this with a $33.1 million investment starting at 12 Defence Family Health Care Clinics, with a focus on remote bases locations and major regional centres.

On 12 November 2007 Mr Rudd identified Lavarack Barracks in Townsville and Robertson Barracks in Darwin as the location of two of the clinics. A media statement, Federal Labor s Plan for Defence Families free Health and Dental Care , released by Mr Rudd and Mr Fitzgibbon also on 12 November 2007, set out further details of the commitment. This explained that Labor would invest $33.1 million in a four year plan to extend basic medical care to 12 000 ADF spouses and children and saying Federal Labor s 12 Defence Family Healthcare Clinics will extend the free GP and dental care currently available to ADF personnel to their dependant spouses and children.

In contrast, the 2008 09 Budget limits the program to $12.2 million over four years and also limits dental care to $300 per dependant per annum. Only five of the 10 rural and remote defence locations are mentioned, and rather than Defence families attending Defence Family Healthcare Clinics at these locations, families will now select the doctor or dentist of their choice .[42] Changes to the commitment to provide Defence Healthcare Clinics in Townsville and Darwin are also reportedly being considered, with the possibility that the two Defence Family Healthcare clinics promised in the campaign at Lavarack Barracks in Townsville and Robertson Barracks in Darwin will be replaced by defence families accessing Health Department GP Super Clinics in Darwin and Townsville.[43]

White Paper

The Defence Portfolio Budget Statements 2008 09 describe the process which Defence is undertaking to produce a new Defence White Paper, including the production of a Force Structure Review which will take a top-down approach to analysing the force structure and capabilities priorities needed out to 2030 .[44] The White Paper will form the foundation of Australia s future defence capabilities. The process of developing the new White Paper includes a number of companion reviews into: workforce sustainment; the Defence Capability Plan (which sets out plans for defence equipment acquisition); facilities investment; information technology requirements; defence industry; defence science and technology; and logistics.

The government will conduct consultations on the White Paper with state and territory governments, industry and the general public. Also integrated into this process will be an audit of the Defence Budget. To accommodate changes in Defence policy flowing from the White Paper process, the next Defence Capability Plan, the public version of which would ordinarily be released in 2008, will now not be released until 2009.[45]

One outcome of the White Paper process is the need to reprogram $45.0 million of spending from 2008 09 to 2013 14 due to the deferral of some first and second pass project approvals in the Defence Capability Plan until after the Defence White Paper is finalised.[46] Additionally, the Departmental Income Statement points to a budget adjustment of minus $139.7 million because of the need to reprogram net operating costs due to the expected reduction in capabilities entering service until finalisation of the new Defence White Paper .[47]

As one analyst has said about the Defence Budget, [t]he solution is not necessarily to throw more money at defence. A key part of the next white paper will be to align means and ends. In the process, it will be important to look closely at defence efficiency .[48]

Security and policing

Nigel Brew
Foreign Affairs, Defence and Security Section

In contrast to previous budgets under the Howard Government, national security is not a major feature of this year s Budget the Rudd Government s first. Most of the funding in the area of national security is intended to continue or enhance existing programmes, rather than initiate any new ones, with some of the funding already provided by the forward estimates. This perhaps reflects both an acceptance of the previous government s security initiatives and a decreased focus on terrorism and security issues. Much of the cost will be met from within the existing resourcing of relevant departments and agencies essentially representing a cut to their current budgets. This means that those affected will most likely have to cease or cut back existing activities to find the necessary savings. Many of the Budget s funding measures specifically address the government s election commitments.

Office of National Security and the Asia-Pacific Centre for Civil-Military Cooperation

There are, however, two major new initiatives which stand out the establishment of an Office of National Security within the Department of Prime Minister and Cabinet (PM&C), and the establishment of the Asia-Pacific Centre for Civil-Military Cooperation, both of which were election commitments.

