News Archive 2006

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December

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HMAS ‘TOBRUK’ DEPARTS SYDNEY FOR THE MIDDLE EAST: The Royal Australian Navy’s first purpose-built amphibious ship (from the UK 'Sir Belvedere' design), the HMAS ‘Tobruk’ has departed Sydney’s Fleet Base East for passage to the Persian Gulf in support of operations in the Middle East and Afghanistan. The ship’s mission is to deliver Australian military stores and equipment which will subsequently airlifted into Afghanistan by the United States Air Force. The ‘Tobruk’ will also take on Australian equipment in the Middle East for return to Australia. Defence says, perhaps a little datedly, the vessel is capable of transporting “18 ‘Leopard’ Main Battle Tanks in the tank deck and 40 Armoured Personnel Carriers on the vehicle deck,” the latter of which has been reinforced to enable the transportation of two Landing Craft Mechanical-8 (LCM-8) on specially designed cradles. [28.12.06]

STATEMENT ON DEFENCE WEAPONS & MUNITIONS SECURITY: Defence Minister Nelson has advised media his Department is continuing to cooperate fully with relevant State police investigations into the alleged theft of Defence weapons and munitions. In addition to the support Defence is providing to these investigations, Dr Nelson says a range of measures have been immediately taken to strengthen security and confirm stockholdings. These include: the suspension of further issues of the 66mm light anti-armour weapon (LAAW) until end-January (except for authorised operational needs); current holdings of this weapon being checked to ensure all munitions are accounted for (ie: some are deployed on operations); and historical accounting records for the LAAW being re-examined. [22.12.06]

DEFENCE SECURITY AUTHORITY AUDIT NOW UNDERWAY: Dr Nelson added that current holdings of all weapons and munitions at the Puckapunyal base in Victoria had been checked and accounted for. The Minister also advised his approval for a comprehensive audit of the security policies and practices that apply to Defence weapons, munitions and explosives. This audit is to be led by the Defence Security Authority, with assistance from Defence’s Inspector-General. The audit will be overseen by a board that will include a representative from the Australian Security Intelligence Organisation (ASIO). The Australian National Audit Office will also be afforded observer status in the audit, whose initial focus (for report at end-January)will be the security arrangements applying to the 66mm LAAW. A wider second phase report looking at all weapons, munitions and explosives management is to be completed within the first half of 2007. [22.12.06]

SPAIN CONFIRMS ITS ORDER FOR 45 NH90 HELICOPTERS: Following a Spanish Government decision in May 2005 relating to the acquisition of NH90 helicopters, the Council of Ministers has approved the signature of a contract to supply the Spanish Armed Forces with an initial batch of 45 helicopters for its fleet modernization. The decision also reinforces the role of Eurocopter España as the third pillar of Eurocopter, as evidenced by the construction of a new plant in Albacete (to be officially opened in the first quarter of 2007), which will undertake NH 90 helicopter assembly as well as sole-source manufacturing of the NH90s front fuselage. The Albacete plant will also assemble and manufacture the rear fuselage of the ‘Tiger’ combat helicopter, and manufacture EC 135 helicopters purchased by the Spanish Ministry of Interior. First tactical transport (TTH) version deliveries of NH90 units to Spain will take place in 2010. [22.12.06]

NEW CUSTOMS VESSEL TO STRENGTHEN MARITIME ENFORCEMENT: Environment & Heritage Minister Campbell and Customs Minister Ellison have announced details of plans to strengthen Australia’s maritime presence and enforcement efforts in the environmentally sensitive Ashmore Reef National Nature Reserve, and Cartier Island Marine Reserve. The Ashmore Reef/Cartier Island Reserves are located in the Indian Ocean, approximately 320km off Australia’s coast, but only 150kms south of the Indonesian island of Roti. Australia assumed responsibility for the Islands in 1933 from Britain, and they were declared as Commonwealth Marine Reserves in 1983 and 2000 respectively. Heading the list of new initiatives is the charter of a dedicated Customs vessel to combat illegal fishing activities in relation to trepang, trochus, shark and turtle. [21.12.06]

TASK FORCE TO TARGET TRADITIONAL INDONESIAN FISHERMEN OUTSIDE THE LAW: Senator Ellison added that the dedicated patrol vessel would boost Australia control over traditional Indonesian fishermen, who whilst allowed to operate in the subject areas under a Memorandum of Understanding between Australia and Indonesia, are not allowed to fish in the Reserves themselves. The new vessel, to be based at Ashmore, will be set up to operate as a command centre for Customs and Environment officers involved in patrol activities. It will be equipped with two high-speed tenders for patrols of the marine reserves and associated island and reef ecosystems, thus freeing up existing Customs ‘Bay’-class and RAN patrol boats for other border protection duties. [21.12.06]

