PM: Now it's time for ladies and gentlemen of the press to ask any questions they would like. Any easy question I will take, any difficult questions will be taken by those behind me. Any questions involving any level of insubordination (inaudible). Those people will (inaudible)
JOURNALIST: If the Government and Department fail to make the savings that you've envisaged over the next 10 years, what will be first capabilities to go by the wayside?
PM: What we have done is engaged with Defence in an enormous internal review of defence procurement systems and also of savings potential within the portfolio. We therefore are confident that within Defence's leadership that these efficiencies in procurement and also savings in the way in which Defence conducts its regular business will be made.
Second point I'd make is this, we're also not just resting that strategy on defence operating more efficiently and effectively in those two respects. We are providing significant, sustained, long term budget support ourselves in order to make sure Force 2030 is not an exercise on paper but is translated into the kit and equipment that our three critical services need for the future.
We have spent a lot of time going through the assumptions underpinning the force structure, the strategic environment which determines the force structure and capabilities, as well as the budget parameters within the (inaudible). We're confident that we're going to be able to plan this, it is necessary that we provide funding security for defence long term and I referred in my remarks before about the need for a proper planning certainty for the future in order to get there.
JOURNALIST: Prime Minister, what, do you have a message for China or any other regional power that might have concerns about the build up that you've announced today?
PM: As Prime Minister of Australia my first and foremost responsibility is the national security of Australia for which I make absolutely no apology to anybody. That's the first point. The second is this, we are faced with a series of changes and challenges across the wider Asia-Pacific region and we must therefore ensure that our men and women in uniform have the proper kit and equipment and assets to meet a range of contingencies in the future.
The truth is we are seeing a period of significant military and naval expansions in the wider Asia-Pacific region and it's important therefore that Australia makes proper provision for that in our own planning horizon. The force structure that we have for the capabilities that we need and the underpinning budgetary support.
JOURNALIST: Prime Minister a lot of the recent discussion on the White Paper has been around, its premise being a slippage of US influence in the Asia-Pacific in the medium-long term and an increase in Chinese influence in the Asia-Pacific medium-long term. Is that the right premise? Is that the premise that you see this White Paper (inaudible)?
PM: Thank you Tim, and I will draw your ever eager attention to page 32 of the White Paper and I just happen to have chanced upon paragraph 4.17 as you were asking the question. And considering that it may be possible that you might have asked a question like that, let me read to you what is the considered conclusion of the Australian Government:
“It remains the case that no other power would have the military, economic or strategic capacity to challenge the US global supremacy over the period covered by this White Paper.”
That is our projection for the next generation. It is within that projection that we of course again reaffirm our commitment for the United States alliance and as I said in my remarks before it remains the bedrock of Australian security. On top of that, as I've said before, and I've said again today the core organising principle for Australia's defence remains the defence of this vast continent of ours Australia and therefore we need to be also prepared as the White Paper makes absolutely clear, for independent military operations on our own.
These two things proceed in tandem but the direct answer to your question is contained in the paragraph I just responded to and that is that it remains the case that no other power would have the military, economic or strategic capacity to challenge US global primacy over the period covered by this White Paper. The period 2030 is a fair old stretch of time.
Another question down there.
JOURNALIST: Thanks Prime Minister. The document also says that China does have the potential to (inaudible)?
PM: What I pointed to in my remarks before is that it is as plain as day that there is a significant military and naval build up across the Asia-Pacific region. That's a reality, it's a truth, it's there. So either you can simply choose to ignore that fact or to incorporate that into a realistic component of Australia's strategic assumptions about what this region will look like over the next two decades.
Secondly therefore, anchored in our alliance with the United States, it's important for our own capability requirement and force structure for the Australian Defence Force to be prepared to meet a range of contingencies arising from military and naval build ups across our wider region. That is prudent long term defence planning and we believe we have got the balance absolutely right.
JOURNALIST: Prime Minister at the moment you don't have enough preparedness to staff the submarines which we have. How can you be confident that that's going to change and (inaudible) but realistically why should people expect that you can staff this number of submarines?
