Canberra
[ACKNOWLEDGEMENTS OMITTED]
Defence planning by its very nature is a complex business.
The judgements of governments about Australia's defence needs to be tested regularly.
In 2009, the Government committed to delivering new White Papers at intervals of no greater than five years.
Last year in May, the Minister and I agreed that we would bring forward the next Defence White Paper by a year.
We did this because of the very significant developments internationally and domestically since the 2009 White Paper.
These developments include the accelerated shift of economic and strategic weight to our region of the world; the US re-balance, the ADF drawdowns in Afghanistan, East Timor and the Solomon Islands, and the global financial crisis, the full effects of which were not clear in 2009.
The 2013 White Paper considers these important developments and their implications for our defence policy and defence force.
I want to touch briefly on the main points in the White Paper and then I will invite Minister Smith to make some comments.
First, the White Paper underlines the enormous stake Australia has in managing strategic change in the Indo-Pacific region and managing it peacefully.
In particular, in a US-China relationship in which competition is minimised and cooperation maximised.
And in a region in which flashpoints such as North Korea and territorial disputes are managed peacefully and in a way that avoids the risk of dangerous miscalculations.
Defence policy is one of the key planks of Australia's whole of government strategy for managing these challenges and securing Australia's future in Asia, which is set out in the Australia in the Asian Century White Paper and in our National Security Strategy.
The White Paper reaffirms the central and enduring importance of our alliance relationship with the United States and the contribution this makes to regional stability and to Australia's security.
And it commits the Government to deeper defence partnerships in our region including with China, our longstanding partner New Zealand, and with countries such as Indonesia, India, Singapore, Japan, the Republic of Korea and Malaysia.
Second, the White Paper finds that the key capabilities envisaged in 2009 including a more robust maritime force along with a continuing commitment to fifth generation fighter aircraft and a strategic strike capability remain appropriate for Australia.
The Government therefore reaffirms its commitment to the core capability elements of 2009 White Paper including Joint Strike Fighters, new amphibious ships, twelve new future submarines and our Air Warfare Destroyers.
Third, while the Joint Strike Fighter project has suffered cost overruns and delays, the Government remains committed to the JSF as our principal ADF strike capability and confident of its delivery.
We envisage three operational squadrons of the JSF entering service beginning around 2020.
However, to ensure air combat capability through the transition to the Joint Strike Fighter, the Government is announcing today that it will purchase twelve new-build Growler aircraft.
The Growler is the electronic warfare variant of the Super Hornet.
This capability purchase will allow Australia to retain its existing 24 Super Hornets in their current air combat configuration whilst also maintaining 12 Growler aircraft.
The cost of this purchase is estimated at around $1.5 billion over the next four years and will be contained in the forthcoming budget and included in Defence's four year forward estimates.
Fourth, Government remains committed to the assembly of twelve future submarines in South Australia.
The Government is announcing today that as a result of the detailed design analysis, it is suspending further work on military off-the-shelf or modified military off-the-self options.
Our assessment is that these options are unlikely to meet the operating requirements for the future submarine.
The Government will therefore focus its further consideration on two options: an evolved Collins Class or an entirely new design.
Minister Smith will also make some remarks about the combat system for future submarines and the land-based test platform we are developing.
We are also releasing today the future submarine industry skills plan to ensure we have the skills and expertise in the maritime sector for this major national project.
Fifth, Government makes clear in the White Paper the decisions about Defence funding cannot be made in isolation of the nation's broader fiscal position and priorities.
Into the foreseeable future, Australian governments will have to make choices about priorities and the allocation of resources across portfolios.
The White Paper commits the Government to a funding model for Defence based on the four year forward estimates budget cycle with an additional six years of funding guidance.
Over time, the Government will endeavour to increase Defence spending to about two per cent of GDP.
But I want to be clear that we see this as a longer-term objective as and when fiscal circumstances allow.
There has been considerable commentary about current levels of Defence spending since the last budget.
Notwithstanding current fiscal restraints, under this Government Defence spending over the four year forward estimates cycles topped $100 billion for the first time.
In this year's budget we will once again allocate more than $100 billion to Defence over the forward estimates.
And over that period Defence spending will rise in absolute terms and in a modest way, relative to last year's budget estimates.
The Government believes this level of funding is both appropriate in current circumstances and sustainable.
Into the future, the Government will fund capability acquisitions as and when they come on-stream.
Beyond capability and funding, the White Paper addresses a range of other issues of fundamental importance to our defence organisation.
Among these are:
* How the Government will manage the transition of our Defence Force from its current very high level of operational tempo;
* The vital importance of defence reform to find savings for defence investment and to drive cultural change and improve accountability;
* The Government's commitment to maintaining an Australian defence industry capable of supporting our defence requirements;
* Ensuring the ADF is well positioned geographically to meet Australia's security challenges through implementation of the Australian Defence Force posture review; and
* The critical importance of looking after the health and wellbeing of our serving and ex-service men and women including in relation to mental health disorders
And in that context I am delighted today that we are also announcing a $25.5 million package for enhanced mental health programs for serving and ex-service personnel and their families.
I commend this White Paper to you and I invite the Minister for Defence, Minister Smith to make some comments.