2.0
Ch a p t e r
2
Outcome
Performance
This chapter explains each of Defence’s
outcomes and outputs, including our
achievement against performance targets and
the cost to the Government of our outcomes.
2.1 Defence’s Outcome and Output
Structure
2.2 Cost to Government of Defence’s
Outcomes
2.3 Outcome One: Command of Operations
2.4 Outcome Two: Navy Capability
2.5 Outcome Three: Army Capability
2.6 Outcome Four: Air Force Capability
2.7 Outcome Five: Strategic Policy
2.8 Outcome Six: Intelligence
2.9 Outcome Seven: Superannuation and
Housing Support Services for Current
and Retired Defence Personnel
2.10explanation of Significant Variations
across Defence Outcomes
79
Ch a p t e r
2
Overview of the Defence
Outcomes and Outputs
Defence outcomes are the results that the
Government seeks from Defence, and are
achieved through the successful delivery of
outputs, to the standards set in the Portfolio
Budget Statements 2005–06 and, where
applicable, revised in the Portfolio Additional
Estimates Statements 2005–06. The Defence
Annual Report 2005–06 reports our
achievement against these targets, in both
financial and non‑financial terms.
80
The outcome and output structure has
remained consistent for 2005–06 and covers
28 departmental outputs and three
administered outputs.
Defence’s departmental outcomes exceeded
the revised estimate by $123.9m as detailed in
Table 2.1. The variation is a reflection of the
operating loss which is described in the
financial overview and results mainly from
significant accrual adjustments, in particular
the write down of assets through impairment
reviews of specialist military equipment,
revaluation of building and infrastructure
assets, and inventory adjustments following
stocktaking activities and revaluation to meet
AIFRS requirements.
The seventh outcome, Superannuation and
Housing Support Services for Current and
Retired Defence Personnel, covers activities
not directly connected to the delivery of the
capability outcomes and outputs. Outcome
Seven and its three outputs are described on
p. 144.
Defence continues to refine its cost attribution
rules in order to improve the accuracy of its
output costs. There are a number of variables
that can influence output costs, including
changes to preparedness levels and activity
rates, operations, and redirecting funds to
meet changing priorities and emergent cost
pressures. Changes in the distribution of the
workforce and technical adjustments aimed at
improving the accounting for Defence’s assets
and liabilities can have a major impact.
Some of the variations evident between the
revised estimate and actual result reflect
accounting adjustments and refinements to
attribution rules. There have been few
changes to preparedness and activity levels
from that which were planned, and few
significant real variations between the revised
estimate and actual result.
2.1
Defence’s Outcome and Output Structure
Table 2.1
Total Cost of Defence Outcomes and Outputs
Outcome/Output
Budget
Estimate(1)
Additional
Estimate(2)
Actual
Result
Variation(3)
Variation(3)
2005–06
2005–06
2005–06
2005–06
2005–06
$’000
$’000
$’000
$’000
%
1. Command of Operations in Defence of
Australia and its Interests
1.1—Command of Operations
371,713
554,315
465,084
–89,231
–16.1
1.2—Defence Force Military Operations and
Exercises
499,032
526,433
492,549
–33,884
–6.4
1.3—Contribution to National Support Tasks
10,178
23,724
18,251
–5,473
–23.1
880,924
1,104,472
975,884
–128,588
–11.6
2.1—Capability for Major Surface Combatant
Operations
1,605,701
1,601,949
1,680,156
78,207
4.9
2.2—Capability for Naval Aviation Operations
504,698
507,188
649,394
142,206
28.0
2.3—Capability for Patrol Boat Operations
277,648
282,488
282,476
–12
–0.0
Sub‑Total Outcome 1
2. Navy Capability for the Defence of
Australia and its Interests
2.4—Capability for Submarine Operations
779,765
776,763
824,639
47,876
6.2
2.5—Capability for Afloat Support
214,290
224,558
251,950
27,392
12.2
2.6—Capability for Mine Warfare
355,832
365,741
354,212
–11,529
–3.2
2.7—Capability for Amphibious Lift
370,160
381,772
438,500
56,728
14.9
2.8—Capability for Hydrographic,
Meteorological and Oceanographic
Operations
241,063
253,537
229,717
–23,820
–9.4
4,349,157
4,393,997
4,711,044
317,047
7.2
3.1—Capability for Special Operations
500,281
499,767
489,658
–10,109
–2.0
3.2—Capability for Medium Combined Arms
Operations
926,273
841,130
816,120
–25,010
–3.0
1,030,887
983,791
964,166
–19,625
–2.0
577,197
544,755
527,805
–16,950
–3.1
Sub‑Total Outcome 2
3. Army Capability for the Defence of
Australia and its Interests
3.3—Capability for Light Combined Arms
Operations
3.4—Capability for Army Aviation Operations
3.5—Capability for Ground Based Air Defence
129,625
109,898
107,658
–2,240
–2.0
3.6—Capability for Combat Support
Operations
384,632
372,252
378,485
6,233
1.7
3.7—Capability for Regional Surveillance
124,492
130,832
127,481
–3,351
–2.6
3.8—Capability for Operational Logistic
Support to Land Forces
575,652
570,362
556,601
–13,761
–2.4
3.9—Capability for Motorised Combined
Arms Operations
550,510
549,217
535,943
–13,274
–2.4
3.10—Capability for Protective Operations
613,377
574,783
673,261
98,478
17.1
5,412,926
5,176,788
5,177,177
389
Sub‑Total Outcome 3
0.0
continued
81
Ch a p t e r
2
Table 2.1
Continued
Budget
Estimate(1)
Additional
Estimate(2)
Actual
Result
Variation(3)
Variation(3)
2005–06
2005–06
2005–06
2005–06
2005–06
$’000
$’000
$’000
$’000
%
4.1—Capability for Air Combat Operations
1,769,462
1,768,420
1,790,833
22,413
1.3
4.2—Capability for Combat Support of Air
Operations
761,662
776,988
741,906
–35,082
–4.5
4.3—Capability for Surveillance and
Response Operations
1,104,931
1,132,276
1,081,070
–51,206
–4.5
4.4—Capability for Airlift Operations
1,018,846
1,004,695
986,457
–18,238
–1.8
Sub‑Total Outcome 4
4,654,901
4,682,379
4,600,266
–82,113
–1.8
188,067
190,039
190,445
406
0.2
Outcome/Output
4. Air Force Capability for the Defence of
Australia and its Interests
5. Strategic Policy for the Defence of
Australia and its Interests
5.1—International Policy, Activities and
Engagement
5.2—Strategic Policy and Military Strategy
Sub‑Total Outcome 5
82
43,262
42,975
45,803
2,828
6.5
231,329
233,013
236,248
3,234
1.4
6. Intelligence for the Defence of Australia
and its Interests
6.1—Intelligence
467,384
494,291
508,255
13,964
2.8
Sub‑Total Outcome 6
467,384
494,291
508,255
13,964
2.8
15,996,621
16,084,941
16,208,876
123,935
0.8
–18,900
48,600
–144,535
–193,135
–397.4
15,977,721
16,133,541
16,064,341
–69,200
–0.4
1,847,625
1,909,625
2,087,694
178,069
9.3
7.2—Housing Assistance for Current Defence
Personnel
–6,026
–5,276
–58,219
–52,943
1,003.5
7.3—Other Administered Revenues and
Expenses
–4,000
–4,000
–4,829
–829
20.7
1,837,599
1,900,349
2,024,646
124,297
6.5
17,815,320 18,033,890 18,088,987
55,097
0.3
Net Cost for Defence Departmental
Outcomes
Approved Allocated Profit/Loss
DEPARTMENTAL APPROPRIATIONS FROM
GOVERNMENT
7. Superannuation Support Services for
Current and Retired Defence Personnel
7.1—Superannuation Support Services for
Current and Retired Defence Personnel
Net Cost of Administered Outcomes
TOTAL COST TO GOVERNMENT
Notes:
1.Budget Estimates are consistent with Portfolio Budget Statements 2005–06 (pages 90 and 91).
2.Additional Estimates are consistent with Portfolio Additional Estimates Statements 2005–06 (pages 79–82).
3.Variations reflect the difference between Additional Estimates and Actuals.
TABLE 2.2
OVERALL COST TO GOVERNMENT OF DEFENCE OUTCOMES (DEPARTMENTAL AND ADMINISTERED)
Outcome 2—
Navy
Capabilities
Outcome 3—
Army
Capabilities
Outcome 4—
Air Force
Capabilities
Outcome 5—
Strategic
Policy
Outcome 6—
Intelligence
Total Defence
Departmental
Outcome
2005–06
2005–06
2005–06
2005–06
2005–06
2005–06
2005–06
2005–06
2005–06
$’000
$’000
$’000
$’000
$’000
$’000
$’000
$’000
$’000
35,555
113,987
211,668
174,395
6,954
5,140
547,700
–
547,700
Grand
Total
DEPARTMENTAL
Income
Revenue
Goods and services
Interest
–
10
–17
12
–4
–1
–
–
–
4,949
23,974
23,442
30,726
1,188
3,413
87,693
–
87,693
40,505
137,972
235,093
205,133
8,138
8,552
635,392
–
635,392
Gains
–
–
–
–
–
–
–
Net foreign exchange gains
–
–
–
–
–
–
–
–
–
28,128
87,787
219,981
183,805
6,686
9,959
536,345
–
536,345
Other revenues
Total Revenue
Assets now recognised
Net gains from sale of assets
–
–
–
–
–
–
–
–
–
–
Other Gains
936
3,793
4,055
3,813
301
402
13,300
–
13,300
Total Gains
29,064
91,580
224,036
187,618
6.987
10,361
549,645
–
549,645
Total Income
69,568
229,552
459,129
392,751
15,125
18,913
1,185,037
–
1,185,037
continued
COST TO GOVERNMENT OF DEFENCE’S OUTCOMES
Outcome 1—
Command of
Operations
Outcome 7—
Superannuation
and Housing
Support Services
for Current and
Retired Defence
Personnel
2.2
83
84
Continued
Grand
Total
Ch a p t e r
2
Table 2.2
Outcome 1—
Command of
Operations
Outcome 2—
Navy
Capabilities
Outcome 3—
Army
Capabilities
Outcome 4—
Air Force
Capabilities
Outcome 5—
Strategic
Policy
Outcome 6—
Intelligence
Total Defence
Departmental
Outcome
Outcome 7—
Superannuation
and Housing
Support Services
for Current and
Retired Defence
Personnel
2005–06
2005–06
2005–06
2005–06
2005–06
2005–06
2005–06
2005–06
2005–06
$’000
$’000
$’000
$’000
$’000
$’000
$’000
$’000
$’000
Operating Expenses
Employees
458,497
1,441,356
2,651,692
1,428,458
88,463
217,343
6,285,808
–
6,285,808
Suppliers
544,226
1,824,072
1,979,439
2,113,955
152,349
217,036
6,831,078
–
6,831,078
270
1,469
2,808
1,220
134
156
6,057
–
6,057
Grants
2,782
18,467
25,625
19,948
1,010
1,153
68,985
–
68,985
Depreciation and amortisation
26,937
1,233,701
721,576
1,208,528
6,604
69,965
3,267,310
–
3,267,310
Write‑down and impairment of assets
13,110
419,014
264,252
218,549
2,934
9,921
927,780
–
927,780
Finance cost
–5
131
719
14
–83
17
793
–
793
Net losses from sale of assets
–230
1,659
–11,473
1,587
–71
11,514
2,987
–
2,987
Other expenses
–132
726
1,669
758
32
63
3,115
–
3,115
Total Expenses
1,045,454
4,940,596
5,636,306
4,993,016
251,373
527,168
17,393,913
–
17,393,913
975,885
4,711,044
5,177,177
4,600,266
236,248
508,255
16,208,876
–
16,208,876
Revenues
729,562
729,562
Expenses
2,754,208
2,754,208
Price to Government for Defence
Administered Outcomes
2,024,646
2,024,646
Net foreign exchange losses
Price to Government for Defence
Departmental Outcomes
ADMINISTERED
2.2
cost to government of defence’s outcomes
Table 2.3
Cost to the Government of Departmental Outcomes
Budget
Estimate(1)
Additional
Estimate(2)
Actual
Result
Variation(3)
Variation(3)
2005–06
2005–06
2005–06
2005–06
2005–06
$’000
$’000
$’000
$’000
%
186,682
374,716
547,700
172,984
46.2
–
–
–
–
–
Other Revenues
186,159
248,536
87,693
–160,843
–64.7
Total Revenue
372,841
623,252
635,392
12,140
1.9
Income
Revenue
Goods and Services
Interest
Gains
–
–
–
–
–
Assets now recognised
30,000
250,000
536,345
286,345
114.5
Revenue from sale of assets
95,063
–
–
–
–
Other gains
–
–
13,300
13,300
–
Total Gains
125,063
250,000
549,645
299,645
119.9
Total Income
497,904
873,252
1,185,038
311,786
35.7
Employees
6,587,528
6,358,716
6,285,808
–72,908
–1.1
Suppliers
6,946,746
7,121,909
6,831,078
–290,831
–4.1
1,275
7,275
6,057
–1,218
–16.7
Net foreign exchange gains
Expenses
Grants
Finance cost
Depreciation and amortisation
Write‑down and impairment of assets
Net foreign exchange losses
32,075
29,914
68,985
39,071
130.6
2,771,838
3,145,023
3,267,310
122,287
3.9
60,000
275,356
927,780
652,424
236.9
–
–
793
793
–
95,063
–
2,987
2,987
–
Other expenses
–
20,000
3,115
–16,885
–84.4
Total Expenses
16,494,525
16,958,193
17,393,913
435,720
2.6
Price to Government for Defence Outcomes 15,996,621
16,084,941
16,208,876
123,935
0.8
–18,900
48,600
–144,535
–193,135
–397.4
15,977,721
16,133,541
16,064,341
–69,200
–0.4
Net losses from sale of assets
Approved Allocated Profit/Loss
Departmental Appropriation from
Government for Outcomes
Notes:
1.Budget Estimates are consistent with Portfolio Budget Statements 2005–06 (page 93).
2.Additional Estimates are consistent with Portfolio Additional Estimates Statements 2005–06 (page 83).
3.Variations reflect the difference between Additional Estimates and Actuals.
85
86
Ch a p t e r
2
O u t c o m e O n e: C o m m a n d o f O p e r at i o n s
2.3
OUTCOME ONE:
COMMAND OF OPERATIONS
•training Iraqi land and naval forces;
The Chief of Joint
Operations, Lieutenant
General Ken Gillespie, is
accountable for delivering
the Command of
Operations
The ADF experienced high operational tempo
throughout the year and the multi‑faceted
nature of our operational deployments and
missions made this a demanding period. As
the Chief of Joint Operations, I am responsible
to the Chief of the Defence Force for the
command of ADF operations across the world,
and at home.
Despite the wide dispersal of our forces, and
the very different types of operations which
have been undertaken, 2005–06 has been, by
any measure, a successful year for ADF
operations. This success is in no small way
due to the quality, the dedication and
professionalism of the people who make up
the ADF and wider Defence community.
Over the past year, we have remained strongly
and effectively engaged in both Iraq and
Afghanistan.
Significant achievements in the Middle East
include:
•Special Forces and helicopter operations in
Afghanistan;
•the Al Muthanna Task Group in Iraq;
•the Civil Military Cooperation Program of
community projects;
•air surveillance and transport across
the region;
•maritime security in the northern Persian
Gulf, including a five-month period in which
an officer from the Royal Australian Navy
commanded the coalition Persian Gulf naval
task force of around ten warships; and
•the continued contribution of troops to the
United Nations Missions and Multi National
Force of Observers in Syria, the Lebanon,
Israel and Egypt.
Service with the United Nations in the Sudan
and a substantial, very successful ADF relief
effort in Pakistan were other key contributions
made by the ADF outside our region during the
year. The deployment of medical, logistic,
security, communications and aviation troops
and equipment to a devastated, mountainous
and remote part of Pakistan provided many
demanding challenges. The team performed
extremely well and brought great credit to our
nation with their success.
At home, and in our region, the ADF has also
performed with distinction. In early March
2006, around 2,600 personnel supported
Commonwealth and State security operations
for the successful conduct of the
Commonwealth Games in Melbourne. Later
that month, Operation Larry Assist was
launched in response to the disaster relief
request from the Queensland Government.
ADF personnel and relief supplies began
arriving in Innisfail within 24 hours of Cyclone
Larry striking north Queensland. This prompt
Defence response did much to alleviate the
impact of the cyclone in coastal north
87
Ch a p t e r
2
Queensland and the Atherton Tableland, and
provided much needed assistance to
devastated towns, homes and families.
In April 2006, the ADF also responded, again
within 24 hours, to the riots and destruction in
Honiara in Solomon Islands. Defence’s quick
response and the presence of Australian land,
sea and air forces calmed tensions and helped
to restore law and order. This deployment
continued to demonstrate Defence’s
credentials as a very strong team player in an
Australian multi-agency context and as a
regional coalition force leader. While the ADF
contribution has been scaled down, it
continues today under the auspices of the
Regional Assistance Mission to Solomon
Islands.
88
In late May 2006, Australia was invited by
the Government of Timor-Leste to deploy a
force to Dili to stabilise a rapidly worsening
law and order situation and to prevent
further bloodshed. The readiness levels
of the ADF and the preparedness of the
Defence intelligence and strategic planning
processes enabled a substantial sea and air
deployment to commence within a few hours
of the Timor‑Leste Government formally
agreeing to the nature, size and status of our
contribution. The ADF commander became
the coordinator for the tactical strategies and
operations’ outputs of the troop and police
contributions made by Malaysia, New Zealand
and Portugal. At the height of the operation
almost 3,000 ADF personnel were deployed.
While there has been some scaling down, a
significant ADF contribution remains engaged
in Timor‑Leste.
Throughout this intense operational period,
Defence has continued to refine its command
and control doctrine and structures. In
July 2005, the Chief of the Defence Force
initiated a review of the ADF higher command
and control arrangements, drawing on our
operational experience and a body of research
work completed since 2003. This review,
known as the Wilson Review, developed
options for a new concept for command and
control of ADF operations, which would build
on the effectiveness of the current model, and
would enhance the efficient use of people and
technology into the future. The review
outcomes were agreed by the Chiefs of
Service Committee and the Chief of the
Defence Force sought and gained Government
agreement for the review outcomes. A
transition program will see the outcomes in
place by the end of 2008, which will coincide
with the commissioning of the new Joint
Operations Command facility at Bungendore.
The new command and control arrangements
will continue to see the Chief of the Defence
Force commanding the ADF for operations
through the Vice Chief of the Defence Force
and for the raising, training and sustainment
of the three Services through the Chiefs of the
Navy, Army and Air Force. The most
significant change will see the current
component and multi‑headquartered method
of command of operations replaced by a
single, unified joint headquarters command
model. This arrangement will cut duplication,
simplify information management, make
more efficient use of equipment and
manpower resources and move the ADF to an
improved level of joint operations capability.
The Joint Offshore Protection Command has
been established and is now operating
effectively under joint ADF and Australian
Customs Service arrangements. The Joint
Offshore Protection Command provides
maritime surveillance and offshore protection
for Australia. Within this organisation, the ADF
is responsible for military surveillance and
offshore protection functions, and the
Australian Customs Service is responsible for
civil maritime surveillance and law
enforcement, through its Coastwatch Division.
Under this arrangement, operations in our
northern and southern waters to enforce the
protection of Australia’s oceans and fisheries
and to prevent illegal immigration have been a
feature of the last year.
In summary, I am proud to report that
throughout 2005–06 the ADF continued to
O u t c o m e O n e: C o m m a n d o f O p e r at i o n s
successfully conduct military campaigns and
operations. The ADF also continued to deliver
the emergency and non‑emergency support
required of us by our Government, and
expected of us by the Australian community.
The performance of our people and equipment
involved in operations and exercises, both
overseas and domestically, and in the
headquarters that enable and support these
operations, has been outstanding. I thank our
people for their professionalism, their valour
and their endurance and I thank the Defence
families for their support.
TABLE 2.4
2.3
Capability Performance
Information
Output 1.1—Command of Operations
The ADF command and control review and the
work that has commenced for implementation
of its recommendations has been a major
focus of attention and attracted increased
effort and staff resources as the year
progressed. Despite this and a heavy
operational workload, especially in the first
half of 2006, the existing Headquarters Joint
Operations Command continued to meet
performance targets during 2005–06 and to
provide credible options to the Government for
unexpected contingencies at home and in
our region.
Command of Operations
Performance Targets
Performance
Australian operational concepts are further
developed to support ADF planning against
credible contingencies.
Achieved. Ongoing development of current and new
Australian operational concepts.
Joint Operations Command provides guidance
for joint force preparedness in accordance with
the Chief of the Defence Force’s direction.
Achieved. The previous Joint Operations Command
Operational Preparedness Requirement was updated and
joint preparedness is assessed and reported monthly.
Command of ADF forces is effective and the
Government’s strategic objectives for
operations are achieved.
Achieved. Command continues to be effective under the
2004 revised joint command arrangements that appointed
VCDF as Chief of Joint Operations and the Theatre
Commander for all ADF operations.
Development of ADF operational command
arrangements introduced in 2004 will continue.
Achieved. Most notable was the conduct of the Wilson
Review into command and control and its subsequent
implementation in preparation for the Joint Operations
Command’s occupation of new facilities to be built at
Bungendore, New South Wales.
89
Ch a p t e r
2
Output 1.2—Defence Force Military Operations and Exercises
Significant ADF operations supporting national objectives in both the immediate neighbourhood
and further afield were continued, modified or commenced in 2005–06. Generic performance
information in relation to the conduct of ADF military operations and major exercises is reported
below, and specific information is included in Tables 2.9, 2.10 and 2.11.
TABLE 2.5
Defence Force Military Operations and Exercises
Performance Targets
Performance
ADF operations meet their stated objectives
within Government guidance.
Achieved. 12 current operations, 9 that were ceased or
completed and 1 in initial planning, met Government
direction in 2005‑06.
Number of current ADF operations
12 current ADF operations, including 4 contributing to the
security of the immediate neighbourhood, 7 supporting wider
interests and 1 peacetime national task.
Number of ceased or completed ADF
operations.
8 peacetime national tasks and 1 operation supporting wider
interests were ceased or completed. 4 of these were
consolidated into Operation Resolute which commenced on
17 July 2006.
Forces identified for operational tasks maintain
required preparedness levels.
Achieved. Joint preparedness levels were monitored against
the Joint Operations Command Operational Preparedness
Requirement. Preparedness deficiencies were reported and
remedied as necessary.
ADF forces are effectively deployed and
sustained.
Achieved. ADF forces were effectively deployed, sustained
and re-deployed during the period.
The Program of Major Service Activities is
reviewed and modified where required.
Achieved. The Program of Major Service Activities was
regularly reviewed and modified in response to changing
priorities, world events and to meet identified training
deficiencies.
The major ADF exercise commitments for
2005–06 are met:
Exercises Mercury 05, Bersama Lima 05,
Bersama Shield 06, Deep Sabre 05, Regional
Counter-Terrorist Subject Matter Expert
Exchange 05, Red Flag 06 and Rimpac 06.
Achieved. All major ADF exercises were conducted. Details
of all scheduled exercises, whether conducted or cancelled,
are included in the online version of the Defence Annual
Report 2005–06, at www.defence.gov.au/annualreports.
Total number of exercises programmed over
2005–06.
67 ADF exercises were scheduled in the Program of Major
Service Activities.
Number of conducted ADF exercises.
52 programmed exercises were conducted.
Number of cancelled ADF exercises.
15 programmed exercises were either cancelled or
postponed.
90
O u t c o m e O n e: C o m m a n d o f O p e r at i o n s
2.3
Output 1.3—Contribution to National Support Tasks
Peacetime National Support Tasks were dominated by the ADF commitment to supporting the
2006 Melbourne Commonwealth Games. There was also significant commitment to assist in relief
efforts in Bali and Nauru that stretched the specialist capabilities of the ADF. Generic performance
targets in relation to the conduct of ADF military operations and major exercises are reported in
the table that follows and on pp. 94-99.
TABLE 2.6
Contribution to National Support Tasks
Performance Targets
Performance
The ADF contribution to peacetime national
tasks meets Government directives.
Achieved. 1 current and 1 planned ADF operation,
4 completed operations and 4 operations completed and
consolidated into a single new operation met the
Government’s direction for peacetime national tasks in
2005–06.
