buglerbilly
16-07-10, 04:47 AM
July 16, 2010 - 1:24PM
The opposition has promised a better deal for Australian companies to compete on more equal terms with foreign firms for defence contracts.
Launching the coalition defence industry policy, Opposition defence science and personnel spokesman Bob Baldwin said current procurement practice seemed to have shifted noticeably towards acquiring equipment already in service overseas, referred to as MOTS (military off the shelf) or COTS (commercial off the shelf).
"While MOTS and COTS solutions certainly have their place in the Australian Defence Force procurement sphere - the C-17 and Super Hornet acquisitions spring to mind as MOTS success stories - the current governments overemphasis on the cheapest option will inevitably result in Australia's armed forces losing their capability edge on the battlefield," he said in an address to the Australian Business Defence Industry Unit.
Mr Baldwin said that would also result in a loss of expertise in the Australian defence industry.
Under coalition policy, where the government is providing prototype development funding for overseas manufactured equipment, comparable funding must be provided to Australian industry.
Mr Baldwin cited the case of the well regarded Bushmaster armoured vehicle manufactured in Victoria.
Its manufacturer Thales was initially excluded from funding to develop prototype next-generation light armoured vehicles in favour of a US consortium.
"Under a coalition government such a situation would not occur," he said.
"We will ensure that Australian industry will be given equality of opportunity so long as a demonstrated capacity exists or a competitive manufacturing venture could be realistically and affordably established."
Under the policy, a coalition government would also introduce a defence industry advocate, ensure that the Defence Capability Plan runs for 10 years and establish the Defence Materiel Organisation as an executive agency.
Mr Baldwin said "scope creep" - where defence changed project specifications after contract - added cost and complexity.
He said appropriate management and due diligence would reduce but not eliminate the risk of problem projects which ran late and over budget.
These projects of concern didn't start under Labor, he said.
"They have been inherent in the process for quite some considerable time," he said.
"In relation to project of concern, do I see that ever ending - no. That is the nature of the beast."
© 2010 AAP
The opposition has promised a better deal for Australian companies to compete on more equal terms with foreign firms for defence contracts.
Launching the coalition defence industry policy, Opposition defence science and personnel spokesman Bob Baldwin said current procurement practice seemed to have shifted noticeably towards acquiring equipment already in service overseas, referred to as MOTS (military off the shelf) or COTS (commercial off the shelf).
"While MOTS and COTS solutions certainly have their place in the Australian Defence Force procurement sphere - the C-17 and Super Hornet acquisitions spring to mind as MOTS success stories - the current governments overemphasis on the cheapest option will inevitably result in Australia's armed forces losing their capability edge on the battlefield," he said in an address to the Australian Business Defence Industry Unit.
Mr Baldwin said that would also result in a loss of expertise in the Australian defence industry.
Under coalition policy, where the government is providing prototype development funding for overseas manufactured equipment, comparable funding must be provided to Australian industry.
Mr Baldwin cited the case of the well regarded Bushmaster armoured vehicle manufactured in Victoria.
Its manufacturer Thales was initially excluded from funding to develop prototype next-generation light armoured vehicles in favour of a US consortium.
"Under a coalition government such a situation would not occur," he said.
"We will ensure that Australian industry will be given equality of opportunity so long as a demonstrated capacity exists or a competitive manufacturing venture could be realistically and affordably established."
Under the policy, a coalition government would also introduce a defence industry advocate, ensure that the Defence Capability Plan runs for 10 years and establish the Defence Materiel Organisation as an executive agency.
Mr Baldwin said "scope creep" - where defence changed project specifications after contract - added cost and complexity.
He said appropriate management and due diligence would reduce but not eliminate the risk of problem projects which ran late and over budget.
These projects of concern didn't start under Labor, he said.
"They have been inherent in the process for quite some considerable time," he said.
"In relation to project of concern, do I see that ever ending - no. That is the nature of the beast."
© 2010 AAP