SECTION 3 OUTCOME PERFORMANCE...performance indicators and targets used to assess and monitor the...

SECTION 3OUTCOME PERFORMANCE

62 DEFENCE ANNUAL REPORT 2008-09 VOLUME 1

CHAPTER 7 PERFORMANCE

SUMMARYOUTCOME & OUTPUT STRUCTURE CHANGEPrior to the 2008-09 Budget, the Government had seven outcomes for Defence. Of these, six were departmental outcomes which mainly focused on the delivery of military capabilities, and one was an administered outcome. In the 2008-09 Budget, Defence implemented a new outcome and output framework. The new structure increased the Government’s and the community’s visibility of what Defence delivers as it is aligned with Defence’s internal resource allocations and accountability structure, and specifies performance indicators and targets used to assess and monitor the performance of Defence in achieving government outcomes.

Under the new structure, Defence will report against the following three outcomes:

• Outcome 1: Australia’s national interests are protected and advanced through the provision of military capabilities and the promotion of security and stability

• Outcome 2: Military operations and other tasks directed by Government to achieve the desired results

• Outcome 3: Defence’s support to the Australian community and civilian authorities achieves the desired results.

Details of the new outcome structure can be found in Chapter Six of the Portfolio Budget Statements 2008-09.

Measuring PerformanceDefence’s performance against its Key Performance Indicators (KPIs) is measured on the following four-point scale.

— Not achieved. None or minimal progress was made against targets in 2008-09. Explanations are provided in the ‘further information’ column.Partially achieved. Some targets were met, and any issues are being managed.Substantially achieved. Targets were mostly met and any issues are being managed.Achieved. All targets for 2008-09 were met or exceeded.

CHAPTER 7 PERFORMANCE SUMMARY

DEFENCE ANNUAL REPORT 2008-09 VOLUME 1 63

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COST OF DEFENCE OUTCOMESTable 7.1 Total cost of Defence Outcomes and Outputs on an accrual basis, 2008-09

NOTES

1. Budget Estimates are consistent with Portfolio Budget Statements 2008-09.

2. Revised Estimates are consistent with Portfolio Additional Estimates Statements 2008-09.

3. Variation figures are the difference between Actual Result and Revised Estimate.

4. The actual amounts reported in Outcomes 2 and 3 do not include various accrual expenses such as depreciation and asset impairment as these items cannot be reliably attributed to these Outcomes. This is consistent with the requirements of the 2008-09 Finance Ministers Orders and Accounting Standard AAS1052.

5. Similarly DMO expenditure of $448m in support of operations cannot be reliably disaggregated to the level required for the purpose of Note 32 in the 2008-09 Financial Statements and as such is included in Outcome 1.

6. After including $448m from Outcome 1, the costs attributed to Outcomes 2 and 3 reconcile with the total costs of operations shown in Table 9.2.

2008-09Budget

estimate[1]

2008-09Revised

estimate[2]

2008-09Actual result

2008-09

Variation[3]

$'000 $'000 $'000 $'000 %Outcome 1: Australia's national interests are protected and advanced through the provision of military capabilities and the promotion of security and stability

Departmental Net Cost of Service 18,379,067 19,099,284 20,466,340 1,367,056 7Administered Net Cost of Service 2,169,897 2,187,301 2,583,879 396,578 18

Net Cost of Service for Outcome 1 20,548,964 21,286,585 23,050,219 1,763,634 8Outcome 2: Military operations and other tasks directed by the Government to achieve the desired resultsNet Cost of Service for Outcome 2 1,000,107 1,119,066 730,521 -388,545 -35Outcome 3: Defence's support to the Australian community and civilian authorities to achieve the desired resultsNet Cost of Service for Outcome 3 12,863 12,863 14,557 1,694 13Net Cost of Service for Defence Outcomes

21,561,934 22,418,514 23,795,297 1,376,783 6

Departmental Net Cost of Service 19,392,037 20,231,213 21,211,418 980,205 5

Administered Net Cost of Service 2,169,897 2,187,301 2,583,879 396,578 18

Total Cost of Defence Outcomes 21,561,934 22,418,514[4,5,6]

23,795,297 1,376,783 6



Table 7.2 Overall cost to Government of Defence Outcomes (Departmental and Administered), 2008-09

NOTES




Outcome 1$'000

Outcome 2$'000

Outcome 3$'000

Total$'000

DepartmentalExpenses

Employees 8,037,886 238,650 2,365 8,278,901Suppliers 8,348,687 497,233 12,192 8,858,112Grants 14,349 - - 14,349Depreciation and amortisation 3,907,639 - - 3,907,639Finance cost 94,366 - - 94,366Write-down of assets and impairment of assets

1,345,808 - - 1,345,808

Net losses from sale of assets 97,957 - - 97,957Other expenses 25,495 87 - 25,582

Total expenses 21,872,187 735,970 14,557 22,622,714Income

RevenuesGoods and services 723,111 5,449 - 728,560Other revenue 32,875 - - 32,875Total Revenue 755,986 5,449 - 761,435GainsReversals of previous asset write-downs

642,299 - - 642,299

Net gains from sale of assets 6,138 - - 6,138Other Gains 1,424 - - 1,424Total Gains 649,861 - - 649,861

Total income 1,405,847 5,449 - 1,411,296Net cost of Departmental Outcomes[1,2,3]

20,466,340 730,521 14,557 21,211,418

AdministeredRevenues 917,152 - - 917,152Expenses 3,501,031 - - 3,501,031Net cost of Administered outcomes 2,583,879 - - 2,583,879



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Table 7.3 Cost to Government of Departmental Outcomes, 2008-09

NOTES




4. Other revenue includes rental income.




8. This variation is $37.1m higher than the variation in Table 2.2 due to additional funding received post-Portfolio Additional Estimates 2008-09 relating to foreign exchange movements, which reduced the deficit to $943.1m.

2008-09Budget

estimate[1]

2008-09Revised

estimate[2]


2008-09

Variation[3]

$'000 $'000 $'000 $'000 %Expenses

Employee Benefits 7,941,313 8,127,297 8,278,901 151,604 2Suppliers 8,528,758 9,155,541 8,858,112 -297,429 -3Grants 1,556 11,556 14,349 2,793 24Depreciation and amortisation

3,660,134 3,650,134 3,907,639 257,505 7

Finance costs 48,925 48,925 94,366 45,441 93Write-down and impairment of assets

130,000 361,670 1,345,808 984,138 272

Losses from asset sales - - 97,957 97,957 100Foreign exchange losses - - 434 434 100Other expenses 943 942 25,148 24,206 2,570

Total expenses 20,311,629 21,356,065 22,622,714 1,266,649 6Income

RevenuesGoods and services 766,347 720,986 728,560 7,574 1

Other revenue [4] 45,545 90,201 32,875 -57,326 -64

Total revenue 811,892 811,187 761,435 -49,751 -6GainsReversal of previous asset write-downs

100,000 300,507 642,299 341,792 114

Net gains from sale of assets - 5,458 6,138 680 12Other gains 7,700 7,700 1,424 -6,276 -82Total gains 107,700 313,665 649,861 336,196 107

Total income 919,592 1,124,852 1,411,296 286,445 25

Net cost of all outcomes 19,392,037 20,231,213[5,6,7]

21,211,418[8]

980,205 5


CHAPTER 8OUTCOME 1

PERFORMANCE Outcome 1 Australia’s National Interests are Protected and Advanced Through the Provision of Military Capabilities and the Promotion of Security and Stability

OUTCOME 1 SUMMARYThe primary focus of Outcome 1 is on maintaining the capacity to support current commitments and provide response options to the Government to meet the range of potential future, domestic, regional and global contingencies. It also covers working collaboratively with our neighbours and the broader international defence community and contributing to coalition operations in support of Australia’s national interests. As well as the provision of military capabilities, this outcome encompasses all of the policy, command and support functions undertaken by the organisation.

There are 14 output groups encompassed in Outcome 1. Defence’s administered appropriations relating to Superannuation and Housing Support Services for Current and Retired Personnel are also covered by Outcome 1.

At the start of 2008-09 Outcome 1 aimed to address the strategic objectives set out in the 2000 Defence White Paper and the two key elements of the then current Defence policy response enunciated in the Defence Update 2005 and confirmed in Defence Update 2007. Successful development and release of the new White Paper during 2008-09 brought the strategic objectives up to date. Accordingly, the strategic objectives are:

• a secure Australia

• a secure immediate neighbourhood

• stability in the Asia-Pacific region

• a rules-based global security order.1

Apart from supporting current operations and delivering the White Paper as part of Outcome 1, Defence continued its strong commitment on the recruitment and retention of ADF personnel.2

Defence’s plan to implement reform to improve effectiveness, efficiency and enhance governance, as well as implement a program of efficiency and economy measures has been rolled into the Strategic Reform Program.

Table 8.1 provides the financial detail for Outcome 1.

1. More information on strategic objectives is available under Strategy and Strategic Reform on page 41 in Section 2.

2. More information on recruitment and retention of ADF personnel is available under Output Group 1.13 on page 115, with supporting information and figures provided in Appendix 7—People.

CHAPTER 8 OUTCOME 1 PERFORMANCE


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Table 8.1 Total cost of Defence Outcome 1 - Australia's National Interests are Protected and Advanced Through the Provision of Military Capabilities and the Promotion of Security and Stability

2008-09Budget

estimate[1]

2008-09Revised

estimate[2]


2008-09

Variation[3]

$'000 $'000 $'000 $'000 %Output group 1.1—Office of the Secretary and CDFDepartmental Net Cost 82,848 87,883 207,055 119,172 136Output group 1.2—Navy CapabilitiesDepartmental Net Cost 3,636,215 3,812,268 3,979,224 166,956 4Output group 1.3—Army CapabilitiesDepartmental Net Cost 4,568,693 4,795,768 5,014,621 218,853 5Output group 1.4—Air Force CapabilitiesDepartmental Net Cost 3,866,691 3,837,250 3,905,684 68,434 2Output group 1.5—Intelligence CapabilitiesDepartmental Net Cost 647,795 629,247 501,071 -128,176 -20Output group 1.6—Defence SupportAdministered items - specific purpose payment

23,300 23,300 - -23,300 -100

Departmental Net Cost 3,108,623 3,244,835 3,168,997 -75,838 -2Output group 1.7—Defence Science and TechnologyDepartmental Net Cost 351,990 385,070 374,906 -10,164 -3Output group 1.8—Chief Information OfficerDepartmental Net Cost 699,984 656,375 696,623 40,248 6Output group 1.9—Vice Chief of the Defence ForceDepartmental Net Cost 262,016 325,503 1,317,631 992,128 305Output group 1.10—Joint Operations CommandDepartmental Net Cost 48,437 38,763 95,462 56,699 146Output group 1.11—Capability DevelopmentDepartmental Net Cost 342,919 179,240 129,739 -49,501 -28Output group 1.12—Chief Finance OfficerDepartmental Net Cost 421,723 736,970 818,598 81,628 11Output group 1.13—People Strategies and PolicyDepartmental Net Cost 341,132 370,112 256,727 -113,385 -31Output group 1.14—Superannuation and Housing Support Services for Current and Retired Defence Personnel and other Administered ItemsSpecial appropriations:

Defence Force Retirement Benefits Act, 1948 Part VIC , s.82ZJ (1)[1]

91,430 91,430 78,000 -13,430 -15

Defence Force Retirements and Death Benefits Act, 1973 Part XII, s.125 (3) [1]

1,439,070 1,439,070 1,547,000 107,930 7

Military Superannuation and Benefits Act, 1991 Part V, s.17[1]

1,360,200 1,360,200 1,840,720 480,520 35



NOTES




4. Departmental outputs = Expenses - Total income.

5. Administered items = Expenses, revenue is returned to Government.

6. Does not include net capital receipts.

7. These are accrual figures.




Defence Force (Home Loan Assistance) Act, 1990 Part IV, s.38[1]

52,638 11,000 8,348 -2,652 -24

Defence Home Ownership Assistance Scheme Act 2009

- 39,868 26,954 -12,914 -32

Parliamentary Entitlements Act, 1990 Part I, s.11[1]

- - 9 9 100

Total Expenses output for group 1.14 2,943,338 2,941,568 3,501,031 559,463 19Total Revenue output for group 1.14 796,741 777,567 917,152 139,585 18Administered Net Cost for output group 1.14

2,146,597 2,164,001 2,583,879 419,878 19

Net Cost of Service for Outcome1 20,548,964 21,286,585 23,050,219 1,763,634 8Departmental Net Cost of Service 18,379,067 19,099,284 20,466,340 1,367,056 7Administered Net Cost of Service 2,169,897 2,187,301 2,583,879 396,578 18

Total resources for Outcome 1 20,548,964 21,286,585[8,9,10]

23,050,219 1,763,634 8

2008-09Budget

estimate[1]

2008-09Revised

estimate[2]


2008-09

Variation[3]

$'000 $'000 $'000 $'000 %



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Table 8.2 Departmental cost summary for Outcome 1- Australia's National Interests are Protected and Advanced Through the Provision of Military Capabilities and the Promotion of Security and Stability

NOTES




4. The actual amounts reported in Outcomes 2 and 3 do not include various accrual expenses such as depreciation and asset inpairment as these iems cannot be reliably attributed to these Outcomes. This is consistent with the requirements of the 2008-09 Finance Ministers Orders and Accounting Standard AAS1052.

5. Similarly DMO expendature of $448m in support of operations cannot be reliably disaggregated to the level required for the purpose of Note 32 in the 2008-09 Financial Statements and as such is included in Outcome 1.


2008-09Budget

estimate[1]

2008-09Revised

estimate[2]


2008-09

Variation[3]

$'000 $'000 $'000 $'000 %Expenses

Employees 7,735,276 7,885,471 8,037,886 152,415 2Suppliers 7,721,825 8,253,715 8,348,687 94,972 1Grants 1,557 11,556 14,349 2,793 24Depreciation and amortisation

3,660,134 3,650,134 3,907,639 257,505 7

Finance cost 48,925 48,925 94,366 45,441 93Write-down of assets and impairment of assets

129,999 361,670 1,345,808 984,138 272

Net losses from sale of assets

- - 97,957 97,957 100

Other expenses 943 942 25,495 24,553 2,606Total Expenses 19,298,659 20,212,421 21,872,187 1,659,766 8Income

RevenuesGoods and services 766,347 709,271 723,111 13,840 2Other revenue 45,544 90,201 32,875 -57,326 -64Total Revenue 811,891 799,472 755,986 -43,486 -5GainsReversals of previous asset write-downs

100,000 300,507 642,299 341,792 114

Net gains from sale of assets

- 5,458 6,138 680 12

Other Gains 7,700 7,700 1,424 -6,276 -82Total Gains 107,700 313,665 649,861 336,196 107

Total Income 919,591 1,113,137 1,405,847 292,710 26

Net cost of Outcome 1 18,379,067 19,099,284[4,5,6]

20,466,340 1,367,056 7



OUTPUT GROUP 1.1 OFFICE OF THE SECRETARY & CDFThe primary role of the Office of the Secretary and CDF Group is to support the Secretary and CDF so that they can better respond to the demands of high operational tempo while also delivering high quality policy advice, driving organisational reform and exercising strategic leadership. A key focus is to ensure that there is a close linkage between the Government’s strategic direction and Defence’s business planning and performance framework. The Office of the Secretary and CDF is closely monitoring and managing the vast array of operational, commercial, financial, regulatory and other risks associated with the Defence mission of defending Australia and its national interests.

In 2008-09, the following organisational changes were implemented within the Group to better align objectives and responsibilities:

• Strategic Reform and Governance Executive was established to oversee and coordinate the implementation of the SRP

• Following the new Executive’s creation, Strategy, Coordination and Governance Executive was restructured and renamed Strategy Executive

• International Policy Division was transferred from Intelligence, Security and International Policy (IS&IP) Group on 1 July 2009. IS&IP Group was subsequently retitled Intelligence and Security Group

• The position of the Chief Audit Executive (CAE) was created to lead Defence’s internal audit function. The role of the Inspector General was also reviewed.1

The Office of the Secretary and CDF Group made progress throughout 2008-09 on a number of program deliverables.

The Defence Authority and Accountability Framework was reviewed to reduce duplication of guidance documents including Defence instructions and policy manuals.

An Enterprise Risk Management Framework has been established and management plans against a number of enterprise risks are being developed by relevant Groups and Services. Further efforts to establish a robust system for managing risk in Defence will continue as part of the Strategic Reform Program. For more information in how Defence manages risk, see page 53 in Chapter 2.

Business Continuity Management in Defence is progressing well and progress in business impact analysis and plan development is continuing. A Defence Strategic Business Impact Analysis was completed in June 2009 and preparations are underway for Group and Service business impact analyses.

1. More information on the role of the Inspector General Defence in Defence’s management of fraud and ethics awareness is available under the Corporate Governance section on page 50 in Chapter 5.