THALES CONTRACTED FOR ‘APEC AUSTRALIA 2007’ SECURITY: Thales Australia has been appointed by the Government as ‘Exclusive Accreditation Partner’ for the trademarked ‘APEC Australia 2007’ year, and has also won a contract to act as the Prime Systems Integrator for the Accreditation and Security Access Control System (ASACS) and related services for the series of APEC meetings (ie: twenty-one member countries have been invited to meeting held over 100 days between January and September 2007, culminating in a meeting of world leaders in Sydney). In short, this adds up to thousands of people moving across 20 sites over a 10-month period, for which Thales has been contracted to provide hardware and software to register and accredit all staff and delegates, and using high tech contactless cards and visual recognition. Thales Australia has a strong history of providing core safety and security solutions at major world events like the Sydney Olympics in 2000, the Rugby World Cup in 2003, and the recent Commonwealth Games in Melbourne in 2006. [21.12.06]

DUTCH AIR WARFARE DESTROYER VISITING SYDNEY OVER XMAS: The Royal Netherlands Navy anti-air warfare (AAW) frigate HNLMS ‘Tromp’ will visit Sydney from 23 December to 2 January 2007, after completing a recent series of exercises with the US Navy off Hawaii which tested embedded capabilities in the ship’s APAR multifunction/SMART-L volume search radars (ie: in regard to the terminal guidance requirements of SM-2 and ESSM missiles), with the aim of exhibiting growth potential into Tactical Ballistic Missile Defence (TacBMD). The first demonstrations of this capability occurred when the ‘Tromp’ participated US Navy TacBMD tests in November and December this year. The SMART-L long-range 3D volume search radar system is capable of automatic detection, track initiation and tracking of up to 1000 air targets up to a range of 400kms. [21.12.06]

ST ENGINEERING COMPLETES MAK TECHNOLOGIES INC ACQUISITION: Singapore Technologies Engineering Ltd (ST Engineering) has confirmed – in relation to a 4 October 2006 announcement - that its US company, Vision Technologies Kinetics Inc (VTK), has completed its acquisition of 80% of US-based MAK Technologies Inc (MAK). MAK is a world leader in simulation software that enables users to link, simulate and visualise virtual worlds in a networked synthetic environment. MAK also uses its technical expertise to provide customised simulation solutions, and researches and develops cutting edge contemporary simulation technologies. Its customer base includes defence-industry leaders Raytheon, Lockheed Martin, Boeing, BAE and Thales. [21.12.06]

AUSTRALIAN AEROSPACE BOOSTED WITH AP-3C MAINTENANCE CONTRACT: Defence has signed a nine-year/$201m contract with EADS-owned Australian Aerospace, to undertake long-term deeper maintenance (ie: 12-monthly and five-yearly cycles) on the RAAF’s AP-3C ‘Orion’ long-range maritime patrol aircraft fleet (currently based at RAAF ‘Richmond’ (NSW) and RAAF ‘Edinburgh’, in SA). The nine-year contract extends through to the planned withdrawal of the aircraft in 2015, from which time on the 2006 DCP indicates they will be replaced by new manned aircraft and unmanned aerial vehicles planned for acquisition via project Air 7000. Signature of the contract is also said to establish management arrangements to integrate and coordinate around $600m of AP-3C maintenance upgrades to be effected under project Air 5276 (ie: AP-3C Capability Assurance Program) by Australian Aerospace and Tenix Defence Aerospace, courtesy of a 16 November 2005 industry alliance (‘P-3 Master Accord’). [20.12.06]

‘NO RISK’ CROWS TO LAND ON ARMY ‘BUSHMASTER’ VEHICLES: Queanbeyan (NSW)-based Fire Control Systems Pty Limited - a wholly owned subsidiary of Electro Optic Systems (EOS) - has won a $14m order to supply 44 units of its Stabilised Remote Weapon System (SRWS) to Thales Australia, for fitment by Thales to Australian Army ‘Bushmaster’ Infantry Mobility Vehicles, with units to be delivered between now and February 2007. The SRWS combines US-based Recon Optical’s ‘Raven’ R-400 stabilised weapon mount with EOS’ fire control and sensor package to enable weapons mounted on top of military vehicles to be fired accurately and swiftly by a gunner inside the vehicle. The ADF’s SRWS will be identical to M101 provided to the US Army under its common remotely operated weapon station (CROWS) program, which has already seen hundreds of these units used in Iraq. A similar weapon to the SRWS/CROWS was earlier sourced by the ADF from Swedish-based Kongsberg, and fitted to ASLAVs destined for Middle East service. [20.12.06]

NAS RE-CONTRACTED FOR LASER AIRBORNE DEPTH SOUNDER (LADS): Adelaide-based National Air Support (NAS), a UK Cobham plc company, has been awarded a three year (to late-2009) multi-million dollar contract extension to operate and maintain the Tenix LADS Corporation’s Bombardier Dash 8 aircraft, which carries the LADS MkII system currently engaged in surveying coastal waters worldwide. The contract extends a nine-year partnership between the two Adelaide companies which share complementary specialist skills and a common goal – to improve the safety of Australian coastal navigation. DIAR.com has previously reported on the Australian Department of Defence’s selection of Tenix LADS Corporation to undertake an initial contract for hydrographic surveying in the Torres Strait and northern Great Barrier Reef, which is being executed under the Fisheries Protection Survey and Charting Project. [20.12.06]

