International Military Markets & Budgets - Asia, Australia & Pac Rim/Eurasia

Source: Royal Australian Navy


WITH TURNOVER IN AUSTRALIA'S DEFENSE DEPARTMENT TWO MAJOR PROJECTS ARE TEMPORARILY DELAYED
Friday, January 16, 2015

Source: Royal Australian Navy


NEWTOWN, Conn. - In an attempt to regain some political traction and bolster his conservative government's sagging support Australian Prime Minister Tony Abbott opted to reshuffle his cabinet back in December. The result is that oversight of the Department of Defense has changed hands and with this transfer of responsibility has come the temporary delay of two crucial upcoming defense project tenders: the Army's largest, most expensive and complex project, LAND 400 (Land Combat Vehicle System, or LCVS) Project, and the Navy's "SEA 1000" Future Submarine Project.

Incoming defense minister, Kevin Andrews, faces a tall task as his predecessor, David Johnston, had spent considerable time bringing himself up to speed on all the nuances involving SEA 1000 since the Abbott coalition government assumed power in September 2013.

Johnston had inherited the previous Gillard Labor government's future submarine acquisition plan, which between the 2009 and 2013 Defense White Paper's had altered slightly.

The Labor Defense Department began with the intention of replacing the existing Collins-class submarines with one of four options: an off-the-shelf platform adapted to Australian standards; an off-the-shelf platform outfitted with Australian military communications and weapons systems; a Collins class derivative; or a brand new design. This gradually morphed into a simple choice between one of two possibilities, these being either an evolved Collins class option or an entirely new clean-sheet design.

Perhaps more importantly, the Labor government had also been keen on acquiring 12 submarines to replace the six Collins-class submersibles. Johnston, in turn, thought 12 an arbitrary figure and placed a premium on cost - so as not to crowd out other defense project funding - using it as a crucial signpost on his path to a project decision. Johnston was also not opposed to clashing with Australia's entrenched union and industrial interests (a principal reason for control of the defense portfolio was stripped from him), politically powerful groups eager to see the future submarine project stay on Australian soil, thus ensuring a steady flow of work and skill-sharpening necessary for Australia's shipbuilding industry.

For his part Tony Abbott has stated that decisions regarding SEA 1000 must be based on defense requirements and capability/cost concerns and "not on the basis of industrial policy" or regional politics. But his government's enchantment with Japan's Soryu-class submarine technology has not been lost on any in Australia's defense and industrial establishments.

As for LAND 400, the estimated $8 billion project involves replacement of the Army's aging armored vehicle inventory with an integrated suite of land combat vehicle systems that will fill the Army's mounted close combat capability gap. These vehicles would ostensibly allow the Australian Army to operate in difficult environments, including densely-populated urban areas. With a portion of Australia's armored vehicle inventory fast heading towards obsolescence there is considerable pressure on the new defense minister to quickly move the project forward.

Now ensconced in his new role, Kevin Andrews certainly has his work cut out for him.

 

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