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Military Justice ReformA number of achievements were successfully accomplished during the reporting period, including:

• completion of the first independent review into the health of the reformed military justice system, conducted by former Chief Justice of NSW, Sir Laurence Street AC KCMG QC, and former Chief of the Air Force, Air Marshal Les Fisher AO (Retired)

• completion of purpose-built premises to house the Australian Military Court (AMC)

• introduction of new procedures in the summary justice system to simplify evidentiary processes and safeguard the rights of individuals by improving their rights to elect to be tried by, and to appeal to, the AMC, which was replaced in September 2009 by trials by courts martial and Defence Force Magistrate

• adoption of common investigative standards for Service Police based on the Australian Government Investigation Standards

• development of a comprehensive strategic policing plan to guide the future development of the Australian Defence Force Investigative Service.

Providing advice to GovernmentDefence has continued to maintain its high performance throughout 2008-09 in the provision and monitoring of timely and accurate advice to support our Ministers and Parliamentary Secretaries, and in providing training to ensure advice is high quality.

Table 8.3 Responsiveness to Ministers

NOTE

1. The figures include correspondence completed from the previous financial year.

The decrease in the number of items of ministerial correspondence provided to the Ministers and Parliamentary Secretary can be attributed to revised processes for the management of routine personnel matters. Under the new process these matters are more appropriately managed within Defence rather than at Ministerial level.

During the year, 33 Cabinet submissions and one memoranda were provided to Cabinet or the National Security Committee of Cabinet. This shows a slight increase from the 2007-08 figure of 33 submissions or memoranda.

Table 8.4 Ministerial awareness and training 2008-09

2006-07 2007-08 2008-09Submissions and briefs 5,660 3,891 4,273Ministerial correspondence tasked 9,347 9,845 6,962

Ministerial correspondence completed[1] 9,582 10,264 6,975

Total submissions and correspondence handled 15,242 14,155 11,248% provided on time 71 86 85

Course PersonnelDemocratic System of Government (e-learning module) 785Question Time Tours 217Supporting our Ministers with Good Policy Advice (Graduate workshops) 124Defence Government Awareness 203Defence Ministerial Writing 409Developing Complex Submissions 153Working With Ministers 68Total 1,959



Key Performance indicators[1]

NOTE

1. The performance information relating to the reforms of the military justice system and, in particular, the establishment of the Australian Military Court, summarise the achievements of 2008-09 prior to the decision handed down by the High Court of Australia on 26 August 2009.

KPI Status Further informationEnsure both Defence strategic policy and business strategy align with Government direction and priorities, provide clear guidance for the activities of Defence, and be responsive to external developments.

Strategic Policy Division was involved in the development of the White Paper and continued to provide overarching strategic guidance and supporting plans that have informed Defence decision-making. The Division also continued to provide advice on and manage key strategic matters such as: space, cyber and missile defence; strategic strike capabilities and effects; strategic education for the policy workforce and Australian export controls and Defence’s involvement in domestic counter-terrorism.

Ensure policy advice provided to the Government is accurate, timely and responsive, and offers practical and cost-effective approaches to fulfil the Government’s defence responsibilities.

To ensure Defence provides high quality advice to Ministers in a timely and accurate manner, emphasis has continued on the development and delivery of ministerial training. Defence personnel, at all levels, have access to a range of training, in both electronic and face-to-face formats, which assists in enhancing their skills for responding to Ministers.See page 71 for details of training provided by the Group to improve the quality of advice provided to Ministers and Parliamentary Secretaries from across Defence.

Prepare the draft Defence White Paper for Government consideration.

See case study on page 18 in Chapter 1.

Lead Defence reform, through implementation of the Defence Business Model and other reform initiatives.

Subsumed in the SRP. Under the SRP, Defence will introduce an authoritative and transparent Defence business model. A new business model will clearly outline business functions and processes across Defence that support the delivery of key outputs.

Enhance Defence’s governance framework, through clearer authority and accountability and more rigorous performance management, assurance and audit processes.

Subsumed in the SRP. The SRP has three key elements designed to make Defence more efficient and effective. These elements will address accountability, planning and productivity.

Continue implementation of the reforms to the military justice system, including the full establishment of the Australian Military Court, and support to the external review of the effectiveness of the military justice system.

The reform program continued to address the agreed recommendations arising from the 2005 Senate Foreign Affairs, Defence and Trade References Committee Report into The Effectiveness of Australia’s Military Justice System and previous reviews, with progress being monitored on a quarterly basis by the Chiefs of Service Committee. At the end of the reporting period, implementation of most of the outstanding recommendations was either complete or substantially complete, although some changes are likely to require more time to properly bed down.See Appendix 2 for a summary of military justice system reform strategies and achievements in 2008-09. For an extended discussion, the IGADF’s full report is available online at www.defence.gov.au/annualreports.

http://www.defence.gov.au/annualreports/



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Table 8.5 Cost summary for Output 1.1 - Office of the Secretary and CDF

NOTES




2008-09Budget

estimate[1]

2008-09Revised

estimate[2]


2008-09

Variation[3]

$'000 $'000 $'000 $'000 %

ExpensesEmployees 53,564 54,893 100,604 45,711 83Suppliers 29,812 33,307 103,710 70,403 211Grants 89 89 3,204 3,115 3,500Depreciation and amortisation

354 486 1,858 1,372 282

Finance cost - - - - -Write-down of assets and impairment of assets

10 - 1,111 1,111 100


- - - - -

Other expenses - - 5 5 100Total Expenses 83,829 88,775 210,492 121,717 137Income

RevenuesGoods and services 979 887 1,403 516 58Other revenue 3 5 1,711 1,706 34,120Total Revenue 981 892 3,114 2,222 249GainsReversals of previous asset write-downs

- - 122 122 100

Net gains from sale of assets - - 201 201 100Other Gains - - - - -Total Gains - - 323 323 100

Total Income 981 892 3,437 2,545 285Net cost of 1.1 - Office of the Secretary and CDF

82,848 87,883 207,055 119,172 136



OUTPUT GROUP 1.2 NAVY CAPABILITIESThe Navy provides maritime forces that contribute to the ADF’s capacity to defend Australia, contribute to regional security, support global interests, shape the strategic environment and protect national interests. This is done by providing maritime patrol and response, interdiction and strategic strike, protection of shipping and offshore territories and resources, maritime intelligence collection and evaluation, hydrographic and oceanographic operations, and escort duties. Peacetime activities include maritime surveillance and response within Australia’s offshore maritime zones, hydrographic, oceanographic and meteorological support operations, humanitarian assistance, and maritime search and rescue.

The Navy’s achievements in 2008-09 include:

• The Navy substantially achieved the levels of preparedness directed by the CDF. Personnel shortages, major upgrades and equipment defects precluded full achievement. During the year the Navy continued to support Operations Catalyst and Slipper in the Middle East, and Operation Resolute in support of Border Protection Command, primarily off Northern Australia. The reinvigoration of naval aviation, area air warfare, amphibious lift and undersea capabilities were progressed through the white paper and capability development process.

• The New Generation Navy (NGN) Transformation Program commenced on 11 November 2008. At its heart, the program is focused on ensuring the future health and enrichment of the Navy through cultural, leadership and structural reforms. These will permit the Navy to deliver future capability and embed signature behaviours that reflect a focus on people, performance and professionalism. The program will assist the Navy to respond to the Defence White Paper and the Defence Strategic Reform Program (SRP). A key outcome of the program is to achieve a sustainable submarine capability. The Submarine Workforce Sustainability Review identified a range of challenges and made 29 recommendations for urgent reforms to the way the Navy manages its submariners and its submarines. The Navy is implementing all recommendations within the context of NGN.

• To better support the training of the Navy’s workforce, two Anzac class frigates, while remaining within readiness parameters, were designated as training platforms under the ‘Plan Train’ initiative. The ships were used alongside and at sea to progress individual training and maximise training opportunities for a number of officer and sailor categories. The major workforce initiative, ‘Sea Change’, which implemented significant improvements for the Navy people, achieved its primary objective and has been now absorbed into normal Navy business. The collective effect of the Navy Capability Allowance (approved in April 2008), the Graded Officer Pay Structure (implemented in August 2007) and the Graded Other Ranks Pay Structure (implemented April 2009) are factors in assisting to stabilise total numbers in the Navy’s workforce. Further information on the Navy’s recruitment and retention performance is available in Appendix 7—People.



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Key performance indicators

NOTES

1. Mission Capability measures capability for assigned tasks. It is defined as the required level of unit readiness for the actual tasking for which the force element has been scheduled at any time through its operational cycle. Tasking includes all scheduled activities to achieve assigned Defence operations, international engagement requirements and levels of preparedness required for a military response. Mission capability is assessed against Unit Ready Days (URD) ‘achieved’ and calculated by dividing the total number of mission capable days recorded throughout the year by the URD achieved to produce a percentage.

KPI Status Further informationProvide timely, accurate and considered advice on Navy capabilities to the CDF, the Secretary and the Government.

Timely, accurate and considered advice on Navy capabilities to the CDF, the Secretary and the Government was substantially achieved, with 94 per cent of all Ministerial submissions being delivered on time.

Achieve levels of preparedness directed by the Chief of the Defence Force for military response options with a warning time of less than 12 months.

Levels of preparedness were mostly met. The factors affecting full achievement included the limited numbers in the Seahawk and Sea King helicopter fleets, personnel shortages and unscheduled maintenance requirements in the Navy’s submarine fleet.

Achieve a level of training that maintains core skills and professional standards across all outputs.

Levels of training were largely met. The reduced availability of some ships, submarines and helicopters presented a challenge in training sufficient qualified personnel to maintain core skills and standards across all outputs.

Achieve mission capability[1] for assigned tasks.

Mission capability was mostly met. A range of systems-related defects across the force elements affected availability to complete all assigned tasks.

Achieve Hydroscheme 2007-10 data and surveying tasking requirements to meet national hydrographic surveying and charting obligations.

Overall achievement was 84 per cent. Units recorded 613 Survey/Sortie Days Achieved (SDA) from 726 Survey/Sortie Days Planned (SDP).Specific achievements were as follows:• Hydrographic ships – 95 per cent (247 SDA from

259 SDP). Equipment defects and inclement weather reduced achievement.

• Survey motor launches – 80 per cent (217 SDA from 270 SDP). Equipment defects and inclement weather reduced achievement.

• Laser airborne depth sounder aircraft – 82 per cent (75 SDA from 92 SDP). Delays in the sensor upgrade program reduced achievement.

• Deployable geospatial support team – 70 per cent (74 SDA from 105 SDP). Underachievement was due to staff shortages, which resulted in cancellation of some survey taskings.



Force element targets[1]

Target Status Further InformationOutput 1.2.3

4 Adelaide class frigates

857 URD[2]112 per cent – (960 URD achieved)Rescheduling of a major maintenance period resulted in increased platform availability.

8 Anzac class frigates 2,091 URD

102 per cent – (2,128 URD achieved)The overachievement of URD was a result of maintenance rescheduling, which increased availability.

Output 1.2.4

16 Seahawks 3,100 flying hours

91 per cent – (2,809 flying hours)Flying hours were below target because there was less operational tasking than forecast.

6 Sea Kings 1,100 flying hours

74 per cent – (815 flying hours) Sea King availability was affected by systems-related defects and extensions to scheduled major maintenance.

13 Squirrels3,200 [4,000] flying hours

96 per cent – (3,062 flying hours)

Output 1.2.5

14 Armidale class patrol boats3,500 URD

99 per cent – (3,471 URD achieved)

Output 1.2.6

6 Submarines762 [684] URD

82 per cent – (622 URD achieved)The underachievement was due to delays in HMA Ships Farncomb and Collins completing mid-cycle dockings and the delay to HMAS Waller completing an intermediate docking period.

Output 1.2.7

1 Oil Tanker280 URD

105 per cent – (294 URD achieved)The overachievement was due to major maintenance rescheduling, which increased availability.

1 Replenishment Ship365 URD

100 per cent – (365 URD achieved)

Output 1.2.8

6 Coastal mine hunters2,071 [2,088] URD


2 Auxiliary minesweepers 638 [730] URD


2 Clearance diving teams730 URD


Output 1.2.9

1 Heavy landing ship 365 URD


2 Amphibious landing ships642 URD

95 per cent – (607 URD achieved) The underachievement was due to major maintenance rescheduling, which reduced availability.

6 Heavy landing craft1,911 [1,958] URD




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NOTES

1. Where figures were updated in the PAES, the PBS estimate is shown in brackets.

2. Unit Ready Days (URD) are the number of days that a force element is available for tasking, by the Fleet Commander, either outside of major maintenance and within planned readiness requirements or in accordance with contracted availability.

3. The Chart Production Office was formerly referred to as the Australian Hydrographic Office.

Output 1.2.10

2 Hydrographic ships 730 URD


4 Survey motor launches1,016 [1,148] URD


1 Laser airborne depth sounder aircraft 600 [900] Flying Hours

82 per cent – (496 hours achieved) The flying hours underachievement was due to a delayed return to service from a sensor upgrade program, a change in scheduled maintenance and inclement weather.

1 Deployable geospatial support team 365 URD


1 Chart Production Office[3]

249 URD


1 Naval Air Station Weather and Oceanographic Centre240 URD

102 per cent – (244 URD achieved) Overachievement was due to extra requirements for forecasters to meet unscheduled activities.

2 Mobile Meteorological and Oceanographic teams730 URD


Navigational Chart Productions:• 50 New

charts/editions• 60 Electronic

navigational chart cells

Chart Production:• 110 per cent (55 new charts/editions)

Overachievement was due to unplanned simple chart conversions

• 206 per cent (329 electronic navigational chart cells)

Additional software licenses and improvements to hardware enabled an increase in production beyond that forecast.

Defence Support:• 30 [10] New Military

Geographic Information (MGI) products/editions

• 6 MGI foundation datasets

Defence Support:• 170 per cent (51 new MGI products/editions)• 200 per cent (12 MGI foundation datasets)Demand for products by Defence and approved civilian organisations exceeded forecast. All requirements were met.

Oceanographic database production:• 6 Web Enabled

Datasets

333 per cent - (20 Web Enabled Datasets) Process automation enabled improvements in dataset generation beyond that forecast.



Table 8.6 Cost summary for Output 1.2 - Navy Capabilities

NOTES




2008-09Budget

estimate[1]

2008-09Revised

estimate[2]


2008-09

Variation[3]

$'000 $'000 $'000 $'000 %Expenses

Employees 1,312,505 1,346,212 1,349,977 3,765 0Suppliers 1,355,147 1,458,069 1,438,937 -19,132 -1Grants - - - - -Depreciation and amortisation 1,015,076 935,102 1,080,237 145,135 16Finance cost - 90,006 4,749 -85,257 -95Write-down of assets and impairment of assets

31,684 58,663 178,567 119,904 204

Net losses from sale of assets - - 84,983 84,983 100Other expenses - - 12 12 100

Total Expenses 3,714,412 3,888,052 4,137,462 249,410 6Income

RevenuesGoods and services 47,647 43,183 41,165 -2,018 -5Other revenue 5,049 9,307 228 -9,079 -98Total Revenue 52,697 52,490 41,393 -11,097 -21GainsReversals of previous asset write-downs

25,500 23,294 116,320 93,026 399

Net gains from sale of assets - - - - -Other Gains - - 525 525 100Total Gains 25,500 23,294 116,845 93,551 402

Total Income 78,197 75,784 158,238 82,454 109Net cost of 1.2 - Navy Capabilities

3,636,215 3,812,268 3,979,224 166,956 4


Case

Stu

dy

WHAT THE WHITE PAPER MEANS FOR THE NAVY The 2009 Defence White Paper has focused significantly on enhancing Australia’s maritime capabilities for the 21st century.

During the next 20 years, the Navy’s force structure will include new major destroyers and frigates, submarines, amphibious ships, offshore combatant vessels, naval combat helicopters and other advanced enabling capabilities.

Key capability decisions relevant to this enhanced maritime force include:

• a fleet of 12 new Submarines to replace the current six Collins class submarines

• a fleet of eight new larger frigates to replace the current Anzac class frigates

• two new Landing Helicopter Dock ships that will invigorate Defence’s amphibious capability

• a new strategic sealift ship to strengthen the Navy’s amphibious and transport capability

• a fleet of at least 24 new naval combat helicopters

• six new MRH-90 multi-role helicopters that will replace the general utility service previously provided by the Sea King fleet

• a fleet of 20 offshore combatant vessels equipped with modular mission systems that will incorporate the capabilities presently provided by the separate patrol boat, hydrographic and mine hunter fleets

• six new ocean-going heavy landing craft with greater range and speed than the aging Balikpapan class heavy landing craft

• replacement of HMAS Success with a new replenishment and logistic support ship.