ANDREW PEACOCK TO RETIRE AS BOEING AUSTRALIA PRESIDENT: The Hon. Andrew Peacock, AC, has confirmed that he will retire as President of Boeing Australia Limited, effective at the end of February 2007. Peacock, 67, joined Boeing in July 2002 after a celebrated political and ambassadorial career to establish a new corporate head office for Boeing Australia and to co-ordinate the company's in-country business activities – the company’s largest global presence outside of the United States. According to the President of Boeing International, Laurette Koellner, “Andrew will continue in a consultancy role to Boeing to help maintain the excellent momentum he has established with senior level business and government relationships." The company plans to soon announce Peacock’s successor. [20.12.06]

NAVAL TRANSMISSION TOWERS SCOTCHED AT BELCONNEN: Via a series of actions to orchestrate a controlled fall, the Department of Defence had downed three 183m-high and decommissioned low-frequency radio transmission towers at the Navy’s Transmitting Station in the Canberra suburb of Lawson. The controlled fall was executed by selected guy wires on each tower being severed using small cutting charges at guy ground anchor points, and allowing the tower to fall over in a planned direction. The towers will now be cut up and removed from the site for recycling, although a segment of one of the towers will be retained on site for possible future static display. Removal of the towers was approved by Environment & Heritage Minister Campbell in January 2006. [20.12.06]

AVALON AIR SHOW TO AGAIN FEATURE F-111 DUMP AND BURNS: Organisers of the 2007 Australian International Air Show - to be held at Avalon from 23-25 March – have confirmed that RAAF F-111 aircraft will again take part in a high-energy flying display that includes simulated combat manoeuvres, and its famous ‘dump and burn’ procedure. For more than 30 years, the pig-nosed F-111 (or “Aardvark” as it is more affectionately known) has comprised the backbone of Australia’s long-range strategic and tactical strike capability, and boasts performance data rivalled by few other military aircraft. The ‘Aardvark’ is powered by two Pratt & Whitney TF-30 turbofans that deliver a top speed of Mach 2.4 or almost 2550 kilometres per hour. In battle configuration, the F-111 it carries 28 tonnes of assorted missiles and bombs. Aardvark’s appearing at Avalon next March will fly direct from their RAAF ‘Amberley’ (Qld) base. [20.12.06]

CLIMATE CHANGE SECURITY RISKS HEAD INAUGURAL ‘AUKMIN’ TALKS: The British Secretary of State for Foreign and Commonwealth Affairs (Margaret Beckett) and British Secretary of State for Defence (Des Browne), have met in London 18-19 December with Australian Foreign Affairs Minister (Alexander Downer) and Defence Minister, Brendan Nelson, for the inaugural Australia-United Kingdom Ministerial (AUKMIN) dialogue. The talks were agreed to by Prime Ministers Blair and Howard in Canberra in March 2006. In a formal communique issued after the meeting, Ministers acknowledged the need for a comprehensive and coordinated approach to dealing with threats to international security. They recognised the impact of contemporary threats such as terrorism, the proliferation of weapons of mass destruction and their delivery systems, and the consequences of state fragility and failure, as well as threats such as the security implications of climate change. In respect to the latter, a UK-Australia Energy Dialogue is to be held in Canberra in February 2007. [20.12.06]

MUSLIM AGENDA RAISED TO COUNTER EXTREMIST IDEOLOGY: Following-on from the earlier AUSMIN talks with the United States (see last DIAR.com), there was a certain similarity in lead issues highlighted by the AUKMIN communiqué, including: countering WMD proliferation, support for the development of missile defences and research into countering MANPADS threats. In one area of difference – and acknowledging issues more common to the UK and Australia than the US - Ministers emphasised the importance of countering violent extremism, including through the reiteration of the shared values of tolerance and pluralism that underpin democratic societies. Ministers agreed to deepen bilateral cooperation in researching and developing policies to counter radicalisation and terrorist recruitment both in their own societies, and globally. They particularly welcomed the efforts of Muslim countries and communities in countering extremist ideology. [20.12.06]

FPDA STILL IMPORTANT, BUT FOCUS ON REGIONAL INTEROPERABILITY: Ministers acknowledged the strategic and economic significance of East Asia and the increasingly active role being played by these countries in global affairs. They agreed the Five Power Defence Arrangements (FPDA) “remained an important element of regional security architecture,” but also acknowledged the role of the ASEAN Regional Forum (which the UK participates in as a member of the European Union). The two nations reaffirmed their close cooperation in all facets of intelligence and security. Ministers also welcomed the close and enduring bonds shared by their respective armed forces, and restated their commitment to exploring ways to enhance military interoperability and cooperation. In this respect, the recent agreement reached by Australia and the UK under the ‘Memorandum of Understanding on Military Capability Harmonisation and Equipment Cooperation’ (AUMICE), was welcomed. Ministers agreed the next AUKMIN Dialogue would take place in Australia in the first half of 2008. [20.12.06]