Forces identified to provide Defence Assistance
to the Civil Community, Defence Force Aid to
the Civilian Authorities and search and rescue
maintain required preparedness levels.
Achieved. Preparedness levels were continuously monitored
against the Joint Operations Command Operational
Preparedness Requirement.
ADF forces are effectively deployed and
sustained.
Achieved. ADF forces continued to be effectively deployed,
sustained and re-deployed.
The ADF response to requests for search and
rescue and emergency assistance tasks are
effectively managed and reported.
Achieved.
The ADF continues to conduct minor
emergency and non‑emergency assistance
tasks from local resources, where feasible.
Achieved.
National support tasks undertaken by the ADF
as significant emergency assistance, public
events of significance and non‑emergency law
enforcement are effectively managed and
reported.
Achieved.
National support tasks undertaken by the ADF
as Defence Assistance to Civil Authorities are
effectively managed and reported.
Achieved. The ADF continued to provide consequence
management (biological and radiological) and counterterrorism capabilities.
ADF support to the civil surveillance program,
in consultation with Coastwatch, is provided at
the following resource levels:
250 flying hours by P-3 Orion surveillance
aircraft;
240 Regional Force Surveillance Unit patrol
days; and
1,800 patrol boats days.
Achieved. ADF support to the civil surveillance program was
conducted with priority given to Operation Relex II. Some
patrols in support of Operation Relex II were conducted in the
civil surveillance program area of operations and met both
requirements.
The rate of effort for these activities over 2005–06 was:
• 1,422.1 P-3 flying hours (1,352.5 P-3 flying hours in support
of Operation Relex II and 69.6 hours in support of Operation
Cranberry).
• 304 Regional Force Surveillance Unit patrol days.
• 1,809 patrol boat days (774 patrol boat days in support of
Operation Cranberry, and 1,035 patrol boat days in support
of Operation Relex II).
91
Defence Assistance to the Civil Community:
The following tasks were completed:
Category One—local emergency assistance;
• 40.
Category Two—general emergency assistance;
• 3.
Category Three—civil emergency or disaster
recovery;
• nil.
continued
92
Ch a p t e r
2
TABLE 2.6
CONTINUED
Category Four—public events of significance
and general non‑emergency assistance;
• the Government approved and the ADF supported
35 public events of significance and carried out 133
non‑emergency assistance tasks during the year.
Category Five—minor non‑emergency
assistance; and
• 611.
Category Six—non‑emergency law
enforcement‑related tasks.
• 5.
Defence Force Aid to Civilian Authorities.
No requests were received.
Search and rescue tasks undertaken involving
ADF assistance.
14 search and rescue tasks were undertaken.
2.3
O u t c o m e O n e: C o m m a n d o f O p e r at i o n s
Cost To Government
Table 2.7
Outcome One—Command of Operations in Defence of Australia
and its Interests
Budget
Estimate(1)
Additional
Estimate(2)
Actual
Result
Variation(3)
Variation(3)
2005–06
2005–06
2005–06
2005–06
2005–06
$’000
$’000
$’000
$’000
%
9,767
15,766
35,555
19,789
125.5
–
–
–
–
–
Other revenue
8,147
11,570
4,949
–6,621
–57.2
Total Revenue
17,914
27,336
40,505
13,169
48.2
–
–
–
–
–
125
9,832
28,128
18,296
186.1
4,088
–
–
–
–
Other gains
–
–
936
936
–
Total Gains
4,213
9,832
29,064
19,232
195.6
22,127
37,168
69,568
32,400
87.2
Employees
295,060
472,497
458,497
–14,000
–3.0
Suppliers
577,578
633,587
544,226
–89,361
–14.1
64
345
270
–75
–21.7
24,304
1,424
2,782
1,358
95.3
1,712
30,897
26,937
–3,960
–12.8
244
1,802
13,110
11,308
627.5
–
–
–5
–5
–
4,088
230
–230
–460
–199.9
Other expenses
–
858
–132
–990
–115.4
Total Expenses
903,050
1,141,640
1,045,454
–96,186
–8.4
Price to Government for Outcome One
880,924
1,104,472
975,885
–128,587
–11.6
INCOME
Revenue
Goods and services
Interest
Gains
Net foreign exchange gains
Assets now recognised
Net gains from sale of assets
Total Income
Operating Expenses
Grants
Finance Cost
Depreciation and amortisation
Write down and impairment of assets
Net foreign exchange losses
Net losses from sale of assets
Notes:
1.Budget Estimates are consistent with Portfolio Budget Statements 2005–06 (page 100).
2.Additional Estimates are consistent with Portfolio Additional Estimates Statements 2005–06 (page 87).
3.Variations reflect the difference between Additional Estimates and Actuals.
93
Ch a p t e r
2
Table 2.8
Breakdown of Outcome One by Output
Budget
Estimate(1)
Additional
Estimate(2)
Actual
Result
Variation(3)
Variation(3)
2005–06
2005–06
2005–06
2005–06
2005–06
$’000
$’000
$’000
$’000
%
Output 1.1—Command of Operations
371,713
554,315
465,084
–89,232
–16.1
Output 1.2—Defence Force Military
Operations and Exercises
499,032
526,433
492,549
–33,884
–6.4
10,178
23,724
18,251
–5,472
–23.1
880,924
1,104,472
975,884
–128,588
–11.6
Output 1.3—Contribution to National
Support Tasks
Price to Government for Outcome One
Notes:
1.Budget Estimates are consistent with Portfolio Budget Statements 2005–06 (page 104).
2.Additional Estimates are consistent with Portfolio Additional Estimates Statements 2005–06 (page 88).
3.Variations reflect the difference between Additional Estimates and Actuals.
Australian Defence Force Operations
94
Table 2.9
Operations Contributing to the Security of the Immediate
Neighbourhood
Operation
Objective, status and contribution
Astute
25 May 2006 –
continuing
Objective: To restore order in Timor-Leste and facilitate the evacuation of Australian and
other approved foreign nationals.
Status: Current.
Contribution: A request for assistance from the Timor-Leste Government was received on
24 May 2006. Deployments commenced the following day and by 31 May approximately
2,500 ADF personnel had arrived in Timor-Leste, including a 1,800 strong battalion group,
23 armoured personnel carriers, 10 helicopters and 5 Navy ships. By the end of May, the
ADF had provided leadership for a combined and joint military and police effort; secured
key infrastructure; successfully repatriated hundreds of Australians; facilitated the return
to barracks of the East Timorese Defence and Police Forces; confiscated hundreds of
weapons; and assisted in the provision of humanitarian aid. The incidence of violence,
arson, civil unrest and looting had reduced significantly by the end of June 2006. The ADF
continues to provide support to the Timor-Leste Government in conjunction with the
Australian Federal Police and Malaysian, New Zealand and Portuguese forces. The
number of ADF deployed forces was reduced from mid-July 2006.
Chiron
May 2005 –
continuing
Objective: To support the United Nations Mandate and Australia’s national interests by
contributing military advisers to assist in the development of Timor-Leste’s security
and stability.
Status: Current.
Contribution: The ADF contributed three personnel who act as military advisers, on behalf
of the United Nations Office in Timor‑Leste, to the Border Patrol Unit of the Timor-Leste
Police. This is the follow-on mission from Operation Spire.
(1)
continued
O u t c o m e O n e: C o m m a n d o f O p e r at i o n s
Table 2.9
2.3
Continued
Operation
Objective, status and contribution
Anode
July 2003 –
continuing
Objective: To support the Coalition police forces in maintaining the rule of law in Solomon
Islands.
Status: Current.
Contribution: Approximately 400 ADF personnel and significant equipment assets were
deployed to Solomon Islands in the aftermath of the April riots. Approximately 140
personnel remained as at 30 June 2006, including an enhanced Task Force Headquarters
element and a company group. The ADF continues to provide security support to the
Regional Assistance Mission to Solomon Islands in conjunction with the Australian Federal
Police and participating Pacific nations.
Gateway
1981 – continuing
Objective: To conduct northern Indian Ocean and South China Sea maritime surveillance
patrols.
Status: Current.
Contribution: One P-3 maritime patrol aircraft. Operation Gateway continues to be
conducted at a reduced rate of effort.
Note:
1.Operation Astute was not reported in the Portfolio Budget Statements 2005–06 or the Portfolio Additional Estimates
Statements 2005‑06 due to the immediate nature of the deployment.
Table 2.10
Supporting Wider Interests
95
Operation
Objective, status and contribution
Pakistan Assist
November 2005 –
April 2006(1)
Objective: To provide assistance to the victims of the Pakistan earthquake.
Status: Completed.
Contribution: An ADF medical team was deployed to the remote Dhanni area where it
performed over 9,500 medical treatments, provided over 4,000 immunisations and
delivered 5 babies. An Australian Army Black Hawk helicopter detachment performed 74
life saving aero‑medical evacuations and distributed humanitarian supplies to villages and
communities cut-off by earthquake damage.
Palate II
June 2005 –
continuing
Objective: ADF provision of a Military Liaison Officer to the United Nations Assistance
Mission in Afghanistan.
Status: Current.
Contribution: One Military Liaison Officer.
Azure
May 2005 –
continuing
Objective: ADF contribution to the United Nations Mission in Sudan.
Status: Current.
Contribution: 15 personnel to the United Nations peacekeeping force serving as
headquarters staff and military observers.
Valient
October –
November 2004
Objective: To equip the Republic of Fiji Military Force United Nations Assistance Mission
Iraq contingent for service in Iraq and providing training assistance to the Republic of Fiji
Military Force personnel protection details, to assist in their preparation for service in Iraq.
Status: Dormant. Operation Valient can be reactivated if required.
Contribution: No personnel are currently assigned to the operation but ADF stores remain
on loan to the Fijian Government.
continued
Ch a p t e r
2
Table 2.10
Continued
Operation
Objective, status and contribution
Catalyst
July 2003 –
continuing
Objective: ADF contribution in support of the rehabilitation of Iraq.
Status: Current.
Contribution: The ADF deployment to the Middle East Area of Operations comprised
approximately 1,400 ADF personnel, including:
• an Australian National Headquarters element;
• approximately 95 personnel serving in the multinational force headquarters and units;
• a maritime element of 1 frigate;
• aviation elements including C-130 Hercules and P-3 Orion aircraft and support
detachments;
• a security detachment including Australian Light Armoured Vehicles to provide
protection and escort for Australian Government personnel working in Baghdad;
• a multi-role Task Group based in the southern Iraqi province of Al Muthanna;
• a small number of personnel employed in the Combined Explosives Exploitation Cell
tasked with disarming explosive devices and conducting post-explosion assessments to
determine the type of explosive devices used; and
• a tri-service Force Level Logistic Asset providing logistic support to all forces in Iraq and
Afghanistan.
Slipper
October 2001 –
continuing
Objective: To contribute to the United States-led operation against international terrorism
and to the Multinational Maritime Interception Force in the Persian Gulf.
Status: Current.
Contribution: The ADF currently has approximately 310 personnel deployed under
Operation Slipper. This includes a Special Forces Task Group and a CH-47 Chinook
helicopter detachment. Planning has been conducted for a Reconstruction Task Force of
approximately 240 personnel to deploy in late 2006 to contribute to a Dutch-led Provincial
Reconstruction Team under command of the North Atlantic Treaty Organisation.
Mazurka
September 1982 –
continuing
Objective: To provide personnel to the Multinational Force and Observers to monitor the
security arrangements in the Sinai.
Status: Current.
Contribution: The ADF contributes 25 personnel to the Multi‑National Force, serving as
specialist staff and military observers.
Paladin
June 1956 –
continuing
Objective: To contribute to the United Nations Truce Supervisory Organisation in the
Middle East.
Status: Current.
Contribution: The ADF contributes 12 unarmed military observers who supervise, observe
and report on the various cease-fire arrangements, truces and peace treaties that have
been negotiated between Israel and neighbouring Arab nations since 1948.
96
Note:
1.Operation Pakistan Assist was previously reported in the Portfolio Additional Estimates Statements 2005–06 under
Peacetime National Tasks.
O u t c o m e O n e: C o m m a n d o f O p e r at i o n s
Table 2.11
Peacetime National Tasks
Operation
Objective, status and contribution
Deluge
Planning activity
Objective: To support the Asia–Pacific Economic Conference in 2007.
Status: Planned.
Contribution: Planning with State and civil authorities commenced in 2005 with exercises
scheduled for 2006–07.
Larry Assist
March – April
2006
Objective: To support the Queensland Government following Tropical Cyclone Larry.
Status: Completed.
Contribution: Details are provided in the feature article on this operation (see p. 100).
Bali Assist II (1)
October 2005
Objective: To provide medical support to the victims of the 1 October 2005 Bali bombing.
Status: Completed.
Contribution: 2 C-130 aircraft deployed with medical supplies and Aero-Medical Evacuation
teams on board. Two evacuation flights from Bali were conducted, evacuating 13 injured
people and 8 accompanying family members. Donated medical supplies were transported
to Bali.
Nauru Assist III
September 2005
Objective: To provide assistance to the Government of Nauru in disposing of unexploded
wartime ordnance.
Status: Completed.
Contribution: The ADF deployed an Explosive Ordnance Demolition team of 4 personnel,
1 medical assistant and a C‑130 Hercules aircraft.
Acolyte
February 2005 –
April 2006
2.3
Objective: To support the 2006 Melbourne Commonwealth Games.
Status: Completed.
Contribution: The ADF contributed 2,600 personnel for security, ceremonial and general
support to the event. The ADF support included:
• air patrol by F/A-18 aircraft;
• maritime element;
• security support;
• an Incident Response Regiment;
• venue communication coordination;
• flag-raising ceremonial support;
• operating vehicle check-points; and
• pre-game venue searches.
Relex II
March 2002 –
consolidated
Objective: To conduct air and surface patrols across Australia’s northern approaches to
deter unauthorised boat arrivals.
Status: Completed. Consolidated into Operation Resolute, which commenced on
17 July 2006.
Contribution: The ADF currently provides the following major assets:
• 1 frigate;
• up to 4 Royal Australian Navy patrol boats;
• 1 Mine Hunter Coastal (dual force assigned to Operation Cranberry), with an additional
one at reduced notice to move; and
• 1 P-3 Orion maritime patrol aircraft and an additional aircraft on stand-by.
Mistral
1998 –
consolidated
Objective: To support Australian sovereign rights and fisheries law enforcement in the
Southern Ocean by contributing to Southern Ocean fisheries patrols.
Status: Completed. Consolidated into Operation Resolute.
Contribution: The ADF currently has 4 specialist personnel deployed in MV Oceanic Viking
in support of the current Southern Ocean patrol.
97
Ch a p t e r
2
Table 2.11
Continued
Cranberry
June 1997 –
consolidated
Objective: To conduct surveillance in northern Australia.
Status: Completed. Consolidated into Operation Resolute. Operation Cranberry also
included the subordinate Operation Breakwater.
Contribution: Surveillance to detect illegal activity, such as smuggling and illegal fishing,
continued to be conducted using a range of ADF assets including:
• Fremantle and Armidale-class patrol boats;
• 1 Mine Hunter Coastal (dual force assigned to Operation Relex II);
• P-3 Orion maritime patrol aircraft; and
• the Army Regional Force Surveillance Units.
Solania
1988 – continuing
Objective: To conduct South-West Pacific maritime surveillance patrols.
Status: Current.
Contribution: Operation Solania was conducted at a reduced rate of effort due to higher
operational commitments.
Estes
1980 –
consolidated
Objective: To conduct surface patrols in Bass Strait.
Status: Completed. Consolidated into Operation Resolute.
Contribution: ADF surface patrols in Bass Strait continued when appropriate resources
were available.
Note:
1.Operation Bali Assist II was not reported in the Portfolio Budget Statements 2005–06 or the Portfolio Additional
Estimates Statements 2005‑06 due to the immediate nature of the deployment.
98
O u t c o m e O n e: C o m m a n d o f O p e r at i o n s
2.3
Major Defence Force
Exercises
The following tables list the major joint and/or
combined exercises conducted by the ADF
during 2005–06. All other ADF exercises
conducted, cancelled or postponed during
Table 2.12
2005–06 have been published in the online
version of this report and can be accessed at
www.defence.gov.au/annualreports.
ADF Exercises
ADF Joint Exercises
Objective
Status
Mercury 05
October 2005
To test ADF interaction within the national multi‑jurisdictional
exercise.
Conducted
Combined ADF/Five Power Defence Arrangement Exercises
Bersama Lima 05
September 2005
To practise and develop operational procedures and tactics with
forces from Malaysia, New Zealand, Singapore and the United
Kingdom in a joint / combined maritime exercise.
Conducted
Bersama Shield
April 2006
To practise and develop Air Defence procedures and tactics with
forces from Malaysia, New Zealand, Singapore and the United
Kingdom in a joint / combined air exercise.
Conducted
Deep Sabre 05
Proliferation security
initiative 05–1
August 2005
To conduct a maritime weapons of mass destruction interdiction
exercise in Singapore with participation from Canada, France,
Germany, Holland, Japan, New Zealand, Russia, Singapore, United
Kingdom and United States.
Conducted
Regional Counter-Terrorist
Subject Matter Expert
Exchange 05
August 2005
To improve interoperability by sharing counter‑terrorist
methodology and policy and to align tactics, techniques and
procedures. Participation from Cambodia, China, India, Indonesia,
Japan, Malaysia, New Zealand, Papua New Guinea, Philippines,
Singapore, Thailand, United States and Vietnam.
Conducted
Red Flag 06
February 2006
To conduct coalition air combat training within the Integrated Air
Defence System environment with forces of the United States and
United Kingdom.
Conducted
Rimpac 06
June – July 2006
To improve interoperability with regional forces to operate in
coalition arrangements by conducting a combined maritime
warfare exercise. Participation from Canada, Chile, Japan, Peru,
Republic of Korea, United Kingdom and the United States.
Conducted
Other Combined Exercises
99
Members of 3 Combat
Support Services
Batallion Health
Company, carry
medical supplies to a
Black Hawk helicopter
to assist the Innisfail
community.
100
One of the many homes destroyed by Cyclone Larry in Innisfail, North Queensland.
Operation Larry Assist
The ADF launched Operation Larry Assist in response to a request for assistance
from the Queensland Government. Cyclone Larry struck at 7am on 20 March 2006,
and by midnight the first convoy from the Townsville-based 3rd Brigade was
headed north on the Bruce Highway. Additional troops and engineers with heavy
plant and equipment followed early the next morning. The convoys arrived in
Innisfail before road access was cut by rapidly rising floodwaters.
The aim was to stabilise the situation until the civil authorities could consolidate
and fully manage the disaster relief operation without Defence support. The
priorities were to provide drinking water, food and shelter, and to clear debris
which blocked roads and endangered the population.
A Joint Task Force Headquarters was established to operate with the Queensland
State Disaster Coordination Centre. An air bridge into Innisfail was developed to
allow Air Force Hercules and Caribou aircraft to deliver essential stores. In the
first four days of Operation Larry Assist, 75,000 litres of bottled water and
15.5 tonnes of tarpaulins were delivered.
Military helicopters including Seahawk, Black Hawk, Iroquois and a heavy lift
Chinook assisted with delivering supplies and assessing the extent of damage. In
one airlift, a Chinook from Townsville’s 5th Aviation Regiment helped to restore
Innisfail’s electricity substation by delivering a 32 metre-high transmission tower
from Townsville. The helicopters also played a crucial role in the aero-medical
evacuation of patients.
Army personnel, including the Townsville-based 3rd Brigade and the
Cairns‑based 51st Far North Queensland Regiment assisted across the region.
Navy personnel from HMAS Cairns provided assistance to the Mareeba
community, while several heavy landing craft were used to move equipment
where roads were cut by flooding. Air Force personnel from units in Townsville,
Amberley, Richmond and Williamtown transported supplies and cleared debris,
and provided emergency support to the local population at Innisfail Showgrounds.
Army medics assisted staff at Innisfail hospital while catering staff set up a field
kitchen that prepared over 1,500 fresh meals for displaced locals.
Ch a p t e r
2.3
2
An Air Force Caribou aircraft
delivers troops and relief
assistance supplies.
The work by ADF personnel moving into devastated
areas and carefully cleaning up debris and covering
damaged roofs with tarpaulins generated a strong,
positive reaction from local communities. As the initial
emergency eased, schools became the focus for
engineers who repaired roofing, boarded up broken
windows, reconnected water services, cleared fallen
trees and made powerlines safe.
Commanders on the ground reported that ADF
personnel were incredibly focused and dedicated to
the relief effort.
“The hardest thing was to get them to slow down and
take a break”.
Soldiers from Townsville
remove fallen trees in
the streets of Innisfail.
101
Outcome Two:
Navy Capability
Highlights of the Navy’s activities throughout
2005–06 included participation in a range of
different operations:
The Chief of Navy, Vice
Admiral Russ Shalders, is
accountable for delivering
Navy Capability
102
Reflecting upon the Navy’s activities
throughout 2005–06, I am immensely proud of
our achievements during another year of
significant operational demand. The Navy
participated in a range of ADF operations,
providing the platforms (ships, submarines
and aircraft) and people critical to achieving
successful outcomes in naval and joint
operations in our region and around the world.
Our operational achievements have been
complemented by an ongoing commitment to
develop and implement personnel initiatives
leading to a transformation in the way people
are managed in the Navy. During 2005–06, the
Navy welcomed new platforms into the fleet
and continued to prepare for the introduction
of new capabilities to meet future operational
challenges.
Operations
During 2005–06, the Navy was called upon to
respond to a wide range of global peace and
law enforcement initiatives, regional security
concerns, illegal offshore activities, and the
provision of humanitarian aid in response to
natural disasters at home and abroad. The
Navy’s operational performance remains at a
very effective level.
•Operation Catalyst. The Navy continued its
sixteenth consecutive year of commitment
to maritime operations in the Persian Gulf
with the deployment of HMA Ships
Newcastle, Parramatta and Ballarat as part
of the United States-led stabilisation and
recovery operations in Iraq. In June 2006,
Commodore Peter Lockwood DSC, CSC,
RAN assumed command of Task Force 158,
as the second Royal Australian Navy
commander charged with responsibility for
protecting Iraq’s key oil infrastructure,
conducting maritime interception
operations, and training Iraqi forces to
assume responsibility for their own
maritime security in the future.
•Operation Anode. In April 2006, in response
to civil unrest in Solomon Islands, HMA
Ships Townsville and Armidale deployed as
part of a multinational operation in support
of coalition police forces working to restore
law and order.
•Operation Astute. In May 2006, the frigate,
HMAS Adelaide, pre-positioned off Dili,
Timor-Leste in support of stabilisation
operations in that country. This was followed
by the deployment of a task force of seven
ships including HMA Ships Manoora,
Kanimbla, Tobruk and Success in response
to the deteriorating security situation.
Throughout the operation, Navy units
provided transport for troops and equipment
and logistics support to forces once they
were on the ground.
O u t c o m e Tw o : N a v y C a p a b i l i t y
Closer to home and throughout the year, the
Navy played a central role in border protection
and fisheries patrols, with 160 foreign fishing
vessel apprehensions and the conduct of
302 operational boardings. Patrol boats
contributed 1,809 patrol days in support of
Operations Relex II and Cranberry, the
coordination of intelligence and provision of
surveillance information to civil authorities,
and Operation Breakwater, a period of
increased patrol activity conducted in tandem
with the Australian Fisheries Management
Authority and Customs.
People
Continuing operational commitments and the
introduction of new platforms and enhanced
capabilities cannot be achieved without first
class personnel. The quality of the Navy’s
people, their dedication to the service of
Australia and their outstanding achievements
are world class. The Navy remains committed
to introducing and implementing programs
aimed at improving the work–life balance for
the Navy’s people and creating a work
environment where they wish to remain.
‘Sea Change’ is a Navy program designed to
research, develop and implement a broad
range of initiatives aimed at improving Service
life with a positive impact on Navy recruitment
and retention. Initiatives aimed at keeping
sailors in the Navy, especially those with
critical skills, are beginning to have positive
effect. Attracting the young people we will
need to crew future assets such as the Air
Warfare Destroyer and amphibious ships
remains a key concern in a tight labour
market. ‘Sea Change’ initiatives such as
establishing waterfront career management
centres and developing five-year career plans
have contributed positively to greater certainty
for Navy people. Trials of other initiatives—
such as flexi-crewing—seek innovative ways
to improve Service life by providing sailors
with more options for spending time ashore
with their families and to undertake training.