The Air Warfare Destroyer (AWD) Program (SEA 4000) will deliver an affordable, effective, flexible and sustainable AWD capability for the security of Australia

Case Study



OUTPUT GROUP 1.3 ARMY CAPABILITIESThe Army contributes to the achievement of the Government’s defence objectives through the provision of capabilities for land and special operations. The Army also provides forces for peacetime tasks, including enhancing the national domestic security response to terrorist, chemical, biological, radiological or explosive incidents. The Army provides capabilities centred around special forces; light and medium combined arms operations; army aviation; combat and logistic support; and units for protective operations.

2008-09 achievements include:

• The implementation of the Adaptive Army initiative has been the keynote event within the Army during 2008-09. It delivers a standardised and more efficient preparation and assessment of forces for operations, and better aligns the Army with joint operational planning by restructuring the roles of Headquarters 1st Division. The Forces Command is now responsible for the execution of a new, unified individual and collective training and education continuum, which will deliver significant efficiencies. The Special Operations Command remains largely unchanged, maintaining its responsibility to generate and operationally prepare the Special Forces capability.

• These organisational changes enable follow-on initiatives in the Army to improve management of personnel, deliver efficiencies in materiel and inventory use, and enhanced knowledge management, training and education. The Adaptive Army aligns with the aims of the Strategic Reform Program and a broad range of efficiencies will be derived by aligning individual and collective functions into single commands.

• There has been strong growth as part of the Enhanced Land Force capability. On two occasions company-sized elements became operationally deployable and deployed. During 2008-09, 144 Protected Mobility Vehicles (PMV) were delivered and contracts were signed to upgrade 81 M113 Light Armoured Fighting Vehicles and an additional 239 PMV. Stage 1 facilities were approved and construction will commence in the second half of 2009 and be completed in 2010.

• The Army has over 2,300 personnel deployed on operations in both regional and non-regional commitments. The Adaptive Army implementation program has seen the review and rationalisation of the Army’s command and control structures, to ensure that the Army’s force generation, preparation and certification procedures are efficient and highly adaptive. Forces Command was raised on 1 July 2009, enabling the development and implementation of a new Army Training Continuum.

• A single Army Training Continuum concept has been developed for progressive implementation from 2009-10. It will support Forces Command’s mission by unifying individual and collective training experiences for individuals, teams and units. This approach will permit Forces Command to generate the right mix of force elements at the right level of capability to begin mission-specific training for operational deployment in support of the Government’s strategic objectives. In 2008-09, the Army continued to develop the optimum learning culture mandated by CDF’s Learning Culture Inquiry. Key deliverables included focusing on the learner,



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continuing to foster the Army’s values and behaviours, seeking the right balance of training and education, and developing instructors as leaders, mentors, coaches and subject-matter experts.

• There has been strong growth in the Army's Regular workforce through 2008-09, with personnel growth of 1,399 to a total of 27,828 at 1 July 2009. Growth has been achieved through a combination of increased enlistments, particularly from personnel with prior-service, and separation rates remaining below target at 10.3 per cent as at 1 July 2009. Further information on the Army’s recruitment and retention performance is available in Appendix 7—People.

Key performance indicatorsKPI Status Further informationProvide timely, accurate and considered advice on Army capabilities to the CDF, the Secretary and the Government.

The timely and accurate advice to Government and the Defence’s senior principals was achieved with 97 per cent of all ministerial submissions being delivered on time. Overall, the Army received 740 pieces of ministerial correspondence throughout 2008-09.

Achieve levels of preparedness directed by the CDF.

The Special Operations capability achieved almost all preparedness requirements. Medium Combined Operations continue to meet most allocated preparedness requirements, however continue to be impacted by operational commitments and introduction into service of the upgraded mechanised capability under the Hardened and Networked Army and the Enhanced Land Force. Light Combined Operations and Aviation Operations were substantially achieved over the period, with limitations on employment of Blackhawk helicopters into medium to high threat environments currently being addressed through an Electronic Warfare and Self Protection project. The motorised capability is experiencing impacts due to increased commitment of Protected Mobility Vehicles to the Middle East Area of Operations, resulting in a limited ability to meet contingency requirements as well as the Enhanced Land Force milestones for motorised combined arms operations. The Army Reserve continues to develop the High Readiness Reserve capability.


The Army has continued to improve its ability to deliver training to soldiers at the right time, place and to the required standard. The introduction of the Army Training Continuum will further improve the Army’s ability to evaluate and measure professional standards of soldiers in their workplace.




NOTE


Target Status Further InformationOutput 1.3.5

6 CH-47D Chinook1,570 (1,270) flying hours

109 per cent – (1,388 flying hours). Due to operational commitments in Afghanistan, the target for future years has been adjusted to reflect new requirements.

34 S-70A9 Black Hawk7,500 flying hours

96 per cent – 7,175 flying hours. Target substantively achieved. This is the best achievement against Black Hawk helicopter targets in the past 10 years.

41 B-206 Kiowa10,360 flying hours

77 per cent – 7,978 flying hoursDue largely to the commencement of the Kiowa withdrawal plan. The targets for future years have been adjusted in accordance with the drawdown plan.

14 Armed Reconnaissance Helicopter (ARH)5,520 flying hours

— 25 per cent – 1,795 flying hours16 ARH have now been delivered. The serviceability of aircraft has been less than expected, resulting in insufficient serviceable aircraft available to meet the target. As ARH matures it its expected achievement will improve. The acquisition of this asset is still underway and more detail is provided in the DMO volume.

2 MRH-90 Multi Role Helicopter600 flying hours

— 21 per cent – 121.7 flying hoursSix MRH-90 aircraft have now been delivered to DMO. The serviceability of aircraft has been significantly less than expected, resulting in insufficient serviceable aircraft available to meet the target. The acquisition of this asset is still underway and more detail is provided in the DMO volume.

3 B300 King Air 3502,000 flying hours

(90 per cent – 1,795 flying hours)B300 King Air will be transferred to Air Force in December 2009. Army will no longer have a fixed wing capability.



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Table 8.7 Cost summary for Output 1.3 - Army Capabilities

NOTES




2008-09Budget

estimate[1]

2008-09Revised

estimate[2]


2008-09

Variation[3]

$'000 $'000 $'000 $'000 %Expenses

Employees 2,566,784 2,676,425 2,703,106 26,681 1Suppliers 1,474,789 1,732,040 1,586,058 -145,982 -8Grants 78 10,078 10,104 26 0Depreciation and amortisation 616,608 446,579 630,188 183,609 41Finance cost - - 1,654 1,654 100Write-down of assets and impairment of assets

18,121 29,935 298,805 268,870 898

Net losses from sale of assets - - - - -Other expenses - - 2,110 2,110 100


RevenuesGoods and services 65,986 59,803 54,475 -5,328 -9Other revenue - - 586 586 100Total Revenue 65,986 59,803 55,061 -4,742 -8GainsReversals of previous asset write-downs

41,700 38,163 158,868 120,705 316

Net gains from sale of assets - 1,323 3,474 2,151 163Other Gains - - 1 1 100Total Gains 41,700 39,486 162,343 122,857 311

Total Income 107,686 99,289 217,404 118,115 119Net cost of 1.3 - Army Capabilities

4,568,693 4,795,768 5,014,621 218,853 5


WHAT THE WHITE PAPER MEANS FOR THE ARMYThe Adaptive Army will be equipped with world class technology and increased combat power and survivability. It will have enhanced ability to operate as a modern networked, mobile and highly adaptable force.

Army’s improvement and enhancement under the White Paper will include:

• a new combat vehicle system providing around 1,100 vehicles with greatly improved firepower, protection and mobility. The system will be equipped with the Army’s integrated battle management systems from inception

• around 7,000 support vehicles to replace the current varied fleets of wheeled transport and logistic support vehicles

• improved communications and command and control systems for land forces

• improved mobility through the acquisition of seven new CH47F (Chinook) medium-lift helicopters

• enhanced firepower through new artillery, both self-propelled and towed, as well as replacement mortars and a new direct fire anti-armour weapon

• improved protection for individual soldiers in dismounted close combat

• improved fire support provided by the ‘Tiger’ Armed Reconnaissance Helicopters (ARH)

• acquisition of 30 MRH-90 helicopters to replace the Army’s Black Hawk helicopter troop lift aircraft. They will enter service with the Army in 2011

• improved ground-based air defence through the replacement or upgrade of the Army’s RBS-70 missile system. The more advanced system will also include a new counter-rocket and counter-mortar capability to protect land forces from artillery, rockets and mortar fire.

The Army future force structure will include land combat and combat support forces (infantry, armour, artillery, combat engineers, and aviation) that are able to operate as combined-arms teams in the joint environment. They will be supported by enabling combat support elements (intelligence, signals and construction engineers) and combat service support systems (logistics and health). They will be highly mobile and able to adapt to different physical and social environments and capable of assuming a leadership role for a coalition combat, stabilisation or reconstruction operation.

Forces will continue to be based on three combat brigades (of around 4,000 troops each) consisting of multiple battalion-sized units. The establishment of two additional infantry

battalions planned under the Enhanced Land Force will continue.

The Army will be able to combine its combat and combat support units to generate 10 battalion-sized ‘battlegroups’ tailored for a wide range of operations.

An Australian CH-47 arrives with vital supplies including an engine for a Bushmaster at the construction site of a bridge destroyed by Taliban extremists.

Case Study



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OUTPUT GROUP 1.4 AIR FORCE CAPABILITIESThe Air Force applies capabilities to protect Australia and its national interests by providing a unique combination of flexibility, reach, precision and speed of response. The Air Force’s vision is to be a balanced, networked, expeditionary force that conducts air and surface operations focusing on air combat, combat support of air operations, surveillance and response, and airlift. These capabilities are supported through our command, training and integrated operational support agencies.

The Air Force’s capabilities can be deployed globally and rapidly to achieve the ADF’s key tasks of defending Australia, contributing to the security of the region and supporting Australia’s wider interests through participation in coalition operations and disaster responses. In particular, the Air Force’s air combat capability is essential for securing control of the air, a prerequisite for most ADF operations.

2008-09 Achievements

• Throughout 2008-09, the Air Force continued to support operations in the Middle East with airlift, P-3 Orion patrols, the Control and Reporting Centre, and embedded personnel in Joint and Coalition Force Headquarters. The Air Force also significantly contributed to border protection operations and regional engagement.

• The Air Force is preparing its organisation and people for the most wide-ranging and complex transition into service of aircraft and systems in its history. While there have been delays in some projects, the Air Force progressed planning during 2008-09 and will be prepared to enable a smooth and seamless acceptance of capabilities when they are delivered.

• The Air Force Improvement Program aligns with the aims of the Strategic Reform Program and was established in January 2008, to develop a culture and systematic methodology to improve capabilities. Training was developed to facilitate ongoing improvements, and the first trial improvement activities were completed to reduce the risk for larger capability improvement projects.

• The Air Force’s Personnel Strategy played a significant role in achieving exceptional retention rates (as shown in the separation rate table below) and strong recruiting. In particular, flexible work practices and an emphasis on meeting members' needs led to strong growth in the trained force. Further information on the Air Force’s recruitment and retention performance is available in Appendix Seven—People.

• The Air Force continues to meet Government operational requirements whilst evolving to meet future requirements through ongoing sustainable reform.





KPI Status Further informationProvide timely, accurate and considered advice on Air Force capabilities to the CDF, Secretary and the Government.

Air Force capability reporting at all levels of command, throughout each Force Element Group, provides detailed issues to higher headquarters. Formal input by Air Force Headquarters ensures that the Chief of the Defence Force and Government receive relevant information, and all submission timelines are met.

Achieve levels of preparedness directed by the CDF for military response options with a warning time of less than 12 months.

Preparedness levels demonstrated through the deployment of a Control and Reporting Centre to Afghanistan; continuous P-3 Orion, C-130 Hercules and more recently C-17 Globemaster III deployments to the Middle East under Operations Catalyst and Slipper; very high rate of effort for the P-3 supporting Operation Resolute. Additionally, rapid and sustained responses to humanitarian crises and disaster relief including; Victorian bushfire support by P-3 and C-130 aircraft and specialist personnel teams; DHC-4 and C-130 flood relief for North Queensland.


lAll Force Element Groups have met their directed evel of training and competencies.

Achieve mission capability for assigned tasks.

As per the directed preparedness levels, all relevant military response options have been rapid and sustained. Contributions to exercises including Red Flag 09, Pitch Black 09, RIMPAC 08, Bersama Lima and Bersama Shield have all successfully satisfied set objectives.

Target Status Further informationOutput 1.4.3

57 PC-9/SA (T)20,000 flying hours

93 per cent (18,579 flying hours)

8 B3005,700 flying hours

85 per cent (4,829 flying hours)The underachievement is attributed to a short term reduction in Air Force and Navy Observer training.



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NOTES


Output 1.4.4

12 C-130H Hercules3,200 flying hours

106 per cent (3,380 flying hours) The 180 hour overachievement is attributed to increased Middle East Area of Operations tasking for the C-130.

12 C-130J Hercules7,000 flying hours

103 per cent (7,205 flying hours) The 205 hour overachievement was attributed to an increase in support to both ADF and national tasking requirements including Middle East Area of Operations support.

4 C-17 Globemaster III4,000 [5,000] flying hours

84 per cent (3,367 flying hours)The underachievement was the result of immature logistics support; immature development of aircrew and technical workforce – both related to the introduction of this new capability into service; Large Aircraft Infra Red Countermeasures modification program and an increase in the number of shorter sorties which reduced the flying hours needed for the year.

1 KC-30A Multi-Role Tanker Transport100 flying hours

— 0 Flying hoursDue to delivery schedule slippages, with the proposed entry date for the platform moved to 2009-10.

14 DHC-4 Caribou4,100 flying hours

64 per cent (2,626 flying hours)The underachievement is a reflection of ongoing aircraft serviceability and availability issues due to ageing aircraft issues as well as the December 2009 planned withdrawal date reducing tasking.

2 B737 BBJ1,414 flying hours


3 CL604 Challenger2,403 flying hours


Output 1.4.6

19 P-3 Orion7,900 flying hours


1 AEW & C350 flying hours

— 0 Flying hoursThe underachievement is attributed to delivery schedule slippages with the proposed entry date for the platform moved to 2011.

Output 1.4.7

71 F/A-18 Hornet11,500 flying hours


15 F-1113,250 flying hours

81 per cent (2,644 flying hours)The underachievement is attributed to resource and capacity constraints, as well as the retention of appropriately experienced technical staff associated with the F-111 planned withdrawal date of December 2010.

33 Hawk Lead-in Fighter7,600 flying hours

86 per cent (6,561 flying hours)Hawk flying was restricted for a period while essential maintenance was conducted.

4 PC-9 Forward Air Control training aircraft1,030 flying hours

85 per cent (879 flying hours)The underachievement is due to temporary rate of effort reduction to permit completion of squadron maintenance program.

Output 1.4.8

3 PC-9822 flying hours

77 per cent (631 flying hours)One PC-9 was off line to complete Electronic Flight Instrumentation System installation.

Target Status Further information



Table 8.8 Cost summary for Output 1.4 - Air Force Capabilities

NOTES




2008-09Budget

estimate[1]

2008-09Revised

estimate[2]


2008-09

Variation[3]

$'000 $'000 $'000 $'000 %Expenses

Employees 1,340,578 1,378,432 1,375,132 -3,300 -0Suppliers 1,479,011 1,615,457 1,538,505 -76,952 -5Grants - - - - -Depreciation and amortisation

1,176,091 938,132 1,181,965 243,833 26

Finance cost - 7,885 6,975 -910 -12Write-down of assets and impairment of assets

19,693 32,407 81,372 48,965 151

Net losses from sale of assets - - - - -Other expenses - - 344 344 100


RevenuesGoods and services 115,981 105,114 100,331 -4,783 -5Other revenue - - 401 401 100

Total Revenue 115,981 105,114 100,732 -4,382 -4GainsReversals of previous asset write-downs

32,700 29,949 175,474 145,525 486

Net gains from sale of assets - - 2,300 2,300 100Other Gains - - 103 103 100Total Gains 32,700 29,949 177,877 147,928 494

Total Income 148,681 135,063 278,609 143,546 106Net cost of 1.4 - Air Force Capabilities

3,866,691 3,837,250 3,905,684 68,434 2


Case

Stu

dy

WHAT THE WHITE PAPER MEANS FOR THE AIR FORCEThrough the White Paper, the Air Force will be able to generate air power for the defence of Australia, support regional stability and nation building in the South West Pacific and East Timor, and contribute to coalition operations where and when necessary.

