FED: No boost to defence budget, says Moore

AAP General News (Australia)
04-25-1999
FED: No boost to defence budget, says Moore

CANBERRA, April 25 AAP - Defence Minister John Moore today ruled out an increase in the
defence vote in the May 11 budget.

Mr Moore said the government was currently implementing the Defence Reform Program by which
savings from reforms to defence administration and support programs were redirected to combat
forces.

He said the reform program should be able to produce savings of $1 billion, which could be
used to improve defence capability.

"When they have done that and been able to demonstrate their ability to handle these
changes, then we will look at the question of further funding," he said on the Ten network.

"At the present moment there is no extra funds in the coming budget for defence."

The current defence budget is around $11 billion, or under two per cent of gross domestic
product. In real terms, that represents virtually no increase for more than a decade.

The Australian Defence Force, however, faces substantial costs to replace important
equipment which reaches the end of its life early next century.

That includes jet fighters and bombers, guided missile destroyers, patrol boats and tanks.

Mr Moore said it might well be that the ADF could end up needing few but more expensive
pieces of equipment.

He said he was placing great importance on reform of the manner in which contracts for
major projects were arranged, which had led to problems with the Collins submarine and the
over-the-horizon radar system. Both are running years behind schedule.

AAP mb/wjf

KEYWORD: BUDGET DEFENCE

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