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PP42 April 2012

Defence procurement can be better says Aust. Defence Minister

16 Dec 2010

Source: The Age
Australian Defence Minister Stephen Smith has conceded that his department and the government must do better in getting value for the big dollars going into spending on Australia's military hardware.

Progress had been made, 'but we have a long way to go,' he told a news conference. A cable from the US embassy raised doubts about Australia's ability to pay for the ambitious capability program in the 2009 Defence white paper. The cable, sent in August last year, also quoted an unnamed senior Treasury officer saying Defence's 'budgeting and execution is the worst in the federal government'.

Mr Smith said any major procurement was a high-risk challenge, dealing with fast-moving technological change. 'So there are always challenges in Defence procurement issues, but I think that Defence, the Australian government and Australia can do much better.

Asked whether Australia could afford to pay for the military hardware on order, Mr Smith replied: 'Well, we can't afford not to.' The government was seeking to reinvest into procurement and capability $20 billion worth of efficiency savings.

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