The White Paper plans to deliver approximately 100 F–35 Lightning II Joint Strike Fighter (JSF) aircraft with enhanced simulation and mission rehearsal systems. Furthermore, introduction of improved military air traffic control, navigation and communications systems that will permit closer alignment of the military and civilian national systems. In addition, the Air Force will:

• continue to acquire five KC–30A multi-role tanker aircraft supporting JSF, Super Hornet, Wedgetail and C-17 Globemaster III aircraft

• continue to acquire six Wedgetail Airborne Early Warning and Control aircraft

• continue to introduce 24 F/A–18F Super Hornets

• continue to enhance our capacity to collect and fuse air surveillance information so our Recognised Air Picture remains relevant for future joint operations

• replace our P–3 Orion aircraft with eight new maritime patrol aircraft supplemented by up to seven large high-altitude, long-endurance uninhabited aerial systems

• supplement the current C–130J Hercules fleet with two additional C–130J Hercules aircraft and retire the C–130H aircraft, and acquire a new battlefield airlift aircraft.

The Air Force will contribute to the whole of Defence reform program involving some internal workforce and organisational restructuring and modest growth to Permanent Air Force strength and will deliver a significant efficiency dividend. The Air Force will be far better positioned in the future to fight and win, to employ air power in combat, to offer comprehensive air power options to Government, and to support our community during difficult times.

The F-35 Joint Strike Fighter (JSF).

Case Study



OUTPUT GROUP 1.5 INTELLIGENCE CAPABILITIESIn 2008-09 intelligence capabilities were provided by the Intelligence, Security and International Policy Group. The Group had three primary responsibilities; to deliver intelligence capability for Defence, to lead the development of security policy, standards and plans to meet Defence’s protective security requirements, and to provide international policy advice to Government. From 1 July 2009, international policy advice was transferred to the Office of the Secretary and Chief of Defence Force Group and will be reported against Output Group (‘Program’) 1.1 in 2009-10.

In 2008-09, the Group’s achievements included:

• The Defence Signals Directorate (DSD) demonstrated capacity to surge in a crisis and produce intelligence to meet a wide range of national intelligence priorities while remaining focused on support to military operations and counter-terrorism. An increased awareness of cyber threats raised the demand for DSD services and the DSD provided a range of advice and assistance to federal and state government agencies on the security of their networks. The DSD was also involved in developing the cyber warfare component of the White Paper during 2008-09.

• In October 2008, the Defence Imagery and Geospatial Organisation (DIGO) Bendigo staff successfully transitioned into the new purpose-built facility, allowing the organisation to operate as an integrated entity.

• The Defence Intelligence Organisation (DIO) delivered Information Communications Technology (ICT) infrastructure and connectivity to the new Headquarters Joint Operations Command (HQJOC) facility in Bungendore, NSW.

• The Defence Security Authority (DSA) met the continued strong demand for security clearances and commenced implementation of technological developments to improve the management and support of the security vetting process.

• The International Policy (IP) Division provided advice on Australia’s military contribution to Afghanistan, the withdrawal of Australian forces from Iraq, and Australia’s presence in East Timor. Significant arrangements were finalised including the Australia-Japan Memorandum on Defence Cooperation, the Australia-Indonesia Joint Statement on Defence Cooperation and the Australia-Singapore Defence Cooperation Agreement.



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Key performance indicatorsKPI Status Further informationSupport the Government, Defence and other agencies with high quality intelligence and policy advice.

The DIGO maintained its strong focus on supporting ADF operations and exercises and its national customers by providing high-quality geospatial data and products.The DIO continued to provide the Government, Defence and the ADF with timely, accurate and relevant intelligence assessments, advice and services.The DSD maintained signals intelligence support to Government priorities to inform intelligence assessments and policy advice to the Government.The IP Division provided prompt and comprehensive policy advice on international defence issues, including the increase to Australia’s military contribution to coalition operations in Afghanistan and the withdrawal of Australia’s military involvement in Iraq.

Attract, develop and maintain a skilled workforce.

The DIGO refined its recruitment and marketing strategies to attract the best people at both entry and senior levels, and made a significant investment in training to develop unique skills and capabilities. The DIO reduced its annualised separation rate to approximately 12 per cent at 30 June 2009, down from 16 per cent in 2007-08.The DSD’s Strategic Recruitment Timeline guided programmatic and direct recruitment to meet DSD’s new requirements for 2008-09.The DSA identified protective security employment streams and provided guidance to managers on training and development opportunities for each stream.

Achieve international best practice in supporting military, police and wider security operations.

The DIGO provided timely, accurate and high quality intelligence and security policy advice in support of ADF, police and wider security operations.The DIO provided comprehensive intelligence support to ADF operations, particularly operations in Afghanistan, Iraq, East Timor and Solomon Islands.The DSD provided threat warning and situational awareness advice to inform ADF and law enforcement decision-making on operations.The DSA prioritised security clearance actions directly related to operations.

Strengthen the approach to security.

The DSD enhanced the Government’s situational awareness and response to cyber threats through increased staffing and investment in DSD’s information security area.The Chief Security Officer was appointed to lead the Defence protective security effort and establish the Defence Security Community, incorporating protective security practitioners across Defence and Defence Industry. The DSA strengthened Defence’s protective security governance framework, continued the refinement of the security risk assessment process and redeveloped protective security training.



Develop ‘next generation’ intelligence, geospatial and security capabilities.

During 2008-09, the DIGO worked to improve the accessibility of its products by commencing development of a Web Mapping Service which will be completed in September 2009.The DIO delivered improved ICT capability, achieved proof of concept of an advanced collaborative analytical tool and delivered ICT connectivity to HQJOC.The DSD developed advanced analytical skills in its workforce and combined these with innovative technological solutions to keep pace with changing technologies.The DSA progressed projects to introduce electronic processing of security clearances.

Deliver capability dividends through international partnerships.

The DIGO fostered continued bilateral and trilateral engagement, identified opportunities for enhanced cooperation and supported the reintegration of New Zealand into the geospatial intelligence community.The DSD leveraged its international partnerships to enable new capabilities and reporting to meet the Government’s intelligence and information security priorities.The IP Division achieved capability dividends through fostering practical defence cooperation with Australia’s allies and friends. International engagement activities promoted constructive regional cooperation and better positioned the ADF for participation in coalition operations and regional cooperative activities including counter-terrorism and humanitarian assistance/disaster relief operations. Key activities included the ADF participating in the first ASEAN Regional Forum field activity on disaster relief and implementing the enhanced Defence Cooperation Program with East Timor and Pakistan. Performance information on the Defence Cooperation Program is available in Appendix 3.

KPI Status Further information



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Table 8.9 Cost summary for Output 1.5 - Intelligence Capabilities

NOTES




2008-09Budget

estimate[1]

2008-09Revised

estimate[2]


2008-09

Variation[3]

$'000 $'000 $'000 $'000 %Expenses

Employees 269,147 275,959 228,284 -47,675 -17Suppliers 353,441 347,816 219,887 -127,929 -37Grants - - - - -Depreciation and amortisation

59,885 42,207 53,611 11,404 27


1,591 205 3,363 3,158 1,540

Net losses from sale of assets - - 453 453 100Other expenses - - - - -

Total Expenses 684,064 666,187 505,598 -160,589 -24Income

RevenuesGoods and services 36,188 32,797 1,736 -31,061 -95Other revenue 81 150 781 631 421


- 3,993 2,010 -1,983 -50

Net gains from sale of assets - - - - -Other Gains - - - - -Total Gains - 3,993 2,010 -1,983 -50

Total Income 36,269 36,940 4,527 -32,413 -88Net cost of 1.5 - Intelligence Capabilities

647,795 629,247 501,071 -128,176 -20



OUTPUT GROUP 1.6 DEFENCE SUPPORTThe Defence Support Group is a multi-faceted business that brings together responsibility for delivering most of the shared services that support the ADF and other Defence Groups.

The Group’s achievements in 2008-09 include:

• providing legal advice, policy development and training support for extensive changes to the Military Discipline System (discussed further in Output Group 1.1 – Office of the Secretary and CDF on page 70), including the complete revision of the Discipline Law Manuals

• facilitating the signing of two treaties (the Agreement to amend the Defence Chapeau Agreement with the United States, and the Agreement with Singapore for the Singapore Armed Forces use of the Shoalwater Bay Training Area), and the passing of two Defence Acts by the Parliament:

- The Defence Legislation (Miscellaneous Amendment) Bill 2008, which, among other things, incorporated the Third Additional Protocol to the Geneva Conventions (establishing a third emblem called a ‘Red Crystal’), and amended the Defence (Special Undertakings) Act 1952

- The Defence Legislation Amendment Bill (No. 1), which introduced a discretionary Tactical Payment Scheme, and amended the Defence Home Ownership Assistance Scheme Act 2008;

• successfully completing the Headquarters Joint Operations Command facility at Bungendore NSW on time and to budget through a public private partnership project

• as part of the White Paper development process, holistically re-examining the Defence estate and the role it plays in supporting the ADF, primarily to ensure the estate is strategically aligned, affordable and sustainable and supports capability

• obtaining Government agreement to additional funding for the Defence Estate and Defence’s five key basing principles.

Key performance indicatorsKPI Status Further informationDeliver DSG products and services on time and on budget to support the development and delivery of Defence capability.

Defence Support has fully supported the continuing introduction of new capability such as the Super Hornet, Hardened Networked Army and Enhanced Land Force, enabling these new capabilities to be introduced on time and on budget. During the year, public private partnerships such as Single LEAP (Living Environment and Accommodation Precinct) Phase 1 and Headquarters Joint Operations Command have been brought online.Defence Support has also provided support to all major domestic operations including the Victorian bushfires, as well as backfilled for personnel on overseas operations without any increase to the budgetary bottom line.



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Implement revised responsibilities and accountabilities for base support.

Defence Support and the three Services commenced rolling out the Base Accountabilities Model across Defence bases, which clearly defines and delineates accountabilities for capability and operational support, and for base support services, for completion by the end of December 2009.

Improve DSG’s business and governance as part of broader Defence reform and implementation of Defence’s response to the Defence Management Review.

Defence Support commenced wider Group reform in late 2008 which resulted in structural reform and business improvement to streamline governance arrangements and service delivery. This work is ongoing.

Improve DSG engagement with industry to develop collaborative relationships and ensure effective and efficient products and services are delivered.

Defence Support undertook a range of activities to engage with industry including:• conducting the Defence Support Conference as a

pre-event to the Defence+Industry Conference 2009

• conducting DSG-Industry CEO Breakfast forums to nurture robust relationships and communication with our leading suppliers on strategic matters

• managing performance of major suppliers under existing contracts and Annual Performance Reviews under standing offer panel arrangements

• attendance at various stakeholder meetings with industry representatives.

Optimise ADF operational capability through the deployment of ADF lawyers to provide access to relevant and timely legal support.

During 2008-09, ADF legal officers provided, and will continue to provide through 2009-10, legal assistance in the Middle East, Solomon Islands and East Timor, including negotiating hosting arrangements for operational deployments. The provision of legal support to commanders within Australia continues for training, advocacy services for members, assistance in administrative inquiries, and complaint handling and the proper and lawful functioning of the ADF discipline system.See Appendix Eight for discussion of Defence’s legal expenses and Appendix 1 for outcomes of judicial decisions and decisions of administrative tribunals.

Provide ADF members with high quality service residences, relocation and travel services using cost-effective contract arrangements.

The purchaser-provider arrangements between Defence and Defence Housing Australia (DHA) have continued to provide suitable housing for Defence members to meet operational needs. See Appendix Eight for discussion of Defence’s purchaser-provider arrangements with DHA for provision of service residences and relocation support.




Manage, develop and sustain the Defence estate to meet Defence and Government requirements by developing and delivering major estate and environment programs on time and to budget.

Infrastructure Division managed, developed and sustained the Defence estate, which comprises approximately 370 owned properties, 25,000 assets and over 3 million hectares of land with a gross replacement value in excess of $62b, approximately 350 leases within Australia and 220 overseas leases. Infrastructure Division delivered major estate programs, including the Major Capital Facilities program, the facilities operations program, environment programs, the facilities lease and disposal programs and public private partnership projects including Headquarters Joint Operations facilities. For more information on these activities, see Appendices Four (Major Capital Facilities) and Five (Environmental Management).Infrastructure Division contributed significantly to the White Paper and the Companion Reviews and undertook estate planning activities to ensure the Defence estate meets Defence and Government requirements.

Provide professional support services to ADF members and families, including delivery of family support programs and bereavement support in the situation of death and serious casualties.

ADF members and their families have benefitted from the professional support provided by Defence Support in 2008-09. The following statistics highlight the services delivered: • a total of 40,607 instances of client contact for

the Defence Community Organisation• bereavement support to the families of 41

deceased ADF members• support to 2,772 ADF dependants recognised as

having special needs• facilitation of Defence School Transition Aides in

130 primary schools and Defence Transition Mentors in 48 secondary schools around Australia

• provision of 1,100 long daycare positions at Defence child care centres.

Provide for the timely recognition to ADF members and ex-serving members in accordance with the Australian and Imperial Honours and Awards systems and civilian long service recognition.

• ADF members received their medal entitlements within three months from the date of completing eligible service.

• Ex-serving members received all medal entitlements within three months of receipt of an application.

• The system for recognising civilian long service was amended during 2008-09. All outstanding awards have now been issued. Civilians will now receive their award within three months of receipt of an application.




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Table 8.10 Cost summary for Output 1.6 - Defence Support

NOTES




2008-09Budget

estimate[1]

2008-09Revised

estimate[2]


2008-09

Variation[3]

$'000 $'000 $'000 $'000 %Expenses

Employees 1,204,934 1,234,825 965,967 -268,858 -22

Suppliers 1,406,578 1,500,870 1,564,097 63,227 4

Grants 1,390 1,397 1,041 -356 -25Depreciation and amortisation

672,867 660,791 754,482 93,691 14

Finance cost 48,925 49,163 67,362 18,199 37Write-down of assets and impairment of assets

1,632 14,737 81,227 66,490 451


- - 12,489 12,489 100

Other expenses 941 882 22,434 21,552 2,444Total Expenses 3,337,266 3,462,665 3,469,097 6,432 0Income

RevenuesGoods and services 227,235 204,879 221,344 16,465 8Other revenue 1,408 3,660 12,632 8,972 245Total Revenue 228,643 208,539 233,976 25,437 12GainsReversals of previous asset write-downs

- 4,326 65,328 61,002 1,410

Net gains from sale of assets - 4,965 - -4,965 -100Other Gains - - 796 796 100Total Gains - 9,291 66,124 56,833 612

Total Income 228,643 217,830 300,100 82,270 38Net cost of 1.6 - Defence Support

3,108,623 3,244,835 3,168,997 -75,838 -2



OUTPUT GROUP 1.7 DEFENCE SCIENCE & TECHNOLOGYThe Defence Science and Technology Organisation (DSTO) provides science and technology support to Defence. DSTO also supports the research and technological needs of Australia’s other national security agencies.

During 2008-09 DSTO directly contributed to Defence outcomes through saving resources, enhancing current capabilities, and through risk reduction of new capabilities. High priority was given to directly supporting Headquarters Joint Operations Command and the ADF operational commanders. Through targeted recruitment, strategic partnerships and learning programs, DSTO continued to sustain world class science and technology skills and capabilities covering the spectrum of technology requirements of Defence, including platforms and weapons, sensors and systems, operations analysis and command, control, communications and intelligence. DSTO collaborations with national and international partners continued to provide substantial leverage for Defence.

DSTO achievements in 2008-09 include:

• in collaboration with the United States Air Force, successfully launched the first of a series of eight flights in the Hypersonic Flight Research Experimentation Program, testing and validating flight control and telemetry systems

• through world-leading analysis, enabled structural life extension of the F/A-18 airframe centre barrel, with resultant savings of over $400m

• demonstrated the viability of firing the Advanced Short Range Air–Air Missile in new operational modes, substantially improving its performance against advanced threats

• undertook a joint Australian/United States trial to successfully prove the performance of the Joint Strike Fighter’s radar

• deployed the DSTO-developed Shapes Vector cyber security system into the United States Navy and trialled it for use in Australian cyber security operations

• supported, via the DSTO Joint Decision Support Centre, evidence-based decision making across Defence and the development of the national crisis coordination capability

• significantly enhanced the operational capability of the Jindalee Over the Horizon Radar Network through unique implementation of advanced radio-frequency waveform technology

• rolled out the logistics Vital Planning and Analysis tool for operational use in the ADF

• provided complete ship weapons damage modelling and analysis, and expert advice and opinion to the HMAS Sydney II Commission of Inquiry

• established a DSTO Advisory Board to provide strategic advice and guidance to the organisation

• developed strategies to re-balance its workforce to meet future Defence Capability Plan requirements

• in November 2008, DSTO held an industry open day in Melbourne to foster collaboration with industry and academia; commercial licences for two new DSTO technologies are progressing as a result



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• provided ongoing support to the Defence Materials Technology Centre, an important emerging technology transfer/collaboration mechanism with Australian industry

• reinvigorated industry alliance mechanisms and refreshed DSTO’s engagement with Australian universities, with over 300 active agreements during 2008-09 across 27 universities.