Having all but abandoned the concept of a US-style Department of Homeland Security, the Rudd Government has committed to establishing an Office of National Security, headed by a National Security Adviser.[49] The role of the Office will be to develop, advise on and coordinate whole-of-government national security policy .[50] The government is providing funding of $5.2 million over five years, with part of the cost to be met from the existing budgets of the Australian Federal Police (AFP), the Australian Security Intelligence Organisation (ASIO), the Department of Defence, the Attorney-General s Department and the Department of Foreign Affairs and Trade.[51] The new Office of National Security has, however, been described by one critic as a re-badging [of] the old national security division that already exists within PM&C and which should instead be established as a separate, statutory authority .[52]

The Asia-Pacific Centre for Civil-Military Cooperation will be established to provide training and liaise with Australian and international government and non-government organisations to help Australia to develop future responses to stabilisation, reconstruction and peace building needs in the Asia-Pacific region .[53] The government has allocated $5.1 million over four years to the project (commencing 2007 08), the entire cost of which is to be met from within the existing resourcing of the Department of Defence.[54]


Another new initiative is the provision of $25 million over five years to develop a recruitment and retention programme within the AFP to assist it in meeting its recruitment targets and to improve the retention of existing staff .[55] That the government has funded a specific programme to address the issue at an annual cost of $5 million hints at the possible extent of the problem.

Related to this measure is the government s undertaking to fund an additional 500 sworn AFP officers at a cost of $191.9 million over five years to work on high-impact criminal investigations.[56] The government claims this delivers on an election commitment. However, as the Opposition has pointed out, only $36.7 million of this funding is due to be spent before the next scheduled election in 2010 and the budget papers do not indicate just how many additional officers of the promised 500 are expected to be recruited before then.[57]

The government has also funded several policing and law enforcement initiatives as part of its overseas aid programme and these are covered in the section on Official Development Assistance.

Previous funding for the AFP which has been deferred, reduced or withdrawn includes:

  • half of the funding for the AFP s airport liaison officer network, which will now be provided from within the AFP s existing budget, generating savings for the government in 2008 09 of $1.5 million.[58]
  • funding to maintain a surge capacity in the AFP, which will instead now be provided from within the AFP s existing budget, providing savings of $2.5 million in 2008 09.[59]
  • half of the funding for the AFP s regional rapid deployment teams (to deal with security incidents at regional Australian airports), which will now be provided from within the AFP s existing budget, generating savings for the government in 2008 09 of $2.2 million.[60]
  • funding for an increase in the staffing of the AFP s International Deployment Group (IDG), which has been deferred by one year, providing savings of $10 million in
    2008 09.[61] The government considers it likely that the IDG will have sufficient capacity during 2008 09 to undertake its mission.

Other security-related funding measures

Funding measures which continue or enhance existing programmes or capabilities include:

  • $8.4 million over four years for the continued provision of intelligence support to Australia s response and law enforcement operations against illegal foreign fishing in the Southern Ocean (to be met from within the existing budgets of the Department of Defence, the Office of National Assessments, the Australian Secret Intelligence Service and the Australian Customs Service). The government claims this measure will yield savings of $3.3 million over four years.[62]
  • $1.1 million in 2008 09 for the Australian Customs Service (Customs) to continue its aerial surveillance of Australia s northern waters to deter unauthorised arrivals.[63] This funding serves as a top-up to that already provided in the forward estimates and will be reviewed in next year s Budget. The government has also committed $35.7 million over two years (from the forward estimates and commencing in 2007 08) to keep the Customs vessel Triton on patrol in Australia s northern waters.[64]
  • $1.3 million already provided in 2007 08 to deploy the Customs vessel, Oceanic Viking, to monitor Japanese whaling activities in the Southern Ocean.[65] The government also provided $0.7 million in 2007 08 to conduct aerial surveillance of Japanese whaling fleet activities in the Southern Ocean during the 2007 08 whaling season.[66]
  • $16 million over four years for Customs to increase its inspection and examination of containers in Launceston, Darwin, Townsville and Newcastle.[67]
  • $58 million over four years from within the existing resourcing of the Department of Defence to allow Defence to maintain its capacity to provide threat analysis and assessment in support of Australia s counter-terrorism efforts.[68]
  • $23.8 million over four years from within the existing resourcing of the Department of Defence to enhance its ability to meet high-priority intelligence requirements .[69]
  • $2.4 million over four years from within the existing resourcing of the Department of Defence to maintain its contribution to the National Threat Assessment Centre located within ASIO.[70]
  • $8.7 million over two years to enhance the Australian Secret Intelligence Service s strategic intelligence gathering capability.[71]
  • $8.4 million in 2008 09 (from the forward estimates) for the continuation of the Air Security Officer programme.[72]
  • $34.1 million over four years (from the forward estimates) to maintain the AFP s rapid response capability for dealing with terrorist attacks in the region.[73]
  • $8.8 million in 2008 09 to continue the critical infrastructure protection programme, $1.5 million of which will be met by the Department of Defence from its existing budget.[74] The remainder has already been included in the forward estimates. Another $23.4 million over four years will enable the continued development of the Critical Infrastructure Protection Modelling and Analysis programme. Of this funding, $9.2 million is new, $6 million for the Attorney-General s Department and $0.8 million for Geoscience Australia has already been included in the forward estimates, and $7.4 million will be absorbed by the Department of Defence from within its existing resourcing.[75]

