Joint Standing Committee on Foreign Affairs, 
        Defence and Trade
      
  Issues paper
   
  
Background to the Inquiry
  The mission of the Australian Army is to 'to provide a potent, versatile 
    and modern Army to promote the security of Australia and to protect its people 
    and interests.' 1 This requires the Army to be capable 
    of contributing to operations across the spectrum of conflict; from warfighting 
    to military support operations. Although the Australian Army has not been 
    to war since Vietnam it has played a significant role in peacekeeping activities 
    in the region and contributed individuals and force elements to multinational 
    United Nations operations including Cambodia, Somalia, Rwanda, Bougainville, 
    Bosnia and the Middle East. In addition, the Army has a long history of contributing 
    to a range of military support operations; from emergency relief activities 
    to support to the 2000 Olympics. 
  
The 1990s have been a period of significant change for the Australian Defence 
    Force, partly in response to the changing strategic environment in the Asia-Pacific 
    region, but also as a result of the need to seek efficiencies within the Defence 
    portfolio. Australia's Strategic Policy 1997 and the Defence Reform 
    Program (DRP) have had a marked impact on the focus and structure of the nation's 
    Defence Force. Within this dynamic environment the Australian Army has pursued 
    the Restructuring of the Australian Army (RTA) initiative, aimed at 
    addressing perceived deficiencies identified by the in-house Defence study 
    Army in the 21st Century. More recently, the Australian Army launched 
    its keystone doctrine The 
    Fundamentals of Land Warfare 'which describes the way the Army thinks 
    about, and prepares for, conflict and war [,] explains Army's contribution 
    to national security and military strategy, and  highlights the utility of 
    land forces in this context.'2 
  
On 11 March 1999 the Minister for Defence announced that 'the implementation 
    of the DRP is ahead of schedule and is delivering additional resources which 
    will support  the equivalent of a second, brigade-sized group, at the same 
    degree of readiness as the Ready Deployment Force at Townsville.' This brigade-sized 
    group includes supporting air and naval units and should be at the required 
    degree of readiness by 30 June 1999. Once this objective has been achieved, 
    the Australian Army will be at its highest state of readiness for two decades. 
    However, Army accepts that increased readiness will impact across the whole 
    Service. In the short term, personnel from elements not required at higher 
    readiness levels will be redirected to higher readiness units.3 
    This "hollowing-out" of lower readiness units will be rectified as more personnel 
    are recruited and trained and additional equipment is procured. 
  
Over the last decade the Australian Army has undertaken fundamental change, 
    driven by internal initiatives and external requirements. Moreover, the pace 
    of change shows no signs of abating. But has change produced capability dividends 
    and is the Australian Army able to effectively contribute to operations across 
    the spectrum of conflict; from warfighting to military support operations? 
    The Terms of Reference for the inquiry authorise the Committee to review the 
    current status of, and the proposed changes to the Australian Army and to 
    examine the suitability of the Australian Army for peacetime, peacekeeping 
    and war. 
  
Restructuring the Army Initiative
  Following a review of the Army in the 21st Century, the position of 
    the Army in 1996 was described in the following terms: 
  
    its present structure is not well suited to Australia's defence needs. Some 
    army units are not adequately prepared for combat. In some circumstances the 
    army lacks sufficient combat power to quickly end conflict on terms favourable 
    to us. Some army units suffer from shortages of trained personnel and insufficient 
    equipment. Elements of the force are hollow. While the current structure provides 
    a framework for expansion, it would require substantial warning time and financial 
    expenditure to mobilise for major conflict The present army structure is 
    inadequate to meet the demands of concurrent operations There are also shortcomings 
    in the capability and readiness of much of the Army Reserve. With some exceptions, 
    like the regional force surveillance units, reserve units are understaffed, 
    poorly equipped and have low readiness levels.4 
  
  The RTA initiative, which began in late 1996, was aimed at addressing these 
    perceived deficiencies. The restructuring was aimed at developing 'an integrated 
    full-time/part-time Army consisting of modern high-mobility task forces and 
    units, capable of more autonomous operations of a widely dispersed and dynamic 
    nature. It will develop a land force structure suited to Australia's defence 
    needs into the next century and shift from the traditional divisional structure 
    towards flatter, more responsive task-force structures The restructuring 
    is based on graduated and incremental approach using a process of trials and 
    evaluations to confirm force structure and personnel options as development 
    proceeds'.5 RTA places greater reliance on reserve forces. 
  
