Australia MoD Consolidates Private Financing (Apr. 11)
A new consultative network has been established to address the application of private financing within the Department of Defence.
Private financing is the term used to define the accessing of private sector funds for Defence proposals requiring investment in capital assets. The application of private financing is being managed by the Australian Defence Headquarters' Organisational Effectiveness Branch (OEB), headed by Commodore Syd Lemon. This new branch, among other initiatives, continues Defence's significant commitment to commercial support.
CDRE Lemon said the Private Financing Consultative Network would bring together key and knowledgeable people to assist with the development of a coordinated approach to private financing.
"There is a growing acceptance that there are real gains to be made from the application of private financing within the Defence environment," he said. "The establishment of the consultative network is aimed at sharing experiences and information exchanges so Defence can continue its proactive approach."
CDRE Lemon pointed out initial studies into private financing were conducted last year by the Resource and Financial Planning Group. In addition, a working group of the Defence Industry Advisory Council this year consulted with industry and examined private financing opportunities and constraints.
"The reviews found that PF has the potential to offer Defence reduced costs, flexibility and innovative solutions," he said. "However, it is not an automatic option and the primary focus will remain the delivery of value for money."
The Defence Executive has decided that private financing be considered for proposals requiring investment of Defence resources subject to:
**Not limiting the ability or accountability of the ADF in executing an operation, and
**Excluding the application of lethal or combative force.
Private financing may be applicable to new and replacement equipment, market testing service provision, sale and lease back with service provision and as part of resource and efficiency reviews.
The Organisation Effectiveness Branch has become the point of reference and guidance for the application of private financing. The new branch has been established within ADHQ's Management and Reporting Division, reporting to Divisional Head Mr Greg Harper.