2.4
Ships, Submarines and Aircraft
New ships and other naval capabilities were
introduced into the Navy in 2005–06 with a
number of assets being replaced or upgraded.
HMAS Sydney, the first Adelaide-class guided
missile frigate to be upgraded, returned to the
fleet in 2005–06. The replacement of the
Fremantle-class patrol boats with the
Armidale-class patrol boats commenced in
2005–06. The new patrol boats offer
improvements in capability, sea-keeping, and
habitability. In addition, the Collins class
submarine combat system upgrade program
progressed throughout 2005–06, including
through the provision of new heavyweight
torpedoes. The Sea King helicopter fleet
resumed flying in 2005–06 following an
intensive maintenance program conducted
after the tragic loss of nine ADF members and
a Sea King helicopter at Nias, Indonesia during
earthquake relief operations.
Throughout 2005–06, the Navy has maintained
a demanding tempo of operations, introducing
new capabilities and contributing to
preparations for a significantly enhanced fleet.
We are proud of our collective achievements
and of each individual’s contribution. The
Navy’s priorities will continue to be operations,
people and platforms as we strive to achieve
success in all that we do on behalf of the
Australian public.
103
Ch a p t e r
2
Capability Performance
Information
Adelaide-class guided missile frigates
Output 2.1 Capability for Major
Surface Combatant Operations
The surface combatant force provides the
Navy with a fleet of surface ships capable of
conducting a wide range of surface
operations. The surface combatant force
possesses combat capabilities in all three
primary warfare areas (air, surface and
undersea) and provides combined coalition
and joint ADF command and control facilities
for ADF operations. In 2005–06, the force was
made up of five Adelaide‑class guided missile
frigates and seven Anzac-class frigates.
TABLE 2.13
104
HMAS Canberra was decommissioned in
November 2005, making the Adelaide-class a
force of five ships. HMAS Adelaide was
planned to decommission at the end of 2006,
but will now remain in service until the end of
2007 to provide the Navy with the continuity
and flexibility needed to meet operational
commitments, regional engagement
obligations through the conduct of port visits
and exercises with regional nations, and
training for surface combatant fleet skills.
The FFG Upgrade Implementation project for
four Adelaide-class guided missile frigates
will ensure that the frigates can operate
Capability for Major Surface Combatant Operations
Performance Targets
Performance
Achieve levels of preparedness directed by
the Chief of the Defence Force for military
response options with a warning time of
less than 12 months.
Achieved. Levels were met in accordance with current
preparedness directives.
Achieve a level of training that maintains
core skills and professional standards
across all warfare areas.
Substantially Achieved. Collective and individual training in all
disciplines continues to be conducted. Training throughput for
some disciplines depends on ship availability.
Achieve mission capability(1) for assigned
tasks.
Substantially Achieved. 90 per cent (2,666 days) for the force.
Mission capability was not fully achieved due to various systemsrelated defects. Class achievements:
Guided missile frigates—84 per cent (1,014 days).
Anzac-class frigates—94 per cent (1,652 days).
5 Adelaide-class guided missile frigates—
1,164 Unit Ready Days (URD)(2).
5 guided missile frigates—104 per cent (1,211 URD achieved). The
over achievement was due to the early hand-back of HMAS
Sydney from upgrade. HMAS Sydney was not fully mission
capable, but did have the ability to undertake most tasks, thus
providing an overall increase in ship availability.
7 Anzac-class frigates—1,737 URD(3).
7 Anzac-class frigates—101 per cent (1,761 URD achieved). The
over achievement was due to a delay in the start of maintenance
for HMAS Parramatta, which increased ship availability.
Notes:
1.Mission capability measures capability for assigned tasks. It is defined as the required level of unit readiness for the
actual tasking for which the force element has been scheduled at any time through its operational cycle. Tasking
includes all scheduled activities to achieve assigned Defence operations, international engagement requirements and
levels of preparedness required for a military response. Mission capability is assessed against URD achieved to
produce a percentage. The mission capability performance is calculated by dividing the total number of mission
capability days recorded throughout the year by the URD achieved, to produce a percentage.
2.Unit Ready Days (URD) are the number of days that a force element is available for tasking, by the Maritime Commander,
either outside of major maintenance and within planned readiness requirements or in accordance with contracted
availability.
3.The eighth and final Anzac-class frigate, HMAS Perth, was commissioned in August 2006.
O u t c o m e Tw o : N a v y C a p a b i l i t y
effectively in the increasingly sophisticated
maritime warfare environment. The FFG
upgrade contract was renegotiated with the
prime contractor, ADI Limited, in May 2006,
formalising the Government’s decision to
reduce the scope of the upgrade to four ships.
The program commenced in 2003. The first
ship, HMAS Sydney, returned to the fleet in
2005–06. This program is now rescheduled to
be completed in 2009 to take into account the
Navy’s operational requirements and the
terms of the renegotiated contract.
Anzac-class frigates
HMAS Toowoomba, the seventh Anzac-class
frigate, was commissioned in October 2005.
The Anzac-class frigates are progressively
undergoing capability enhancements
including Harpoon missile, mine and obstacle
avoidance sonar upgrades, and crew
accommodation improvements.
TABLE 2.14
2.4
Output 2.2 Capability for Naval
Aviation Operations
The naval aviation force provides the Navy
with helicopters for conducting naval aviation
operations and is made up of 16 Seahawks, six
Sea Kings and 13 Squirrel helicopters. The
introduction of the Super Seasprite
helicopters to operational service has been
delayed by the need to resolve problems
identified during the flight test program.
Seahawk helicopters provide the flights for
embarkation in either Adelaide-class guided
missile frigates or Anzac-class frigates.
Squirrel helicopters were unable to meet their
training targets due to a tail rotor fault that
significantly reduced their availability while
this was being rectified. Kalkara target
operations in support of Navy and Air Force
training and missile testing met all requested
tasking assignments.
105
Capability for Naval Aviation Operations
Performance Targets
Performance
Achieve levels of preparedness directed
by the Chief of the Defence Force for
military response options with a warning
time of less than 12 months.
Partially Achieved. Preparedness levels for the Sea King were not
met. An intensive Maintenance Re-invigoration Plan has impacted
on Sea King serviceability and subsequent availability. Further, the
reduced size of the Sea King fleet and shortage of aircrew have
also had an impact on overall availability. The Maintenance
Re‑invigoration Plan and aircrew shortages have had a similar
effect on the other squadrons.
Achieve a level of training that maintains
core skills and professional standards
across all warfare areas.
Substantially Achieved. Core skills and professional standards
across all warfare areas were maintained. The number of
Seahawk flights at sea was reduced to meet individual training and
helicopter modification requirements ashore.
Achieve mission capability for assigned
tasks.
Substantially Achieved. Embarked flights and detachments were
mission capable to meet all but a limited number of assigned
tasks.
16 Seahawks—3,300 hours.
16 Seahawks—81 per cent (2,670 hours). Project demands on the
Seahawk fleet, the Maintenance Re-invigoration Plan, and a
shortage of aircrew have all combined to cause a significant but
temporary decline in the achievement of flying hours.
6 Sea Kings—1,200 hours.
6 Sea Kings—82 per cent (980 hours). Sea King hours have been
heavily affected by reduced serviceability as a result of the
Maintenance Re-invigoration Plan.
continued
Ch a p t e r
2
TABLE 2.14
Continued
13(1) Squirrels—3,700 hours.
13 Squirrels—77 per cent (2,832 hours). Squirrel hours were
significantly affected in 2005 by a tail rotor fault that severely
limited availability while the fault was being rectified.
600–700 hours were lost during the rectification period. Squirrel
serviceability has also declined as a consequence of the additional
administrative aspects of the Maintenance Re‑invigoration Plan. In
addition, a project to fit improved crew seats affected availability.
11(2) Super Seasprites—975 hours.
10 Super Seasprites—17 per cent (168 hours). There was very
limited flying achieved until March 2006 when all Super Seasprites
were grounded.
10 Kalkaras—available for
39 presentations.(3)
9 Kalkaras—31 per cent (12 presentations). The system was
available for 39 presentations as per the contractual
requirements. Only 12 were required to support Navy and Air
Force training exercises and missile testing during 2005–06. One
Kalkara was lost through the year in the course of a missile
presentation serial.
Notes:
1.Twelve aircraft are operated, the thirteenth aircraft is held for attrition purposes.
2.The eleventh Seasprite has not been delivered from the United States to Australia at this point.
3.Kalkara is an unmanned aerial target system used for Navy and Air Force support. Presentations refer to the number of
instances during which the system is used as a target in training or system testing exercises.
106
Output 2.3 Capability for Patrol Boat Operations
During 2005–06, the patrol boat force was made up of both Fremantle and Armidale‑class patrol
boats. The patrol boat force continues to make a large and effective contribution to the Civil
Surveillance Program (managed by the Joint Offshore Protection Command) for the protection of
Australia’s sovereignty, covering fisheries, quarantine, immigration and customs duties, and North
West Shelf security patrols with emphasis on the protection of offshore oil and gas platforms.
Patrol boats also contributed to international engagement and national security through the
conduct of operations, port visits and exercises with regional nations.
At the end of 2005–06, ten (of an original 15) Fremantle-class patrol boats were in operation,
and three Armidale-class patrol boats were in commission and operational. A further
two Armidale‑class patrol boats were undergoing operational workup in 2005–06 prior
to commissioning in July 2006. The last Fremantle-class patrol boat is scheduled for
decommissioning in May 2007. A further nine Armidale-class patrol boats are due to be
progressively brought into service by January 2008. The mature Armidale-class patrol boat
capability will be supported by a total of 21 crews. This combination of crews and hulls establishes
a multi-crewing system that will result in an overall increase in operational availability and
flexibility.
O u t c o m e Tw o : N a v y C a p a b i l i t y
TABLE 2.15
2.4
Capability for Patrol Boat Operations
Performance Targets
Performance
Achieve levels of preparedness directed by
the Chief of the Defence Force for military
response options with a warning time of
less than 12 months.
Substantially Achieved. Slight underachievement due to
fluctuations in patrol boat numbers during the phase out of
Fremantle-class patrol boats, against the delivery schedule of
Armidale-class patrol boats and operational acceptance.
Achieve a level of training that maintains
core skills and professional standards
across all warfare areas.
Achieved. Levels were met in accordance with current
preparedness directives.
Achieve mission capability for assigned
tasks.
Achieved. 95 per cent (4,480 days) for the force. Mission capability
was not fully achieved due to defect rectification and, to a lesser
extent, a lack of available operational relief personnel.
Class achievements:
Fremantle Class—96 per cent (4,009 days).
Armidale Class—92 per cent (471 days).
10(1) Fremantle-class patrol boats—
4,179 URD.
10 Fremantle-class patrol boats—100 per cent (4,179 URD
achieved).
3(2) Armidale-class patrol boats—546
URD.
3 Armidale-class patrol boats—94 per cent (513 URD achieved),
due to late delivery and extension to unit preparation periods.
Notes:
1.The number of Fremantle-class patrol boats reduced from 14 to ten during 2005–06. Originally planned to reduce to
eight, the decommissioning schedule for the Fremantle-class patrol boats was changed to meet minor slippages,
between two and six weeks, in some milestones of the Armidale-class patrol boat project for boats two through five.
The Armidale-class patrol boat program was back on schedule by June 2006.
2.The number of commissioned Armidale-class patrol boats increased from one to three during 2005–06, with a further
three scheduled to commission between July–September 2006. The six vessels have nine crews. Multi-crewing is used
to enhance availability of the vessels.
Output 2.4 Capability for Submarine Operations
This output, compromising six Collins-class submarines, provides the ADF with a capability for
submarine operations, including anti-submarine warfare, maritime strike and interdiction,
maritime surveillance and intelligence collection, and enhanced joint ADF operations. Two of the
six submarines are fitted with augmented combat systems while the remaining four have
received platform improvements to maintain capability levels until the completion of the
class‑wide combat system upgrade package. Installation of this upgrade has commenced with
HMAS Waller, which is scheduled to complete a full cycle docking in early 2007. This submarine
will be the first to enter operational service with the replacement combat system and
heavyweight torpedo.
107
Ch a p t e r
2
TABLE 2.16
Capability for Submarine Operations
Performance Targets
Performance
Achieve levels of preparedness directed by
the Chief of the Defence Force for military
response options with a warning time of
less than 12 months.
Substantially Achieved. Not all submarines have the complete
capability enhancements, such as the combat system
augmentation and hull improvements, to achieve the full range of
preparedness requirements.
Achieve a level of training that maintains
core skills and professional standards
across all warfare areas.
Achieved. All core warfare skills and professional standards have
been maintained.
Achieve mission capability for assigned
tasks.
Substantially Achieved. 75 per cent (1,067 days) for the force.
Mission capability was not fully achieved due to systems-related
defects and operational constraints imposed on HMAS Collins as
a result of personnel shortfalls.
6 submarines—1,463 URD(1).
6 Collins-class—98 per cent (1,432 URD achieved). The under
achievement was due to HMAS Dechaineux entering full‑cycle
docking ahead of schedule.
Note:
1.HMAS Waller continued in full cycle docking for all of 2005–06.
108
Output 2.5 Capability for Afloat Support
This output provides the Navy with the ability to undertake afloat support activities and is made up
of the tanker, HMAS Westralia, and the replenishment ship, HMAS Success.
TABLE 2.17
Capability for Afloat Support
Performance Targets
Performance
Achieve levels of preparedness directed by
the Chief of the Defence Force for military
response options with a warning time of
less than 12 months.
Achieved. Levels were met in accordance with current
preparedness directives.
Achieve a level of training that maintains
core skills and professional standards
across all warfare areas.
Achieved. Levels were met in accordance with current
preparedness directives.
Achieve mission capability for assigned
tasks.
Substantially Achieved. 81 per cent (590 days) for the force.
Class achievements:
Tanker—82 per cent (300 days). Mission capability was not fully
achieved due to main engine defects.
Replenishment ship—79 per cent (290 days). Mission capability
was not fully achieved due to replenishment equipment and
system defects.
1 oil tanker—365 URD(1).
1 tanker—100 per cent (365 URD achieved).
1 replenishment ship—365 URD.
1 replenishment ship—100 per cent (365 URD achieved).
Note:
1.HMAS Westralia was decommissioned and replaced by HMAS Sirius in September 2006.
O u t c o m e Tw o : N a v y C a p a b i l i t y
2.4
Output 2.6 Capability for Mine Warfare
Six Huon-class coastal mine hunters, two auxiliary minesweepers and two clearance diving teams
provide the Navy with a mine warfare capability. The Huon-class coastal mine hunters provided
mine countermeasures capability and also contributed to maritime surveillance and patrol
operations. The Government decided, following the Defence Capability Review 2003, that two mine
hunters were to be placed in extended readiness (a change in operational status) in January and
April 2006 with the ability to bring them back into service should the need arise. The two coastal
mine hunters that were planned to be put into extended readiness were reactivated and re-roled
for surveillance and patrolling of Australia’s maritime approaches. Two auxiliary minesweepers
provided essential national tasking, route survey support and mine warfare training. The two
clearance diving teams supported the full spectrum of mine warfare missions and also provided
capability for explosive ordnance and improvised explosive device disposal.
TABLE 2.18
Capability for Mine Warfare
Performance Targets
Performance
Achieve levels of preparedness directed by
the Chief of the Defence Force for military
response options with a warning time of
less than 12 months.
Achieved. Levels were met in accordance with current
preparedness directives.
Achieve a level of training that maintains
core skills and professional standards
across all warfare areas.
Achieved. Levels were met in accordance with current
preparedness directives.
Achieve mission capability for assigned
tasks.
Achieved. 99 per cent (3,446 days) for the force. Class
achievements:
Coastal mine hunters—99 per cent (1,992 days).
Auxiliary minesweepers—99 per cent (724 days).
Clearance diving teams—100 per cent (730 days).
6(1) coastal mine hunters—1,937 URD.
6 coastal mine hunters—104 per cent (2,016 URD achieved). The
overachievement was due to the two coastal mine hunters being
reactivated.
2 auxiliary minesweepers—730 URD.
2 auxiliary minesweepers—100 per cent (730 URD achieved).
2 clearance diving teams—730 URD.
2 clearance diving teams—100 per cent (730 URD achieved).
109
Ch a p t e r
2
Output 2.7 Capability for Amphibious Lift
This output provides the Navy with an amphibious capability and is made up of two amphibious
landing ships, a heavy landing ship and six heavy landing craft. The amphibious landing ship, HMAS
Kanimbla, completed a major maintenance activity in 2005–06. Despite the heavy maintenance load
associated with the age of these vessels, the amphibious lift force demonstrated its preparedness
for short notice contingency tasking with both amphibious landing ships, the heavy landing ship and
four of the heavy landing craft assigned at various times during 2005–06 to Operation Astute. The
Navy’s amphibious lift capability continued to be developed through collective joint training with
participation in Exercises Sea Lion 05, Sea Eagle 06 and Croix de Sud 06.
TABLE 2.19
110
Capability for Amphibious Lift
Performance Targets
Performance
Achieve levels of preparedness directed by
the Chief of the Defence Force for military
response options with a warning time of
less than 12 months.
Achieved. Levels were met in accordance with current
preparedness directives.
Achieve a level of training that maintains
core skills and professional standards
across all warfare areas.
Achieved. Levels were met in accordance with current
preparedness directives.
Achieve mission capability for assigned
tasks.
Achieved. 96 per cent (2,447 days) for the force.
Class achievements:
Heavy landing ship—86 per cent (196 days). Propulsion system,
diesel generation, power distribution and air conditioning defects
reduced mission capability.
Amphibious landing ships—99 per cent (548 days). Propulsion
system and equipment defects reduced mission capability.
Heavy landing craft—96 per cent (1,703 days). Communication,
support craft and propulsion system defects reduced mission
capability.
1 heavy landing ship—227 URD.
1 heavy landing ship—100 per cent (227 URD achieved).
2 amphibious landing ships—535 URD.
2 amphibious landing ships—103 per cent (551 URD achieved).
HMAS Kanimbla’s work-up was brought forward, resulting in the
slight overachievement.
6 heavy landing craft—1,800 URD.
6 heavy landing craft—98 per cent (1,769 URD achieved). HMAS
Betano’s refit was extended due to delay in provision of material
caused by Cyclone Larry.
O u t c o m e Tw o : N a v y C a p a b i l i t y
2.4
Output 2.8 Capability for Hydrographic, Meteorological and Oceanographic
Operations
This output provides the Navy’s hydrographic, meteorological and oceanographic capability and
is made up of two Leeuwin-class hydrographic ships and their embarked survey motor boats,
four Paluma-class survey motor launches, a laser airborne depth sounder aircraft and the
deployable geospatial support team. These are all supported by the Australian Hydrographic
Office in Wollongong, New South Wales. Meteorological and Oceanographic support is conducted
by the Mobile Meteorological and Oceanographic Teams, the Operational Meteorological
and Oceanographic Centre, the Defence Oceanographic Data Centre, the Fleet Weather and
Oceanographic Centre in Sydney, and the Naval Air Station Weather and Oceanographic Centre in
Nowra, New South Wales.
The Group’s nautical products contribute to the maintenance of sovereignty, maritime trade,
maritime safety and environmental protection. Additionally, the Group meets Australia’s national
obligations for provision of hydrographic services under the terms of the United Nations Safety of
Life at Sea (SOLAS) Convention 1974 (as amended) and the Navigation Act 1912.
In 2005–06, the Australian Hydrographic Office focused on producing electronic navigation charts
to support increasing Defence and commercial use of computer based navigation systems.
111
112
Ch a p t e r
2
TABLE 2.20
Capability for Hydrographic, Meteorological and
Oceanographic Operations
Performance Targets
Performance
Achieve levels of preparedness directed by
the Chief of the Defence Force for military
response options with a warning time of
less than 12 months.
Substantially Achieved. Engine faults and defects in
communications systems on hydrographic ships precluded the
achievement of all preparedness requirements.
Achieve a level of training that maintains
core skills and professional standards to
conduct survey tasking, produce
navigational information and provision of
oceanographic and meteorological
support.
Achieved. Core skills were maintained in all units.
Achieve mission capability for assigned
tasks.
Substantially Achieved.
90 per cent (1,657 days achieved) for the force.
Class achievements:
Hydrographic ships—80 per cent (586 days). Engine space faults
and minor defects reduced mission capability.
Survey motor launches—97 per cent (1,071 days). Minor defects
reduced mission capability.
Achieve HydrOcscheme 2004–07 data and
surveying tasking requirements to meet
national hydrographic surveying and
charting obligations.(1)
Substantially Achieved.
93 per cent. Units recorded 818 Survey / Sortie Days Achieved
(SDA) from 882 Survey / Sortie Days Planned (SDP). Specific
achievements were as follows:
Hydrographic ships—90 per cent (270 SDA from 300 SDP). The
reduced SDA was due to significant engine space faults in both
ships, weather constraints, and unscheduled operational
commitments.
Survey motor launches—99 per cent (340 SDA from 345 SDP).
Laser airborne depth sounder aircraft—96 per cent (136 SDA from
141 SDP).
Deployable geospatial survey team—75 per cent (72 SDA from 96
SDP). The reduced availability for HydrOcscheme tasking was due
to unscheduled operational commitments.
2 hydrographic ships—730 URD.
2 hydrographic ships—100 per cent (730 URD achieved).
4 survey motor launches—1,105 URD.
4 survey motor launches—100 per cent (1,105 URD achieved).
1 laser airborne depth sounder aircraft—
920 flying hours.
1 laser airborne depth sounder aircraft—93 per cent (858 hours
achieved). The underachievement was due to minor defects and
unsuitable weather in planned survey areas.
1 deployable geospatial support team
• availability 365 days; with
• planned deployments 146 days.
1 deployable geospatial support team—365 days availability
(100 per cent) and 153 days planned deployments (105 per cent).
The overachievement was due to the unscheduled commitment to
Operation Astute, and participation in Exercises Dugong and Sea
Eagle.
1 Australian Hydrographic Office
• availability 365 days; with 245 chart
production days.
1 Australian Hydrographic Office—365 days availability
(100 per cent) and 239 days chart production (98 per cent).
1 Fleet Weather and Oceanographic
Centre—availability 365 days.
1 Fleet Weather and Oceanographic Centre—365 days availability
(100 per cent).
continued
O u t c o m e Tw o : N a v y C a p a b i l i t y
table 2.20
2.4
Continued
Performance Targets
Performance
1 Naval Air Station Weather and
Oceanographic Centre—availability 240
days.
1 Naval Air Station Weather and Oceanographic Centre—240 days
availability (100 per cent).
1 Mobile Meteorological and
Oceanographic Team—availability 730
days; planned deployments 256 days.
1 Mobile Meteorological and Oceanographic Team—730 days
availability (100 per cent) and 237 days planned deployments
(93 per cent).
Chart Production:
• New charts/editions—67;
45 new charts/editions (67 per cent). 12 charts were delayed due
to a lack of data from external agencies.
• New charts/diagrams for use by the
Navy—12; and
21 new charts/diagrams for use by the Navy (175 per cent).
Emergent Defence requirements exceeded forecasts.
• Electronic navigational chart cells—136.
66 electronic navigational chart cells (49 per cent). 32 cells were
postponed due to a lack of data from external agencies, workforce
restructure and training and ongoing technical problems with the
digital hydrographic database. 38 cells were each 90 per cent
complete and will be completed in 2006–07.
Environmental brief production:
• New briefs/updates—8
11 new briefs/updates (138 per cent). Emergent requirements
exceeded forecasts.
• Exercise-specific briefs—2.
2 exercise-specific briefs (100 per cent).
Oceanographic database production:
• Complete database updates—24
24 complete database updates (100 per cent).
113
Note:
1.The Hydrographic and Oceanographic Scheme, referred to as the HydrOcscheme 2004–07, is the national hydrographic
surveying and charting program.