Key performance indicatorsKPI Status Further informationSupport the Minister with high quality advice on matters of defence science and technology.

In addition to providing formal briefings as requested, DSTO provided 79 ministerial submissions and provided responses to 22 ministerial representations. All advice provided was within stipulated timeframes. Ministerial announcements were supported by 38 media releases, and DSTO hosted ministerial visits to its sites on seven occasions. DSTO provided support for the Minister for Defence Science and Personnel during two overseas visits and supported his participation in 15 events as part of engagement with industry, universities and other stakeholders.

Provide effective, relevant and timely science and technology advice/solutions to support military operations and enhance mission effectiveness.

DSTO provided direct support to ADF operations, principally through technical solutions to operational problems often connected with the threat from improvised explosive devices, and through providing analysis and advice to deployed commanders. As well as providing support from within Australia, including scientists on the staff of Headquarters Joint Operations Command, DSTO deployed scientists to headquarters within Operations Catalyst, Slipper and Astute. Technology insertion teams were also deployed and DSTO’s contributions to operations were highly valued by Australian operational commanders.

Provide effective assistance and support to capability acquisition decision making and to the sustainability of the current force.

DSTO provided science and technology (S&T) support to Defence in accordance with Defence priorities in: decision making, by timely provision of 18 technical risk assessments and 16 technical risk certifications for Defence Capability Plan projects seeking Government approval• acquisition, with support provided to 100 per

cent of projects where S&T support was essential (overall 80 per cent of development projects and 65 per cent of acquisition projects were supported)

• sustainment, with 53 per cent of client S&T support requests addressed.

Identify and/or develop new technologies relevant to Defence.

DSTO continued to assess the potential impact of emerging and rapidly evolving technologies such as nanotechnology on Defence capabilities and operations. Eleven Capability & Technology Demonstrator (CTD) Program projects were completed and the CTD Extension Program was established, with five initial projects.

Maintain a strategically-designed program of forward-looking research supporting DSTO’s science and technology capability needs.

DSTO maintained a program of corporate research initiatives drawing on research capabilities across the organisation. The program addressed significant current and future Defence problems such as smart materials, automation of the battlespace and hypersonics. It ensures science and technology capabilities across DSTO are nurtured through targeted forward-looking research that positions DSTO to respond to future Defence requirements. In response to the White Paper, an enhanced program of Corporate Enabling Research has been planned for 2009-10.



Table 8.11 Cost summary for Output 1.7 - Defence Science and Technology

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2008-09Budget

estimate[1]

2008-09Revised

estimate[2]


2008-09

Variation[3]

$'000 $'000 $'000 $'000 %Expenses

Employees 252,407 259,090 254,767 -4,323 -2Suppliers 106,081 131,418 138,529 7,111 5Grants - - - - -Depreciation and amortisation

17,924 20,028 20,456 428 2


114 90 637 547 608


- - 6 6 100

Other expenses - - - - -Total Expenses 376,527 410,626 414,395 3,769 1Income

RevenuesGoods and services 21,173 19,189 38,886 19,697 103Other revenue 3,364 6,201 85 -6,116 -99Total Revenue 24,537 25,390 38,971 13,581 53GainsReversals of previous asset write-downs

- 166 518 352 212

Net gains from sale of assets - - - - -Other Gains - - - - -Total Gains - 166 518 352 212

Total Income 24,537 25,556 39,489 13,933 55Net cost of 1.7 - Defence Science and Technology

351,990 385,070 374,906 -10,164 -3



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OUTPUT GROUP 1.8 CHIEF INFORMATION OFFICERThe Chief Information Officer Group provides Defence with dependable, secure and integrated Information and Communication Technology (ICT) capabilities to support efficient and effective conduct of Defence operations, and the conduct of Defence business.

Reform and investment across Defence’s ICT systems is a priority for the Government and Defence, and is central to the recommendations coming out of the whole-of Government Review of the Australian Government’s Use of Information and Communication Technology by Sir Peter Gershon, the White Paper and the Defence Strategic Reform Program. The ICT companion review to the White Paper detailed the problems long-term under-investment in ICT has created in the Defence Information Environment. To address this, during 2008-09, the Group embarked on a new strategy for the remediation and reform of Defence ICT. Defence will be working closely with AGIMO to align with whole-of-Government initiatives for cost saving and efficiency dividends.

Achievements in 2008-09 include:

• introducing an automatic power-off to all Defence computers at Russell Offices, Canberra as part of a ‘Green ICT’ pilot program, resulting in the base power load during off-peak hours being reduced by 25 per cent and saving approximately $25,690 a year per building. This initiative was estimated to save $3-5m per year if implemented across all Defence operations and reduce carbon dioxide by some 30000 tons annually. This is equivalent to removing 7,500 cars from our roads

• successfully negotiating the Microsoft Large Reseller Account and creating the pricing model for ICT products and services that will deliver cost reductions to Defence and other government departments and agencies

• completing the upgrade of the Resource and Output Management Accounting Network (ROMAN) finance system almost $1m under budget

• signing a multi-million dollar contract with the United States for the provision of a satellite communications payload over the Indian Ocean that will enhance communications for deployed forces in the Middle East Area of Operations and the Indian Ocean Region

• delivering a networked wireless e-learning capability to support the Adaptive Army initiative Classroom of the 21st Century

• delivering a range of communications services to the remote Bradshaw Field Training Area, Northern Territory, and Shoalwater Bay, Rockhampton, to support Exercise Talisman Saber 2009 including access to Defence Restricted Network, Defence Secret Network, Voice and Coalition and Joint Combined Training Capability System

• development of an ICT internal mobility program and skilling framework that promotes the acquisition, maintenance and improvement of ICT skills and establishes clear Defence ICT career pathways.



Key performance indicatorsKPI Status Further informationProvide timely and high-quality ICT advice to the CDF, the Secretary and the Minister.

During 2008-09, CIO continued to improve its mechanisms for reporting on and monitoring of key ICT projects and ICT advice to the Secretary, CDF and Minister, notably through the re-establishment of the Defence ICT Committee in August 2008. Further information on the Committee is provided in Chapter 5 of this report.

Provide targeted ICT services that meet Defence needs.

The Group has seen measured improvements in the provision of ICT services through its technical refresh program, establishment of ICT change management processes and regional ICT transition back to the Group.The Group migrated to a stakeholder aligned organisation, improving engagement and driving towards a collaborative approach to developing ICT capabilities. Stakeholder Engagement Teams were established to work with Defence customers to ensure alignment between the business and ICT. Introduction of a new Google Search Engine assisted Defence users in discovering and sharing information across the Defence network.The Group also developed a successful concept demonstrator for the Defence Secret Network Unified Communications to deliver a secure, scalable and survivable voice over IP solution for Defence.During 2008-09, the Group managed to reduce the number of outstanding jobs on the Defence Secret Network by 45 per cent. Due to updated doctrine, training and improved compliance the Group has seen a 32 per cent reduction in Cryptographic (Communications Security) incidents over the last year. Due to an increase in customer demand for secret video conferencing services, the Group has responded by increasing its infrastructure capacity to meet Defence’s needs. On average, requests for secret video conferencing services have doubled during the year to about 690 a month.

Improve the performance of the core Defence networks.

During the year, investment was targeted to resolve maintenance issues and standardise equipment. The Group developed a strategy to consolidate Defence Data Centres to reduce maintenance costs and Defence’s ICT carbon footprint.Through the introduction of improved change management processes there was a 34 per cent reduction in the number of Defence Restricted Network unplanned outages between December 2008 to July 2009. The Defence Secret Network saw a 13 per cent reduction in the number of unplanned outages during the same period.

Develop and implement a Defence ICT Strategy.

The Defence ICT Strategy for the remediation and reform of Defence information and communication technology has been developed and is due for release in the second half of 2009. The Defence SRP and ICT reform program is the principle vehicle for the management and delivery of the Defence ICT Strategy.A single Defence ICT portfolio work plan was also developed to improve alignment between ICT and Defence investment priorities as identified through the SRP development process.



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Develop a way forward for Defence enterprise systems.

An Enterprise Solutions Branch was established to address the way forward for enterprise systems. Major enabling projects were brought forward for early Government approval to support the enterprise systems planning process. This included JP2080 – Upgrade Financial and Personnel Systems.The Group is working with Industry to develop a Defence wide enterprise architecture framework to support standardisation, integration and the use of common services.

Develop and manage secure information sharing capabilities to support planning and conduct of ADF operations, exercises and Defence business.

The Group developed an interoperability improvement plan to improve connectivity and information sharing to support the planning and conduct of combined operations and Defence business activities. Defence is now able to publish documents up to Secret level for the release to Australia, Canada, United Kingdom and United States onto US SIPRNET, United States counterparts in the Office of the Secretary of Defense, Pacific Command, Central Command and European Command.

Significantly reduce costs and time to implement ICT solutions for Defence.

The Group implemented tighter cost control, new ICT sourcing and bundling strategies to standardise, consolidate, rationalise applications and assets across all parts of Defence. The Group also implemented an ICT ‘Plan, Build and Run’ operating model to allow faster decision and delivery cycles plus reduced costs and ‘time to market’.As a result of the whole-of Government Review of the Australian Government’s Use of Information and Communication Technology, the Group has implemented strategies for the reduction of full time contractor workforce and the conversion of Professional Service Provider positions to Australian Public Service employees. This will work to reduce service costs, retain a skilled workforce, and deliver efficiencies in the long-term.




Table 8.12 Cost summary for Output 1.8 - Chief Information Officer

NOTES




2008-09Budget

estimate[1]

2008-09Revised

estimate[2]


2008-09

Variation[3]

$'000 $'000 $'000 $'000 %Expenses

Employees 90,698 92,948 102,532 9,584 10Suppliers 524,144 488,970 445,957 -43,013 -9Grants - - - - -Depreciation and amortisation

89,102 80,242 127,684 47,442 59

Finance cost - - 13,621 13,621 100Write-down of assets and impairment of assets

2,423 - 12,350 12,350 100

Net losses from sale of assets - - - - -Other expenses - - - - -

Total Expenses 706,367 662,160 702,144 39,984 6Income

RevenuesGoods and services 6,383 5,785 1,141 -4,644 -80Other revenue - - 1,042 1,042 100


- - 3,285 3,285 100

Net gains from sale of assets - - 53 53 100Other Gains - - - - -Total Gains - - 3,338 3,338 100

Total Income 6,383 5,785 5,521 -264 -5Net cost of 1.8 - Chief Information Officer

699,984 656,375 696,623 40,248 6



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OUTPUT GROUP 1.9 VICE CHIEF OF THE DEFENCE FORCEVice Chief of the Defence Force (VCDF) Group’s mission is to facilitate the development and delivery of Defence Joint Force Capability. The Group enables Defence to meet its Outcome 1 objectives through providing strategic-level management and situational awareness of current and potential ADF commitments for Defence and other government agencies; joint military professional education and training; joint and combined ADF doctrine; joint capability management policy; joint logistics; joint health; input to joint capability development; and initiatives to develop the capacity of the ADF Reserves to support ADF capability.

In 2008-09, the Group enhanced its ability to develop and deliver Joint Force Capability through organisational change and restructure. The Group expanded through the addition of the Joint Health Command, the Asia Pacific Civil-Military Centre of Excellence, the ADF Investigative Service, and the establishment of the Joint Capability Coordination Division. VCDF Group also assumed responsibility for Cadet Policy Branch.

Key achievements across the Group in 2008-09 include:

• coordinating Capability Manager responsibilities for intelligence, surveillance reconnaissance, electronic warfare, network centric warfare, cyber warfare and simulation

• strategic planning for Operations, including planning for the conclusion of Australia's military commitment to the rehabilitation of Iraq

• 263 ADFA undergraduate students, 159 course members of the Australian Command and Staff College, and 46 course members of the Centre for Defence Strategic Studies graduated in December 2008, including 76 overseas students

• the implementation of recommendations arising from the independent report by Professor David Dunt Review of Mental Health Care in the ADF and Transition through Discharge

• provision of logistic and health support to ADF global, regional, and domestic operations

• completion of the Reserve Census and Attitude Survey, that will inform improved conditions of service for Reservists

• active engagement in military and civilian workforce planning and management to ensure short and long term workforce requirements are addressed at the strategic level

• innovative partnering arrangements with civilian health organisations to attract and retain health practitioners

• conclusion of a number of international logistics support agreements including with Italy and Indonesia

• implementation of the logistics assurance program to reform inventory

• implementation of a revised Defence asbestos eradication and management plan.

In May 2009, the Asia Pacific Civil-Military Centre of Excellence became part of the VCDF Group. The Centre was opened by the Prime Minister in November 2008 as a whole-of-government initiative supporting best practice in the way civilian, police and military agencies work together for conflict and disaster management overseas. The Centre includes staff from Defence, the Department of Foreign Affairs and Trade, AusAID, Australian Federal Police, and the Attorney-General’s Department.



Key performance indicatorsKPI Status Further informationProvide timely and high quality advice on strategic aspects of current and potential commitments to the CDF, the Secretary and the Minister.

VCDF Group, has provided timely and accurate advice on strategic aspects of potential and current ADF commitments, through coordinated joint military strategic engagement and input to government, allies, coalition partners and other agencies. Military Strategic Commitments has provided direct operational staff support to the CDF and assists in the provision of the CDF’s intent for commitment to operations.

Enhance ADF joint and combined operational capability.

The establishment of Joint Capability Coordination Division, within VCDF Group, allowed VCDF to assume responsibility for the coordination of the capability of the joint and combined operational force.The Division implements VCDF’s responsibilities of coordinating the capability of joint forces by aligning resources to meet agreed organisational goals. This is achieved by working closely with other Defence Groups and Services, selected government departments and key coalition partners.

Enhance the capacity of the Reserves to support ADF capability.

Cadets, Reserve and Employer Support Division enhances capacity of the Reserve to support ADF capability by promoting the partnership between the ADF, the employer and the Reservist. These activities include:approximately 380 ‘Exercise Stretch’ participants took part in over 14 activities, and approximately 115 employers took part in five ‘Boss Lift’ exercises. These exercises provide employers of Reservists an insight into the Reserve activities of their employee.employer and industry engagement and the Office of Reserve Service Protection activities promote an understanding of the rights and obligations of Reservists and employers in relation to ADF service. the Employer Support Payments Scheme compensates employers and self-employed Reservists undertaking service.

Provide logistics support and services for ADF operations.

VCDF Group, through Joint Logistics Command, coordinated: • logistic support to ADF operations, exercises and

directed activities to enable mission success• logistic support to enable the Services to meet

their raise, train and sustain functions. Implement the Defence Strategic Logistics Plan.

Joint Logistics Command is actively engaged in implementing the Defence Strategic Logistics Plan as detailed in the Strategic Reform Program. A comprehensive engagement process with staff throughout Australia is complete and implementation is in progress.

Continue to improve inventory management.

The Inventory Assurance Program has been completed with end of stocktake program results falling within the Defence Audit and Risk Committee mandated tolerances.The Accelerated Disposals Program to remove “inventory no longer required” has also been successful. Since the commencement of the Program in March 2008, there have been 191,020 disposal transactions processed, resulting in 122,690 stock line items (11,707,989 physical items) being disposed. The book value of the disposed items is approximately $358.8m.



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Optimise ADF operational capability through the development of deployable health capabilities to support a wide range of operations to which the ADF could be committed.

VCDF Group, through Joint Health Command, has provided health support to the current range of ADF operational tasks and exercises while continuing to provide garrison health support to the ADF.Joint Health Command is engaged in the process to secure a comprehensive e-health system which will improve management of health data to contribute to improved health care for the ADF. The independent report by Professor David Dunt Review of Mental Health Care in the ADF and Transition through Discharge is complete and the enhanced mental health care programs are being implemented. The Joint Health Command is also undergoing a reform of health business in line with the Defence Strategic Reform Program.

2008-09Budget

estimate[1]

2008-09Revised

estimate[2]


2008-09

Variation[3]

$'000 $'000 $'000 $'000 %Expenses

Employees 153,622 157,471 483,576 326,105 207Suppliers 355,449 428,448 589,021 160,573 37Grants - - - - -Depreciation and amortisation

339 2,708 8,011 5,303 196


26,419 234 609,522 609,288 260,379

Net losses from sale of assets - - 26 26 100Other expenses - - - - -

Total Expenses 535,829 588,861 1,690,156 1,101,295 187Income

RevenuesGoods and services 241,319 218,678 261,350 42,672 20Other revenue 32,394 44,572 2,153 -42,419 -95Total Revenue 273,713 263,250 263,503 253 0GainsReversals of previous asset write-downs

100 108 109,022 108,914 100,846

Net gains from sale of assets - - - - -Other Gains - - - - -Total Gains 100 108 109,022 108,914 100,846

Total Income 273,813 263,358 372,525 109,167 41Net cost of 1.9 - Vice Chief of the Defence Force

262,016 325,503 1,317,631 992,128 305




OUTPUT GROUP 1.10 JOINT OPERATIONS COMMANDJoint Operations Command consists of the Headquarters and specialised components: Special Operations, Border Protection Command, Northern Command, Joint Movements Group and when raised, Joint Task Forces.