The Defence Reform Program
  Following the release of the Defence Efficiency Review's report in April 
    1997, the Minister for Defence announced the DRP. The key focus of the DRP 
    is to ensure that Defence is an organisation structured for war and adapted 
    for peace. The DRP is 'to refocus the Defence organisation on its primary 
    task - to maintain and develop combat capability - and to free-up financial 
    resources for reinvestment in combat capabilities - equipment, training, operations 
    and readiness and associated personnel costs'.6 An additional 
    aim was that the reforms under the DRP would act as a catalyst for substantial 
    cultural change within the ADF. The DRP, at maturity, is expected to make 
    up to $1 billion per annum available, as well as some $500 million in one-off 
    gains from asset sales and inventory reductions. All of these funds are earmarked 
    for re-investment in combat capability and operational readiness.7 
  
The DER foreshadowed that some 4700 military positions would be cut from 
    administration and support areas, with about half the military positions to 
    be re-established in combat and combat support areas.8 The 
    Minister for Defence has advised that the proportion of full time personnel 
    in combat and combat-related roles will rise to 65 per cent by early next 
    century. This will mean the ADF will have 32,500 personnel in combat and combat 
    support units out of a total full time force of 50,000. In the context of 
    the DRP, the strength of the Australian Army is to be 50,000 with a regular 
    strength of 23,000 and an effective Reserve strength of 27,000 by 30 June 
    2002.9 From the regular component, Army's contribution to 
    the combat force will be 15,000. 
  
Australia's Strategic Policy
  In December 1997 Australia's Strategic Policy established the future 
    direction for Australian defence planning into the 21st century. The policy 
    identified that the ADF could be required to defeat attacks on Australia; 
    defend our regional interests; and support a global security environment that 
    discourages interstate aggression. The Minister of Defence suggested that 
    while the capability to defeat attacks on Australia is the highest priority 
    the defence of the nation does not begin at Australia's shoreline. 'Indeed, 
    our strategic geography dictates that we should plan on more pro-active operations 
    which focus on defeating attacks in our maritime and air approaches before 
    they reach Australian territory. That doesn't mean a return to "forward defence". 
    Rather, it is about being prepared to contribute actively to our objective 
    of a secure Australia in a secure region.'10 
  
Australia's Strategic Policy 1997 outlined four priority areas for 
    the future development of ADF capabilities: 
  
    - the knowledge edge, that is, the effective exploitation of information 
      technologies to allow Australia to use our relatively small forces to maximum 
      effectiveness; 
    
 - developing military capabilities to defeat any future threats in our maritime 
      and air approaches; 
    
 - maintaining an effective ADF strike capability, that is, the ability to 
      operate pro-actively against hostile forces in the defence of Australia 
      and our interests; and 
    
 - developing capabilities to defeat threats on Australian territory.11 
  
 
  The Fundamentals of Land Warfare
      In March 1999, the Australian Army launched its keystone doctrine The 
        Fundamentals of Land Warfare which describes the way the Army thinks 
        about, and prepares for, conflict and war. It explains Army's contribution 
        to national security and military strategy, and highlights the utility 
        of land forces within this context.12 Most significantly, 
        The Fundamentals of Land Warfare outlines a new strategy which 
        embraces a maritime concept of defence which ensures that the Army remains 
        relevant to the nation's security needs and aligned with the government's 
        direction of security policy.'13 In addition, The 
        Fundamentals of Land Warfare lays the foundations for the development 
        of the Australian Army to become a concept-led and capability-based 
        fighting force. 1.    Fundamentals of Land 
        Warfare, 1999, p. iii. 
        2.    Fundamentals of Land Warfare, 
        1999, p. ii. 
        3.    Chief of Army's Address to the National 
        Press Club, Wednesday 14 Apr 99 
        4.    Minister for Defence, Hon I McLachlan, 
        MP, Ministerial Statement, 15 October 1996. 
        5.    Department of Defence Annual Report 
        1996-97, p. 13. 
        6.    Department of Defence Annual Report, 
        1997-98, p. 13. 
        7.    Ministerial Statement, Hon J C Moore, 
        MP, 11 March 1999. 
        8.    Department of Defence Annual Report, 
        1996-97, p. 12. 
        9.    Minister for Defence, Hon I McLachlan, 
        MP, in response to Question on Notice No 2889, tabled 22 June 1998. 
        
        10.    Minister for Defence, Hon I McLachlan, 
        MP, Statement, MIN 160/97, 2 December 1997. 
        11.    ibid. 
        12.    The Fundamentals of Land Warfare, 
        Chief of Army's Introduction, p. ii. 
        13.    Chief of Army's Address to the National 
        Press Club, Wednesday 14 Apr 99 
         
        
        
      
 
      
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