Ch a p t e r
2
Cost to Government
Table 2.21
Outcome Two—Navy Capability for the Defence of Australia
and its Interests
Budget
Estimate(1)
Additional
Estimate(2)
Actual
Result
Variation(3)
Variation(3)
2005–06
2005–06
2005–06
2005–06
2005–06
$’000
$’000
$’000
$’000
%
52,380
76,377
113,987
37,611
49.2
–
–
10
10
–
Other revenue
41,898
61,682
23,974
–37,709
–61.1
Total Revenue
94,278
138,059
137,972
–88
–0.1
–
–
–
–
–
5,328
14,242
87,787
73,545
516.4
INCOME
Revenue
Goods and services
Interest
Gains
Net foreign exchange gains
Assets now recognised
18,452
–
–
–
–
Other gains
–
–
3,793
3,793
–
Total Gains
23,780
14,242
91,580
77,339
543.0
118,058
152,301
229,552
77,251
50.7
Employees
1,560,907
1,453,295
1,441,356
–11,940
–0.8
Suppliers
1,921,679
1,959,708
1,824,072
–135,636
–6.9
297
1,748
1,469
–280
–16.0
7,749
7,351
18,467
11,117
151.2
945,478
1,080,868
1,233,701
152,833
14.1
12,654
36,504
419,014
382,509
1,047.8
–
–
131
131
–
18,452
2,729
1,659
–1,070
–39.2
Other expenses
–
4,094
726
–3,368
–82.3
Total Expenses
4,467,216
4,546,298
4,940,596
394,298
8.7
Price to Government for Outcome Two
4,349,158
4,393,997
4,711,044
317,047
7.2
Net gains from sale of assets
114
Total Income
Operating Expenses
Grants
Finance Cost
Depreciation and amortisation
Write down and impairment of assets
Net foreign exchange losses
Net losses from sale of assets
Notes:
1.Budget Estimates are consistent with Portfolio Budget Statements 2005–06 (page 119).
2.Additional Estimates are consistent with Portfolio Additional Estimates Statements 2005–06 (pages 91 and 92).
3.Variations reflect the difference between Additional Estimates and Actuals.
2.4
O u t c o m e Tw o : N a v y C a p a b i l i t y
Table 2.22
Breakdown of Outcome Two by Output
Budget
Estimate(1)
Additional
Estimate(2)
Actual
Result
Variation(3)
Variation(3)
2005–06
2005–06
2005–06
2005–06
2005–06
$’000
$’000
$’000
$’000
%
Output 2.1—Capability for Major Surface
Combatant Operations
1,605,701
1,601,949
1,680,156
78,207
4.9
Output 2.2—Capability for Naval Aviation
Operations
504,698
507,188
649,394
142,206
28.0
Output 2.3—Capability for Patrol Boat
Operations
277,648
282,488
282,476
–13
–0.0
Output 2.4—Capability for Submarine
Operations
779,765
776,763
824,639
47,876
6.2
Output 2.5—Capability for Afloat Support
214,290
224,558
251,950
27,392
12.2
Output 2.6—Capability for Mine Warfare
355,832
365,741
354,212
–11,529
–3.2
Output 2.7—Capability for Amphibious Lift
370,160
381,772
438,500
56,727
14.9
Output 2.8—Capability for Hydrographic,
Meteorological and Oceanographic
Operations
241,063
253,537
229,717
–23,820
–9.4
Price to Geovernment for Outcome Two
4,349,157
4,393,997
4,711,044
317,047
7.2
Notes:
1.Budget Estimates are consistent with Portfolio Budget Statements 2005–06 (page 123).
2.Additional Estimates are consistent with Portfolio Additional Estimates Statements 2005–06 (page 93).
3.Variations reflect the difference between Additional Estimates and Actuals.
115
HMAS Armidale at sea
Three generations of Navy patrol boats (L–R):
Armidale‑class HMAS Armidale, Fremantle‑class HMAS Townsville, and Attack‑class,
Ex-HMAS Advance.
ARMIDALE–CLASS PATROL BOATS
The Royal Australian Navy’s patrol boat group continues the significant and
challenging period of transition as the Armidale-class patrol boats replace the
Fremantle-class patrol boats.
116
HMAS Armidale was the first of the class and entered service on 24 June 2005.
By the end of 2005–06, three Armidale-class patrol boats were conducting
operations in Australia’s northern approaches, with a further eleven vessels being
prepared for operations or being built. The fourth and fifth vessels underwent
operational workup in 2005–06 in preparation for commissioning in July 2006.
The Armidale-class patrol boat has improved capability and more comfortable
living areas than the Fremantle-class patrol boat. In addition, the full fleet of 14
boats will deliver a 30 per cent increase in operational availability by employing a
multi-crewing system, and have capacity for further ‘surge’ if necessary.
The Armidale-class patrol boats are presently capable of conducting boarding
operations up to sea state three (1.25 metre wave height) and once fully developed
up to sea state four (2.5 metre wave height), and can maintain surveillance up to
sea state five (4 metre wave height). Capability enhancements over the
Fremantle‑class patrol boats include greater range and endurance, increased
crew habitability (more comfortable, purpose-built and spacious living quarters),
two 7.2 metre jet propulsion rigid hull inflatable boats (against one 4.7 metre rigid
hull inflatable boat) and a Rafael Typhoon 25mm stabilised cannon that is linked to
an electro-optical sighting system for improved accuracy in place of a Bofors
40/60mm manually aimed deck gun.
The mature Armidale-class patrol boat fleet will be divided into four divisions,
named Attack, Assail, Ardent and Aware, reflecting the legacy of the inaugural
Northern Australia Attack-class patrol boats. Attack division has been formed and
reached its mature state in August 2006.
Attack, Assail and Ardent divisions will each be made up of four boats and six
crews but Aware division, made up of only two boats, will have only three crews.
These divisions will form the basis for the crew rotation model that permits
greater availability of the boats (250 days per boat per year) while providing
greater opportunities for leave, training and administration of personnel as they
rest from operations.
Ch a p t e r
2.4
2
To date, the Armidale-class
patrol boats have been
assigned to Operations Anode,
Breakwater, Relex II and
Cranberry, and will form the
nucleus of the Navy’s
commitment to Operation
Resolute.
HMAS Larrakia at speed during
contractor sea acceptance trials
(Source: Austal)
HMAS Armidale at sea
117
Ship
Commissioning Date
COMMISSIONING Location
Armidale
24 June 2005
Darwin, Northern Territory
Larrakia
10 February 2006
Darwin, Northern Territory
Bathurst
10 February 2006
Darwin, Northern Territory
Albany
15 July 2006
Albany, Western Australia
Pirie
29 July 2006
Port Pirie, South Australia
Maitland
September 2006
Newcastle, New South Wales
Ararat
October 2006
Melbourne, Victoria
Broome
February 2007
Broome, Western Australia
Bundaberg
February 2007
Bundaberg, Queensland
Childers
May 2007
Cairns, Queensland
Wollongong
June 2007
Port Kembla, New South Wales
Launceston
September 2007
Launceston, Tasmania
Glenelg
To be advised
To be advised
Maryborough
To be advised
To be advised
Ch a p t e r
2
OUTCOME THREE:
ARMY CAPABILITY
The Chief of Army,
Lieutenant General
Peter Leahy, is accountable
for delivering Army
Capability
118
I am responsible to the Government for
delivering Army capabilities that contribute to
the ADF’s capability to defend Australian
territory from any credible attack, to enhance
the security of Australia and contribute to
international coalition forces in support of
Australia’s wider strategic interest.
During 2005–06, the Army’s operational
tempo increased significantly, with the Army
undertaking a wide range of tasks
simultaneously, sometimes at short notice
and in complex urbanised terrain. Within
Australia, the Army continued to contribute to
border protection operations by providing
transit security elements in support of the
apprehension of illegal boat arrivals, and by
Regional Force Surveillance Units patrolling
the north of Australia.
Within the region, the Army’s presence in
Timor-Leste significantly increased through
Operation Astute following a number of civil
disturbances and clashes between the police
and military. Operation Astute included the
contribution of a Brigade Group based on the
3rd Battalion, the Royal Australian Regiment
as well as engineer, logistic, aviation, Special
Forces and headquarter elements.
Following a breakdown in law and order over
the period of national elections, the Army
contribution to RAMSI, increased from
approximately 40 personnel to a battlegroup
of around 350 Australian soldiers. The
Army’s commitment subsequently drew
down to a company group which continues to
support RAMSI.
Operations in the Middle East were sustained
and included the Special Operations Task
Group in Afghanistan under Operation Slipper.
In Iraq, the Army maintained the Baghdad
Security Detachment. The 450-person Al
Muthanna Task Group in south eastern Iraq
provided security for the Japanese Iraqi
Reconstruction Group and training for the
Iraqi Security Forces. The Australian Army
Training Team Iraq provided training for the
Iraqi combat and logistic personnel. The
Army also contributed to the Force Level
Logistic Asset in Kuwait, Joint Task Force
Headquarters in Baghdad, and provided
personnel in a number of embedded
positions and liaison positions with our
coalition partners.
The Army provided forces for peacekeeping
tasks, assisted with natural disasters and
contributed to the national domestic security
response to terrorist chemical, biological,
radiological or explosive incidents. The Army
maintained its assistance to non-regional
support operations with the United Nations
and Multi-National Force and Observers in the
Middle East. In addition to these operations in
Afghanistan, Sinai, and Israel, the Army
supported the United Nations Mission in the
Sudan by providing observers and staff.
OUTCOME T H REE : ARMY CAPA B ILITY
The Army also maintained high readiness
counter-terrorist response forces drawn from
the Tactical Assault Group (West), Tactical
Assault Group (East), and the Incident
Response Regiment, as well as high readiness
conventional forces.
to deal with a wide range of operational
commitments. Critical to this initiative is the
successful introduction and integration of
new equipment delivered under the Defence
Capability Plan.
The diversity of our recent deployments
reflects a significant change in world politics.
The result has been increasing complexity in
the conduct of military operations across a
very broad spectrum of conflict. The Army
must be prepared to undertake a wide range
of activities, from the conventional defence of
Australia, to peacekeeping, peace making,
nation building, humanitarian operations, and
tackle the threat of terrorism.
•Procurement of the M1A1 Abrams tank
through a Foreign Military Sales
arrangement with the United States.
Initial deliveries occurred in September
2006, with formal introduction into service
occurring in 2007.
The Army requires a force with increased
flexibility, adaptability and agility. The Army
must be proficient at operating in rapidly
changing structures, where joint, coalition and
multi‑agency operations are a matter of
course. The Army must develop highly
adaptable and well‑protected forces to fulfil
all potential operational demands.
The Hardened and Networked Army program,
which was announced in December 2005, will
enhance the Army’s protection, mobility,
firepower and communications. It is through
the Hardened and Networked Army that I will
ensure that the Army meets its current
commitments and prepares to meet the
challenges of the future. It will be the means
by which the Army can provide an increased
range of options to the Government in order to
deal with an increasingly demanding and
complex future.
The Hardened and Network Army is based
on the philosophy of the combined-arms
approach to combat, whereby infantry,
armour, artillery, aviation and engineers
work together to support and protect each
other. The Hardened and Network Army
is a philosophy that extends beyond the
Army and combined arms, to the joint and
whole‑of‑government approach to the
modern dynamic security environment. The
Army is continuing to increase its capacity
2.5
During 2005–06, the following was achieved:
•Acceptance of Bushmaster infantry mobility
vehicles into the Army, and their successful
deployment to support a variety of overseas
operations.
•Upgrade of the M113 armoured personnel
carrier fleet, planned for introduction into
service in 2007.
•Introduction into Army service of the fixed
modular bridge system.
•Deliver and acceptance into service of
additional Javelin direct fire guided weapons
for the infantry and cavalry force.
•Commencement of operational test and
evaluation of simulation enhancements to
support the Army’s combat training centre.
•Delivery and deployment on operations of
land force combat identification equipment.
•Enhancement of Army’s maritime capability
by acceptance of the last of six Army
Watercraft.
Through the Hardened and Network Army
initiative, the Army will seek to revitalise the
Army Reserve to ensure that it can make a
significant and meaningful contribution to the
Army’s operational tasks. The Army Reserve
has been re-roled to provide specific
individual and collective capabilities to
support, sustain and reinforce the Army’s
operational forces. The Army will develop a
High Readiness Reserve capable of
supporting all Hardened and Networked Army
operational capabilities.
The Army met all of the tasks required of it by
the Government during 2005–06. The Army’s
119
Ch a p t e r
2
combat forces generated combined arms
battlegroups based on the headquarters of an
infantry battalion and armoured units. In
addition, the Army maintained six Reserve
Response Forces to enhance the Army’s
domestic security response capability.
Personnel and equipment issues continued to
be addressed in 2005–06 and in future years
as part of the Army’s long‑term strategic
remediation plan.
Capability Performance
Information
Output 3.1: Capability for Special
Operations
120
The special operations capability contributes
to the strategic tasks of defending Australia,
securing our immediate neighbourhood,
supporting wider interests and supporting
peacetime national tasks. This output was
achieved by providing forces to conduct
evacuation and special recovery operations,
counter‑terrorism and consequence
management operations, and support to
conventional land operations.
This capability employs techniques that are
discreet, do not provoke, and avoid collateral
damage, particularly in support of
Government domestic security operations.
TABLE 2.23
The special forces operations capability is
maintained at a high degree of readiness.
Output 3.2: Capability for Medium
Combined Arms Operations
The medium combined arms operations
capability is achieved through engaging the
enemy in close combat enabled by force
protection and essential firepower, and
provides forces at high to medium readiness.
These forces can be deployed in combined
arms teams from company to battalion size.
These combined arms teams are drawn from
armoured, mechanised infantry, medium
artillery, combat engineers, army aviation and
combat support units. This capability is based
on the 1st Brigade in Darwin, Northern
Territory.
Output 3.3: Capability for Light
Combined Arms Operations
The light combined arms operations capability
is achieved by providing light, air-mobile
forces, at high readiness, available for
immediate deployment. These forces can be
deployed in combined arms teams from
company to battalion size. These combined
arms teams are drawn from an armoured
sub‑unit, light infantry units, light artillery,
combat engineers and combat support units
and can also be supported by armoured and
Capability for Special Operations
Performance Targets
Performance
Achieve levels of preparedness directed by the Chief
of the Defence Force for military response options
with a warning time of less than 12 months.
Achieved. The special operations capability was able to
meet all preparedness requirements for military
response options.
Achieve a level of training that maintains core skills
and professional standards across all warfare
areas (including counter-terrorism).
Achieved. All training requirements were met.
Special Operations Command, comprising:
• a command headquarters;
• a Special Air Service Regiment;
• a Regular Army commando regiment;
• an Army Reserve commando regiment;
• an Incident Response Regiment;
• a Special Forces Training Centre and
• a Special Operations Logistic Squadron.
Achieved.4 Royal Australian Regiment (Commando) is
on target to reach full maturity in December 2006.
OUTCOME T H REE : ARMY CAPA B ILITY
table 2.24
Capability for Medium Combined Arms Operations
Performance Targets
Performance
Achieve levels of preparedness directed by
the Chief of the Defence Force for military
response options with a warning time of less
than 12 months, including the provision of a
battalion-sized group within 90 days
readiness notice.
Partially Achieved. The medium combined arms operations
capability was unable to meet all allocated preparedness
requirements for military response options during 2005–06.
Deficiencies in some limited areas of equipment, personnel
numbers in key trades, and commitments to operations affected
preparedness levels for some response options, but a credible
level of capability was available for all of the military response
options. This was demonstrated by the deployment of the
Al Muthanna Task Group, and contributions to the Security
Detachment in Baghdad, Solomon Islands and the preparation
of a Reconstruction Task Force and force elements for
Timor‑Leste. Limited equipment deficiencies and personnel
shortages continued to be addressed, including the purchase of
upgraded ASLAVs, a new main battle tank, an upgrade of the
M113 armoured personnel carriers and personnel retention and
remediation initiatives.
Achieve a level of training that maintains
core skills and professional standards
across all warfare areas.
Partially Achieved. A number of training activities had to be
reduced in scope due to operational commitments. Personnel
shortages in a number of key trades and equipment deficiencies
continued to affect the achievement of some core skills.
1st Brigade, comprising:
• a brigade headquarters;
• an armoured regiment
• a cavalry regiment;
• a medium artillery regiment;
• a combat engineer regiment;
• a combat support regiment;
• a mechanised infantry battalion; and
• a combat service support battalion.
Substantially Achieved. The medium combined arms
operations capability continued to have deficiencies in personnel
and equipment holdings that affected its capacity to complete all
possible tasks. Recruiting and retention initiatives have been
introduced to ease these shortcomings in the future.
table 2.25
2.5
Capability for Light Combined Arms Operations
Performance Targets
Performance
Achieve levels of preparedness directed by
the Chief of the Defence Force for military
response options with a warning time of less
than 12 months, including the provision of a
battalion-sized group within 90 days
readiness.
Achieved. The light combined arms operations capability met
the levels of preparedness for all military response options. It
provided force elements for the Baghdad Security Detachment
and for operations in Iraq, Solomon Islands and Timor-Leste.
The capability also provided personnel, as the transit security
element, to border protection operations in the apprehension of
illegal immigrants.
Achieve a level of training that maintains
core skills and professional standards
across all warfare areas.
Substantially Achieved. Most training requirements were met.
Most airborne, airmobile and amphibious training was
restricted due to reduced availability of joint assets as a result of
operational commitments.
3rd Brigade, comprising:
• a brigade headquarters;
• an armoured personnel carrier squadron;
• a field artillery regiment;
• a combat engineer regiment;
• a command support regiment;
• three infantry battalions; and
• a combat service support battalion.
Achieved. This target was achieved. Personnel and equipment
availability for units in this output were sufficient to meet
preparedness requirements.
121
Ch a p t e r
2
aviation units from other Army, Navy, and Air
Force outputs. This capability is based on the
3rd Brigade in Townsville, Queensland. It uses
strategic, operational and tactical mobility to
exploit its flexibility, adaptability and utility
across the spectrum of conflict. The capability
achieves this through surprise, rapid action
and the ability to seize and hold ground.
table 2.26
122
Output 3.4: Capability for Army
Aviation Operations
The capability for Army aviation operations is
achieved by providing aircraft and personnel
at high readiness levels for tactical troop lift,
counter-terrorist support, command and
liaison and reconnaissance operations. The
capability is drawn from aviation units based
primarily in the north of Australia.
Capability for Army Aviation Operations
Performance Targets
Performance
Achieve levels of preparedness directed by
the Chief of the Defence Force for military
response options with a warning time of less
than 12 months.
Achieved. The Army aviation operations capability met all levels
of preparedness for military response options as proved in
Pakistan, Timor-Leste and Solomon Islands. The capability also
provided a significant contribution to the Armed Reconnaissance
Helicopter and Project Air 9000 Troop Lift Helicopter projects.
Achieve a level of training that maintains
core skills and professional standards
across all warfare areas.
Achieved. The achievement of the level of training has been
supported by mission preparation and training for operations.
Additionally, the capability has been heavily committed to
operations both offshore and domestically that has provided the
opportunity to practise core skills and professional standards
across most warfare areas.
6 CH-47D Chinooks—1,270 flying hours
1,091 hours (86 per cent). This reflects the reduced availability of
aircraft while a significant modification program was
undertaken to prepare the fleet for an operational deployment.
35 S-70A9 Black Hawks—7,500 flying hours
6,918 hours (92 per cent). This was due to the flow-on effects of
increased unscheduled maintenance tasks during programmed
servicing.
41 B-206 Kiowas—11,000 flying hours
7,719 hours (70 per cent). This was due to higher than expected
failure rates on the basic flying courses at Tamworth, which
resulted in fewer trainees requiring instruction. Unforeseen
delays in the delivery of the 1st Aviation Regiment facilities in
Darwin prevented flying operations being conducted at
Robertson Barracks until late March 2006. Shortages of senior
maintenance supervisors at the 1st Aviation Regiment slowed
maintenance and further reduced the flying hours.
25 UH-1H Iroquois—4,090 flying hours
3,949 hours (97 per cent).
6 ARH Tigers—515 flying hours(1)
464 hours (90 per cent).
Reflects delays in the acceptance testing regime and the
training program.
3 B-300 King Airs—1,000 flying hours
481 hours (48 per cent). A slippage in the scheduled delivery of
the new aircraft from the United States, and the flow-on impacts
on the Australian modification, affected the full service release
resulting in flying being conducted under very tight constraints.
Note:
1.While nine helicopters were reported in the Portfolio Budget Statements 2005–06 (p. 143), six was the actual number of
helicopters available in 2005–06. The other three helicopters were undergoing acceptance testing.
OUTCOME T H REE : ARMY CAPA B ILITY
The capability is based on a brigade of two
aviation regiments and two independent
aviation squadrons consisting of Kiowa,
Iroquois, Black Hawk and Chinook helicopters,
and new fixed-wing King Air B300 aircraft.
The Kiowa helicopters are being progressively
replaced by two squadrons of Tiger Armed
Reconnaissance Helicopters. The Iroquois
helicopters will be replaced with MRH90
additional troop-lift helicopters commencing
in 2007.
table 2.27
2.5
Output 3.5: Capability for
Ground‑Based Air Defence
The ground-based air defence capability is
achieved by maintaining a flexible and mobile
capability that is able to provide surveillance
and defend airspace in conjunction with other
land and joint elements. This capability
provides air defence weapon systems at high
to medium readiness, which can be deployed
on land or on board ships, to protect
high‑value targets from air attack, as part of a
combined arms team. It is part of the Joint
ADF Air Defence System. This output is drawn
from the 16th Air Defence Regiment based in
Woodside, South Australia. The Regiment
maintains a ground-based air defence
capability consisting of the Saab Bofors
RBS‑70 Air Defence Missile system, combined
with integral radar and command elements.
Capability for Ground-Based Air Defence
Performance Targets
Performance
Achieve levels of preparedness directed by the
Chief of the Defence Force for military response
options with a warning time of less than
12 months.
Partially Achieved. The ground-based air defence capability
was unable to meet all preparedness requirements as
directed in the military response options. The air defence
capability is being upgraded through the delivery of
additional RBS-70 and radar systems, along with logistic and
ammunition requirements. The phased delivery of this
equipment and ammunition was affected by the
manufacturer’s capacity which in turn affected levels of
preparedness and sustainment for all military response
options.
Achieve a level of training that maintains core
skills and professional standards across all
warfare areas.
Substantially Achieved. Most training activities were
achieved.
An Air Defence Regiment consisting of:
• a regimental headquarters;
• an RBS-70 battery; and
• a Rapier battery(1).
Partially achieved. Due to upgrades in equipment, the Army
was only able to provide a reduced capability. Current
equipment and ammunition projects will address this issue
for the full Regiment capability in early 2007.
Note:
1.The Rapier battery capability as reported in the Portfolio Budget Statements 2005–06 (p. 144) was withdrawn in
December 2005.
123
Ch a p t e r
2
Output 3.6: Capability for Combat Support Operations
The capability for combat support operations is designed to enhance the conduct of operations
through effective communications, surveillance and specialist support (in particular, construction
engineering, topographical support, intelligence and electronic warfare operations). The combat
support operations capability provides forces at medium readiness with some elements held at
high readiness to support the high readiness units in other outputs. This capability is drawn from
combat support units based throughout Australia.
table 2.28
Capability for Combat Support Operations
Performance Targets
Performance
Achieve levels of preparedness directed by the
Chief of the Defence Force for military response
options with a warning time of less than
12 months.
Substantially Achieved. The capability met most
preparedness requirements as directed in the military
response options. Equipment deficiencies and personnel
shortages in key trades affected some preparedness
requirements. The personnel shortages are being
progressively addressed through the critical trades
remediation plan. Equipment deficiencies will be resolved
through new acquisition projects and some limited
redistribution of assets.
The capability provided significant support to forces
deployed on operations throughout the year. A construction
squadron provided considerable assistance to the Army
Aboriginal Community Assistance Program through the
construction of facilities for the indigenous communities in
the northern peninsula area of far north Queensland.
Achieve a level of training that maintains core
skills and professional standards across all
warfare areas.
Substantially Achieved. Operational deployments and
shortages in personnel in critical trades affected the
achievement of some training requirements.
Combat support units include:
• a surveillance and target acquisition battery;
• an engineer support regiment headquarters;
• two Army Reserve engineer construction
regiments;
• two Regular Army engineer construction
squadrons;
• a construction engineer works section;
• a topographical survey squadron;
• a signals regiment;
• an intelligence battalion;
• a military police battalion; and
• a combat training centre.
Substantially Achieved. The combat support operations
capability had sufficient personnel and equipment to provide
a reduced, yet credible, capability.
124
Output 3.7: Capability for Regional Surveillance
The capability is maintained by providing forces to patrol the north of Australia in support of the
national surveillance effort. These forces are predominantly Army Reserve personnel drawn from
the local communities and the indigenous population throughout the north of Australia, from the
Pilbara to Cape York. The capability for regional surveillance is drawn from three regional force
surveillance units: Norforce, the Pilbara Regiment and the 51st Far North Queensland Regiment.
