Defence Update

Raaf ‘Slice’ of Defence Budget ‘Cake’ Declines as Navy Projects Muster Steam!

The declining, although expected, share by the Royal Australian Air Force, of funding for major capital equipment is outlinedin theFederal Government’s Defence Budget on August 20.

Quite clearly the F/A-18 Hornet acquisition program has not only wound down, but even the money being spent on modifications and upgrade palls in significance to the funds now going to the Royal Australian Navy’s new Collins Class diesel electric submarines and the ANZAC frigate projects. Funding for the Hornet tactical fighter, which since the early 1980s, had an all-up project cost of around $5 billion (depending on the currency exchange rates each quarter) is now down to an estimated $110m from $122m in 1990/91. This, of course, is the planned progression of the cycles that over the longer term provide Defence money over initially the FY DP (Five Year Defence Program) which has now stretched to estimates over 10 years.

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