Health security

In keeping with World Health Organization advice that pandemic influenza remains a threat, the government has announced funding of $166.5 million over two years for the Department of Health and Ageing (DOHA) to replenish the National Medical Stockpile.[76] This will ensure that expiring pharmaceuticals and equipment that might be needed in the event of a pandemic or a chemical, biological or radiological incident are replaced and the Stockpile s readiness maintained. The government has also allocated $4.7 million over two years from DOHA s existing budget to ensure a whole-of-government approach to pandemic preparedness.[77]

The government has also announced that it will no longer fund the purchase of deployable mortuaries which instead will be provided through a service agreement with a commercial supplier. This is expected to provide savings of $1.6 million over two years.[78] Similarly, the government will no longer be funding rapid deployment teams for thermal scanning at airports, generating savings of $5.8 million over two years.[79] The measure will, however, still proceed, with costs to be met from within the existing budget of the Department of Agriculture, Fisheries and Forestry.


With the exception of a couple of significant administrative initiatives, the national security budget this year appears largely to be designed to maintain the status quo. While this perhaps indicates a tacit acceptance of the previous Howard Government s security regime, the major difference is that the Rudd Government now requires departments and agencies to fund many of the existing measures from their own budgets. This has had the effect of generating millions of dollars worth of savings, but undoubtedly places greater pressure on key agencies, such as the Australian Federal Police, to maintain their current level of service. Although the Opposition (and others) has portrayed this as an unjustified gamble with the country s national security and described it as very dangerous politics , just what effect this has on Australia s national security apparatus overall in the short to medium term remains to be seen.[80]

[1]. For the purposes of brevity, the focus of this brief has been restricted to certain key issues. It is not intended as a comprehensive analysis of the entire Defence budget.

[2]. Geoffrey Barker, Budget 2008: Shaved, saved and delayed , Australian Financial Review, 14 May 2008, p. 25.

[3]. Australian Government, Portfolio Budget Statements 2008 09: Budget Related Paper No. 1.4A & 1.4C, Defence portfolio, Commonwealth of Australia, Canberra 2008, p. 19.

[4]. ibid.

[5]. ibid., p. xvi.

[6]. Geoffrey Barker, op. cit.

[7]. Patrick Walters, Military budget going great guns thanks to China , Australian, 17 18 May 2008, p. 11.

[8]. Australian Government, Portfolio Budget Statements 2008 09, op. cit., p. 19.

[9]. Greg Combet,
Speech by the Parliamentary Secretary for Defence Procurement: 2008 Defence Budget Briefing
, 5 May 2008.

[10]. ibid.

[11]. ibid.

[12]. Dennis Shanahan, Defence talks tough on US suppliers , Australian, 27 February 2008, p. 5.

[13]. Australian Government, Portfolio Budget Statements 2008 09, op. cit., pp. 174 75.

[14]. ibid., p. 180.

[15]. Greg Combet (Parliamentary Secretary for Defence Procurement),
Progress on Project AIR 87 Tiger Armed Reconnaissance Helicopters, media release, Canberra, 22 May 2008.

[16]. Australian Government, Portfolio Budget Statements 2008 09, op. cit., p. 173.

[17]. ibid.

[18]. Mark Dodd, Spy plane joins list of troubled projects , Australian, 17 18 May 2008, p. 2.

[19]. Julian Kerr, FFG upgrade takes ANAO flack , Australian Defence Magazine, Vol. 16(1), December 2007 / January 2008, p. 14.

[20]. Australian Government, Portfolio Budget Statements 2008 09, op. cit., p. 155.

[21]. Cameron Stewart, Y, your country needs you , Australian, 10 April 2008, p. 11.

[22]. Mark Dodd, Enlisting for country, career and a cheap loan , Australian, 14 May 2008, p. 11.

[23]. Brendan Nicholson, Ethnic background? Uncle Kevin wants you to join up now , Age, 13 March 2008, p. 8.

[24]. Military ethnic push , Canberra Times, 9 May 2008, p. 4.