OUTCOME T H REE : ARMY CAPA B ILITY
table 2.29
2.5
Capability for Regional Surveillance
Performance Targets
Performance
Achieve levels of preparedness directed by the
Chief of the Defence Force for military response
options with a warning time of less than
12 months.
Achieved. All levels of preparedness for military response
options were achieved. The three regional force surveillance
units provided support to border protection operations in
support of Operation Cranberry.
Achieve a level of training that maintains core
skills and professional standards across all
warfare areas.
Achieved. All training activities were achieved.
Three regional force surveillance units.
Achieved. The regional surveillance operations capability
had the personnel and equipment holdings necessary to
complete the required tasks.
Output 3.8: Capability for Operational Logistic Support to Land Forces
The operational logistic support to land forces provides supply, transport, and health functions in
support of combat operations at high to medium readiness. Some elements are held at high
readiness to support the high readiness units in other outputs. The capability is grouped in 17
Combat Service Support Brigade which is an organisation consisting of Regular Army and Army
Reserve units located throughout Australia.
125
table 2.30
Capability for Operational Logistic Support to Land Forces
Performance Targets
Performance
Achieve levels of preparedness directed by the
Chief of the Defence Force for military response
options with a warning time of less than
12 months
Partially Achieved. The capability provided significant
support to forces deployed on operations throughout the
year in all theatres. A substantial number of logistic
personnel deployed to support relief operations in Pakistan,
and to provide training for elements of the Iraqi Army. As a
result of the continued support to operations and personnel
shortages in critical trades, the capability was unable to
meet all preparedness requirements as directed in the
military response options.
Achieve a level of training that maintains core
skills and professional standards across all
warfare areas.
Partially Achieved. Operational deployments, limited
exercise opportunities, and personnel shortages in a
number of key trades affected the achievement of all training
requirements.
Logistic support units including:
• one logistic force headquarters;
• two signals squadrons;
• a petroleum company;
• a recovery company;
• two regular Army and one Army Reserve
force support battalions;
• a deployed forces support unit;
• three health support battalions; and
• a psychology unit.
Partially achieved. The logistic support capability had
insufficient personnel and equipment to achieve all of the
tasks required of it. A reduced yet credible level of capability
was maintained.
Ch a p t e r
2
Output 3.9: Capability for Motorised Combined Arms Operations
The motorised combined arms operations capability complements the 1st and 3rd Brigades by
providing a range of highly mobile forces to conduct land manoeuvre operations utilising surprise,
offensive action and concentration of force to disrupt or destroy enemy forces’ plans, cohesion and
morale. The capability provides forces at high to medium readiness which can be deployed in
combined arms teams from company to battalion size. Combined arms teams are drawn from an
armoured unit, a motorised infantry unit, artillery, combat engineers and combat support units,
and can be supported by armoured and aviation units from other outputs. The capability is based
on the 7th Brigade, an integrated formation of Regular Army and Army Reserve personnel, based
in Brisbane, Queensland.
table 2.31
Capability for Motorised Combined Arms Operations
Performance Targets
Performance
Achieve levels of preparedness directed by the
Chief of the Defence Force for military response
options with a warning time of less than
12 months, including the provision of a
battalion-sized group within 90 days readiness.
Partially Achieved. The motorised combined arms
operations capability provided elements of the 6th Battalion
and 2nd/14th Light Horse Regiment to support operations in
Iraq, Afghanistan and for the Commonwealth Games. The
remainder of the capability was not able to support all
military response options due to equipment deficiencies and
personnel shortages in key trades, and sustainability issues.
Personnel shortages are being addressed through enhanced
recruiting and retention programs. Equipment deficiencies
will be progressively addressed through the reallocating and
acquisition of new equipment, including upgraded ASLAV
and Bushmaster vehicles.
Achieve a level of training that maintains core
skills and professional standards across all
warfare areas.
Partially Achieved. Most training activities for the 6th
Battalion were unable to be completed due to operational
commitments, training and introduction into service of the
Bushmaster vehicle. The commitment to the Commonwealth
Games was, however, an opportunity to prove the mounted
(not yet motorised) capability of a company group.
Most activities for 2nd/14th Light Horse Regiment collective
training were reduced in scope due to operational
commitments, and deficiencies in equipment and personnel.
7th Brigade, comprising:
• a brigade headquarters;
• a cavalry regiment;
• a field artillery regiment;
• a combat engineer regiment;
• a command support regiment;
• a Regular Army infantry battalion;
• two Army Reserve infantry battalions; and
• a combat service support battalion.
Substantially achieved. Regular Army units achieved the
required staffing levels and provided a credible level of
preparedness proven by the assumption of Ready Battalion
Group requirements.
Partially achieved. Army Reserve units achieved lower than
expected staffing, which affected the capability.
126
OUTCOME T H REE : ARMY CAPA B ILITY
2.5
Output 3.10: Capability for Protective Operations
While retaining long-term utility for defence of Australia tasks, the protective operations capability
also provided reinforcements for Regular Army units. Elements of this capability are also trained
to assist in domestic security incidents. The protective operations capability provides forces at high
to low readiness. The capability is grouped in 4th, 5th, 8th, 9th, 11th and 13th Brigades, which are
Army Reserve formations based across Australia.
table 2.32
Capability for Protective Operations
Performance Targets
Performance
Achieve levels of preparedness directed by the
Chief of the Defence Force for military response
options with a warning time of less than
12 months.
Achieved. The protective operations capability achieved the
levels of preparedness directed for the six Reserve
Response Forces drawn from 4th, 5th, 8th, 9th, 11th and 13th
Brigades. In 2005–06, the output provided personnel for
Operation Acolyte, the transit security element in support of
border security operations, and provided a section for
security tasks in Solomon Islands. The output also provided
personnel to supplement Regular Army units both in
Australia and on operations.
Achieve a level of training that maintains core
skills and professional standards across all
warfare areas.
Partially Achieved. Most training activities were successfully
conducted. Some collective training activities had to be
reduced in scope due to circumstances such as the
cancellation of Regular Army and overseas exchange
exercises.
The 4th, 5th, 8th, 9th, 11th and 13th Brigades,
each comprising:
• a Brigade headquarters;
• two or three infantry battalions
• an armoured reconnaissance unit; and
• combat and logistic support units.
Partially Achieved. The Reserve Response Forces were
provided during 2005–06. While there were personnel
shortages in the remainder of the capability, personnel from
the output still provided a reinforcement capability for the
combat force component of the Army.
127
Ch a p t e r
2
Cost to Government
Table 2.33
Outcome Three—Army Capability for the Defence of Australia
and its Interests
Budget
Estimate(1)
Additional
Estimate(2)
Actual
Result
Variation(3)
Variation(3)
2005–06
2005–06
2005–06
2005–06
2005–06
$’000
$’000
$’000
$’000
%
76,828
145,057
211,668
66,610
45.9
–
–
–17
–17
–
Other revenue
75,909
94,382
23,442
–70,940
–75.2
Total Revenue
152,738
239,439
235,093
–4,347
–1.8
INCOME
Revenue
Goods and services
Interest
Gains
–
–
–
–
–
10,696
123,362
219,981
96,618
78.3
Net gains from sale of assets
–
–
–
–
–
Other gains
–
–
4,055
4,055
–
Total Gains
10,696
123,362
224,036
100,674
81.6
163,434
362,802
459,129
96,327
26.6
Employees
2,952,868
2,701,566
2,651,692
–49,874
–1.8
Suppliers
1,904,309
1,935,776
1,979,439
43,663
2.3
Net foreign exchange gains
Assets now recognised
128
Total Income
Operating Expenses
602
3,416
2,808
–608
–17.8
14,400
13,766
25,625
11,859
86.2
684,789
762,454
721,576
–40,878
–5.4
19,392
118,944
264,252
145,308
122.2
Net foreign exchange losses
–
–
719
719
–
Net losses from sale of assets
–
–6,893
–11,473
–4,580
66.4
Other expenses
–
10,562
1,669
–8,893
–84.2
Total Expenses
5,576,361
5,539,590
5,636,306
96,716
1.7
Price to Government for Outcome Three
5,412,926
5,176,788
5,177,177
389
0.0
Grants
Finance Cost
Depreciation and amortisation
Write down and impairment of assets
Notes:
1.Budget Estimates are consistent with Portfolio Budget Statements 2005–06 (page 136).
2.Additional Estimates are consistent with Portfolio Additional Estimates Statements 2005–06 (pages 96 and 97).
3.Variations reflect the difference between Additional Estimates and Actuals.
2.5
OUTCOME T H REE : ARMY CAPA B ILITY
Table 2.34
Breakdown of Outcome Three by Output
Budget
Estimate(1)
Additional
Estimate(2)
Actual
Result
Variation(3)
Variation(3)
2005–06
2005–06
2005–06
2005–06
2005–06
$’000
$’000
$’000
$’000
%
Output 3.1—Capability for Special
Operations
500,281
499,767
489,658
–10,110
–2.0
Output 3.2—Capability for Medium
Combined Arms Operations
926,273
841,130
816,120
–25,011
–3.0
1,030,887
983,791
964,166
–19,625
–2.0
Output 3.4—Capability for Army Aviation
Operations
577,197
544,755
527,805
–16,950
–3.1
Output 3.5—Capability for Ground‑Based
Air Defence
129,625
109,898
107,658
–2,241
–2.0
Output 3.6—Capability for Combat Support
Operations
384,632
372,252
378,485
6,233
1.7
Output 3.7—Capability for Regional
Surveillance
124,492
130,831
127,481
–3,351
–2.6
Output 3.8—Capability for Operational
Logistic Support to Land Forces
575,652
570,362
556,601
–13,761
–2.4
Output 3.9—Capability for Motorised
Combined Arms Operations
550,510
549,217
535,943
–13,274
–2.4
Output 3.10—Capability for Protective
Operations
613,377
574,783
673,261
98,478
17.1
5,412,926
5,176,789
5,177,177
389
0.0
Output 3.3—Capability for Light Combined
Arms Operations
Price to Government for Outcome Three
Notes:
1.Budget Estimates are consistent with Portfolio Budget Statements 2005–06 (page 140).
2.Additional Estimates are consistent with Portfolio Additional Estimates Statements 2005–06 (pages 97 and 98).
3.Variations reflect the difference between Additional Estimates and Actuals.
129
Sapper Hans Young from
21 Construction Squadron
L-R Doug MacDonald from Advance Training International,
with Murphy Abbott and Sapper Shaun Simon
ARMY COMPLETES 10 YEARS OF AACAP
In 2006, the Australian Army undertook its tenth year of the Army Aboriginal Community
Assistance Program (AACAP), with works on infrastructure and technical training for the
people of Borroloola, a community about 900km south-east of Darwin.
130
The AACAP is an ongoing initiative that reinforces the strong association between the Army
and the indigenous people of Northern Australia. It is a cooperative initiative between the
Department of Families, Community Services and Indigenous Affairs (FaCSIA), the Army and
state and territory authorities to improve environmental health conditions within remote
Aboriginal communities.
The AACAP seeks to maximise benefit to indigenous communities by focusing on projects that
allow the Army to make best use of its construction expertise and capability and capitalise on
the Army’s ability to deliver a range of services. Each project has a construction component, a
health component and a training component.
The construction component focuses on the provision of environmental health infrastructure
such as housing, water, sewerage and electrical services as well as improving access to
primary health care facilities by constructing or upgrading roads and airfields.
The health component focuses on augmenting existing community medical, dental and
veterinary programs. The training component focuses on specific skills required within the
community and includes courses on construction and building maintenance, vehicle and small
engine maintenance, welding, concreting and cooking. The AACAP objectives are consistent
with those of the National Aboriginal Health Strategy.
The AACAP was conceived in 1996 after the then Council for Aboriginal Reconciliation met with
the Prime Minister to raise concerns about the poor primary health of indigenous Australians.
Between 1997 and 2005, nine projects focusing on improving environmental health of
indigenous communities have been completed at such places as Palm Island and Bamaga in
Queensland, Fitzroy Crossing in Western Australia and Melville Island off Darwin in the
Northern Territory.
Over the period 1997 to 2005, more than $55 million has been provided by FaCSIA for the
project. The Army has also provided significant resources through the provision of personnel
and logistic and movement support for the projects. Further funding from FaCSIA has been
approved to continue the AACAP through to 2009.
In 2007, current planning is that AACAP will assist the Doomadgee region.
C H A P T E R
2.5
2
AACAP 2006
The AACAP 2006 construction works centred on the four
communities represented in Borroloola—Yanula, Mara,
Garawa 1 and Garawa 2—while health services and training
were provided in the Borroloola communities and in
regional communities.
Joint effort: Chief of Army Lieutenant
General Peter Leahy and Secretary of the
Department of Families, Community
Services and Indigenous Affairs Jeff
Harmer after signing the new AACAP
Memorandum of Understanding.
A team of about 110 soldiers built four homes, provided health
services, worked on water bores and engineering services and
trained the local community in various technical skills such as
welding and small engine maintenance.
The soldiers were mostly from the Army’s 21st Construction
Squadron, based in Brisbane, with project management by the
19th Chief Engineer Works from Sydney. Additional soldiers
were attached from a variety of supporting engineer, health,
logistic and training units, as well as Royal Australian Air
Force tradesmen.
Six additional homes and a variety of other infrastructure
works were project managed by the Army but delivered by
civil contract.
The soldiers provided training such as basic first aid, personal
hygiene, nutrition and diet, personal wellbeing, and education
in diabetes management. Specific training for dealing with
sports injuries was also included.
For AACAP 2006, the Army took a different approach to
training by dedicating personnel to the design and
development of the training program and to the coordination of
the training program on the ground. The AACAP 2006 Training
Program used skilled training with experience in remote
communities. Mentoring and leadership was provided by
personnel from Norforce, 2 Division and the Royal Australian
Engineers.
The AACAP 2006 was supported by international staff as part
of the Defence Cooperation Program with a nine-person trade
detachment from the Papua New Guinea Defence Force and
an 11-member trade detachment from the Tongan Defence
Force. This support helped develop and maintain South Pacific
relationships and interoperability with the Australian Army.
All of the soldiers underwent cultural awareness training
before being sent to Borroloola. The Army undertakes these
projects only after close, culturally sensitive consultation with
the indigenous communities involved.
Many hands: Bombardier Nathan Hannan,
hard at work on the site at Borroloola.
The total value of the AACAP work this year was more than
$7 million, which was funded by FaCSIA.
131
Ch a p t e r
2
OUTCOME Four:
AIR FORCE CAPABILITY
The Chief of Air Force, Air
Marshal Geoff Shepherd, is
accountable for delivering
Air Force Capability
132
When I became the Chief of Air Force in July
2005, I delivered four key messages to develop
and support the Air Force to achieve its goals
in a productive, professional and efficient way.
Outlined below are the Air Force’s
achievements during 2005–06 that are
consistent with each of the four messages.
“We will be an Air Force focused on achieving
operational and governance excellence—we
will be the best that we can be, with what we
have, here and now”.
The Air Force provided, and continued to
develop, the capabilities to conduct offensive
and defensive counter-air operations, land
and maritime strike operations, offensive air
support, support for combat operations, wide
and focal area surveillance, maritime patrol
and response, search and rescue, and tactical
and strategic airlift, including aeromedical
evacuation, as outlined below in our
professional outcomes.
Domestically, the Air Force conducted border
control initiatives in the north of Australia. The
Air Lift and Combat Support Groups made
substantial and important contributions to the
relief effort, Operation Larry Assist, following
the cyclone that devastated parts of north
Queensland. The Air Combat and Surveillance
and Response Groups conducted defensive
counter air operations in support of Operation
Acolyte, supporting the Melbourne
Commonwealth Games. No. 41 Wing deployed
a new Tactical Air Defence Radar System and
communications suite to a remote site in the
Melbourne hills to collect surveillance
information which was fed back to the
Aerospace Battle Management network and
subsequently fed to the fighter aircraft on
combat air patrol over Melbourne. The P-3
Orion flew over 1,000 missions in support of
surveillance of Australia’s sea approaches in
Operation Relex II.
Regionally and internationally, the Air Force
supported Operations Catalyst, Slipper,
Citadel, Spire, Astute, Anode, Bali Assist II,
and Pakistan Assist. The deployment of C-130
Hercules aircraft in the Middle East Area of
Operations continued throughout the year,
having now amassed more than 1,000 air
logistic support and aeromedical evacuation
missions since the initial deployment. The P-3
Orion aircraft continued their intelligence,
surveillance and reconnaissance role in the
Middle East Area of Operations, flying almost
900 missions since operations began.
In addition, the Air Lift and Combat Support
Groups made substantial and important
contributions to humanitarian and disaster
relief activities in the aftermath of the Bali
bombings in October 2005 and Operation
Pakistan Assist in November 2005. Combat
Support Group also provided specialist
airbase support to deployed forces in
Timor‑Leste, Solomon Islands and the Middle
OUTCOME 4 : AIR FORCE CAPA B ILITY
East Area of Operations. Notably, the Air
Traffic Control detachment at Balad Air Base
in Iraq returned to Australia after completing
its mission.
The capacity to sustain operations and training
was maintained through an extensive support
activity. Delivery of capability was successfully
supported by the generation of officers,
airmen and airwomen through our training
organisations.
“We will continue to be a values-based Air
Force, with people at the core of our
capabilities and our concern. Above all else,
we will value our Values”.
The Air Force’s values-based culture is
demonstrated through continued good
recruiting achievements and healthy retention
rates. We rely on our people to deliver
capability and achieve the Government’s
outcomes. The year was characterised by high
operational tempo in support of operations,
disaster assistance and recovery, resulting in
increasing pressure on our people. The men
and women of the Air Force once again rose
magnificently to the challenge.
“We will keep an eye on our vision and seek
innovative means to achieve it”.
A number of enhancements to the F/A-18 are
under way as part of the Hornet Upgrade
Program to ensure continued air combat
capability in the lead up to the planned
withdrawal of the F‑111. The air combat
transition plan underwent detailed
development and Australian participation in
the Joint Strike Fighter program was further
refined. The first F/A-18 with avionic
enhancements was accepted into service in
2006, while the long-range Joint
Air‑to‑Surface Stand-off Missile and improved
short-range Joint Direct Attack Munition were
selected as part of the program.
Detailed planning for the introduction of the
C‑17 Globemaster III began and planning for
the introduction of the Wedgetail Airborne
Early Warning and Control aircraft and the
2.6
Multi‑Role Tanker Transport aircraft
continued with both aircraft flying for the first
time in 2005–06.
“We will join together in the pursuit of Exciting,
Enjoyable Professionalism.”
The dedication and professionalism of Air
Force airmen and airwomen and our
reputation features in accolades from within
Australia and from our friends and allies
overseas. The Air Force is rightly regarded as
being among the world’s most capable and
professional forces, commensurate with size,
by our major allies.
Safety is of great concern to Air Force
members and the Directorate of Defence
Aviation and Air Force Safety continued to
develop a number of strategies to enhance the
integration of safety into everyday culture. In
particular, the Directorate conducted a
number of safety related courses to ensure
individuals were equipped with the necessary
knowledge and tools to support the
RAAFSAFE Safety Management System.
The Air Force team has met the challenges
put to them over the past 12 months and has
successfully delivered Government outcomes.
The high standard of results achieved truly
reflects the approach to work of all Air Force
people, whether they be permanent members,
reservists, or civilians.
133
Ch a p t e r
2
Capability Performance
Information
Output 4.3 Capability for
Surveillance and Response
Operations
Output 4.1 Capability for Air Combat
Operations
Air Combat Group is responsible for the
provision of air combat capability for the Air
Force, including F/A-18 and F-111 aircraft,
crews, weapon systems and support
infrastructure to deliver the required
capability to sustain air control, maritime and
land strike, offensive air support and limited
reconnaissance roles. Hawk Lead-In Fighter
aircraft and PC-9 Forward Air Control training
aircraft also contribute to this capability.
The Air Force’s capability for surveillance and
maritime response operations is provided by
the Surveillance and Response Group. The
provision of P-3 aircraft, sensors, weapon
systems, personnel and battle space
management elements enables intelligence
support, surveillance and reconnaissance
operations. In addition, the P-3 Orion can
conduct maritime strike, attack targets
underwater and perform search and rescue.
Battle space management elements conduct
air defence and airspace control.
Output 4.2 Capability for Combat
Support of Air Operations
134
The Combat Support Group provides
operational support to expeditionary air bases
within Australia and overseas.
table 2.35
Capability for Air Combat Operations
Performance Targets
Performance
Achieve levels of preparedness directed by the
Chief of the Defence Force for military response
options with a warning time of less than
12 months.
Achieved. Preparedness levels demonstrated through
F/A‑18 and F-111 participation in Exercises Kakadu 05,
Extendex 05, Red Flag 06, and Operation Acolyte.
Achieve levels of training that maintains core
skills and professional standards across all
assigned warfare areas.
Achieved. The Group’s training objectives have been met
through participation in a number of major exercises.
71 F/A-18—13,000 flying hours
12,015 hours (92 per cent). Achievement was limited by
issues associated with ageing airframes, upgrade programs
and the capacity of qualified technical staff.
28 F-111 (17 F-111C; 4 RF-111C; and 7 F‑111G)—
3,500 flying hours
3,458 hours (99 per cent). In line with the logistic support
concept, two of the operating F-111G aircraft were placed in
long-term storage during the year, reducing the operating
fleet size to 26 aircraft.
33 Hawk Lead-in Fighter—7,500 flying hours
403 hours (85 per cent). Ongoing issues with rebalancing the
workforce as well as equipment issues restricted the
capacity to fully achieve the target.
4 PC-9/A (Forward Air Control training role
only)—1,030 flying hours
4 PC-9/A (FAC)—986 hours (96 per cent). This achievement
was a large improvement over the previous year and
indicates that Forward Air Control aircraft serviceability
issues are largely rectified.
OUTCOME 4 : AIR FORCE CAPA B ILITY
table 2.36
Capability for Combat Support of Air Operations
Performance Targets
Performance
Achieve levels of preparedness directed by
Chief of the Defence Force for military response
options with a warning time of less than 12
months.
Achieved. Preparedness levels demonstrated by ongoing
deployments to the Middle East, and short notice
deployments to the Solomon Islands and Timor-Leste for
peacekeeping operations, and to Pakistan for humanitarian
relief operations.
Achieve a level of training that maintains core
skills and professional standards in conjunction
with Corporate Services and infrastructure
Group and the Defence Materiel Organisation
across all operations support areas.
Partially achieved. Operational commitments continued to
place significant pressure on training programs. The training
opportunities available to Air Force personnel working in the
Corporate Services and Infrastructure Group were limited by
the commercial restructure of their business practices.
Programs are in place to address the recent lack of
collective training needed to maintain high-end combat
support skills.
Provide the level of preparedness required
based on a force structure of:
• two combat support wings;
• one expeditionary combat support wing;
• one combat Reserve wing;
• one airfield defence wing; and
• one health services wing.
Substantially Achieved. The levels of preparedness
continued to be impacted by overseas operational
commitments. The amalgamation of two combat
support wings into one has been completed, placing all
operational airbases under a single combat support wing.
This is expected to enhance the command and control,
standardisation and efficiency of these bases and contribute
to the rebalance of Air Force capability. The combat
Reserve wing was transferred to Training Command on
1 January 2006.
table 2.37
2.6
Capability for Surveillance and Response Operations
Performance Targets
Performance
Achieve levels of preparedness directed by the
Chief of the Defence Force for military response
options with a warning time of less than
12 months.
Achieved. Preparedness targets were met or exceeded, as
demonstrated by ongoing operational commitments to
Operations Slipper, Catalyst, Relex II, Acolyte and Astute.
Achievements included deployments of small air traffic
control elements to the Middle East and Timor-Leste and the
deployment of a TPS77 surveillance radar at the Melbourne
Commonwealth Games.
Achieve levels of training that maintains core
skills and professional standards across all
assigned warfare areas.
Achieved. While delivering core skills, the high operational
tempo placed significant pressure in some areas. In
particular, 92 Wing was constrained in its capacity to
complete all non‑core training activities.
Maintain the Jindalee Over the Horizon Radar
Network.
Achieved. The Jindalee Operational Radar Network operated
for the full year and supported ongoing research and
development and surveillance activities.
19 P-3 Orion aircraft—8,200 flying hours.
19 P-3 Orion aircraft—7,418 hours (90 per cent). Achievement
was limited by ongoing operational commitments and
reduced availability of technical staff due to operations in
multiple locations.