PM: Well I was over at HMAS Collins recently and exploring the bowels of the ships with a very tall Chief of the Defence Force and how he managed to get through that without whacking his head I am still remain surprised.
But when I spoke to the submariners there and those responsible for our existing fleet of submarines our level of recruitment is actually turning the corner and that is important to note.
As I also reflected in my remarks before, we are deeply, deeply aware that the personnel element, the people element of the entire Australian Defence Force establishment is fundamental but we've got to be absolutely vigilant in the future about maintaining the relative attraction of coming to work in the Australian Defence Force.
Submarines are a particularly challenging operating environment. I was surprised the other day at what their showering roster is. These are particularly professional individuals given the constraints of a below sea, below deck operation but a more dedicated bunch I've never run into.
Recruitments are turning the corner but we're going to be very attentive to long term recruitment planning and necessary incentives to ensure that these submarines, which will be the largest submarine force ever in Australian history, are staffed, recruited, manned to ensure that they are there to do their job as and when that job becomes necessary.
JOURNALIST: While recognising the primacy of the US alliance Prime Minister, I refer to paragraph 6.15, is it fair to assume therefore that the message being conveyed by the Government in that paragraph is that Australians will be more tough minded and circumspect in the future in considering committing with the United States to Coalitions of the Willing outside the region?
PM: Thank you for drawing my attention to my attention to paragraph 6.15, Paul. I was reflecting on is that it was some time ago. Look the bottom line is this, our strategic guidance in the future is anchored in the sets of principles I referred to before. What are they? One, the defence of Australia. Two, particular requirements for interventions of a humanitarian or security nature in the South-Pacific area. Three engaging in wider military activity in South-East Asia as it's appropriate in the circumstances, it's appropriate and in corresponding to our obligations under international law. And on top of that to engage in wider coalition operations in support of global security of the type which we're currently engaged in, in Afghanistan.
That is the logical hierarchy for Australia to consider its future defence operations, consistent with a rational analysis of Australia's national security requirements. It begins at home, it goes to the immediate neighbourhood, it is mindful of what is happening in the wider Asia-Pacific region and acutely mindful of our obligations to be part of the international community in enhancing a rules-based global security order and enhancing global security.
Remember in Afghanistan we are there under the express umbrella of the United Nations Security Resolution and simultaneously under the express provisions of our obligations under the ANZUS Alliance which was invoked in 2001. That is the logical hierarchy for our operations in the future, clearly and explicitly stated in the Defence White Paper released today.
JOURNALIST: If you had to briefly summarise what is the continuity of what you've inherited and what is new in all this, how would you tell the Australian people what is different about today's announcement?
PM: Well firstly I would draw your attention to what we are doing specifically with the Navy. As I said before what you see is increasing the overall major naval assets by about a third and you have a doubling of the submarine fleet which is acutely intended to the sorts of challenges we're going to face in the future. And on vessels such as this we will be will merging some lighter Frigates and heavier Frigates and destroyers in the future. These are significant ships in terms of what Navy has by way of its assets and into the future. That's one area of challenge, of change if you like in terms of the past.
The second, a confirmation that we'll be moving to four squadrons of Joint Strike Fighters, this is a significant price of kit and equipment in terms of the necessary skills and capabilities we need for the air-sea gap around Australia. These are significant and formidable future air assets and we have decided to take CDF's advice and the Chief of Air Force's advice in terms of what is needed there, in terms of the overall size of that acquisition; around 100 aircraft.
In terms of Army, one of the key challenges we face is to make sure that our Army in the field has the best supporting armoured and related vehicles possible and accordingly the additional acquisition of more than 1000+ such vehicles, I believe represents us putting our money where our mouth is on that question.
If I could add one other to the list of what is different. We take fundamentally seriously the challenges of cyber-security in the future and you will see reflected in the Defence White Paper our acute concerns related to that and the actions we'll take in response to that.
There are four key sets of changes given the changing strategic environment and I believe challenging strategic environment where Australia will land itself over the next 20 years.
