PRIME MINISTER
FOR MEDIA THURSDAY
Joint Statement by the Prime Minister and Minister
for Defence ,7 MAY .1981
Defence Review
Mr John Utz, Chairman and Chief Executive of Wormald-
International Limited, will chair the major Review of Defence
Qrganisationf announced by the Prime Minister as being part
of the Review of Commonwealth Functions. The other members
of the Review committee will be General Sir Arthur MacDonald,
former Chief of the Defence Force Staff, now retired;
Sir Frederick Wheeler, company director, former Head of the
irreasury and former Chairman of the Public Service Board; and
Mr Eric Neal, Chief Executive and Director of Boral Ltd.
IThe Government is very pleased that these distinguished
people are able to give their time to this important task, and.
have so readily and willingly agreed to participate.
The Review will assess the suitability of the higher
defence organisation to propose and implement policy for the
achievement of government defenc'e objectives.
When the Royal Commission of Australian Government
Administration reported in 1976, it noted that its enquiries
had not touched on the defence area because at that time the
amalgamation-of what had previously been five separate
departments into the present single defence organisation was
still under way. The Royal Commis ' sion recommended that, after
a few years experience of the present pattern of defence
administration, an independent body should be appointed to
undertake a thorough study of the effectiveness of -the structural
arrangements and their possible relevance to other-fields of
Government responsibility.
It is the Government's view that this is now an
appropriate time to stand back and consider whether further
improvements might be made, and in what respects.
As already indicated in the Parliament, the terms of
reference provided for the Review are:-
To review the organisation of the higher Defence
machinery in the light of experience since the
Defence reorganisation of 9 February 1976, with
particular reference to:-./ 2
2.
the suitability of the organisation to propose
and implement policy for the achievement of
governmental defence objectives, including
development of:
capability for independent defence of
our national security interests;
national defence preparedness;
defence cooperation with allies and
regional friends;
incr. eased self-reliance in the national
infrastructure supporting Defence.
the scQpe for further rationa-lisation and economy
in'managerial & rrangements for defence-relatedactivities
of the Government now conducted outside
the-Defence Organisation;
the suitability of the organisation for a defence
emergency or war;
the distribution of responsibilities within the
higher Defence machinery as laid down in Defence
and other relevant statutes and in the Directives
issued by the Minister for Defence;
the organisation and functions of the senior Defence'
Committees. The Review body is expected to report in .1982.
Y'