ERICSSON MOVES TO SECURE KILLER MOBILE TELEPHONE TECHNOLOGY: Swedish-based Ericsson has signed a definitive agreement to acquire for US$1.9 billion San Jose (California)-based Redback Networks Inc, in a move that will boost the company’s ability to accelerate its market growth in next generation Internet Protocol (IP) networks. Redback was founded 1996 and holds over 700 carrier customers in more than 80 countries. It employs about 800 people, including 500 R&D engineers. According to industry analysts, 15 of the top 20 telephone carriers worldwide use Redback's technology, including broadband routers to manage IP-based data, voice and video services. Redback also has a strong position in multi-service edge routing technology, which helps carriers deliver broadband, telephone, TV and mobility services over internet-based infrastructures. Sales in the first nine months of 2006 were $197m. [20.12.06]

‘SEA KING’ HELICOPTER CRASH BOARD OF INQUIRY OUTCOMES: Defence has confirmed the report arising out the Board of Inquiry into the 2005 ‘Sea King’ helicopter accident at Nias (Indonesia) had been submitted to the Maritime Commander, Rear Admiral Davyd Thomas, on 18 December. The report will now undergo review by subject matter experts, including lawyers and aviators. Defence says the results of this review “will form part of the final report and will also be made public” (ie: now expected to be late-April 2007). Admiral Thomas added the review process “will allow us to develop an Implementation Plan to ensure that we make the necessary changes in order to prevent such an occurrence ever happening again.” He further confirmed the Navy had not waited for the Board’s findings and recommendations before implementing “some positive cultural change, especially within 817 Squadron. The Navy continues to make improvements to the safety of its Fleet Air Arm (as evidenced by) the ongoing Maintenance Reinvigoration Program.” [19.12.06]

ROLLS-ROYCE TO PROVIDE ‘HOBART’-CLASS DESTROYER SHIPLIFT: Rolls-Royce has been selected by the SA Government to provide a $50m shiplift, as a key element the new Techport Australia shipbuilding and ship repair precinct being developed adjacent to the ASC site at Osbourne. The new 156m-long ‘Syncrolift’ will have capacity for ships of up to 9,300 tons (including the RAN’s new project Sea 4000 destroyers), and will enter service in 2009. It will be complemented by a ship transfer system supplied by Norwegian-based TTS, in order to move vessels between the ‘Syncrolift’ and maintenance/build berths on shore. Techport Australia’s installation will also be designed to permit a future increase in ‘Syncrolift’ length to 210 metres, extending ship handling capacity to Panamax-size ships. The ASC has its own ‘Syncrolift’ at Osbourne to service the ‘Collins’-class submarine fleet, while the RAN operates another at its Darwin Naval Base. Rolls-Royce currently supports 230 shiplift/transfer system installations operating in 68 countries. [19.12.06]

NORTHROP GRUMMAN COUNTS ITS JSF PROGRAM ACHIEVEMENTS: Palmdale (California)-based Northrop Grumman Corporation reports it has reached two major milestones on the F-35 ‘Lightning II’ aircraft program: the delivery of the center fuselage for the first US Marine Corps (USMC) variant; and the start of assembly of the center fuselage for the first US Navy variant. The center fuselage just delivered is only the second such unit to be produced under the F-35 program. The first, delivered in April 2005, was integrated on the first aircraft that took its maiden flight 15 December. Northrop Grumman plans to ship the USMC variant to Fort Worth (Texas) on 8 January for the beginning of the aircraft's final assembly. [19.12.06]

GROUP ‘B’ JSF PARTNERS FALTERING ON PSFD MOU COMMITMENT: Following the ready signing in the run-up to Xmas of the lead Joint Strike Fighter (JSF) SDD phase international partners (ie: the US, the Netherlands, Canada, the UK and Australia), a laggard (or Group ‘B’) list of countries including Norway, Italy, Denmark and Turkey have delayed their commitment to the Production, Sustainment and Follow-on Development (PSFD) Memorandum of Understanding. Norwegian Defence Minister, Anne-Grete Strom-Erichsen, says the country has “put off” signing the MoU as it continues to consider the relative merits of the JAS ‘Gripen’ and Eurofighter ‘Typhoon’, which are being actively marketed on the back of generous industrial offset promises. Italy is claiming it cannot sign up to the PSFD MoU because its 2007 Budget has not yet passed the nation’s Parliament. [19.12.06]

ROBERT GATES SWORN IN AS 22ND UNITED STATES DEFENCE SECRETARY: Robert Gates has been sworn-in 18 December as the United States' 22nd secretary of defence, in a ceremony at the Pentagon. After President Bush introduced the new Secretary as "an experienced and thoughtful leader," Vice President Richard Cheney administered the oath of office (ie: Secretary Gates was officially sworn in at the White House earlier in the day during a private ceremony). Speaking in terms of forthcoming Defence Department briefings on Iraq, Gates said, "I look forward to hearing their honest assessments of the situation on the ground and of having the benefit of their advice, unvarnished and straight from the shoulder, on how to proceed in the weeks and months ahead." [19.12.06]