[25]. Joel Fitzgibbon, MP, Minister for Defence,
Speech to open the Pacific Maritime Congress and Exposition
, Sydney, 29 January 2008.

[26]. Warren Snowden, MP (Minister for Defence Science and Personnel), Meeting the ADF recruitment and retention challenge, media release, Canberra, 13 May 2008.

[27]. Australian Government, Portfolio Budget Statements 2008 09, op. cit., p. 116.

[28]. Jonathon Pearlman, Smoking ceremony for ADF parades , Sydney Morning Herald, 8 April 2008, p. 3.

[29]. Sharri Markson, Women wanted in combat , Daily Telegraph, 2 March 2008.

[30]. Artillery jobs for women a blast , Newcastle Herald, 15 May 2005, p.11 and Sharri Markson, ibid.

[31]. Sharri Markson, op. cit.

[32]. ibid.

[33]. Joel Fitzgibbon, op. cit.

[34]. Cameron Stewart, op. cit.

[35]. ibid.

[36]. Mark Dunn and Neil Wilson, Our lost diggers , Herald Sun, 20 March 2007, p. 3.

[37]. Australian Government, Part 2: Expense Measures , Budget Paper No. 2: Budget Measures
2008 09
, Commonwealth of Australia, Canberra, 2008, p. 294.

[38] ibid.

[39]. Nick McKenzie, Mentally ill troops tell of bullying and neglect , Age, 21 April 2008, pp. 1 and 8.

[40]. Editorial: What we owe to those we send to fight our wars , Age, 10 March 2008, p. 10.

[41]. Australian Government, Part 2: Expense Measures , Budget Paper No. 2, op. cit.

[42]. Tony Raggatt, Defence clinic axed: election promise ditched , Townsville Bulletin, 15 May 2008, p. 2.

[43]. ibid.

[44]. Australian Government, Portfolio Budget Statements 2008 09, op. cit., p. 35.

[45]. Peter La Franchi, DCP release deferred until 2009 , Asia-Pacific Defence Reporter, March 2007, Vol. 34(2), p. 13.

[46]. Australian Government, Portfolio Budget Statements 2008 09, op. cit., p. 19.

[47]. ibid., p. 121.

[48]. Mark Thomson, Balancing interests a tough act , Australian, 8 December 2007, p. 3.

[49]. The Homeland and Border Security Review being conducted by Ric Smith (and funded for the remainder of this financial year with an allocation of $0.1 million) will be examining all of Australia s homeland and border security arrangements and is due to report by 30 June 2008.

[50]. Australian Government, Part 2: Expense Measures , Budget Paper No. 2: Budget Measures 2008 09, Commonwealth of Australia, Canberra, 2008, p. 277.

[51]. ibid.

[52]. Dr Carl Ungerer, A new agenda for national security , Special Report Issue 15, Australian Strategic Policy Institute, Canberra, April 2008, p. 9.

[53]. Australian Government, Part 2: Expense Measures , Budget Paper No. 2, op. cit., p. 120.

[54]. ibid.

[55]. ibid., p. 84.

[56]. ibid., p. 89.

[57]. The Hon. Christopher Pyne, MP, More cops on the beat just a confidence trick, media release, Canberra, 14 May 2008.

[58]. Australian Government, Part 2: Expense Measures , Budget Paper No. 2, op. cit., p. 367.

[59]. ibid.

[60]. ibid., p. 407.

[61]. ibid., p. 399.

[62]. ibid., p. 125.

[63]. ibid., p. 91.

[64]. ibid., p. 94.

[65]. ibid., p. 84.

[66]. ibid., p. 162.

[67]. ibid., p. 86.

[68]. ibid., p. 126

[69]. ibid., p. 127.

[70]. ibid.

[71]. ibid., p. 199.

[72]. ibid., p. 92.

[73]. ibid., p. 93.

[74]. ibid.

[75]. ibid., p. 94.

[76]. Australian Government, Part 3: Capital Measures , Budget Paper No. 2: Budget Measures 2008 09, Commonwealth of Australia, Canberra, 2008, p. 438.

[77]. Australian Government, Part 2: Expense Measures , Budget Paper No. 2, op. cit., p. 281.

[78]. ibid., p. 375.

[79]. ibid., p. 409.

[80]. The Hon. Christopher Pyne, MP, National security to take a budget hit, media release, Canberra, 13 May 2008.