The Headquarters component includes embedded support elements, such as movements, joint and combined exercises, logistics and welfare support for deployed forces. The Headquarters plans, mounts, conducts and controls all Defence operations. The Chief of Joint Operations Command is also responsible for the ADF’s commitment to the Coastwatch civil surveillance program and Border Protection Command tasking, providing maritime surveillance assets that are tasked routinely in accordance with the Government’s direction.

In November 2008, the Headquarters commenced the move from various locations in Sydney and Canberra to a purpose-built facility in Bungendore, NSW. The General John Baker Complex was officially opened by the Prime Minister on 7 March 2009. Careful management of the relocation project ensured the move was successful and that command and control functions were not disrupted during the move.

The ADF operations that were conducted and controlled by the Headquarters during 2008-09 are detailed in this report under Outcomes 2 and 3.

Major exercise commitments were met, including the following joint or combined exercises:

Exercise Description/Objective

Combined ADF/Five Power Defence Arrangement ExercisesBersama Shield 09May 2009

To exercise assigned Five Power Defence Arrangement forces in the conduct of joint and combined operations in a multi-threat scenario for the defence of Malaysia and Singapore.

Combined ADF/United States Exercises Dugong 08October 2008

Exercise Dugong is a combined mine counter measures and explosive ordnance disposal exercise involving the Navy’s Mine Warfare and Clearance Diving assets and a combined Australian / United States Explosive Ordnance Disposal (EOD) unit. The aim of the exercise is to deploy force elements to a remote locality/primary port to conduct combined mine-clearance and EOD operations. The exercise is designed to progress collective mine counter measures and EOD capability and proficiency towards operational preparedness objectives requirements.

Other Combined ExercisesRimpac 08June-July 2008

Exercise Rimpac is a biennial multilateral exercise held near Hawaii intended to enhance tactical proficiency of participating units in a wide array of combined operations at sea. By enhancing interoperability, Rimpac helps to promote stability in the Pacific Rim region.

Kakadu 08July-August 2008

Exercise Kakadu is a multilateral maritime warfare exercise conducted in Darwin and the North Australia Exercise Area. Units from Australia, France, Japan, Malaysia, New Zealand, Pakistan, Papua New Guinea, Singapore and Thailand along with observers from Indonesia, Philippines, Republic of Korea and Vietnam participated in the exercise. The aim of the exercise is to develop interoperability in multilateral maritime operations in a regional maritime coalition environment.

Singaroo 08July 2008

Exercise Singaroo is a bilateral maritime warfare exercise conducted by the Republic of Singapore Navy and the Royal Australian Navy (RAN). The aim of the exercise is to improve the interoperability of the Singapore Armed Forces and the ADF in combined maritime procedures and tactics.



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Mastex 08August 2008

Exercise Mastex is a combined RAN and Royal Malaysian Navy maritime exercise to improve interoperability and mutual understanding. The aim of the exercise is to strengthen the bilateral relationship and enhance mutual cooperation and understanding between the Malaysian Armed Forces and the ADF.

Austhai 08September 2008

Exercise Austhai is a combined maritime exercise conducted between elements of the RAN and the Royal Thai Navy. The aim of Exercise Austhai is to enhance the relationship between the two forces in order to develop a level of interoperability for the conduct of combined operations.

Swift Eagle 08October 2008

Exercise Swift Eagle is an ADF unilateral exercise to evaluate the preparedness of high readiness rapid deployment force elements, including the tactical brigade headquarters and the follow-on battalion group, selected supporting air, maritime and Special Forces elements to conduct short notice operations. The objective of Exercise Swift Eagle is to practice entry by air and sea and conduct a non-combatant evacuation in a medium intensity ground scenario as well as testing the ready capacity of the on-line battalion.

ASWEX 08November- December 2008

Exercise ASWEX is conducted to improve anti-submarine warfare (ASW) capability and interoperability between maritime and air ASW platforms in a multi-threat environment; to improve specific skills at the operator level and develop and assess operational effectiveness at the unit level. The primary aim of the exercise is to practice and evaluate collective ASW concepts, tactics and procedures.

Red Flag 09February- March 2009

Exercise Red Flag is a major exercise using a dense integrated air defence network that requires the employment of advanced tactical procedures. Red Flag objectives are to enhance interoperability with the United States and the United Kingdom defence forces and conduct air combat training in a complex high threat environment.

Tamex 09-1March 2009

Exercise Tamex is a Navy/Air Force multilateral exercise with New Zealand, the United States and Japan. The exercise combines basic maritime patrol aircraft Anti-Submarine Warfare and Anti-Submarine Surveillance activities. The aim is for P-3 Orion aircraft to practice joint anti-submarine operations with a Navy submarine with guided missile capabilities.

KPI Status Further informationADF forces are effectively deployed and sustained.

Linked to Outcomes 2 and 3.

Command of ADF forces is effective and the Government’s strategic objectives for operations are achieved.

Linked to Outcomes 2 and 3.

Achieve levels of preparedness directed by the CDF for forces identified for operational tasks.

Deployed forces met preparedness levels directed by CDF.

Meet major ADF exercise commitments.

Joint and combined exercises were conducted in accordance with the Program of Major Service Activities.

Successful move of the headquarters to Bungendore, NSW.

The move was completed in March 2009 and the headquarters is fully operational.

Exercise Description/Objective



Table 8.14 Cost summary for Output 1.10 - Joint Operations Command

NOTES




2008-09Budget

estimate[1]

2008-09Revised

estimate[2]


2008-09

Variation[3]

$'000 $'000 $'000 $'000 %Expenses


2,587 31 1,924 1,893 6,106


-6 - 141 141 100


- - 1 1 100

Other expenses - - 2 2 100Total Expenses 48,918 39,199 95,721 56,522 144Income

RevenuesGoods and services 481 436 -47 -483 -111Other revenue - - 212 212 100Total Revenue 481 436 165 -271 -62GainsReversals of previous asset write-downs

- - 94 94 100

Net gains from sale of assets - - - - -Other Gains - - - - -Total Gains - - 94 94 100

Total Income 481 436 259 -177 -41Net cost of 1.10 - Joint Operations Command

48,437 38,763 95,462 56,699 146



Out

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up 1

.11

Capa

bilit

y D

evel

opm

ent

OUTPUT GROUP 1.11 CAPABILITY DEVELOPMENTCapability Development Group develops and manages the Defence Capability Plan (DCP). The Group develops defence capability investment proposals for Government consideration, and maintains a ‘sponsor’ role during the acquisition process and delivery of the capability to the relevant Capability Manager. The Group has a close relationship with the DMO and the Capability Managers.

The Group monitors and manages the development of an executable DCP within fiscal and other resource constraints.

Significant projects progressed for Government approval during 2008-09 included the:

• replacement of the Army’s Field Vehicle and Trailer Fleet (LAND 121 Phase 4)

• development of the Tactical Information Exchange Domain (Data Links) (JP 2089 Phase 2A)

• development of the Joint Counter Improvised Explosive Device Capability (JP 154 Phase 1)

• development of the Future Submarine project (SEA 1000)

• improvements to the ADF’s Satellite Communication Systems (JP 2008 Phase 5A).

Key Performance indicatorsKPI Status Further informationProvide timely and high quality advice on strategic aspects of capability development to the CDF, the Secretary and the Minister.

Not all scheduled approvals were achieved as some of the projects listed in the Portfolio Budget Statements 2008-09 for consideration by Government were deferred pending the release of the White Paper in May 2009.

Produce a Defence Capability Strategy to support Defence capability planning processes.

A specific Defence Capability Strategy was not produced during 2008-09, as the intent was met during the development of the White Paper. Chapter 8 of the White Paper highlights key capability attributes that guide force development. A Defence Capability Strategy will be produced in 2009-10 in line with the development of Defence Planning Guidance.

Develop an affordable and executable Defence Capability Plan.

A new Defence Capability Plan was developed as part of the White Paper. Details are provided in Appendix Six.



Table 8.15 Cost summary for Output 1.11 - Capability Development

NOTES




2008-09Budget

estimate[1]

2008-09Revised

estimate[2]


2008-09

Variation[3]

$'000 $'000 $'000 $'000 %Expenses


269 484 680 196 41


- - 14 14 100



RevenuesGoods and services - - - - -Other revenue - - 189 189 100

Total Revenue - - 189 189 100GainsReversals of previous asset write-downs

- - 1 1 100

Net gains from sale of assets - - - - -Other Gains - - - - -Total Gains - - 1 1 100

Total Income - - 190 190 100

Net cost of 1.11 - Capability Development

342,919 179,240 129,739 -49,501 -28



Out

put

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up 1

.12

Chie

f Fi

nanc

e O

ffic

er

OUTPUT GROUP 1.12 CHIEF FINANCE OFFICERThe Chief Finance Officer Group is responsible for giving strategic financial advice and information to Ministers, the Secretary, the CDF and Defence Senior Leaders. It provides a whole-of-Defence focus for planning, management, monitoring and reporting of key deliverables to the Government, including Defence’s outputs.

The Group is responsible for Defence’s financial governance and assurance and manages Defence’s budget and its financial policies, principles and practices in accordance with the Financial Management and Accountability Act 1997.

The Group drives Defence’s financial management and improvement programs through uniform financial management approaches, a streamlined accountability structure, a financial controls framework, and training and skilling programs.

During 2008-09 there was an extensive review of Defence’s Chief Executive Instructions. This resulted in a re-write of the Instructions so they give clear, concise and unambiguous direction to meet Defence’s obligations under the Financial Management and Accountability Act 1997, with detailed processes and guidance provided by the accompanying new policy document FINMAN 5 - Financial Management Manual.

Key performance indicatorsKPI Status Further informationProvide timely and high quality financial advice to the Minister, the Secretary and CDF.Produce Defence’s Budget, Financial Statements and the annual Defence Management and Finance Plan within agreed or statutory timelines.Reduce qualification of the Financial Statements.

Defence is in the second year of unqualified accounts.

Strengthen Defence’s costing capability.

The Chief Finance Officer is undertaking continual improvement of the cost assurance capability function.



Table 8.16 Cost summary for Output 1.12 - Chief Finance Officer

NOTES




2008-09Budget

estimate[1]

2008-09Revised

estimate[2]


2008-09

Variation[3]

$'000 $'000 $'000 $'000 %Expenses

Employees 374,090 289,368 318,607 29,239 10Suppliers 31,172 49,250 396,835 347,585 706Grants - -8 - 8 -100Depreciation and amortisation 2,148 523,226 46,400 -476,826 -91Finance cost - -98,129 4 98,133 -100Write-down of assets and impairment of assets

28,230 225,399 78,444 -146,955 -65

Net losses from sale of assets - - - - -Other expenses 2 60 588 528 880


RevenuesGoods and services 2,975 18,520 1,326 -17,194 -93Other revenue 3,245 26,306 12,844 -13,462 -51Total Revenue 6,220 44,826 14,170 -30,656 -68GainsReversals of previous asset write-downs

- 200,508 8,001 -192,507 -96

Net gains from sale of assets - -830 109 939 113Other Gains 7,700 7,700 - -7,700 -100Total Gains 7,700 207,378 8,110 -199,268 -96

Total Income 13,920 252,204 22,280 -229,924 -91

Net cost of 1.12 - Chief Finance Officer

421,723 736,970 818,598 81,628 11



Out

put

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up 1

.13

Peop

le S

trat

egie

s &

Pol

icy

OUTPUT GROUP 1.13 PEOPLE STRATEGIES & POLICYDefence is a large, complex organisation with unique people management challenges. People Strategies and Policy Group (PSP) is responsible for:

• leading the development and measurement of people strategies to deliver Defence's capability outcomes

• working with human resources partners in the Services and Groups, and the Defence Support Group, to ensure that Defence attracts, develops, motivates and retains the workforce capability required to execute the Defence strategy

• optimising the Defence people management system to support cost-effective people capability.

Key achievements in 2008-09 include:

• development of the Defence People Management Framework, a vision for the Defence People System and identification of a range of Defence People Imperatives and associated priority actions

• continuation of the remuneration reform program, with implementation of the graded other ranks pay structure and adjustments to the Star Rank Remuneration Arrangement

• continued implementation of the Government's ADF Retention and Recruitment program, including commencement of the Defence Home Ownership Assistance Scheme on 1 July 2008, and the launch of new Defence Technical Scholarships in October 2008

• development and roll-out of the Defence Human Resource Metrics System designed to identify current human resources performance and areas for improvement

• as part of the White Paper, development of a range of initiatives to provide a compelling employment offer and continue to sustain a healthy workforce, including enhanced support to ADF families, a range of diversity strategies, housing and accommodation assistance options and enhanced ADF health support.

Key performance indicatorsKPI Status Further informationProvide timely and high quality advice on strategic aspects of people strategy and policy to the CDF, the Secretary and the Minister.

The Ministers, Secretary and CDF have been provided with a comprehensive overview of the workforce impact of implementing the Strategic Reform Program.Early advice and progress reports have been provided on negotiations for the next Defence Enterprise Collective Agreement and the issues that could be of primary importance to Defence and the Government.Early identification and reporting on recruitment and retention issues and initiatives has occurred, particularly on sensitive issues.In conjunction with the Ministers, a range of workforce initiatives were developed for the White Paper.



Deliver an enhanced recruitment capability and outcome.

Tables A7.7 to A7.11 in Appendix 7 detail ADF workforce entry information and the number of inquiries and applications during 2008-09. Ab initio enlistments dropped by 224 from the previous year due to transitional issues associated with the introduction of a new recruiting model. Changeover to the new recruiting contract occurred on 1 February 2009.To minimise the impact of increased activity on recruiting pipeline congestion, inquiry filtering and candidate processing was tailored towards identifying and fast-tracking strong candidates and those applying for priority jobs.

Provide robust workforce research and analysis to inform the development of strategies that generate Defence capability.

A range of workforce research and analysis has been supplied to support the development and implementation of HR strategies across Defence. The Defence Human Resource Metrics System was launched on 30 April 2009, providing, in electronic dashboard form, a variety of HR measures to monitor and enhance policies and initiatives. Concurrently, the Group is developing an integrated workforce intelligence capability, which will ensure that timely and valid research and analysis is conducted to inform decision-makers on the highest priority HR issues. The workforce intelligence capability will be in place by the end of December 2009.

Provide a strategic, capability-led workforce plan for the total Defence workforce.

The Defence Strategic Workforce Plan 2007-17 articulates the future workforce needs and issues. The next Plan is in draft form. The Plan reinforces the workforce planning cycle to ensure that future capability including people can be delivered. The Plan examines issues for military members (permanent and reserve) and civilian employees. Future plans will be aligned with the White Paper, and will be produced every five years. The Plan will be finalised later in 2009.

Develop people strategies and policies to conserve the workforce through establishing and maintaining the Australian Defence Force as an employer of choice.

Defence Force Recruiting operations were restructured during 2008-09 to provide a more responsive, candidate-focused recruitment process.Advertising and marketing campaigns were also implemented to address common misconceptions of the Navy, Army and Air Force brands, generate interest in ADF careers among the target audience and raise awareness of ADF career and training opportunities, particularly for priority jobs. These changes helped deliver the very strong inquiries and applications results achieved in 2008-09.The Group continues to fulfill its commitment to recruit and retain people by generating contemporary reward and benefit strategies. This will ensure Defence maintains or exceeds its status compared with other public and private organisations, as an employer of choice.Remuneration arrangements are discussed in Appendix 7.




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egie

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Pol

icy

Improve effectiveness of occupational health and safety (OHS) policies and practices.

Defence continues to improve OHS performance through improving both systems and knowledge. The Defence OHS Committee has commissioned a diagnostic study into Defence safety culture to occur later in 2009. The recognition of commitment and individual skills underpinning OHS improvement has been highlighted, along with their impact on safety culture. In addition, verification of Defence improvement to and compliance with OHS practices and policies is occurring through the establishment of an assurance capability.Defence OHS performance is discussed in Appendix 7.

Further improve complaint handling and resolution.

Improvements in complaint handling and resolution have been achieved with a strong increase in the use of alternative resolution strategies for resolving complaints. Reduced handling times for initial formal redress of grievance management from over four months to between two and three months demonstrates further improvement. Fairness and Resolution centres across Australia provide a widely accepted and accessible mechanism to assist members in resolving work place issues. The ComTrack complaint management system has been implemented.Complaint management performance is discussed in Appendix 7.

Deliver an improved youth development outcome for Australian Defence Force Cadets.