NEW ASSESSMENT OF GLOBAL HOMELAND SECURITY MARKET: In a just-released update to its highly-regarded National Domestic Security (NDS) analysis, Washington DC-based Civitas Group reports that, in the aftermath of the 11 September 2001 terrorist attacks, the NDS market “continues to demonstrate strong growth and is a rapidly evolving and dynamic sector in both technology and services with a range of potentially profitable opportunities for a many types of companies”. Among its conclusions, Civitas notes: the NDS market will continue to grow at a steady combined annual growth rate of 8-10% over the next five years; while the estimated addressable (industry-available) global NDS market for FY 2006 is approximately US$55 billion (29% higher than projected two years ago). Civitas’ breakdown of the composition of the world-wide NDS market is: US (54% - $140b), Continental Europe (17%), UK (7%), high wealth Middle East (6%), Singapore (2%), Australia (2%), Japan (2%), Canada (2%), Israel (2%), and Rest of World (6%). [18.12.06]

CRITICAL DESIGN REVIEW FOR NETFIRES NLOS-PAM ARTILLERY: The NetFires LLC (Raytheon/Lockheed Martin JV) Non Line-of-Sight-Launch System (NLOS), Precision Attack Missile (PAM) and accompanying container launch unit has passed a joint US Army and Navy critical design review (CDR) on its accelerated path for incorporation into the Army's Evaluation Brigade Combat Team, Spin Out 1 (one of the 18 Future Combat System's core systems mandated to support the US Army's Future Brigade Combat Teams). Compared to systems with equivalent firepower (kills per combat load), officials say the NLOS launch system promises to provide “a tailorable, modular, highly deployable, and flexible precision fires capability for US joint manoeuvre forces, for a very low life-cycle system cost.” [18.12.06]

GOODRICH CORPORATION CHANGES GEAR FOR BALANCED GROWTH: US-based Goodrich Corporation is to re-organise into 11 strategic business units, within its three business segments, two of which will be renamed. The new structure is claimed to result in a significant reduction in the number of autonomous business units, and will come into effect from 1 January 2007. The former Engine Systems business will become the Nacelles and Interior Systems segment (under Cindy Egnotovich), while the former Airframes Systems business becomes the Actuation and Landing Systems segment (under Jack Carmola). The Electronic Systems segment remains the same, with Jerry Witowski as President. Officials described the changes as “the next natural step in Goodrich's deployment of its strategic imperatives of balanced growth, leveraging the enterprise and operational excellence.” [18.12.06]

HMAS ‘MELVILLE’ PINPOINTS LOST HELICOPTER POSITIONING BEACON: The RAN survey ship, HMAS ‘Melville’, has successfully localised the position of the Flight Data Recorder beacon from the Army ‘Black Hawk’ helicopter lost off HMAS ‘Kanimbla’ during operations to the south of Fiji on 29 November. Equipped with a ‘Towed Pinger Locating Drone’ supplied from the US Navy and operated by US civilian contractors, the ‘Melville’ detected the beacon during its first pass over the crash site, with subsequent survey runs undertaken to pinpoint the beacon’s position - in approximately 2900m of water. Defence officials consider that while there is no reason to suspect that the beacon does not remain with the aircraft, this cannot be confirmed. The Melville’s consolidated picture of the terrain of the sea floor around the beacon is now being used to establish the feasibility of any further military operations to assess the condition of the aircraft. [17.12.06]

INTELLECTUAL PROPERTY PROGRAM RECOGNISED IN TERRY KELLY AWARDS: Australian Aerospace’s role in building local defence industry small and medium-sized enterprises (SMEs) through sponsoring and funding the Defence Industry Intellectual Property Assistance and Training (DiiPAT) program, was recognized 29 November with presentation to the company’s CEO, Joseph Saporito, of the fourth annual Australian Industry Defence Network Victoria (AIDN-Vic) Terry Kelly Memorial Award. The DiiPAT program ran for 3 years between 2002 and 2005, and involved the delivery of intellectual property seminars and in-company visits to over 300 SMEs as part of the ‘Tiger’ armed reconnaissance helicopter (project Air 87) Australian Industry involvement initiative. At the same function, AIDN-Vic also presented its second annual Young Achiever Award to Tom Loveard, of Sentient Vision Systems. [17.12.06]

DEFENCE MINISTER RECOGNISES HISTORIC FIRST JSF FLIGHT: The Minister for Defence, Dr Brendan Nelson, has officially acknowledged the 15 December first flight of the Lockheed Martin Joint Strike Fighter (JSF), saying that as a result of the F-35’s first flight, Australia’s new air combat capability had moved “a step closer to delivery”. The Minister’s statement went on to extend the Australian Government’s congratulations to the JSF Program Office and Lockheed Martin, saying their “successful management” of the JSF Program had led to the achievement of a “significant milestone in Defence aviation history.” In comparison to previous test programs, added Dr Nelson, “the JSF continues to exceed in both performance and schedule.” [16.12.06]