135
Ch a p t e r
2
Output 4.4 Capability for Airlift
Operations
The Air Lift Group provides airlift capability in
support of operations. This includes airlift
aircraft, crews and weapon systems providing
table 2.38
air logistics support, airborne operations,
aeromedical evacuation, special operations,
search and survivor assistance, VIP flights,
air‑to‑air refuelling, navigator training and
surveillance operations.
Capability for Airlift Operations
Performance Targets
Performance
Achieve levels of preparedness directed by the
Chief of the Defence Force for military response
options with a warning time of less than
12 months.
Achieved. Preparedness was demonstrated across all Air
Lift Group platforms by continued and sustained
deployments to the Middle East Area of Operations as well as
rapid and sustained responses to numerous ADF and
humanitarian operations including Operations Acolyte, Larry
Assist, Anode and Astute.
Achieve levels of training that maintains core
skills and professional standards across all
assigned warfare areas.
Achieved. Air Lift Group’s core training objectives were
achieved but some non‑core training events were delayed by
operational requirements.
24 C-130 Hercules—14,000 flying hours.
24 C-130—13,149 hours (94 per cent). Achievement was
limited due to operational and post-operational
commitments, secondment of personnel to support the
introduction of the C-17 Globemaster and implementation of
upgrade programs.
4 B-707—1,400 flying hours.
4 B707—1,289 hours (92 per cent). Achievement was limited
by the age of the aircraft, which affected aircraft availability
and the cancellation of some tasks.
14 DHC-4 Caribou—4,100 flying hours
14 DHC-4—3,282 hours (80 per cent). Aircraft serviceability
and logistic facility issues contributed to the
underachievement.
2 B-737 BBJ—1,200 flying hours.
2 BBJ—1,273 hours (106 per cent). Overachievement resulted
from higher than anticipated tasking.
3 CL604 Challenger—2,400 flying hours.
3 CL604—1,934 hours (81 per cent). Lower tasking and
damage to one aircraft in the early part of the year
contributed to the underachievement.
8 B300 Beechcraft Kingair Navigator Training
aircraft—4,200 flying hours.
8 B300—4,457 hours (106 per cent). Overachievement
reflects the earlier than planned completion of aircraft
modifications.
2 PA34 Seneca—793 flying hours.
2 PA34—690 hours (87 per cent). To overcome transitional
B300 issues, two PA34 Seneca were leased to conduct the
initial ten sorties of the Navigator/Observer training
curriculum. This ceased in December 2005 due to
satisfactory early completion of the training program.
136
2.6
OUTCOME 4 : AIR FORCE CAPA B ILITY
Cost to Government
Table 2.39
Outcome Four—Air Force Capability for the Defence of
Australia and its Interests
Budget
Estimate(1)
Additional
Estimate(2)
Actual
Result
Variation(3)
Variation(3)
2005–06
2005–06
2005–06
2005–06
2005–06
$’000
$’000
$’000
$’000
%
43,883
130,828
174,395
43,567
33.3
–
–
12
12
–
Other revenue
46,768
65,823
30,726
–35,097
–53.3
Total Revenue
90,651
196,651
205,133
8,482
4.3
INCOME
Revenue
Goods and services
Interest
Gains
–
–
–
–
–
13,829
99,552
183,805
84,253
84.6
Net gains from sale of assets
–
–
–
–
–
Other gains
–
–
3,813
3,813
–
Total Gains
13,829
99,552
187,618
88,066
88.5
104,480
296,203
392,751
96,548
32.6
Employees
1,475,647
1,439,437
1,428,458
–10,979
–0.8
Suppliers
2,191,900
2,233,489
2,113,955
–119,533
–5.4
Net foreign exchange Gains
Assets now recognised
Total Income
Operating Expenses
282
1,535
1,220
–315
–20.5
7,478
6,365
19,948
13,583
213.4
1,056,379
1,172,537
1,208,528
35,991
3.1
27,695
117,710
218,549
100,839
85.7
Net foreign exchange losses
–
–
14
14
–
Net losses from sale of assets
–
3,695
1,587
–2,108
–57.0
Other expenses
–
3,815
758
–3,058
–80.1
Total Expenses
4,759,381
4,978,582
4,993,016
14,434
0.3
Price to Government for Outcome Four
4,654,901
4,682,380
4,600,266
–82,114
–1.8
Grants
Finance Cost
Depreciation and amortisation
Write down and impairment of assets
Notes:
1.Budget Estimates are consistent with Portfolio Budget Statements 2005–06 (page 151).
2.Additional Estimates are consistent with Portfolio Additional Estimates Statements 2005–06 (pages 100 and 101).
3.Variations reflect the difference between Additional Estimates and Actuals.
137
Ch a p t e r
2
Table 2.40
Breakdown of Outcome Four by Output
Budget
Estimate(1)
Additional
Estimate(2)
Actual
Result
Variation(3)
Variation(3)
2005–06
2005–06
2005–06
2005–06
2005–06
$’000
$’000
$’000
$’000
%
1,769,462
1,768,420
1,790,833
22,413
1.3
Output 4.2—Capability for Combat Support
of Air Operations
761,662
776,988
741,906
–35,083
–4.5
Output 4.3—Capability for Surveillance and
Response Operations
1,104,931
1,132,277
1,081,070
–51,206
–4.5
Output 4.1—Capability for Air Combat
Operations
Output 4.4—Capability for Airlift Operations
1,018,846
1,004,695
986,457
–18,237
–1.8
Price to Government for Outcome Four
4,654,901
4,682,380
4,600,266
–82,114
–1.8
Notes:
1.Budget Estimates are consistent with Portfolio Budget Statements 2005–06 (page 155).
2.Additional Estimates are consistent with Portfolio Additional Estimates Statements 2005–06 (page 101).
3.Variations reflect the difference between Additional Estimates and Actuals.
138
OUTCOME 4 : AIR FORCE CAPA B ILITY
2.6
139
Air Force personnel
monitoring air
operations in the
Regional Operations
Centre
Tactical Air Defence Radar Systems deployed
during operations
AIR FORCE Network-Centric OPERATIONS ON SHOW
Our athletes are not the only Australians who should feel proud of their
performance at this year’s Commonwealth Games—the Air Force’s own dedicated
men and women were there too, though their achievements have not been as
publicly recognised as the efforts of the sporting team.
No. 41 Wing, whose Headquarters is at RAAF Williamtown, was working as part of
Operation Acolyte, the ADF’s support to the Commonwealth Games in Melbourne
held in March 2006.
140
While just one small part of the wider ADF team supporting Acolyte, the role of 41
Wing was integral in ensuring the success of the Operation. They are the people who
work tirelessly to bring to life this concept known as ‘network-centric’—a capability
vital to modern warfighting operations.
Although a term that may sound complex, network-centric warfare is in fact a
simple concept that involves the linkage of engagement systems to sensors through
networks, and sharing of information between the different force elements involved
in an exercise or operation. Fundamental to the success of any network-centric
operation are the people involved, as the concept is based on the idea that
information is only useful if it allows people to act more effectively, as was certainly
the case for those involved in Operation Acolyte.
Operation Acolyte was the third homeland defence operation that No. 41 Wing has
conducted in as many years. In order for No. 41 Wing to do its job effectively, a brand
new Tactical Air Defence Radar System and communications suite had to be set up
near the township of Gisborne, near Melbourne, to collect surveillance information.
This information, together with data collected from other civil and military sensors,
created a ‘Recognised Air Picture’. This air picture gave the Joint Task Force
Commander and on-call F/A-18 air defence aircraft a single, coordinated overview
of all air traffic in the Melbourne Commonwealth Games air precinct.
The hub of air operations for the Games, the No. 41 Wing Air Battle Management
Coordination Centre, was responsible for authorising aircraft access to the
restricted airspace surrounding Melbourne using the same ‘Recognised Air
Picture’.
Ch a p t e r
2.6
2
Air Force personnel
monitoring air movements
on new radar screens
The Centre successfully synchronised around 600
flights through the restricted airspace during the
opening and closing ceremonies, proving its worth as a
critical component of the Air Force and wider ADF
operation. A series of internal rehearsals were held
prior to both ceremonies to ensure that everyone was
fully prepared for the big day.
Headquarters No. 41 Wing and its units have most
recently supported the placing of Australian troops
in Timor-Leste for Operation Astute, and in the past
have also supported important deployments such
as Operation Azure in Africa, the Middle East Area
of Operations, and space-based operations around
the globe.
No. 41 Wing Operation Centre
at RAAF Williamtown
While their presence is not always visible, the efforts
of the men and women of No. 41 Wing in exercises
and operations over the last 18 months have
demonstrated their skill, flexibility and innovation.
Their stellar achievements ensure that the battle
management space, used by our ADF, is run as safely
and efficiently as possible.
141
2.7
Outcome Five:
Strategic Policy
Deputy Secretary Strategy,
Mr Michael Pezzullo, is
accountable for delivering
Strategic Policy
142
2005–06 was a demanding year for the Group
as Australia’s strategic environment continued
to present complex challenges.
Strategic Planning
Strategy Group led efforts to deliver the
Government’s strategic update, Australia’s
National Security: A Defence Update 2005,
released in December 2005 by the then
Minister for Defence. The Update examined
the key features of Australia’s contemporary
strategic environment and outlined Defence’s
contribution to Australia’s national security
policy. It described how Defence is responding
to the Government’s requirement to shape the
ADF as a highly capable and flexible military
force able to meet a wide range of strategic
tasks. The Update also informed Defence’s
capability decisions, corporate management
and military strategy.
The groundwork for enhancing strategic
planning was laid in 2005–06, but more work
will be undertaken in 2006–07 by Strategic
Policy Division to ensure there is a clear and
coherent basis for strategic and operational
level decision making. In the latter part of
2005–06, Strategic Policy Division worked on
articulating the strategic priorities that guide
planning within Defence. In collaboration with
Capability Development Group, Strategy
Group issued, for the first time, a Strategy
Planning Framework Handbook which
documents our key planning processes and
staff relationships. The framework will lead to
better and more integrated staff work and
decision making and aims to ensure that
Defence’s strategic documents are congruent,
comprehensive and coherent.
Policy advice regarding
ADF Operations
Throughout the year, Strategy Group has been
involved in whole-of-government efforts to
foster national stability, integrity and cohesion
in our immediate neighbourhood. Strategy
Group provided advice to enable the
Government to make judgements on
developments in Solomon Islands and
Timor‑Leste and to support the subsequent
ADF deployments. We remain focused on
providing policy advice to guide Australia’s
continuing contribution to nurturing stability in
these countries.
During 2005–06, the Group provided policy
advice in support of operations in
Timor‑Leste, Solomon Islands, Afghanistan
and Iraq. In the case of Afghanistan, advice
was provided on options for ADF operations,
including preparations for the imminent
deployment of the Reconstruction Task Force.
Similarly, advice was provided on the transfer
to Iraqi security control of Al Muthanna
province, the ADF’s participation in
operational overwatch and developing a
bilateral defence relationship with Iraq,
Timor-Leste and Solomon Islands.
O u t c o m e F i v e: S t r at eg i c P o l i c y
International Engagement
Strategy Group supported an extensive range
of strategic relationships through continued
involvement in multilateral security forum
arrangements in the Asia Pacific region as
well as bilateral defence and security
relationships. In September 2005, Australia
and the Philippines co-hosted an Association
of South East Asian Nations Regional Forum
Workshop on Civil-Military Cooperation in
response to natural disasters.
Our alliance with the United States continued
to strengthen with the signing of a
Memorandum of Understanding for the Joint
Combined Training Centre and the
commencement of the United States Pacific
Air Force Strategic Bomber Training Program
in Australia. Australia signed separate
Memoranda of Understanding on defence
cooperation with India and Turkey. These
arrangements provide a framework for our
increasing defence engagement with both
nations. Australia’s close cooperation with
Japan in Iraq has provided a firm foundation
for future practical security cooperation, both
with Japan and the United States.
In 2005–06, we continued to focus on
counter‑terrorism cooperation with most
Association of South East Asian Nations
members, including resumption of
counter‑terrorism training with Indonesia
through Exercise Dawn Kookaburra, which
was held in February 2006. Australia also
reached agreement for a joint project to
deliver an Army watercraft capability to the
Armed Forces of the Philippines. Through the
Defence Cooperation Program, Australia
provided assistance to Cambodia in deploying
its first ever peacekeeping contingent in
support of the United Nations’ Mission
in Sudan.
Strategy Group also supported Australia’s
expanding counter-proliferation efforts.
Defence has been a key agency in coordinating
Australia’s involvement in the multinational
Proliferation Security Initiative, which is
working to prevent the transhipment of
2.7
weapons of mass destruction. In April 2006,
Australia hosted Exercise Pacific Protector 06,
which was the first Proliferation Security
Initiative air interdiction exercise to be held in
the Asia Pacific region, with representatives
from 32 countries attending.
Domestic Security Policy
In early 2006, Parliament passed
amendments to the Defence Act 1903. These
amendments will enable the ADF to respond
more quickly and effectively in the event of a
domestic terrorist incident. In particular, the
changes to Part IIIAAA of the Act will:
•improve the coordination mechanisms for
responding to a terrorist incident;
•provide operational flexibility for situations
in which the ADF may be required to
respond to domestic security incidents to
support civil authorities; and
•clarify the legal powers and protections for
ADF personnel when conducting operations
in support of domestic security.
The amendments do not change the
fundamental principles underlying Defence
support for domestic security, as State and
Territory authorities will retain primary
responsibility to respond to a terrorist incident
within their jurisdictions. The amendments
provide a clear and accessible legislative basis
for the use of the ADF as a last resort to aid
civil authorities in protecting the interests of
the Commonwealth and States and Territories
against a domestic terrorist threat.
Strategy Group also undertook a range of
other important tasks during the year. These
included managing the funding agreement
between the Government and the Australian
Strategic Policy Institute and managing
aspects of Australia’s compliance with
international arms control regimes. We have
also been active in developing Defence’s
strategic policy workforce through delivering
defence and strategic policy seminars,
supporting strategic studies in universities
and think tanks, and providing strategic
studies and counter-terrorism scholarships.
143
Ch a p t e r
2
Capability Performance Information
Output 5.1 International Policy, Activities and Engagement
This output provides strategic and international policy advice to the Government to enable it to make
sound judgements on, and develop appropriate responses to, changes in Australia’s strategic
circumstances and specific security issues. It also uses strategic policy guidance to develop
recommendations for the Government on international engagement activities and initiatives.
Output 5.2 Strategic Policy and Military Strategy
This output provides input into the development of Defence strategic reviews and updates; policy
advice on national, defence and military strategy; guidance for the development of long-term
defence capability; defence aspects of non‑proliferation and arms control; and advice and
management of export controls for defence and dual use items.
table 2.41
144
International Policy, Activities and Engagement
Performance Targets
Performance
Provide the Government with
comprehensive and timely policy
advice on current and emerging
international Defence issues.
Achieved. Defence provided comprehensive and timely policy advice
to the Government that contributed to Australia’s international
strategic objectives. This included policy advice in support of
ministerial visits to foreign countries. Defence also provided advice on:
• issues associated with the effort to stabilise Timor‑Leste; to rebuild
Iraq and Australia’s involvement in Afghanistan;
• advancing Australia’s alliance objectives with the United States in
areas such as missile defence and interoperability;
• the Regional Assistance Mission to Solomon Islands;
• the Enhanced Cooperation Program with Papua New Guinea ;
• defence relations with the wider Asian region;
• the development of Defence cooperation with other nations; and
• regional counter-terrorism assistance.
Manage Defence’s international
engagement activities to support
Australia’s efforts to promote regional
and global security.
Achieved. Defence undertook a comprehensive range of international
engagement activities to promote regional and global security. This
included dialogue between senior Australian and foreign defence
officials, consultation and cooperation on areas of mutual interest,
training and training-related projects and exercises conducted under
the Defence Cooperation Program. Defence supported multilateral
security initiatives such as hosting the Proliferation Security Initiative
Exercise Pacific Protector 06.
Ensure Defence’s overseas
representatives contribute to the
effective management of Australia’s
defence interests in the context of
overall bilateral relationships.
Achieved. Defence’s overseas representatives successfully
contributed to the effective management of Australia’s defence
interests, achieved largely through their advice on, and personal
contributions to, developing and strengthening bilateral relationships
with allies, neighbours, the Middle East and Europe. Their activities
were guided by Defence’s objectives for international engagement as
well as directives to Defence Attachés.
Achieve the Defence Cooperation
Program.
Achieved. Defence successfully managed the Defence Cooperation
Program, consisting of activities aimed at strengthening defence
relationships in accordance with the Defence International
Engagement Plan. These activities included providing training,
technical advice, infrastructure development and logistics support to
regional nations. Specific details can be found in the Defence
Cooperation section (pp. 147–153).
O u t c o m e F i v e: S t r at eg i c P o l i c y
2.7
The Group continued management of the funding agreement between the Government and the
Australian Strategic Policy Institute, established in 2001, which functions as an independent
strategic policy research centre.
The institute received $2.8m from Defence in 2005–06. In 2006–07, funding will total $2.901m. This
funding supports the Australian Strategic Policy Institute’s core research program and public
engagement plan, and contributes to debate through reports and a program of seminars,
workshops and strategic dialogues between government and academic representatives.
table 2.42
Strategic Policy and Military Strategy
Performance Targets
Performance
Provide the Government and Defence with
comprehensive and timely strategic policy
advice on current and emerging strategic
issues in the international and domestic
environment that affect Defence.
Achieved. Provided comprehensive and timely advice to the
Government and Defence by:
• monitoring the environment and producing strategic guidance
for Government consideration and to meet the requirements
of the Defence Procurement Review and Defence
Management and Finance Plan;
• delivering the strategic review, Australia’s National Security:
A Defence Update 2005;
• preparing four Quarterly Strategic Reviews; and
• undertaking assessments of the ability of the ADF to provide
military response options at designated levels of readiness,
and reporting this monthly to the Defence Committee,
including recommended changes to preparedness levels,
contingency planning and remediation of capability
deficiencies.
Provide comprehensive and timely advice to
the Government and Defence on military
strategy and future military concepts that
reflect the changing strategic environment. Achieved. Provided military strategic planning guidance for
several contingencies, and timely and responsive strategic
policy advice on developments that could affect the need for
deployment of the ADF. This advice was provided to the
Government, as well as various high-level Defence committees. It included revised military strategic priorities, the drafting of a
Defence Space Policy, ongoing evaluation of Defence and
whole‑of-government business continuity plans, and the
development of future warfighting concepts.
Provide comprehensive and timely advice to
the Government and Defence on
proliferation issues and administer counterproliferation and export control activities as
required by legislation.
Achieved. Defence coordinated and took part in the international
Proliferation Security Initiative, and developed and staged the
Proliferation Security Initiative Exercise Pacific Protector 06 in
April 2006, focusing on regional outreach. Australia’s
compliance with international arms control regimes was
successfully managed, as was the administration of Australia’s
export control system for military and dual use goods.
Provide the Government and Defence with
improved policy input to the whole-ofgovernment domestic security and counterterrorism programs.
Achieved. Defence provided advice on amendments to Part
IIIAAA of the Defence Act 1903 to streamline processes, improve
legal powers and protections for ADF personnel, and expand the
types of scenarios under which Defence can provide aid to the
civil authorities. These amendments were passed by
Parliament in February 2006.
Develop and enhance Defence’s policy
workforce.
Achieved. This target was achieved through the delivery of
Defence and strategic policy seminars; development of a
strategic policy education framework; provision of strategic
studies and counter-terrorism scholarships; and support of
strategic studies in universities and think tanks.
145
Ch a p t e r
2
Cost to Government
Table 2.43
Outcome Five—Strategic Policy for the Defence of Australia
and its Interests
Budget
Estimate(1)
Additional
Estimate(2)
Actual
Result
Variation(3)
Variation(3)
2005–06
2005–06
2005–06
2005–06
2005–06
$’000
$’000
$’000
$’000
%
2,291
3,904
6,954
3,051
78.1
–
–
–4
–4
–
Other revenue
8,890
9,142
1,188
–7,954
–87.0
Total Revenue
11,181
13,046
8,138
–4,908
–37.6
INCOME
Revenue
Goods and services
Interest
Gains
–
–
–
–
–
14
2,977
6,686
3,709
124.6
Net gains from sale of assets
–
–
–
–
–
Other gains
–
–
301
301
–
Total Gains
14
2,977
6,987
4,010
134.7
11,195
16,023
15,125
–898
–5.6
87,417
86,514
88,463
1,949
2.3
149,860
155,506
152,349
–3,156
–2.0
Net foreign exchange Gains
Assets now recognised
146
Total Income
Operating Expenses
Employees
Suppliers
12
76
134
58
75.8
304
326
1,010
684
209.9
4,926
6,152
6,604
451
7.3
Write down and impairment of assets
5
171
2,934
2,764
1,620.4
Net foreign exchange losses
–
–
–83
–83
–
Net losses from sale of assets
–
97
–71
–168
–172.7
Other expenses
–
194
32
–162
–83.3
Total Expenses
242,524
249,036
251,373
2,337
0.9
Price to Government for Outcome Five
231,329
233,013
236,248
3,235
1.4
Grants
Finance Cost
Depreciation and amortisation
Notes:
1.Budget Estimates are consistent with Portfolio Budget Statements 2005–06 (page 161).
2.Additional Estimates are consistent with Portfolio Additional Estimates Statements 2005–06 (page 103).
3.Variations reflect the difference between Additional Estimates and Actuals.
2.7
O u t c o m e F i v e: S t r at eg i c P o l i c y
Table 2.44
Breakdown of Outcome Five by Output
Budget
Estimate(1)
Additional
Estimate(2)
Actual
Result
Variation(3)
Variation(3)
2005–06
2005–06
2005–06
2005–06
2005–06
$’000
$’000
$’000
$’000
%
Output 5.1—International Policy, Activities
and Engagement
188,067
190,039
190,445
406
0.2
Output 5.2—Strategic Policy and Military
Strategy
43,262
42,975
45,803
2,828
6.5
Price to Government for Outcome Five
231,329
233,014
236,248
3,234
1.4
Notes:
1.Budget Estimates are consistent with Portfolio Budget Statements 2005–06 (page 165).
2.Additional Estimates are consistent with Portfolio Additional Estimates Statements 2005–06 (page 104).
3.Variations reflect the difference between Additional Estimates and Actuals.
Defence Cooperation
environment in a way favourable to Australia
and the ADF;
The aims and objectives of the Defence
Cooperation Program are to support the
Government’s strategic objectives by:
•consolidating acceptance of Australia as an
obvious and legitimate participant in
deliberations on issues that affect regional
security; and
•contributing to the maintenance of regional
security;
•encouraging and assisting with the
development of the defence self-reliance of
regional countries.
•working with allies, regional partners and
others to shape the global and regional
Table 2.45
147
Defence Cooperation Summary
2003–04
Actual
$’000
2004–05
Actual
$’000
2005–06
Budget Estimate
$’000
2005–06
Actual
$’000
Papua New Guinea
14,508
13,874
19,389
19,206
South Pacific Region
25,028
South‑East Asia
26,417
Other regional activities
Defence International Training
Centre (2)
Total (3)
25,732
(1)
26,671 30,101
30,136
24,703 (1)
27,450
738
1,507
1,541
2,340
3,873
3,695
4,208
3,782
70,564
74,945
76,512
82,773
Notes:
1.South Pacific Region included Timor-Leste in the Portfolio Budget Estimates 2005–06. Timor-Leste should have been
reported under the heading South-East Asia.
2.The Defence International Training Centre supports the training provided in Australia to South‑East Asian and South
Pacific defence forces, and other selected personnel overseas. The Defence International Training Centre is managed
by the Air Force. In the Portfolio Budget Statements 2006–07, the Defence International Training Centre was included in
Other regional activities.
3.Figures may not add due to rounding.
Ch a p t e r
2
These activities encompass assistance to
regional security forces in the areas of
strategic planning, education and training,
command and control, infrastructure,
counter‑terrorism, communications and
logistics support. The Defence Cooperation
Program also supports the conduct of
combined exercises to improve the ability
of regional countries to contribute to
regional security.
Expenditure for the Defence Cooperation
Program in 2005–06 was $82.8m, as
summarised in Table 2.45. More details on the
cooperation program in the South Pacific and
South-East Asian regions can be found later in
this section.