The three Cadet corps revised and improved their Cadet and Cadet Staff development programs. There has been a modest increase in military-like activities and the number of Cadets attending annual camp activities. Modest replacement of equipment occurred in the last financial year.Completion of the Australian Defence Force Cadet Review has established an agenda for positive reform of the ADF Cadet Scheme. The Cadet function transferred to the VCDF program from 1 July 2009.




Table 8.17 Cost summary for Output 1.13 - People Strategies and Policy

NOTES




2008-09Budget

estimate[1]

2008-09Revised

estimate[2]


2008-09

Variation[3]

$'000 $'000 $'000 $'000 %Expenses


6,884 118 143 25 21


88 - 254 254 100



RevenuesGoods and services - - 1 1 100Other revenue - - 12 12 100

Total Revenue - - 13 13 100GainsReversals of previous asset write-downs

- - 3,254 3,254 100

Net gains from sale of assets - - - - -Other Gains - - - - -Total Gains - - 3,254 3,254 100

Total Income - - 3,267 3,267 100Net cost of 1.13 - People Strategies and Policy

341,132 370,112 256,727 -113,385 -31



Out

put

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.14

Supe

rann

uati

on &

hou

sing

sup

port

ser

vice

s fo

r cu

rren

t &

ret

ired

Def

ence

per

sonn

el &

oth

er a

dmin

iste

red

item

s

OUTPUT GROUP 1.14 SUPERANNUATION & HOUSING SUPPORT SERVICES FOR CURRENT & RETIRED DEFENCE PERSONNEL & OTHER ADMINISTERED ITEMSThe objective of this output group is to report contributions and the movement in liabilities associated with the two military superannuation schemes; the Defence Force Retirement and Death Benefits Scheme (DFRDB) and the Military Superannuation and Benefits Scheme (MSBS). The DFRDB was closed to new participants in 1991. Since then, MSBS has been available to all full-time members of the ADF. Both schemes are managed on Defence’s behalf by ComSuper. Since 1991, Defence has paid the MSBS Retention Benefit to eligible MSBS members after 15 years of continuous eligible service. The purpose of the Retention Benefit is to encourage members to serve until they have completed 20 years of service. Due to legislative amendments passed in 2005, the Retention Benefit is not available to members who enlisted after 6 October 2005.

Housing Assistance reports dividends received on behalf of the Government from Defence Housing Australia (DHA), payments to DHA to manage the existing Defence Home-Owner Scheme (DHOS) and also payments to the Department of Veterans Affairs to manage the new Defence New Home Ownership Assistance Scheme (DHOAS). DHA is classified as a Government Business Enterprise and is required to make a commercial rate of return for Government. Through Defence, DHA pays an annual dividend on its operating profit to Government. The Commonwealth’s Competitive Neutrality Guidelines requires DHA to make tax-equivalent payments to Government in lieu of paying state and territory taxes. Tax-equivalent payments form part of DHA’s dividend return to Government. Since July 2007, DHA pays income tax directly to the Australian Taxation Office.

Performance information for DHOS and DHOAS is covered in Section Four.

The recommendations of the Review of Military Superannuation Arrangements are under consideration by the Government.



Table 8.18 Cost summary for Output 1.14 - Superannuation and Housing Support Services for Current and Retired Defence Personnel and other Administered Items

NOTES




2008-09Budget

estimate[1]

2008-09Revised

estimate[2]


2008-09

Variation[3]

$'000 $'000 $'000 $'000 %Expenses

Net foreign exchange losses

- - - - -

Housing subsidies 52,638 50,868 35,302 -15,566 -31Grants - - - - -Retention benefits 42,000 42,000 36,720 -5,280 -13Military superannuation benefits

2,848,700 2,848,700 3,429,000 580,300 20

Other Expenses - - 9 9 100Total Expenses 2,943,338 2,941,568 3,501,031 559,463 19Income

RevenuesInterest 13 187 244 57 30Net foreign exchange gain - - 671 671 100Dividends 60,448 41,100 72,723 31,623 77Licence fees 4,711 4,711 2,874 -1,837 -39Military superannuation contributions

731,000 731,000 831,091 100,091 14

Other 569 569 9,549 8,980 1,578Total Income 796,741 777,567 917,152 139,585 18Net cost of 1.14 - Superannuation and Housing Support Service for Current and Retired Defence Personnel and other Administered Items

2,146,597 2,164,001 2,583,879 419,878 19


CHAPTER 9OUTCOMES 2 & 3 PERFORMANCE

COST OF ADF OPERATIONSThe Government provided $1,048.7m in the 2008–09 Budget for the net additional costs of current ADF operations. At Additional Estimates, the Government provided further funding of $170.2m in 2008–09 for continuation of operations in Iraq and Afghanistan.

Actual expenditure was $1,194.9m, or $24.0m less than the revised additional estimates as shown in Table 9.1.

Table 9.1 Net additional cost of Operations

Explanations for VariationsOperations in Afghanistan (Operation Slipper)The 2008-09 Budget initially provided $618.9m for the continuation of operations in Afghanistan in 2008-09. Subsequent to the Budget, the Government approved a further $42.1m in 2008-09, primarily for additional force protection measures, providing a total allocation of $661.0m.

Actual expenditure on operations in Afghanistan for 2008-09 was $40.9m more than the revised estimate mainly due to the incorporation of broader Middle East Area of Operation activities as a result of the re-assignment of Force Elements from Operation Catalyst.

Operations in Iraq (Operation Catalyst)The withdrawal of the Overwatch Battle Group (West) and the Australian Army Training Team occured in mid-2008. The 2008-09 Budget initially provided $215.7m for the continuation of operations in Iraq in 2008-09. Subsequent to the Budget, the

2008-09Budget

Estimate$m

2008-09Revised

Estimate$m

2008-09Actual Result

$m

2008-09Variation

$m

Operation

Operation Astute 174 169 165 -4

Operation Slipper 619 661 702 41

Operation Resolute 13 13 10 -3

Operation Catalyst 216 349 291 -58

Operation Anode 27 27 25 -2

Operation Outreach - - 2 2

Total Net Additional Costs 1,049 1,219 1,195 -24


Government approved a further $133.2m in 2008-09 primarily for additional force protection and equipment purchases, providing a total allocation of $348.9m.

Actual expenditure for operations in Iraq was $58.0m less than the revised estimate and this was due to the re-assignment of Force Elements to Operation Slipper.

Operations in Iraq (Operation Kruger)Operation Kruger commenced on 1 January 2009 and is the ADF contribution to provide protection to the Australian Embassy and Diplomatic personnel in Baghdad. The capability and associated budget was previously provided under Operation Catalyst. Operation Kruger has 100 personnel who are accredited to the Australian Embassy under the Vienna Convention on Diplomatic Relations.

From 1 January 2009, funding for Operation Kruger was provided from Operation Catalyst.

Operations in East Timor (Operation Astute)The 2008-09 Budget initially provided $174.3m for this operation in 2008-09. Subsequent to the Budget, the Government approved a reduced ADF presence of 650 personnel in East Timor occurring in January 2009. This reduced the total allocation for 2008-09 to $169.1m.

Actual expenditure for operations in East Timor was $4.4m less than the revised estimate mainly due to a variation in the reimbursement from the Government of New Zealand for the provision of services and facilities to the New Zealand contingent in East Timor.

Operations in Solomon Islands (Operation Anode)The 2008-09 Budget for Operation Anode was $27.1m.

Actual expenditure for the operations in Solomon Islands was $2.0m less than the revised estimate, mainly due to a lower than expected take up of the employer support payment scheme and logistic support costs.

Coastal Surveillance Operations (Operation Resolute)Operation Resolute consolidates previous ADF operations including Operations Relex II (unauthorised arrivals) and Operation Cranberry (illegal fishing and smuggling). The Government provided an allocation of $12.8m in the 2008-09 for this operation.

Actual expenditure for Operation Resolute was $2.8m less than the revised estimate mainly due to changes in the contractual arrangements for Aero Medical Evacuation.

Northern Territory National Emergency Response (Operation Outreach)Operation Outreach concluded on 30 June 2008 resulting in no further budget being allocated in 2008-09.

Actual expenditure for Operation Outreach was $2.3m in 2008-09. This was due to the carry-over of costs from 2007-08 relating to the requirement to complete construction of capital facilities in the Northern Territory.

Status of Funding from all OperationsTable 9.2 provides a summary of the current actual and planned expenditure on operations covering the period 1999-00 to 2011–12. In summary, the net additional cost of operations announced to date is $10.5b.

CHAPTER 9 O

UTCO

MES 2 &

3 PERFORM

ANCE

DEFEN

CE ANN

UAL REPO

RT 2008-09 VOLU

ME 1

123

Cost of ADF operations

Table 9.2 Operational Cash Payments

NOTES

1. The Budget Estimates have been updated since publication of the Portfolio Additional Estimates Statements 2008-09.

1999-00 to 2004-05

Actual Result

$m

2005-06 Actual Result

$m


$m


$m


$m

2009-10 Budget

Estimate[1]

$m

2010-11 Budget

Estimate[1]

$m

2011-12Budget

Estimate[1]

$m

Total

$m

Operation

Operation Astute 3,190 24 191 206 165 214 19 - 4,009

Operation Bel Isi 48 - - - - - - - 48

Operation Slipper 491 91 223 395 702 1,381 181 109 3,573

Operation Resolute 78 10 9 7 10 13 15 - 142

Operation Catalyst 811 351 399 502 291 2 - - 2,355

Operation Anode 118 13 17 24 25 30 - - 227

Operation Sumatra Assist 37 8 - - - - - - 45

Operation Acolyte 0 10 - - - - - - 11

Operation Deluge - - 3 4 - - - - 7

Operation Pakistan Assist - 10 - - - - - - 10

Operation Outreach - - - 12 2 - - - 15

Operation Kruger - - - - - 60 12 2 74

Total Net Additional Costs 4,773 517 843 1,149 1,195 1,699 227 111 10,513

Sources of Funding for Operations

Government Supplementation 4,773 507 843 1,128 113 1,650 227 111 9,350

Department of Foreign Affairs and Trade - 9 - - - - - - 9

Department of Defence (Absorbed) - 1 - 22 1,082 50 - - 1,154

Total Cost 4,773 517 843 1,149 1,195 1,699 227 111 10,513

CHAPTER 9 OUTCOMES 2 & 3 PERFORMANCE


OUTCOME 2 MILITARY OPERATIONS & OTHER TASKS DIRECTED BY THE GOVERNMENT TO ACHIEVE THE DESIRED RESULTSOutcome 2 summary The ADF has contributed to the achievement of the Government’s strategic objectives, defined for the 2008-09 reporting period in the 2000 Defence White Paper as defending Australia, contributing to the security of the immediate neighbourhood, and supporting wider interests. These objectives were reaffirmed in the new White Paper released in May 2009.

Regional stability has been maintained through operations in East Timor and Solomon Islands. Defence has contributed to foster international relationships throughout the region, in particular through the continuance of the Defence Cooperation Program.

The ADF continued to contribute effectively to Coalition efforts to deny international terrorist safe havens in Afghanistan, and is making a significant contribution to the training and mentoring of the Afghan National Army. Australia has continued its involvement with United Nations peace keeping operations in Iraq, Afghanistan, Sudan, Israel, Syria and Lebanon, as well as East Timor. The ADF also supports Middle East peace efforts through an ongoing contribution to the Multinational Force and Observers in the Sinai. Significantly, Defence has withdrawn its military contribution to the multinational force in Iraq and has aligned its remaining military presence to provide security for the Australian Embassy in Baghdad.

Table 9.3 Total cost of Defence Outcome and Outputs 2, 2008-09

NOTES







2008-09Budget

estimate[1]

2008-09Revised

estimate[2]


2008-09

Variation[3]

$'000 $'000 $'000 $'000 %Output group 2.1 – Operations Contributing to the Security of the Immediate NeighbourhoodDepartmental Net Cost 202,311 197,166 173,161 -24,005 -12Output group 2.2 – Operations Supporting Wider InterestsDepartmental Net Cost 797,796 921,900 557,360 -364,540 -40

Total resources for Outcome 2 1,000,107 1,119,066 [4,5,6]730,521 -388,545 -35



Out

com

e 2

Mili

tary

Ope

rati

ons

& o

ther

tas

ks d

irec

ted

by t

he G

ov-

ernm

ent

to a

chie

ve t

he d

esir

ed r

esul

ts

Table 9.4 Departmental cost summary for Outcome 2

NOTES







2008-09Budget

estimate[1]

2008-09Revised

estimate[2]


2008-09

Variation[3]

$'000 $'000 $'000 $'000 %Expenses

Employees 206,036 241,826 238,650 -3,176 -1Suppliers 794,071 888,955 497,233 -391,722 -44Grants - - - - -Depreciation and amortisation - - - - -Finance cost - - - - -Write-down of assets and impairment of assets

- - - - -

Net losses from sale of assets - - - - -Other expenses - - 87 87 100

Total Expenses 1,000,107 1,130,781 735,970 -394,811 -35Income

RevenuesGoods and services - 11,715 5,449 -6,266 -53Other revenue - - - - -Total Revenue - 11,715 5,449 -6,266 -53GainsReversals of previous asset write-downs

- - - - -

Net gains from sale of assets - - - - -Other Gains - - - - -Total Gains - - - - -

Total Income - 11,715 5,449 -6,266 -53

Net cost of Outcome 2 1,000,107 1,119,066 [4,5,6]730,521 -388,545 -35



OUTPUT GROUP 2.1 OPERATIONS CONTRIBUTING TO THE SECURITY OF THE IMMEDIATE NEIGHBOURHOODOperations contributing to the security of the immediate neighbourhood are designed to help the stability, integrity and cohesion of the immediate neighbourhood, which Australia shares with Indonesia, New Zealand, Papua New Guinea, East Timor and the island countries of the Southwest Pacific.

Throughout 2008-09, the ADF has continued to contribute to support the Governments of East Timor (Operation Astute) and Solomon Islands (Operation Anode) in promoting regional stability. Both contributions have continued to provide secure environments allowing national efforts to improve governance, law and order and capacity. The improving security situation in both East Timor and Solomon Islands has provided the ADF with the opportunity to reduce force levels consistent with Government direction. The ADF has continued to foster international relations throughout the region, particularly through the continuance of Defence Cooperation Programs in Papua New Guinea, East Timor and other Southwest Pacific Island Nations.

Table 9.5 Output Group 2.1 – Operations Contributing to the Security of the Immediate NeighbourhoodOperation Objective Status ContributionPNG Assist IIDecember 2008

To support the whole-of-government assistance to the Government of Papua New Guinea (PNG) to provide relief materials and air transport to northern PNG, New Ireland and Manus following recent flooding and tidal surges.

Completed One deployment of a C-130 Hercules transport aircraft was conducted.

Tower Commenced 2006

Contribute to the United Nations Integrated Mission in East Timor.

Current One staff officer and three military liaison officers.

AstuteCommenced 2006

Contribute security support to the Government Of East Timor (GOTL) and the United Nations Mission in East Timor (UNMIT).

Current The ADF contributes approximately 660 personnel as part of the International Stabilisation Force (ISF). Apart from commanding the ISF, the ADF provides a Battle Group and an Aviation Group.

AnodeCommenced 2003

Contribute to the DFAT-led Regional Assistance Mission to Solomon Islands (RAMSI). The ADF mission is to assist in the provision of a secure and safe environment that facilitates RAMSI efforts to support and develop Solomon Islands institutions.

Current The ADF leads the coalition military contribution to RAMSI and currently provides 143 personnel to the operation.

GatewayCommenced 1981

Conduct Northern Indian Ocean and South China Sea maritime surveillance patrols.

Current One P-3 Orion maritime patrol aircraft for four patrols per year.



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-m

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bour

hood

Key Performance Indicators

Table 9.6 Cost Summary for Output 2.1 - Operations Contributing to the Security of the Immediate Neighbourhood

NOTES




KPI Status Further informationADF operations meet their stated objectives within the Government’s guidance.

Four current operations and one completed met Government direction in 2008-09.

ADF forces are effectively deployed and sustained.

ADF forces were effectively deployed, sustained and re-deployed during 2008-09.

Forces are withdrawn for reconstitution when they are no longer required.

Security conditions based force reductions in both East Timor and Solomon Islands.

2008-09Budget

estimate[1]

2008-09Revised

estimate[2]


2008-09

Variation[3]

$'000 $'000 $'000 $'000 %Expenses

Employees 45,618 43,526 42,837 -689 -2Suppliers 156,693 165,355 135,622 -29,733 -18Grants - - - - -Depreciation and amortisation

- - - - -


- - - - -



RevenuesGoods and services - 11,715 5,298 -6,417 -55Other revenue - - - - -Total Revenue - 11,715 5,298 -6,417 -55GainsReversals of previous asset write-downs

- - - - -


Total Income - 11,715 5,298 -6,417 -55Net cost of 2.1 – Operations Contributing to the Security of the Immediate Neighbourhood

202,311 197,166 173,161 -24,005 -12



OUTPUT GROUP 2.2 OPERATIONS SUPPORTING WIDER INTERESTSOperations supporting wider interests are designed to contribute to United Nations and international efforts to uphold global security.

