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Aussie Govt. Further Reforms Procurement (June 22)

Two new Defence Industry sector plans will help reduce risks in defence procurement, Assistant Defence Minister, Mal Brough said today.

Mr Brough today announced that the Government had endorsed the Aerospace and Electronic Systems Sector Plans that had been subject to detailed consultation with industry over the past two years.

"The Aerospace and Electronics Sector Plans provide the basis to sustain those industry capabilities critical to Australia’s national security needs," Mr Brough said. "The sector plans will see the consolidation of the aerospace support sector around several prime contractors managing multiple aerospace platforms in a contestable market for long-term support contracts."

"The plans aim to improve the capabilities, capacity and contractual performance of defence industry and to manage demand to offer a better commercial basis for investment. The sector plans propose a more strategic approach to Defence procurement, in particular avoiding the ad-hoc project by project approach to Defence procurement.

"This will help facilitate long-term industry investment in the sustainment of strategic industry capabilities"

Mr Brough said the sector plans will better position Australian industry to meet the research and development, labour skills and industrial capability requirements associated with an expected 30 percent increase in demand, over the next decade, to deliver the $50 billion Defence Capability Plan."

"These two plans follow on the plan for naval shipbuilding arising out of the Carnegie-Wylie report and the Government is currently considering land and weapons issues."

"While the Howard Government has improved Defence procurement, there is still a long way to go in the process of reform. These plans complement the work being done to reform the Defence Material Organisation after the Kinnaird Review."

"These sector plans help coordinate the Government and specific defence industry capabilities for Australia’s long term national security efforts," Mr Brough said. (ends)
Better Industry Plans for Improved Defence Procurement