Papua New Guinea
148
Australia continued to provide significant
assistance to the Papua New Guinea
Government’s defence reform program. Joint
planning for the second phase of the capability
rebuilding program is under way, focusing on
helping Papua New Guinea to create a smaller,
more effective and more affordable defence
force.
The Defence Cooperation Program included
the conduct of joint ADF–Papua New Guinea
Defence Force land and maritime exercises
both in Papua New Guinea and Australia, the
provision of considerable infrastructure
assistance at Papua New Guinea Defence
Force barracks locations, and the provision of
ADF advisers to the Defence Force. Four ADF
officers are working in senior in-line positions
in the Papua New Guinea Defence Force
Headquarters and Department of Defence,
and are assisting Papua New Guinea
Government efforts to make organisational
improvements. The Defence Cooperation
Program continued to assist the Papua New
Guinea Defence Force efforts to improve
weapons security and control arrangements,
including further improvements to
ammunition storage facilities and advisory
support. During 2005–06, $19.2m was spent
on assisting Papua New Guinea.
South Pacific Region
Our key objective for Defence engagement in
the South Pacific region is to foster and
support regional security and stability, which
is achieved through the Defence Cooperation
Program. During 2005–06, $30.1m was spent
on the Defence Cooperation Program for the
region.
Defence cooperation in the region is focused
on enhancing the professional skills of the
region’s police and military forces, and
encouraging the development of appropriate
civil-military relations. In particular, the
program offers a range of training
opportunities including engineering, infantry
and English language training, as well as
attendance at the Royal Military College,
Duntroon, Australian Command and Staff
College, and the Centre for Defence and
Strategic Studies.
The Defence Cooperation Program is
supported by 65 ADF and Defence civilian
advisers, living in 12 Pacific countries. They
provide ongoing support and guidance to
military and police forces on defence and
maritime issues.
Multilateral activities
Defence sponsors a range of multilateral
exercises and activities that are designed to
enhance cooperation, skills development and
understanding between Australia and
countries in the South Pacific. These activities
include:
•an annual series of bilateral humanitarian
assistance and disaster relief planning
exercises that expose regional security
forces and responsible agencies to ADF
planning techniques and enhance national
preparedness and cooperation;
•Army Aboriginal Community Assistance
Program—invites engineering elements
from the Defence Forces of Papua New
Guinea, Tonga and Fiji to work with the ADF
on infrastructure development projects in
2.7
O u t c o m e F i v e: S t r at eg i c P o l i c y
remote Aboriginal and Torres Strait Islander
communities;
•bilateral and multilateral maritime
surveillance activities—to support a series
of operations and exercises that are focused
on developing regional interoperability and
cooperation;
•Pacific Small Arms Project—contributes to
improved weapons security in partner
countries and involves repairing and
constructing national armouries and
magazines, and the provision of training for
small arms management; and
Australia also provides 27 Royal Australian
Navy maritime surveillance advisers and
technical advisers throughout the region to
support activities associated with the Pacific
Patrol Boat Program; namely, maritime
surveillance, maintenance, logistics and
training.
•communications projects—including
advisory support, communications training
and funding for new equipment.
Australia undertook to double the life of each
boat from 15 to 30 years as part of the Life
Extension Program in 2000. Defence will
remain committed to the Pacific Patrol Boat
Program Life Extension Program until 2027,
at an additional cost of approximately $350m.
Pacific Patrol Boat Program
The Pacific Patrol Boat Program provides
participating countries with a maritime
surveillance capability, enabling them to
Table 2.46
monitor and manage the maritime resources
in their exclusive economic zones. The patrol
boats are also frequently used by these
countries for national activities such as
quarantine enforcement, search and rescue
operations, disaster relief, medical
evacuations, government transportation and
general police work, thereby contributing to
nation building in the region.
149
South Pacific Region Summary(1)
Vanuatu
Solomon Islands
2003–04
Actual
$’000
2004–05
Actual
$’000
2005–06
Budget Estimate
$’000
2005–06
Actual
$’000
1,562
1,267
1,508
1,766
334
1,307
2,037
2,351
1,902
993
1,242
1,396
Western Samoa
585
603
875
2,333
Cook Islands
325
262
362
256
Fiji
3,848
2,996
3,387
5,539
Republic of the Marshall Islands
1,160
680
838
853
Federated States of Micronesia
1019
795
867
989
Tuvalu
624
697
659
715
Kiribati
850
476
585
635
Palau
791
774
748
970
Multilateral General Assistance
12,027
14,881
13,563
12,298
Total
25,028
25,732
26,671
30,101
Tonga
(2)
(3)
Notes:
1.South Pacific Region included Timor-Leste in the Portfolio Budget Estimates 2005–06. Timor-Leste should have been
reported under the heading South-East Asia.
2.Funding relates mainly to support to the Pacific Patrol Boat Program.
3.Figures may not add due to rounding. International Training Centre is managed by the Air Force. In the Portfolio Budget
Statements 2006–07, the Defence International Training Centre was included in Other regional activities.
Ch a p t e r
2
South East Asia
Indonesia
Senior-level dialogue is particularly important
in progressing our relationship with Indonesia,
and, in 2005–06, this was illustrated by visits
by Defence Force Chiefs and Service Chiefs. In
February 2006, we conducted our first
bilateral counter-hijack and hostage recovery
exercise since 1997, Exercise Dawn
Kookaburra. Two Indonesian navy ships visited
Australian ports and the Indonesian Navy
participated in Exercise Kakadu in August
2005—a regional maritime exercise focused
on interoperability. This was the first exercise
that the Indonesian Navy has participated in
with Australia since 1999.
150
Defence provided training in information
analysis to Indonesian officers under the
Memorandum of Understanding on
Combating International Terrorism, and the
Indonesian Army Special Forces Kopassus
Commander visited to observe Exercise Dawn
Kookaburra and met with Special Operations
Commander Australia. Further interaction
occurred through visits, training and
conference attendance in the areas of
maritime security, defence management,
peacekeeping, air safety and military law.
Singapore
Australia’s defence relationship with
Singapore is friendly, cooperative and
strategically important. A balanced bilateral
relationship is underpinned by a broad
range of activities including exercises,
training and regular dialogue through senior
officer visits and formal meetings. Defence
science collaboration with Singapore
continued to develop, with the inaugural
Australia‑Singapore Science and Technology
forum taking place in October 2005. A
significant aspect of the defence relationship
is the access provided by Australia for
Singapore to use Defence training facilities.
Exercise Wallaby, Singapore’s annual
unilateral exercise, was held at Shoalwater
Bay from October to November 2005.
Singapore continues to utilise RAAF Pearce
in Western Australia and the Army Aviation
Centre in Queensland for fixed-wing and
helicopter flight training.
Timor-Leste
The Defence Cooperation Program continued
to focus on developing the East Timor Defence
Force throughout 2005–06. In the first half of
the year, Australia continued training
programs and capability development
activities in the East Timor Defence Force
Headquarters, and related units, as well as
the Ministry of Defence. These activities
included English language and leadership
training, as well as training in Australia at the
Royal Military College, Duntroon. Significantly,
this saw the first graduation of an East
Timorese student from the Royal Military
College.
Advisory and training personnel also
continued to build the capability of the
Timor‑Leste defence organisation in
communications, engineering, logistics, aid
to the civil community, finance, policy and
planning. In January 2006, and subsequent
months, the events of the dismissal of East
Timor Defence Force members, and the
unrest that followed, interrupted the Defence
Cooperation Program. With the restoration
of security by the international stabilisation
force, Australia was able to resume activities
of the Defence Cooperation Program,
although at a reduced level.
Defence Cooperation Program funding for the
South-East Asia region decreased in 2005–06
by $2.8m due primarily to the construction
of the Residential Compound Project in
Timor‑Leste being completed in 2004–05.
Philippines
Australia’s defence engagement with the
Philippines continued to expand in key
areas of strategic importance, especially
counter‑terrorism and maritime security.
O u t c o m e F i v e: S t r at eg i c P o l i c y
A highlight of 2005–06 was the visit to
the Philippines in October 2005 by the
Minister for Defence. Negotiations for an
Australia‑Philippines Status of Forces
Agreement progressed, and a combined
project to introduce a watercraft capability
to the Armed Forces of the Philippines was
commenced.
These activities build on a strong foundation of
bilateral counter-terrorism cooperation,
highlighted by the successful conduct of the
annual Dawn Caracha counter-hostage
training in September and October 2005. In
addition, support for the Philippines’ defence
reform program continued in the areas of
strategic leadership, capability acquisition and
logistics management.
Thailand
The tempo of Defence engagement with
Thailand was high during 2005–06. The
strength of the defence relationship was
underscored by the visits to Thailand by the
Chief of Air Force in February 2006, and the
Vice Chief of the Defence Force in April 2006.
The extensive activity program included the
Special Forces Panther suite of exercises, and
Air Force exercise Thai Boomerang.
Cooperation was also expanded to include
capability development during 2005–06, with
activities including seminars on defence
acquisition. Australia also supported the
attendance of Thai personnel to courses in
Australia and provided English language
training to students in Thailand.
Vietnam, Cambodia and Laos
Australia’s bilateral relationships with
Vietnam, Cambodia and Laos are small, but
continue to develop. English language training
continues to be a substantial focus of our
engagement for all three countries. The
inaugural Vietnam–Australia Defence
Consultations were held in Hanoi in 2005 and
counter-terrorism engagement was a
highlight with the ADF Special Operations
Commander’s visit to Vietnam and Cambodia
2.7
in May 2006. Australia also hosted the Royal
Cambodian Armed Forces Commander in
Chief, and Cambodia’s Secretary of State for
National Defense. In addition, Australia
provided assistance to Cambodia in seeking
accreditation with the United Nations for
peacekeeping operations. Cambodia has since
deployed soldiers to the United Nations
Mission in Sudan.
Brunei Darussalam
Australia’s positive, but modest, bilateral
defence relationship with Brunei Darussalam
was maintained in this reporting period
through a number of activities. The Australian
Army conducted special forces Exercise Night
Leopard in September 2005, and the Navy
successfully conducted Exercise Penguin in
June 2006. Other key highlights included a
visit by Air Commander Australia to Brunei in
February 2006 and annual cooperation in
Brunei’s fixed and rotary wing standardisation
review.
151
Ch a p t e r
2
Table 2.47
South-East Asia Summary
2003–04
Actual
$’000
2004–05
Actual
$’000
2005–06
Budget Estimate
$’000
2005–06
Actual
$’000
231
165
205
172
Philippines
2,879
3,070
2,411
3,612
Thailand
3,560
3,779
2,916
2,903
Malaysia
4,678
4,704
4,348
4,199
5,048
6,060
4,800
6,130
7,076
9,557
7,396
6,458
Vietnam
1,898
1,631
1,622
2,256
Cambodia and Laos
1,000
1,135
969
1,661
49
36
36
59
26,417
30,136
24,703
27,344
Singapore
Indonesia
Timor-Leste
(1)
Brunei
Total
(2)
Notes:
1.Timor-Leste was erroneously included in the South Pacific Region in the Portfolio Budget Estimates 2005–06
2.Figures may not add due to rounding.
152
Other Regional Activities
Australia’s Defence Cooperation activities with
India, Pakistan and Bangladesh seek to
promote constructive dialogue and modest
practical engagement in areas of mutual
interest such as peacekeeping and
professional development. A range of
activities, including conferences and
seminars, single-Service and combined
training, exchanges and ship visits took place
with India, Pakistan and Bangladesh.
India
Defence Cooperation with India included staff
college exchanges and reciprocal attendance
on a number of courses. Senior visits to and
from India provided opportunities to consider
potential initiatives for further cooperation. In
September 2005, the Chief of Air Force visited
India, followed by the Deputy Chief of Navy in
November 2005, and a ship visit to Goa by
HMAS Parramatta in March 2006. Visits from
India included Chief of Army Staff in October
2005 and the Chairman of the Chiefs of Staff
Committee in May 2006, in addition to a ship
visit by INS Tabar to Fremantle and Sydney in
June 2006. The fourth Joint Working Group on
Defence was held in New Delhi in February
2006, enabling an exchange of views on
international developments and the bilateral
defence relationships by senior defence
officials. The signing of a Memorandum of
Understanding on Defence Cooperation
during the Prime Minister’s visit to India in
March 2006 established a framework
agreement for bilateral defence relations.
Pakistan
The focus of Defence Cooperation activities
with Pakistan was on staff college exchanges
and training activities in Australia. Following
the earthquake of October 2005, the Chief of
the Defence Force and the Chief of Army both
made visits to northern Pakistan as part of
Operation Pakistan Assist.
Bangladesh
Defence Cooperation with Bangladesh
involved attendance at seminars in Australia
and a visit by the Chief of Army Staff to
Australia in March 2006.
O u t c o m e F i v e: S t r at eg i c P o l i c y
2.7
Five Power Defence Arrangements
Australia’s membership of the Five Power
Defence Arrangements remains a key
element of defence relations between the five
member nations and continues to provide a
stabilising influence in the region. The Five
Power Defence Arrangements continues to
develop the group’s ability to address
non‑conventional threats to regional security,
including the threat of international terrorism,
particularly through Exercises Bersama Lima,
held in September 2005, and Bersama Shield,
held in May 2006. The participating Ministers
agreed this year that the group would explore
how it could assist with regional humanitarian
assistance and disaster relief.
153
Exercise Suman Warrior participants
at the capability display
DEFENCE COOPERATION PROGRAM—MALAYSIA
The defence relationship with Malaysia continues to be one of our most active in
the region, with a wide range of activities conducted under the auspices of the
Malaysia–Australia Joint Defence Program, emphasising mutual benefit and
reciprocity. Among the many activities conducted were the maritime exercise
Mastex, held in August 2005, the land exercise Southern Tiger in October 2005,
and a number of exercises conducted under the auspices of the Five Power
Defence Arrangements.
154
Australia’s defence relationship with Malaysia is among our strongest in the
region. Much effort goes into maintaining this strength because our defence
relationship is also an important element of the wider bilateral relationship, and it
supports Australia’s strategic and national interests. Our defence forces have
many shared interests and priorities, including developing our respective abilities
to deal with terrorist threats and to respond to natural disasters, improving
regional maritime security, and promoting a peaceful and prosperous region. Our
work together in Timor-Leste is a clear example of the importance of such close
regional relationships.
Our relationship is underpinned by the ADF’s presence at the Royal Malaysian Air
Force (RMAF) Butterworth air force base, which continues to prove its strategic
value to Australia and facilitates cooperation between the two countries. RAAF
units comprise 324 Combat Support Squadron and 92 Wing Detachment Alpha,
which support visits by various RAAF aircraft. The Army maintains a Land
Command Liaison Section, which provides logistic and administrative support for
various ADF exercises and activities in the region. The strategic importance of the
ADF’s presence at RMAF Butterworth was most recently illustrated during
Australia’s response to the 2004 Indian Ocean Tsunami, when RMAF Butterworth
operated as a forward logistics hub for ADF operations in Aceh.
The regular contact between senior officers has continued, with numerous
counterpart calls and strategic dialogue occurring throughout the reporting
period. The biennial Defence Policy Talks, chaired by the respective Secretaries
of Defence, was held in March 2006 in Canberra. Defence also participated in the
inaugural Regional Security Dialogue with Malaysia, which was led by
the Department of Foreign Affairs and Trade, and is expected to become an
annual event.
Ch a p t e r
2.7
2
Members of the Malaysian contingent study their
map and discuss the best way to move their
people during the Command Post Exercise.
Both countries continue to see educational exchanges
as an important way of understanding each other’s
strategic concerns, developing closer personal ties and
maintaining regular contact to build confidence for
cooperation in other areas. The level of mutually
beneficial professional military education opportunities
and exchange postings has been broadened into new
areas such as logistics and intelligence support.
Major Eric Madderman,
9 Force Support Battalion,
briefs a syndicate on the Map Exercise.
An illustration of the strong historical basis of the
defence relationship was the decision by the Malaysian
Government to issue a commemorative medal (Pingat
Jasa Malaysia) to Australian servicemen and women
who served in prescribed areas of Malaysia during the
period from 31 August 1957 (Malaysian Independence)
to 12 August 1966 during the Malayan Emergency and
the Indonesian Confrontation. Over 12,000 Australian
servicemen and women have been identified as
eligible, of whom approximately 4,000 have been issued
with their award by Malaysia so far. The first medal was
awarded in January 2006 to the Governor General, His
Excellency Major General Michael Jeffery AC, CVO, MC
(Ret’d) by the Malaysian Chief of the Defence Force.
155
Ch a p t e r
2
Outcome Six: Intelligence
Deputy Secretary
Intelligence and Security,
Mr Shane Carmody, is
accountable for delivering
Intelligence and Security
Capability
156
quality intelligence for the defence of Australia
and its interests, specialised services to help
the planning and conduct of ADF operations,
and contributing to Defence policy making and
planning, strategic analysis, capability
development, and wider Government decision
making.
The dedication and innovation of Intelligence
and Security Group staff in 2005–06 resulted
in consistently high levels of performance in
the face of diverse and complex intelligence
problems. Our achievements during this
period reflect the effort we made to match the
large number of ADF operational activities
with quality support by our three intelligence
agencies, the Defence Security Authority, and
the Concepts Capability and Resources
Branch.
In 2005–06, the Intelligence and Security
Group provided intelligence support to key
operations including in Afghanistan, Iraq
and Timor-Leste. Intelligence products
and services were tailored to meet
specific customer needs and operated
on a 24‑hour basis when necessary, to
provide real and near-time assistance. The
Group also contributed substantially to the
Force‑in‑Being and Future Force planning,
as well as enhancing its management of the
Intelligence, Surveillance and Reconnaissance
capability.
The timely intelligence and analytical
products, expert security advice and
management, sustainable intelligence
support to ADF operations, first‑rate
intelligence and security capabilities, and
strengthened intelligence alliances provided
by the Intelligence and Security Group are a
credit to our motivated, skilled and adaptable
people.
The Intelligence and Security Group continued
implementing the recommendations from the
Report of the Inquiry into Australian
Intelligence Agencies (the Flood Report).
Defence has only two minor actions to
complete, relating to the review of ADF
command and control arrangements and the
shortfall in ADF staff. The latter being an issue
affecting the entire Group.
The three Defence intelligence agencies, the
Defence Imagery and Geospatial Organisation,
the Defence Intelligence Organisation and the
Defence Signals Directorate, contribute in
distinct ways to the collection and production
of intelligence, its analysis and assessment. In
2005–06, the Intelligence and Security Group
maintained its exemplary record by producing
The development and maintenance of
language skills continue to be reviewed, both
within Defence and in the wider Australian
Intelligence Community, to ensure that our
Languages Other than English capability is
enhanced by the production and
implementation of a comprehensive Capability
Development Plan.
Outcome Six: IntelligencE
Workforce planning, encompassing
recruitment, succession management and
training, has been a priority and each agency’s
efforts have been rewarded with a substantial
increase in applicants and graduates
interested in joining these organisations.
Increased funding of technical and
professional career development programs
for staff has been, and continues to be, a key
workforce strategy.
Defence Imagery and Geospatial
Organisation
The Defence Imagery and Geospatial
Organisation provided significant support to
Defence and other organisations by providing
relevant and timely geospatial intelligence for
a range of activities, including ADF operations
and significant security events in Australia,
such as the Commonwealth Games. In the
same period, the Defence Imagery and
Geospatial Organisation was brought within
the scope of the Intelligence Services
Legislation Amendment Act 2005 effective
from 2 December 2005, in keeping with a
recommendation from the Flood Report
making it more transparently accountable to
the Government, as with other intelligence
agencies .
Increased investment in the Defence Imagery
and Geospatial Organisation workforce,
technology and facilities is assisting the
organisation to meet its capability targets.
The workforce is the single biggest foundation
of the organisation’s success and efforts
continue to enhance its recruitment, training
and career development programs to ensure
that its people are skilled professionals. In
2005–06, the organisation put further
initiatives in place to build and retain a
sustainable workforce. Recruiting profiles
have been broadened to accept non‑graduates
with relevant experience and some graduates
with hard sciences qualifications to support
specialised technical areas. The Defence
Imagery and Geospatial Organisation is
developing its existing staff through the
2.8
introduction of a broad-band across APS 1–6
levels, the establishment of a dedicated
tradecraft training and development section,
and continued investment in middle
management development programs to grow
a strong leadership team.
The Defence Imagery and Geospatial
Organisation technology edge and expertise
contributed to the May 2006 signing of a
significant bilateral capability delivery in the
form of the Australia and Papua New Guinea
Memorandum of Understanding, agreeing
that the organisation can make new maps of
Papua New Guinea. The nation was originally
mapped by the Royal Australian Survey Corps
in the 1970s and 1980s and, while produced
using that era’s very best technology, updated
maps are required.
Defence Imagery and Geospatial Organisation
facilities continue to be upgraded following the
2004 review of the Geospatial Analysis Centre
in Bendigo. While some positions relocated to
Canberra, the remaining workforce of some
111 personnel will be rehoused in a purposebuilt facility by the end of 2007. The new
geospatial traineeship program, introduced to
the Bendigo-based staff in 2006, will
strengthen the workforce as older members
retire.
Defence Intelligence Organisation
In 2005–06, the Defence Intelligence
Organisation maintained a high output of
intelligence services and products in response
to the operational tempo, providing support to
ADF operations, to the Defence senior
leadership, and broader Australian
Government customers. The organisation
responded to short‑notice tasking from
customers, and raised 24-hour analytical
teams which produced timely and accurate
intelligence material for specific operations.
The demand for intelligence services from
customers at all levels remained strong.
Defence Intelligence Organisation staff
provided advice on a range of issues to both
157
Ch a p t e r
2
regular and non‑regular customers, including
assessments and advice on business process
architecture, general security awareness and
information technology. At the same time, the
organisation undertook several high profile
projects, including the installation of a new
information technology system and
completing an organisational restructure. As
well, it continued to develop innovative and
creative ways to attract, recruit and
retain staff.
The Defence Intelligence Organisation
benefited from the deployment of its civilian
and military liaison officers to various
operational theatres during 2005–06. Liaison
officers were sent to South East Asia, South
Asia and the Middle East where they enhanced
the delivery of timely and accurate intelligence
assessments to customers and acted as a
conduit between ADF deployed forces and the
Defence Intelligence Organisation.
158
Defence Signals Directorate
The Defence Signals Directorate maintained a
high tempo in 2005–06. Its flexible and
responsive intelligence services provided an
increasing level of support to military
operations into routine business. The
Directorate also continued to provide timely
and relevant intelligence to other Australian
Government customers.
The Flood Report recommended that a
periodic review be conducted into the
performance of the Defence Signals
Directorate against its top priority targets. In
line with this, a review of Defence Signals
Directorate capabilities began on 29 May 2006.
The classified review is scheduled for
completion by the end of October 2006.
The Intelligence Services Legislation
Amendment Act 2005 came into effect on
2 December 2005. The Act implemented
several recommendations, which resulted
from a review of the Intelligence Services Act
2001 coordinated by the Department of the
Prime Minister and Cabinet in 2004–05. As
most of the amendments in the Act were
specific to Defence intelligence agencies, the
then Minister for Defence sponsored the Bill
through the Parliament. The Defence Signals
Directorate facilitated the amendment of the
Act on behalf of the Intelligence and Security
Group.
Workforce planning, recruitment and training
have been a priority for the Defence Signals
Directorate in 2005–06. Numerous initiatives
began under the Defence Signals Directorate
Strategic People Plan 2005–09 to allow the
workforce to meet the challenges ahead. The
Directorate introduced a new People
Capability Framework which defined the
required skills in 2006 and beyond, to 2010.
Recruitment was revitalised when, in
response to the new Altitude@DSD program, a
record 791 applications were received. Career
development for signals intelligence
professionals has been enhanced with the
new Signals Intelligence Academy, a dedicated
in-house technical training establishment.
Outcome Six: IntelligencE
2.8
Capability Performance Information
table 2.48
Intelligence
Performance Targets
Performance
Provide quality intelligence products
and services.
Achieved. The Intelligence and Security Group adjusted resource
allocations in response to changes in Australia’s security
environment, and continued to provide high-level support to satisfy
the bulk of high priority intelligence requirements. There was a
particular focus on the challenges presented by support to military
operations and regional terrorist organisations. Work on military and
policing operational support has provided significant force protection,
and work on regional terrorist groups has led to some success in
reducing the threat they pose to Australian and allied interests.