AUSTRALIA-FRANCE DEFENCE COOPERATION AGREEMENT SIGNED: During a meeting in Paris 15 December with the French Minister for Defence, Michele Alliot-Marie, Defence Minister Nelson signed a Defence Cooperation Agreement (DCA) - Australia’s first DCA with any European country. The agreement is said to provide “a framework for further cooperation across a broad range of military and defence civilian areas such as materiel and capability planning.” France, in cooperation with other nations (primarily Australia and New Zealand), already actively contributes to maritime surveillance, humanitarian and disaster relief assistance and support to regional defence and police forces in the Pacific and Southern Oceans. The Minister added, France is also “an important part of the European defence industry, and there is an increasingly significant level of materiel activity between Australia and France.” From Paris, Dr Nelson was to next visit the Netherlands to meet the Dutch Defence Minster, Henk Kamp, after which he was to attend the inaugural Australia-UK Ministerial talks (AUKMIN) in London. [16.12.06]

CARPENTER CONFIRMS $174M INVESTMENT IN WA SHIPBUILDING: Confirming a major new push for the RAN’s amphibious ships project (JP 2048), the West Australian government has outlined the scope of a re-budgeted $174m infrastructure upgrade at the Australian Marine Complex (AMC) in Henderson, expected to create up to 3,000 jobs over the next 10 years. According to WA Premier, Alan Carpenter, the revised investment package includes: the construction of a 100-metre floating dock; a new land transfer system; the dredging of a 17m-deep basin to accommodate the floating dock; an extension of the existing eastern wharf; and supporting site works and electricity upgrades. Carpenter said the new infrastructure would enable WA “to bid for a range of other maintenance and construction projects across the marine, defence and resources sectors.” [15.12.06]

HENDERSON UPGRADE BEING LED BY SUBMARINE SUPPORT: In support of the basic AMC investment package’s economics, Premier Carpenter advised that the former submarine corporation - ASC Pty Ltd - “has committed to working at the AMC for the next 25 years. The company is investing $35m in maintenance and upgrade facilities to enable it to meet contracts to service the Royal Australian Navy’s ‘Collins’-class submarines, based at HMAS ‘Stirling’. In this financial year, ASC will undertake submarine work in WA worth $49m.” The new floating dock is to be used to lift and transfer submarines and surface ships ashore for major maintenance (a role currently undertaken by Tenix Defence). The submarines will then be moved across the wharf area on the new land transfer system and into ASC’s $35m, purpose-built, undercover maintenance facility. [15.12.06]

ASC CONFIRMS $35M INVESTMENT IN ‘COLLINS’ INFRASTRUCTURE: The Deputy Chief Executive Officer of ASC Pty Ltd, Ross Milton, has confirmed $35m will be spent constructing a specialist submarine maintenance and upgrade facility (including office accommodation for 185 people) at WA’s Australian Marine Complex (AMC). The facility, said Milton, will “consolidate all WA submarine maintenance and upgrade activities, and commit ASC to undertake work in the state indefinitely. ASC will benefit from the WA Government’s commitment to additional infrastructure, which includes a floating dock, as part of the Common User Facility (CUF). It will (also) incorporate land transfer capability enabling ASC to move submarines into the new facility ... (meaning) we will be able to carry out maintenance on as many as three submarines at any one time.” Tenders were called for ASC’s facility in July 2006, with construction expected to take around 14 months to complete. ASC plans to undertake its first AMC submarine maintenance docking in 2008. [15.12.06]

HOWARD PROMISES EXTRA $1 BILLION FOR DEFENCE RECRUITMENT: Speaking at Victoria Barracks in Sydney, Prime Minister Howard has committed the Government to spending an additional $1 billion over 10 years to boost recruitment into the ADF, along with the retention of those having already joined the military. Describing his announcement as “the first instalment … (with) further measures to boost recruitment and retention to be announced in 2007,” Howard said the Government would firstly move to streamline the recruitment process, with a $371m program to effectively to cut it from 30 weeks down to six weeks. The second initiative (as foreshadowed by Dr Nelson), is to introduce a military ‘gap year’ scheme to provide an opportunity every year for up to a thousand 17 to 24-year-olds (who’ve finished year 12 in the last two years) to experience military training and lifestyle. [15.12.06]

$226M BOOST FOR DEFENCE RETENTION BONUSES & ALLOWANCES: The Prime Minister added the Government’s third initiative was to implement revamped ADF retention bonuses and allowances, costing an additional $226m over the next seven years, and targeted at personnel in critical positions and holding key skill sets. Retention bonuses of up to $25,000 will be offered in future for selected Navy and Army employment and rank groups holding high-value skills and experience. An initial one year retention bonus of $10,000 (followed by completion bonuses of $30,000) will be paid for three years additional service for military ranks designated as critical to Army workforce growth. Some $100m has also been specially earmarked for a review of Navy seagoing and submarine service allowances, subject to independent Defence Force Remuneration Tribunal considerations. [15.12.06]