Concurrency pressures that may arise from sustained deployment of major force elements will be addressed through monitoring ADF concurrency closely to ensure the ADF retains flexible response options for the Government. Possible significant deterioration in the security environment requiring additional ADF elements will be managed by working closely with other Australian agencies and international partners to monitor threats.

In 2008-09, Defence has strengthened its contribution to Operation Slipper. The ADF Task Force in Afghanistan has been transformed to undertake effective mentoring of local security forces as part of its commitment to build the capacity of indigenous security forces under the North Atlantic Treaty Organisation strategy. United Nations commitments were strengthened through Operation Riverbank in Iraq and Operation Hedgerow in Sudan. The ADF also supported international actions and contributed to operations to counter the threat to merchant shipping from piracy.

Table 9.7 Output Group 2.2 – Operations Supporting Wider Interests

Operation Objective Status Contribution

AzureCommenced 2005

Contribute to the United Nations Mission in Sudan.

Current 17 ADF personnel act as United Nations Headquarters staff, national support element staff or United Nations military observers.

Catalyst2003 - 2009

Support the Australian Government’s contribution to the stabilisation and rehabilitation of Iraq.

Completed All 35 ADF personnel, embedded in Coalition Headquarters were withdrawn from Iraq by 30 July 2009.

HedgerowCommenced 2008

Contribute to the joint African Union / United Nations hybrid Mission in Darfur, (Sudan).

Current Two ADF personnel serve as UN Headquarters staff or specialist officers.

KrugerCommenced 2009

Support Australian Government relations with Iraq through the delivery of tailored security support to the diplomatic mission.

Current Approximately 80 ADF personnel serve in a security detachment. This function will gradually transition to security services provided by the Department of Foreign Affairs and Trade.

PaladinCommenced 1956

Contribute to the United Nations Truce Supervisory Organisation in the Middle East.

Current 11 ADF personnel act as staff officers at the headquarters in Jerusalem or as military observers in the Golan Heights and South Lebanon.

Palate IICommenced 2005

Provide a Military Liaison Officer to the United Nations Assistance Mission in Afghanistan.

Current One military liaison officer located in the mission headquarters, Kabul.

MazurkaCommenced 1982

Contribute to the Multinational Force and Observers in the Sinai.

Current 25 ADF personnel serve as specialist staff and military observers.

RiverbankCommenced 2008

Contribute to the United Nations Assistance Mission for Iraq .

Current Two ADF personnel serve as military advisors in the United Nations Headquarters.



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SlipperCommenced 2001

Contribute to the international coalition against international terrorism across the Middle East. The ADF contributes both to the NATO-led International Security Assistance Force-Afghanistan and broader efforts in the Middle East.

Current The ADF currently has more than 1,200 personnel deployed including:• An Australian National

Headquarters element commanded by a two star officer.

• The Mentoring and Reconstruction Task Force, which mentors an Afghan National Army Infantry Battalion and conducts construction projects to assist the Afghan Government achieve a stable and secure future for its people. The taskforce also runs a Trade Training School that provides instruction in basic trades.

• A Special Operations Task Group, which provides enhanced provincial security by disrupting Taliban extremist’s command and control and supply routes.

• A Rotary Wing Group that provides helicopter support to the ADF and coalition forces deployed in Southern Afghanistan.

• A Force Communications Unit that has staff deployed throughout the Middle East providing specialist communications support to deployed Australian Forces.

• A Force Support Unit that is the main logistics supplier for personnel and equipment in the Middle East.

• A Major Navy Fleet Unit that undertakes maritime security operations in the Arabian Gulf, Gulf of Oman, Gulf of Aden, Arabian Sea and Red Sea.

• An Air Component Command consisting of a Maritime Patrol Aircraft Group which provides maritime surveillance of the Arabian Gulf, Arabian Sea and overland surveillance of Afghanistan, and an Air Movements Group which provides air movements support to ADF and coalition aircraft.




Key Performance IndicatorsKPI Status Further informationADF operations meet their stated objectives within the Government’s guidance.

Australia is working with the international community to implement the North Atlantic Treaty Organisation (NATO) Comprehensive Strategic Political Military Plan for Afghanistan, agreed to by the Australian Prime Minister at the NATO Bucharest Summit in April 2008. Global Security is being enhanced through security cooperation with nations in the Middle East, including through maritime security and counter piracy operations.

ADF forces are effectively deployed and sustained.

ADF commitments under Operation Slipper in Afghanistan and the Middle East were increased. Operation Kruger was implemented to provide security support to the Australian Embassy in Baghdad.Defence is sustaining its commitment to seven United Nations activities (Operations Riverbank, Hedgerow, Paladin, Palate II, Azure, Mazurka and Tower).

Forces are withdrawn for reconstitution when they are no longer required.

Operation Catalyst ceased with effect from 31 July 2009.The Control and Reporting Centre ceased operations on 7 July 2009, after more than two years of operations in Kandahar, Afghanistan.



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Table 9.8 Cost Summary for Output 2.2 - Operations Supporting Wider Interests

NOTES




2008-09Budget

estimate[1]

2008-09Revised

estimate[2]


2008-09

Variation[3]

$'000 $'000 $'000 $'000 %Expenses


- - - - -


- - - - -


- - - - -

Other expenses - - 87 87 100Total Expenses 797,796 921,900 557,511 -364,389 -40Income

RevenuesGoods and services - - 151 151 100Other revenue - - - - -Total Revenue - - 151 151 100GainsReversals of previous asset write-downs

- - - - -

Net gains from sale of assets

- - - - -

Other Gains - - - - -Total Gains - - - - -

Total Income - - 151 151 100Net cost of 2.2 – Operations Supporting Wider Interests

797,796 921,900 557,360 -364,540 -40



OUTCOME 3 DEFENCE’S SUPPORT TO THE AUSTRALIAN COMMUNITY & CIVILIAN AUTHORITIES TO ACHIEVE THE DESIRED RESULTSOutcome 3 summaryThe ADF may be requested to support the Australian Government and communities in both emergency and non-emergency roles. Activities that may be requested by civil authorities and government departments include search and rescue, emergency assistance, disaster recovery, surveillance, and security and non-emergency constabulary tasks. Defence responds to these requests commensurate with capacity and priorities against other directed tasks.

Border Protection Command undertook extensive surveillance activity throughout the Australian Exclusive Economic Zone and supported cooperation programs throughout the South-west Pacific. The ADF is a major capability provider to Border Protection Command in the conduct of these tasks.

Table 9.9 Total cost of Defence Outcome and Outputs 3, 2008-09

NOTES







2008-09Budget

estimate[1]

2008-09Revised

estimate[2]


2008-09

Variation[3]

$'000 $'000 $'000 $'000 %Output group 3.1 - Defence Contribution to National Support Tasks in AustraliaDepartmental Net Cost 12,863 12,863 14,557 1,694 13Total resources for Outcome 3 12,863 12,863 [4,5,6]14,557 1,694 13



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Table 9.10 Departmental cost summary for Outcome 3

NOTES






6. After including $448m from Outcome 1, the costs attributed to Outcomes 2 and 3 reconcile with the total costs of operations shown in Table 9.2

2008-09Budget

estimate[1]

2008-09Revised

estimate[2]


2008-09

Variation[3]

$'000 $'000 $'000 $'000 %Expenses

Employees - - 2,365 2,365 100Suppliers 12,863 12,863 12,192 -671 -5Grants - - - - -Depreciation and amortisation

- - - - -


- - - - -



RevenuesGoods and services - - - - -Other revenue - - - - -

Total Revenue - - - - -GainsReversals of previous asset write-downs

- - - - -


Total Income - - - - -

Net cost of Outcome 3 12,863 12,863 [4,5,6]14,557 1,694 13



OUTPUT GROUP 3.1 DEFENCE CONTRIBUTION TO NATIONAL SUPPORT TASKS IN AUSTRALIANational support tasks undertaken by the ADF may include the security of the Australian coastline from illegal immigration, smuggling, quarantine evasion and other intrusions to Australian sovereignty, counter-terrorism responses, search and rescue and natural disaster relief.

The ADF contributes to the Coastwatch civil surveillance program and Border Protection Command tasking, providing maritime surveillance assets that are tasked routinely in accordance with the Government’s direction.

Concurrency pressures that may arise from sustained deployment of major force elements will be addressed through monitoring ADF concurrency closely to ensure the ADF retains flexible response options for the Government. Possible significant deterioration in the security environment requiring additional ADF elements will be managed by working closely with federal and state agencies to monitor threats.

Key achievements included significant assistance to States and Territories. This comprised approximately 800 ADF personnel assisting the response to the Victorian Bushfires, assistance during the Queensland, New South Wales and Papua New Guinea floods and other contributions during other minor emergencies. The ADF was also involved in long range search and rescue operations in the Southern Ocean in December 2008. These activities were additional to supporting Government intervention in indigenous communities and the assignment of assets to Border Protection Command to combat maritime security threats, including unauthorised boat arrivals and illegal fishing.

Table 9.11 Output Group 3.1 – Defence’s Contribution to National Support Tasks in AustraliaOperation Objective Status ContributionResoluteCommenced 2006

To deter unauthorised boat arrivals, support Australian sovereignty rights and fisheries law enforcement in Australia’s Economic Exclusion Zone and the Southern Ocean by contributing to Southern Ocean fisheries patrols.

Current The ADF currently provides the following assets to Border Protection Command:• One Major Navy Fleet Unit• Up to nine Navy patrol boats• Up to three P-3 Orion

maritime patrol aircraft• Army Regional Force

Surveillance Units• A Transit Security Element.

Solania[1]

Commenced 1988

Conduct South-West Pacific maritime surveillance patrols.

Current One deployment of a P-3 Orion maritime patrol aircraft was conducted.

Outreach June 2007 – November 2008

To provide support to the whole of government support to indigenous communities in the Northern Territory.

Completed Provision of general support to the Northern Territory intervention in particular support to community surveys, child health checks and installation of police workplace and custodial facilities. Support was largely provided by Reserve Force Units.



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1. Operation Solania also contributes to Output Group 2.1.

Key Performance Indicators

VIC Fire AssistFebruary – March 2009

Support to the Victorian Government recovery efforts following the February 2009 Bushfires.

Completed The ADF deployed 800 personnel including:• A Joint Task Force

Headquarters• Defence Liaison Officers• An Engineering Support

Group that assisted with fire fighting and containment measures and re-opening of roads

• A Search Task Group• P-3 Orion Maritime Patrol

Aircraft fire spotting surveillance flights

• Primary Health Care and Psychology Support teams

• Provision of emergency accommodation for 550 people

• Establishing tented ‘Community Service HUBS’ to be used by emergency management agencies to provide a link with people displaced from their homes

• Emergency relief facilities that provided health services, water distribution and sanitation operations

• Helicopter support.Note: Operation Testament was completed in August 2008 and was reported in the Defence Annual Report 2007-08.

KPI Status Further informationThe ADF contribution to national support tasks in Australia meets Government directives.

Defence is a major capability contributor to whole-of-government initiatives, including the Government intervention in indigenous communities.

The ADF response to requests for Defence Force Aid to the Civil Authorities is effectively managed, sustained and reported.

The ADF has provided timely and appropriate resources through Border Protection Command in order to facilitate the effective countering of maritime security threats and resources to support natural disaster responses over the year.

The ADF response to requests for Defence Assistance to the Civil Community is effectively managed, sustained and reported.

Defence has provided significant contributions to civil emergencies domestically, offshore and regionally.




Table 9.12 Cost Summary for Output 3.1 - Defence Contribution to National Support Tasks in Australia

NOTES




2008-09Budget

estimate[1]

2008-09Revised

estimate[2]


2008-09

Variation[3]

$'000 $'000 $'000 $'000 %Expenses

Employees - - 2,365 2,365 100Suppliers 12,863 12,863 12,192 -671 -5Grants - - - - -Depreciation and amortisation - - - - -Finance cost - - - - -Write-down of assets and impairment of assets

- - - - -



RevenuesGoods and services - - - - -Other revenue - - - - -Total Revenue - - - - -GainsReversals of previous asset write-downs

- - - - -


Total Income - - - - -Net cost of 3.1 – Defence Contribution to National Support Tasks in Australia

12,863 12,863 14,557 1,694 13


Case

Stu

dy

DEFENCE ASSISTANCE TO THE CIVIL COMMUNITYOperation VIC Fire Assist As the Victorian bushfire situation deteriorated over the weekend of February 7 and 8, the Army and Air Force moved quickly to provide support to recovery efforts.

From a standing start, the Army shifted more than 260 tonnes of equipment in the first week. At its peak, there were about 800 people in Joint Task Force 662 and within two weeks the headquarters had rotated almost 2,000 Defence personnel through the area of operations of Australia's worst natural disaster.

The field kitchen at Kinglake Civil Relief Centre deployed with the expected task of feeding 150 soldiers. The next day the kitchen was feeding 1,000 people.

An advance party of engineers was in place with emergency services on Sunday evening, 8 February, at Broadford and by Monday afternoon the newly created Engineer Support Group was cutting containment lines around the rim of the fire area. All up, the Group cut 75km of containment lines and the chainsaw teams cleared 35km of roads.

Two reserve platoons were deployed to Yea and Alexandra to establish accommodation for emergency services and civilians, and 160 Army reserves formed the Search Task Group attached to the Victoria Police. The Group did initial searches of 1,300 homes - work that it would have taken months for the already-stretched state authorities to do, according to the then Police Chief Commissioner Christine Nixon.

The unique information-collection capabilities and endurance of the Air Force's P-3 Orions also came to the fore, with one launched on Monday 9 February to collect imagery of the fire-ravaged areas.

The aircraft conducted daylight flights of up to nine hours duration over the next few days to capture imagery from all the affected areas to enable authorities to identify destroyed and damaged properties, scan for possible survivors, check for possible spot fires, map fire fronts and also provide coverage of areas inaccessible to ground-bound civilian authorities.

Meanwhile, at RAAF Base East Sale, Wing Commander Sharyn Bolitho and local Defence staff formed part of the Wellington Shire Municipal Emergency Response Centre. They were on standby to provide assistance if required, and the base received an aircraft with relief firefighters from South Australia.

In the wake of the fires, a 37 Squadron Hercules was used to fly a five-person police forensics team and two vehicles from RAAF Base Pearce to Melbourne's Tullamarine airport

Commander 4 Brigade, Brigadier Michael Arnold, has special mention for the troops.

'I hope that in these tragic circumstances [these troops] get a great sense of worth, a sense they were critically important and that their efforts were highly valued by the Australian community.'

Joint Task Force 662 soldiers unload fresh water during Operation VIC Fire Assist.

Flying Officer Adam Saber positions his AP-3C Orion over one of the fire fronts, so the crew can assess the speed and size of the

fire, during Operation VIC Fire Assist.

Case Study


HMAS Arunta rescues badly injured French sailorAn extended Fleet Reduced Activity Period was introduced over the 2008-09 Christmas break to enable members of the Royal Australian Navy not deployed on operations to enjoy some well deserved respite. However, to ensure the Navy remained able to respond to short notice operational contingencies, two Operational Response Vessels were maintained at eight hours notice for sea throughout December 2008 and January 2009.

On the evening of Thursday 18 December 2008, Headquarters Joint Operations Command advised the Navy that French yachtsman, Yann Elies, who was competing in the ‘Vendee Globe’ round-the-world yacht race onboard the yacht Generali, had suffered a broken femur. Race officials classified Mr Elies’ condition as life-threatening and a decision was taken to rescue him using HMAS Arunta. Within hours of notification, HMAS Arunta had recalled her ship’s company, embarked a Royal Flying Doctor Service Medical Officer and sailed for the Southern Ocean. After steaming 850 nautical miles at high speed in challenging sea conditions, HMAS Arunta successfully rescued the badly injured Mr Elies on Saturday 20 December 2008. The rescue crew was also able to secure Mr Elies’ yacht, making it water-tight in order to provide time for a salvage crew to consider subsequent retrieval.

Following the rescue, and while returning to Perth, WA, HMAS Arunta received an additional request to assist with the supply of 400 litres of diesel fuel to the dismasted yacht Ecover, which was located 420 nautical miles from Cape Leeuwin, WA. After successfully transferring the fuel, HMAS Arunta returned to Fleet Base West on the evening of Monday 22 December, landing Mr Elies to the care of medical authorities ashore.

HMAS Arunta’s rapid response once again demonstrated the quality of the Navy’s training and the Fleet’s ability to respond at short notice to operational contingencies.

The boat crew on HMAS Arunta's Rigid Hull Inflatable Boat stands by to assist medical personnel onboard the yacht 'Generali' as they help the injured french yachtsman Yann Elies.

Case Study

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