The Defence Intelligence Organisation increased its product and
intelligence output as a result of both the high tempo of ADF
operations and an increase in its customer base across the
Government.
The Defence Imagery and Geospatial Organisation and Defence
Signals Directorate continued to provide relevant and timely
geospatial and signals intelligence in support of Defence operations
and priorities.
The Defence Signals Directorate also maintained its important role in
protecting official Australian communications and information
systems, providing information security advice and services, in
particular to the Australian National Audit Office by contributing to
audit report No. 45, Internet Security in Australian Government
Agencies.
Ensure effective and sustainable
intelligence support for the planning
and conduct of ADF operations and for
decision makers.
Achieved. The Group provided high‑level support to the planning and
conduct of ADF operations during the year in South Asia, South East
Asia and the Pacific. The Defence intelligence agencies continue to
build their capacity to respond to the high operational tempo of
military operations.
The Defence Imagery and Geospatial Organisation provided deployed
and Canberra-based geospatial intelligence for theatres of operation
around the world.
The Defence Intelligence Organisation provided 24-hour support to
all ADF operations and decision-makers as needed.
Maintain and develop first rate defence
intelligence and geospatial information
capabilities.
Achieved. The Defence Imagery and Geospatial Organisation
facilitated the signing of a Memorandum of Understanding allowing
Australia to remap Papua New Guinea.
Through a number of new technical projects, the Defence Intelligence
Organisation extended its reach into a variety of intelligence systems
to further support the intelligence services and analytical functions of
the organisation. These capabilities are expected to be refined
throughout 2006‑07.
The Defence Signals Directorate deployed new capabilities developed
under a number of Defence major capital equipment projects, further
increasing its ability to meet high priority intelligence requirements.
These projects will deliver further capability enhancements in the
future.
continued
159
160
Ch a p t e r
2
table 2.48
Continued
Performance Targets
Performance
Maintain the knowledge edge by
exploiting new technology.
Achieved. The Intelligence and Security Group continued to develop
and acquire new technologies to maintain its collection, processing
and dissemination capabilities in support of intelligence customers.
The Defence Intelligence Organisation incorporated new technologies
to better assist its intelligence services delivery.
Strengthen the intelligence
contribution to the United States
alliance and to relationships with other
intelligence partners.
Achieved. The Intelligence and Security Group is successfully
building on its relationships with the United States and other
traditional partners including the United Kingdom, New Zealand
and Canada. These relationships are developing on a number
of fronts in response to challenges such as counter‑terrorism,
counter‑proliferation and support to military operations. The Group is
also building effective relationships with new partners; in particular,
the Netherlands and the North Atlantic Treaty Organisation.
Improve investment and capability
planning, accountability and resource
and security management.
Achieved. The Group further refined its business and strategic
planning, and developed its human resource management capability
to better plan for future staffing needs. The Group continued to
improve security training for new and current staff.
Develop motivated, adaptable and
skilled teams of highly competent
professionals.
Achieved. Recruiting focused on graduates with general and hard
sciences degrees and also non‑university graduates who had
relevant workplace experience. In a very competitive labour market,
the Group remained an employer of choice. It participated in the
Australian Intelligence Communicate Graduate Recruitment
Roadshow and supported the Defence Graduate Development
Program. The Defence Signals Directorate and Defence Imagery and
Geospatial Organisation attracted recruits with their own programs.
In-house training across the Group provided the intelligence
professionals with specialised skills complementing ongoing
leadership and business education.
2.8
Outcome Six: IntelligencE
Cost to Government
Table 2.49
Outcome Six—Intelligence for the Defence of Australia and
its Interests
Budget
Estimate(1)
Additional
Estimate(2)
Actual
Result
Variation(3)
Variation(3)
2005–06
2005–06
2005–06
2005–06
2005–06
$’000
$’000
$’000
$’000
%
1,532
2,784
5,140
2,356
84.6
–
–
–1
–1
–
Other revenue
4,546
5,937
3,413
–2,523
–42.5
Total Revenue
6,079
8,721
8,552
–169
–1.9
INCOME
Revenue
Goods and services
Interest
Gains
Net foreign exchange gains
–
–
–
–
–
Assets now recognised
8
35
9,959
9,924
28,118.6
Net gains from sale of assets
–
–
–
–
–
Other gains
–
–
402
402
–
Total Gains
8
35
10,361
10,325
29,256.7
6,087
8,756
18,913
10,157
116.0
Employees
215,629
205,407
217,343
11,936
5.8
Suppliers
201,420
203,844
217,036
13,193
6.5
Total Income
Operating Expenses
18
155
156
1
0.9
433
683
1,153
470
68.7
55,961
92,114
69,965
–22,149
–24.0
Write down and impairment of assets
9
226
9,921
9,695
4,290.4
Net foreign exchange losses
–
–
17
17
–
Net losses from sale of assets
–
142
11,514
11,372
8,022.0
Other expenses
–
477
63
–414
–86.8
Total Expenses
473,471
503,047
527,168
24,121
4.8
Price to Government for Outcome Six
467,384
494,291
508,255
13,964
2.8
Grants
Finance Cost
Depreciation and amortisation
Notes:
1.Budget Estimates are consistent with Portfolio Budget Statements 2005–06 (page 171).
2.Additional Estimates are consistent with Portfolio Additional Estimates Statements 2005–06 (page 105).
3.Variations reflect the difference between Additional Estimates and Actuals.
161
Ch a p t e r
2
Table 2.50
Breakdown of Outcome Six by Output
Budget
Estimate(1)
Additional
Estimate(2)
Actual
Result
Variation(3)
Variation(3)
2005–06
2005–06
2005–06
2005–06
2005–06
$’000
$’000
$’000
$’000
%
Output 6.1—Intelligence
467,384
494,291
508,225
13,964
2.8
Price to Government for Outcome Six
467,384
494,291
508,225
13,964
2.8
Notes:
1.Budget Estimates are consistent with Portfolio Budget Statements 2005–06 (page 174).
2.Additional Estimates are consistent with Portfolio Additional Estimates Statements 2005–06 (page 106).
3.Variations reflect the difference between Additional Estimates and Actuals.
162
Outcome Six: IntelligencE
2.8
163
Australian Defence Satellite
Communication Station,
Geraldton, Western Australia.
GETTING AND KEEPING THE RIGHT PEOPLE
The Intelligence and Security Group continues to set a high standard in developing
and maintaining civilian and military workforce skills, career structures and
promotions. The Group has a strong emphasis on recruiting and keeping the right
people and recognising individual contributions.
164
The Group’s four agencies have put in place innovative strategies to meet the key
challenges of recruitment and retaining staff in an increasingly competitive
market. Each agency has tailored specific programs to train and develop
world‑class intelligence professionals.
Getting the right people
In December 2005, the Defence Intelligence Organisation promoted a large
number of graduates completing the Defence‑run Graduate Development
Program. The Defence Imagery and Geospatial Organisation also welcomed more
graduates in 2005–06.
In February 2006, the Defence Signals Directorate launched its new graduate
recruitment campaign ‘Altitude@DSD’ and attracted a record number of
applicants.
These graduate programs are invaluable in attracting talented and enthusiastic
individuals from a range of disciplines and backgrounds to the intelligence and
security professions. The Intelligence and Security Group also participated in
Australian Intelligence Community employment initiatives.
In May 2006, the Defence Imagery and Geospatial Organisation, the Defence
Intelligence Organisation and the Defence Signals Directorate supported the
recommendations of the Report of the Inquiry into Australian Intelligence
Agencies by taking part in the Australian Intelligence Community Graduate
Recruitment Roadshow, coordinated by the Office of National Assessments.
Also during 2005–06, the Defence Security Authority recruited to boost its training
and investigation capacity in line with its commitment to enhancing the security
culture in Defence. Investigation staff also benefited from their participation in
international training programs.
Ch a p t e r
2.8
2
Inside the Australian Defence Satellite
Communication Station..
Developing our people
Intelligence and Security Group staff, both civilian
and military, contributed directly to Defence
operations in the Middle East and South East Asia.
This allowed them to gain valuable operational
experience and develop their professional
intelligence skills.
Over the past year, the Intelligence and Security
Group has worked hard to establish integrated
intelligence teams that provide comprehensive and
actionable intelligence to its customers
Australian Defence Satellite
Communication Station, Geraldton,
Western Australia.
The new Signals Intelligence Academy within
Defence Signals Directorate and the
niche training for Defence Imagery and Geospatial
professionals continues the Intelligence and
Security Group tradition of developing specialised
skills to better assist the Defence mission in a
cutting edge environment.
The Group provides quality support to Defence
through a mix of talented people, dependable
communications, well-practised procedures,
excellent understanding of its customers, and
regular analysis for continual improvement. The
emphasis is on speed, relevance, accuracy and
guaranteeing the capacity to adapt to rapid changes
in the operating environment.
The diverse agencies which form Intelligence and
Security Group continue to overcome challenges and
demonstrate flexibility in seizing opportunities to
better serve Defence. The Group strives to better its
people in order to create an environment where
people can do their best.
165
Ch a p t e r
2
Outcome Seven:
Superannuation and Housing
Support Services for Current
and Retired Defence Personnel
166
Outcome Seven encompasses all the activities
that Defence performs on behalf of the
Government that are resourced by Defence’s
administered appropriation. The administered
appropriation provides resources to Defence
on a ‘no win/no loss’ basis for specific
purposes. It also includes revenue items for
which the receipts are to be returned to the
Government. Outcome Seven consists of three
outputs.
Output 7.1: Superannuation Support Services
for Current and Retired Defence Personnel
reports contributions and the movement in
liabilities associated with the two military
superannuation schemes: the Defence Force
Retirement and Death Benefits Scheme
(DFRDB) and the Military Superannuation and
Benefits Scheme (MSBS). DFRDB was closed
to new participants in 1991. Since then, MSBS
has been available to all full‑time members of
the ADF. Both schemes are managed on
Defence’s behalf by ComSuper. Output 7.1
includes the member contributions and
employer contributions to both schemes, the
liability to the Commonwealth for benefits
under both schemes, and the payment of the
MSBS Retention Benefit. Since 1991, Defence
has paid the MSBS Retention Benefit to
eligible MSBS members after 15 years of
continuous eligible service. The purpose of the
Retention Benefit is to encourage members to
serve until they have completed 20 years of
service. Due to legislative amendments
passed in 2005, the Retention Benefit is not
available to members who enlisted after
6 October 2005.
Output 7.2: Housing Assistance for Current
and Retired Defence Personnel reports
dividends received on behalf of the
Government from the Defence Housing
Authority, and payments to the Authority to
manage the Defence HomeOwner Scheme.
The Scheme is established under the Defence
Force (Home Loans Assistance) Act, 1990. It
provides eligible members of the ADF with a
subsidy on the interest payable on a home
loan (see also Appendix 12). The Defence
Housing Authority is classified as a
Government Business Enterprise and is
required to make a commercial rate of return
for the Government. Through Defence, the
Authority pays an annual dividend on its
operating profit to the Government. The
Commonwealth’s Competitive Neutrality
Guidelines require the Authority to make tax
equivalent payments to the Government in lieu
of paying state and territory taxes. Tax
equivalent payments form part of the
Authority’s dividend return to the Government.
Output 7.3: Other Administered Revenues and
Expenses encompasses all other revenues
and expenses recorded by Defence as part of
the administered appropriation. It includes
interest received from the United States
Federal Reserve Bank on foreign military
sales advances, interest received on official
bank accounts, net foreign exchange losses
and gains, and reimbursements from the
United Nations for contributions to United
Nations-led operations.
2.9
O u t c o m e Se v e n: S u p e r a n n uat i o n a n d H o u si n g S u p p o r t
Services for Current and Retired Defence Personnel
Cost to Government
In 2005–06, the net cost of Outcome Seven
was $2.0 billion, or $123.9m more than the
Table 2.51
revised estimate of $1.9 billion. Details by
expense and revenue items are provided in
Table 2.51, and an output view follows at
Table 2.52.
Outcome Seven—Superannuation and Housing Support
Services for Current and Retired Defence Personnel
Budget
Estimate(1)
Additional
Estimate(2)
Actual
Result
Variation(3)
Variation(3)
2005–06
2005–06
2005–06
2005–06
2005–06
$’000
$’000
$’000
$’000
%
Goods and services
1,500
1,500
983
–517
–34.5
Interest
2,500
2,500
5,265
2,765
110.6
INCOME
Revenue
Non‑taxation
15,276
15,276
68,000
52,724
345.1
682,475
682,475
651,158
–31,317
–4.6
–
–
4,155
4,155
–
701,751
701,751
729,561
27,810
4.0
Net Foreign Exchange Gain
–
–
1
1
–
Total Gains
–
–
1
1
–
701,751
701,751
729,562
27,811
4.0
9,250
10,000
9,781
–219
–2.2
Dividends
Military superannuation contributions
Other revenues
Total Non‑taxation Revenue
Gains
Total Administered Income
Administered Expenses
Subsidies
2,530,100
2,592,100
2,744,427
152,327
5.9
Write down and impairment of assets
–
–
–
–
–
Other Expenses
–
–
–
–
–
Total Expenses
2,539,350
2,602,100
2,754,208
152,108
5.8
Net Foreign Exchange Loss
–
–
–
–
–
Total Losses
–
–
–
–
–
Total Administered Expenses
2,539,350
2,602,100
2,754,208
152,108
5.8
Net Cost of Outcome 7
1,837,599
1,900,349
2,024,646
124,297
6.5
Employees
Losses
Notes:
1.Budget Estimates are consistent with Portfolio Budget Statements 2005–06 (p. 176).
2.Additional Estimates are consistent with Portfolio Additional Estimates Statements 2005–06 (p. 108).
3.Variations reflect the difference between Additional Estimates and Actuals.
167
Ch a p t e r
2
Table 2.52
Breakdown of Outcome Seven by Output
Budget
Estimate(1)
Additional
Estimate(2)
Actual
Result
Variation(3)
Variation(3)
2005–06
2005–06
2005–06
2005–06
2005–06
$’000
$’000
$’000
$’000
%
1,847,625
1,909,625
2,087,694
178,069
9.3
Output 7.2—Housing Assistance for Current
and Retired Defence Personnel
–6,026
–5,276
–58,219
–52,943
1,003.5
Output 7.3—Other Administered Revenues
and Expenses
–4,000
–4,000
–4,829
–829
20.7
1,837,599
1,900,349
2,024,646
124,297
6.5
Output 7.1—Superannuation Support
Services for Current and Retired Defence
Personnel
Price to Government for Outcome Seven
Notes:
1.Budget Estimates are consistent with Portfolio Budget Statements 2005–06 (p. 177).
2.Additional Estimates are consistent with Portfolio Additional Estimates Statements 2005–06 (p. 109).
3.Variations reflect the difference between Additional Estimates and Actuals.
Explanation of significant
variations
168
Output 7.1—Superannuation Support Services
for Current and Retired Defence Personnel
The net cost was $177.7m (9.3 per cent) more
than planned due largely to the inclusion of
additional allowances in the definition of
‘salary’ for superannuation purposes. The
increase was offset by lower than expected
military contributions.
Output 7.2—Housing Assistance for Current
and Retired Defence Personnel
The net cost was $52.9m less than planned
due to a higher than expected dividend paid by
the Defence Housing Authority and the
inclusion of tax equivalent payments in the
dividend payment.
Table 2.53
Explanations of Common Variations Across Defence Outcomes
Explanation of Variation
Outcome $m
One
Two
Three
Four
Five
Six
Total
The reclassification of revenue from DMO for Military Employees from Other revenue.
6.6
37.6
70.8
35.1
8.0
2.5
160.6
Higher than anticipated revenue from DMO in relation to services provided by the Vice Chief of
the Defence Force Group and the Defence Science and Technology Organisation.
1.6
7.8
14.7
7.8
1.3
0.8
34.0
Lower than expected revenue from Foreign Governments, including for fuel sales.
-0.6
-3.2
-3.7
-2.1
Lower revenue for military employee recoveries from DMO due to unanticipated military
vacancies.
-0.6
-2.8
-5.2
-2.6
-0.5
-0.3
-12.0
Progressive refinement of Defence’s cost attribution rules to reflect changes in workforce
distributions and expenditure patterns and other variations.
12.7
-1.8
-10.0
5.4
-5.7
-0.6
-0.0
Variation Goods and Services
19.7
37.6
66.6
43.6
3.1
2.4
173.0
The reclassification of revenue from DMO for Military Employees to Goods and Services.
-6.6
-37.6
-70.8
-35.1
-8.0
-2.5
-160.6
-0.1
-0.1
Goods and Services
-0.2
Variation Other Revenues
-6.6
-37.7
-70.9
-35.1
-8.0
-2.5
-160.8
Higher revenue primarily due to continued sock-taking activities undertaken during the year
that identified specialist military equipment repairable items that have exceeded the
capitalisation threshold.
18.3
73.5
96.6
84.3
3.7
9.9
286.3
Variation Assets Now Recognised
18.3
73.5
96.6
84.3
3.7
9.9
286.3
Actuarial gain through the revaluation of the potential liability to meet the cost of certain
potential common law claims which might emerge in the Voyager/Melbourne cases.
0.5
2.1
2.2
2.1
0.2
0.2
7.2
Resources received free of charge from ANAO.
0.3
1.4
1.5
1.4
0.1
0.1
4.8
Resources received free of charge from DMO.
0.1
0.4
0.4
0.4
0.0
0.0
1.3
continued
Ex p l a n a t i o n s o f s i g n i f i c a n t V a r i a t i o n s
A c r o ss D e f e n c e O u t c o m e s
Other minor revenue variances.
-9.6
2.10
169
170
Variation Other Gains
Outcome $m
One
Two
Three
Four
Five
Six
Total
0.9
3.8
4.1
3.8
0.3
0.4
13.3
-1.1
-4.7
-8.8
-4.7
-0.4
-0.7
-20.4
Other minor variations including for variations in planned and housing costs.
-0.9
-4.0
-7.2
-4.0
-0.3
-0.6
-17.0
Adjustment of Workers Compensation Premiums to suppliers expense as a result of a new
Finance Minister’s Order.
-0.9
-3.6
-6.9
-3.6
-0.3
-0.5
-15.8
Underspend in Defence People Plan due to delays in preparing proposals for approval for
various initiatives.
-0.6
-2.5
-4.7
-2.5
-0.2
-0.4
-10.8
Lower than anticipated number of reservists due to ongoing difficulties with recruitment and
retention.
-0.5
-2.2
-4.1
-2.2
-0.1
-0.4
-9.6
Lower Superannuation Guarantee Charge, direct rent bill and FBT payments than expected.
-0.3
-1.2
-2.3
-1.2
-0.1
-0.2
-5.3
6.0
6.0
-9.7
6.3
-15.8
7.2
3.3
8.7
-0.0
Higher than anticipated per capita expenditure for Intelligence employees.
Progressive refinement of Defence’s cost attribution rules to reflect changes in workforce
distributions and expenditure patterns and other variations.
Variation Employees
-14.0
-11.9
-49.8
-11.0
1.9
11.9
-72.9
The decision to capitalise (rather than expense) the acquisition service fee for supply of goods
and services to related entities as it represents the labour costs of acquiring assets.
-15.5
-60.9
-34.2
-67.7
-0.2
-4.0
-182.5
Decreased DMO sustainment expenses, due primarily to decision to capitalise part of the
sustainment contract expenses as SME Repairable Items.
-11.1
-43.5
-24.4
-48.4
-0.1
-2.9
-130.4
Reduction in expenditure corresponding to the reduced appropriation from government for a
classified communications project and naval aviation contribution.
-3.7
-28.2
-5.4
-8.4
-1.5
-10.0
-57.2
Reduced expenditure on operations carried forward to 2006-07
Other minor variances in suppliers expense including for the reclassification of workers
compensation premiums from employee expenses.
-26.5
0.1
-26.5
4.5
8.1
3.5
1.0
0.3
17.5
continued
2
The bringing to account of leave expenses late in 2004-05 rather than 2005-06 as budgeted.
Ch a p t e r
Explanation of Variation
Explanation of Variation
Outcome $m
Two
Three
Four
Five
Expenditure on a classified intelligence project
Increases in inventory consumption including expenses relating to fuel sales to foreign
governments as well as higher fuel prices during the year.
Six
Total
20.0
20.0
3.7
18.0
22.5
20.2
1.5
2.5
68.3
Progressive refinement of Defence’s cost attribution rules to reflect changes in workforce
distributions and expenditure patterns and other variations.
-36.4
-25.5
77.1
-18.7
-3.9
7.3
0.0
Variation Suppliers
-89.4
-135.6
43.7
-119.5
-3.2
13.2
-290.8
Variation in the timing and quantum of grant payments
-0.1
-0.3
-0.6
-0.3
0.1
0.0
-1.2
Variation Grants
-0.1
-0.3
-0.6
-0.3
0.1
0.0
-1.2
Adjustment to reflect the discounting expense for site restoration.
1.2
9.0
9.3
11.7
0.2
0.0
31.4
Higher than anticipated lease payments including as a result of the recognition of the Benalla
property lease as a finance lease.
0.1
1.1
1.2
1.0
0.3
0.3
4.0
Discounting of non-current employee liabilities.
0.1
1.0
1.3
0.9
0.2
0.2
3.7
Variation Finance Cost
1.4
11.1
11.8
13.6
0.7
0.5
39.1
Higher than planned depreciation due to the transfer of commercial motor vehicles from DMO
to Defence, the revaluation activities associated with the Defence estate, higher than
anticipated expenditure on the major capital facilities program and the associated
depreciation flow on from the capitalisation of the acquisition service fee and the decision to
replace rather than repair some repairable items.
0.5
28.9
12.4
23.0
0.1
1.4
66.2
Component, impairment and useful life reviews conducted on Navy assets, together with
deferral of decommissioning costs resulting higher than expected depreciation for Outcome
Two.
82.0
82.0
Reconciliation of the Intelligence asset base
Progressive refinement of Defence’s cost attribution rules to reflect changes in workforce
distributions and expenditure patterns and other variations.
-4.5
41.9
-53.3
13.0
0.4
-25.9
-25.9
2.4
-0.0
continued
O u t c o m e Se v e n: S u p e r a n n uat i o n a n d H o u si n g S u p p o r t
Services for Current and Retired Defence Personnel
One
2.9
171
172
Outcome $m
Two
Three
Four
Five
Six
Total
-4.0
152.8
–40.9
36.0
0.5
-22.1
122.3
0.8
130.8
88.9
55.3
0.1
0.1
276.0
10.0
98.4
59.2
38.2
3.0
7.4
216.2
Increased SME write-downs including from AUC impairment reviews.
0.4
135.3
8.9
6.5
0.0
0.0
151.1
A range of other minor write-downs, including of financial assets, intangibles and heritage
and cultural assets.
0.1
7.5
1.0
0.5
0.0
0.1
9.1
Progressive refinement of Defence’s cost attribution rules to reflect changes in workforce
distributions and expenditure patterns and other variations.
0.0
10.5
-12.7
0.3
-0.3
2.1
-0.0
11.3
382.5
145.3
100.8
2.8
9.7
652.4
Timing difference between when invoices for transactions in foreign currencies are entered
in the financial system for payment and the date they are paid.
0.0
0.1
0.7
0.0
-0.1
0.0
0.8
Variation Net Foreign Exchange Losses
0.0
0.1
0.7
0.0
-0.1
0.0
0.8
Defence did not budget for a loss or a gain on the sale of assets. The small variations result
from minor differences between the proceeds from the sales of assets and the book value of
the assets being sold.
-0.5
-1.1
-4.6
-2.1
-0.2
11.4
3.0
Variation Net Losses From Sale of Assets
-0.5
-1.1
-4.6
-2.1
-0.2
11.4
3.0
Other Expenses were lower than expected due to timing delays in one-off, lump sum
compensation payments together with other minor expenses.
-1.0
-3.4
-8.9
-3.1
-0.2
-0.4
-16.9
-1.0
-3.4
-8.9
-3.1
-0.2
-0.4
-16.9
–128.5
317.1
0.3
–82.1
3.3
13.9
124.0
Variation Depreciation and Amortisation
Higher than planned inventory write down after stock takes and adjustments made to bring
inventory into its current replacement cost as required by AIFRS.
Higher building and infrastructure write-offs after a review by independent valuers.
Variation Write-down and Impairment of Assets
Variation Other Expenses
Total Outcome Variation
Revenues from Government
Total Variation
69.2
193.2
2
One
Ch a p t e r
Explanation of Variation