BAE SYSTEMS & L-3 COMMUNICATIONS TEAM FOR PROJECT AIR 7000: BAE Systems Australia (BAES) and L-3 Communications Integrated Systems (L-3 IS) have confirmed their signing of a teaming agreement in their quest to become Defence’s Industry Capability Partner (ICP) for the unmanned aerial system component (Phase 1) of project Air 7000. Defence is seeking to replace the RAAF’s current AP-3C ‘Orion’ fleet with manned (phase 2) and unmanned assets, and recently decided that for phase 1, the country would join the US Navy’s Broad Area Maritime Surveillance (BAMS) program – seeking to bring forward a multi-mission unmanned aerial system (MUAS). The teaming agreement is said to combine BAES Australia’s in-country expertise in autonomous systems technologies with L-3 IS’ large scale systems integration and maritime surveillance expertise. Accordingly, the two companies’ joint expertise in complex systems integration, management and support should place them in a strategic position to secure development of the Australian integrated ground environment, along with support for MUAS introduction. [15.12.06]

PROVISIONAL ACCEPTANCE OF HMAS ‘SYDNEY’ AFTER FFG UPGRADE: Thales Australia has confirmed the first guided missile frigate (FFG) to be upgraded under project Sea 1390 - HMAS ‘Sydney’ – has achieved ‘provisional acceptance’ by the Department of Defence. The ship was initially handed back to the RAN for operational use in April, and has since spent time at sea participating in a number of exercises and undergoing further trials in various conditions. The 20 year old frigate has been upgraded with a new Australian Distributed Architecture Combat System (ADACS), along with new weapons systems, sensors and machinery. Further upgrades to ADACS software is expected as the full suite of capabilities initially envisaged under the Sea 1390 contract (as subsequently amended) are added. The second FFG into upgrade, HMAS ‘Melbourne’ is scheduled for provisional acceptance later in 2007. [15.12.06]

ANAO TO BE EMPOWERED TO CHASE UP TARDY DEFENCE PROJECTS: The Federal Parliament’s Public Accounts and Audit Committee has unanimously agreed to recommend that the Australian National Audit Office (ANAO) receive additional funding of $1.5m in the 2007/08 Budget to produce an annual audit on the progress of major defence capital equipment projects (CEPs). Committee Chair, Tony Smith, said the ANAO’s recommended report would be based on data supplied by the Department of Defence and the Defence Materiel Organisation (DMO), and focusing on the top thirty CEPs, currently valued at $30.2 billion. New Opposition Leader, Kevin Rudd, has picked up on the Committee’s recommendations, suggesting that substantial savings could be made available by a better run Department of Defence. The Committee’s inquiry is currently reviewing systems used by Defence and the DMO for financial reporting and the monitoring of CEPs, and especially project Sea 1390 (FFG Upgrade) and Air 87 (‘Tiger’ ARH helicopter). A final report is expected to be released in 2007. [15.12.06]

SHORT-FORM SADI APPLICATION CATCHES FIRST-TIME SME: Rosebank Engineering has become the first small to medium enterprise (SME) to join the Department of Defence’s Skilling Australia’s Defence Industry (SADI) program, benefiting from changes to SADI policy and application methods designed to facilitate the increased involvement of SMEs and open up the program to companies aspiring to bid into future Defence contracts, or who are on the DMO Support Services and other Defence Support Group panels. Over the next three years, Rosebank/SADI will invest up to $171,000 in critical Project Management and Systems Engineering skills related to maintaining the F/A-18 ‘Hornet’ fleet. Canberra-based micro company, Hallmark Logistics and Engineering, has also recently signed a ‘first of type’ SADI agreement based on a new short form application and agreement specifically designed for use by very small companies wishing to conduct one-off upskilling activities in the current financial year. [15.12.06]

EXTENDED TIME FRAME FOR PIP-ed OFF INDUSTRY TO REVIEW CONTRACTS: The Defence Materiel Organisation (DMO) has extended the deadline for comment on its new Procurement Improvement Program (PIP) tendering and contracting templates to 12 February 2007. DMO General Counsel, Gillian Marks, completed last month a series of introductory meetings to discuss the PIP with industry representatives in Canberra, Sydney, Melbourne, Brisbane, Adelaide, Perth, Hobart and Darwin. Defence procurement reform initiatives were recently widely criticised by the Australian Industry Group (AiG) in a submission to the Defence Industry Policy Review being conducted by Bruce Billson MP under the authority of Defence Minister Nelson. A draft of proposed new defence-industry policy was released by Dr Nelson on 8 December, with comments due in by 21 December. Surf www.adbr.com.au to download a copy of an article on the AiG submission. [15.12.06]