And as we look around to the youngest faces in the ADF here on this deck this morning, these men and women are going to be faced with a range of more complex and challenging circumstances than even we believe we are confronting here today. And what's our responsibility in 2009? As best we can to make proper, rational provision for that range of needs and to provide the best possible underpinnings in terms of security of budgetary support.
JOURNALIST: Prime Minister can you expand on where you think Australia should go in terms of cyber-warfare?
PM: It's not a lot. It's (inaudible). The first thing it's a real problem. The challenge out there and we're clear about that in the Defence White Paper, we're clear about that at the end of last year in the National Security Statement, policy statement that I made to the Australian Parliament, the first such statement to the Parliament. This is a real challenge affecting all areas of Defence's future operations and more widely for our national security concerns. It would be negligent of any Australian Government now not to invest significantly in building this capacity for the future. We intend to do so and our resolve is underpinned in this Defence White Paper.
JOURNALIST: Just back on the submarines Prime Minister, can you just outline I guess the benefits of (inaudible) South Australia? (inaudible)
PM: Well when we say that this is a significant expansion of Australia's defence capabilities in the future, the other part of what I believe to be good news for the nation is that a lot of this construction will occur in Australia. The Defence Minister will be travelling to Adelaide soon to discuss with the South Australian Premier and Government about what can be put in place to support the construction of what will be the single largest defence acquisition project in Australia in our history.
This is very large: 12 large submarines of a capability larger than the existing Collins class. Therefore the South Australian economy with all those things in place, put in place represent a long term, will represent a long term boost to that economy. Of course we have to complete the final arrangements concerning appropriate tendering and the rest. I would say that the South Australian Government is mindful of future possibilities for itself to be keenly attentive to what might be possible under these circumstances.
I think there's another one over here.
JOURANLIST: Prime Minister if China attacks Taiwan in any way, will Australia help defend it?
PM: Thank you for that question. Australia's policy in relation to the Taiwan Straits has been one of a bipartisan consensus going back a long, long time and will be into the future. It contains two elements. One is that we do not speculate on any future contingencies concerning what may or may not happen in the Taiwan Strait. The second part of my response to your question is that Australia takes seriously its alliance responsibilities to the United States.
JOURNALIST: Prime Minister I think if I have the numbers right you're relying on $20 billion in defence savings going forward to make this plan work, that infers a quite incredible change, turnaround I would have thought in budget efficiency dividends for this department. Do you agree that it does and what makes you think that you now can extract that kind of efficiency from the Defence Department where so many others have failed?
PM: First of all, parallel to this exercise, that is the production of the Defence White Paper, we've undertaken a parallel exercise in the deep and fundamental review of the systems underpinning defence procurement. This is an important area of future savings, the way in which we go about procuring defence force kit and equipment in the future as well as underlying savings in the portfolio as well.
These discussions have proceeded in debates within the national security committee of the cabinet, proceed with the same sort of intensity and depth as has had the actual preparation of the White Paper itself, they fold one into the other.
The Government has complete confidence in the administration of defence and in the leadership of the individual services headed by the Chief of Defence Force that we will get there and the reason for that is that our defence leadership is acutely conscious of their obligations, wider national obligations as well which is to work within overall defence budgeting parameters. Part of the contribution will come from savings and efficiencies as well as from the future defence procurement program but part of the compact also lies in us providing a secure defence funding element long term as well.
We believe we have achieved a good partnership approach with the defence leadership on this. We are confident we can deliver on this in the future.
And remember this, it is all about ensuring that in more than a generation's time those sitting on a deck of a vessel such as this can look back at these decisions and say we did everything possible to plan for the future defence needs of this Commonwealth of Australia, given the expenses involved, given the uncertainty in the strategic environment, in ensuring the raft and range of capabilities in our planning and therefore in the future at our disposal to respond to the challenges which arise in this challenging period ahead.
Ladies and gentlemen I thank you for your attention this morning and for bearing with us during this press conference and these presentations on a bright and sunny Sydney morning. This as I said before is a good day for the nation, a good day for the Australian defence force.
Thank you.