Defence must get better at managing big, expensive projects, says chief

Australia Broadcast Center

3 days ago

The Australian Defence Force must get better at managing taxpayer dollars on massive projects, the nation's highest-ranked military office has acknowledged.
Chief of Defence Admiral David Johnston has said the ADF does need to "do better" as the military equips itself to carry forward the mammoth AUKUS project, which is currently under review by the Trump administration.
Defence has been plagued by expensive cost and time blowouts on some major projects in recent years, leading to an accumulation of nearly a century of delays across projects, according to some measures.
But Australia is also under pressure from its key military ally — the United States — to significantly increase its defence spending to 3.5 per cent of GDP, or up to $287 billion over a decade.
Admiral Johnston told the ABC it was clear there have been failures in the past, and improvement was required.
"We aim to do better," he said. "We want to see every acquisition project that we are on, deliver on time and capability."
But he argued the ADF is also tasked with acquiring complex, cutting-edge technology that inevitably comes with risk.
"These are highly complex systems, by nature pushing the edge in capabilities — because that's what you need when you're looking at capabilities that provide for the defence of your country … [But] we do need to spend [public money] well."
The defence chief stood by the $45 billion Hunter Class Frigates project, which will deliver the first of six ships in 2032, saying he is "utterly convinced" the ships will be "magnificent".
Defence Minister Richard Marles said there was clear pressure on the Department of Defence to improve its management of public funds.
"We've been very open about the challenges that Defence has faced historically in terms of its ability to meet delivery," he said.
"Delivery has to be a key focus and we will look at everything we need to in terms of sharpening our delivery so that we get the best quality in the defence spend.
"And that includes, if needs be, pursuing bureaucratic reform."
The ADF is in the middle of a weeks-long showcase of its strengths, conducting massive and complex military exercises across much of the country.
The "Talisman Sabre" exercises involve nearly 40,000 defence personnel from 19 different countries, jointly organised by Australia and the US.
Early last week, Defence performed the first demonstration of its newly-acquired "HIMARS" long-range missile system, capable of hitting targets up to 500 kilometres away.
The ADF has made clear its desire to focus more on defending Australia's northern approaches, shifting from the missions in far-flung destinations that have occupied most of its energy in the past two decades.
Admiral Johnston has also recently warned Australians may need to think of the country as a "homeland from which we will conduct combat operations".
While the 2022 Defence Strategic Review pointed to the acquisition of nuclear submarines as "transforming (the Australian) navy's capability", the admiral has been eager to highlight Defence's strengths outside of AUKUS.
"The submarine is a very important capability, but it's not the only capability that we're progressing," he said.
"When you look at our strategy and you understand the breadth of capabilities that we are bringing, prioritising long-range strike capabilities, the work around our own northern infrastructure to enhance capacity, innovation in a range of sectors.
"Submarines are key as part of it but they're not the only part of the defence force of the future."
The $368-billion AUKUS deal that will provide Australia with nuclear-powered submarines is currently under review in the US, led by a Pentagon official with a mixed history of views on the pact.
Admiral Johnston said he maintains constant dialogue with his counterparts in the US, and the Australian perspective would be put forward as the review continues.
"Australia has indicated that we'll provide input to that, and we're working through what might be most useful for them, but we remain very confident that the AUKUS deal is a good one for all three countries that are participating," he said.
"The logic and rationale that has underpinned the series of decisions that have led to the countries agreeing are as strong and relevant today as they were when that decision was first made."
Research prepared for the US Congress last year laid out an alternative option to AUKUS, where Australia hosts US-flagged submarines into the longer term.
From 2027, the US and UK will base nuclear-powered submarines at HMAS Stirling south of Perth.
Under the idea floated by the Congressional Research Service, rather than having Australia acquire US-built Virginia-Class submarines as planned in the early-2030's, the US would continue basing submarines in Australia and conduct missions on Australia's behalf.
Elbridge Colby, who is conducting the AUKUS review out of the Pentagon, has previously aired concerns about whether the US can produce enough submarines to meet both Australian and American needs.
Asked about the idea of the US simply basing submarines here rather than providing Australia with submarines of its own, Admiral Johnston said Australian-flagged submarines were vital.
"That firmly remains our objective — to have an Australian national capability that brings all of the extraordinary capacity that a nuclear submarine brings, but having one that is under our national control," he said.
Mr Marles echoed the case that sovereignty is an important consideration, as Australia pursues a nuclear-powered submarine.
"We need a long-range, long-term submarine capability, we only achieve that in the future by having a nuclear-powered submarine capability," he said.
"Sovereignty is fundamentally important in terms of that. And being able to acquire the US Virginia-class submarines that will be Australian-flagged in the early 2030s is a critical step in Australia's overall ability to acquire this capability."