PROGRAM COMING TOGETHER FOR DEFERRED D+I CONFERENCE: The Defence Materiel Organisation (DMO) has confirmed it will host the 15th Annual Defence+Industry (D+I) Conference from 20 to 23 August 2007, in Adelaide. The SA Government’s Defence Unit, headed by Air Vice-Marshal (Rtd) Roxley McLennan, is developing a support program for the Conference. The 2007 Defence+Industry event will combine a trade exhibition with the conference. In addition to booths displaying Defence and Defence support elements (as undertaken in previous years), defence companies will also be able to exhibit at D+I in Adelaide. The DMO is currently refining the details of the exhibition, and considering a theme. Surf www.defenceandindustry.gov.au for further details. [15.12.06]

SOD TURNED ON NEW AUSTRALIAN INSTITUTE OF POLICE MANAGEMENT: The $16.2m redevelopment of the Australian Institute of Police Management (AIPM) at Manly (NSW) has been formally marked with the 'turning of the first sod' for the project by the Minister for Justice & Customs, Senator Chris Ellison. More than 6000 senior police officers are estimated to have attended AIPM executive development programs in the past, including officers from Australia, New Zealand, the US, UK, the Pacific, South East Asia, Europe and Africa. Courses aim to develop the critical thinking, leadership and decision making skills that police increasingly need to anticipate and respond to current and future challenges in Australian and international law enforcement. [15.12.06]

FIRST JOINT STRIKE FIGHTER FLIGHT UNDERTAKEN AT FT WORTH: Lockheed Martin’s (LM) first conventional takeoff and landing Joint Strike Fighter (JSF) variant has completing a successful 35 minute inaugural flight, initially climbing-out to 15,000 feet, and then performing a series of manoeuvers to test aircraft handling and the operation of the engine and subsystems. The subject aircraft will now embark on a 12,000-hour flight-test program designed to validate tens of thousands of hours of testing already completed in F-35 laboratories. Following recent funding adjustments by Congress, the U.S. Air Force, Navy and Marine Corps, and the UK’s Royal Air Force and Royal Navy will now acquire a total of 2,581 F-35s. LM says international partners Italy, the Netherlands, Turkey, Canada, Australia, Denmark and Norway are expected to add about 700 more aircraft to total initial production, with F-35 sales to other international customers expected to push the final number of aircraft manufactured to over 4,500. [15.12.06]

UNIVERSITIES BROUGHT IN TO BOOST LOCAL JSF WORKSHARE: The Defence Materiel Organisation (DMO) has confirmed its New Air Combat Capability (NACC) integrated project team has made financial awards against 10 proposals (out of 121) received from 13 universities and two collaborative research organisations, each relating to an earlier solicitation for the nomination of research having short-term application to the Air 6000 Joint Strike Fighter (JSF) project. The NACC team hosted a workshop in Canberra 5 December to provide academic contributors with feedback and discuss options for interaction with local industry to exploit intellectual property being developed via funds set aside to assist Australian industry and research organizations to win work in the F-35s SDD and PSDF components. This workshop will be followed up with a series of briefings in early-2007 to Australian defence industry by nominated universities (as sponsored by their respective state government development organiszations), to explore potential for early utilisation of emerging intellectual property. [15.12.06]

US NAVY RECEIVES ITS FIRST MK 48 MOD 7 CBASS TORPEDO: The US Navy has received and loaded aboard the USS ‘Pasadena’ (SSN 752) in Pearl Harbor (Hawaii), the first ‘warshot’ MK 48 Mod 7 Advanced Capability (ADCAP) Common Broadband Advanced Sonar System (CBASS) Heavyweight Torpedo. The CBASS torpedo is the product of a joint engineering, development, manufacturing and support project between the US and Australia, and will be the primary littoral anti-shipping weapon aboard both navies' submarines. According to the US Navy’s Executive Officer for Submarines, RAdm William Hilarides, "the interoperability the CBASS provides is a force multiplier for both of our nations, and a critical factor in the Global Maritime Partnership Initiative." The new MK 48 is coupled with the AN/BYG-1 Combat Control System, also cooperatively developed between the USN and RAN. Sonar enhancements are said to make the torpedo “effective in shallow waters and allow it to defeat all types of countermeasures in all environments.” [15.12.06]

UK A STEP CLOSER TO NAVAL SHIPBUILDING CONSOLIDATION: BAE Systems (BAES) and the VT Group have confirmed that they are in early discussions regarding the combination of their surface ship build and naval support businesses into a joint venture. BAES has said the desired outcome of these talks was a joint venture involving the surface ship build and support capabilities of BAES and VT Group, while sustaining shareholder value remained a key consideration. BAES' submarines business is not included in the discussions, although the company said it was committed to finding a solution for its future – regarded as an important element of the UK's maritime industrial strategy. The UK MoD has been anxious to streamline the UK's naval shipbuilding capability, and the Defence Industrial Strategy announced last year urged consolidation. Europe-wide, there are several consolidations either currently underway or mooted for national naval vessel construction capabilities, including the merging of DCN and Thales Naval in France. [15.12.06]

KMW SWOOPS ON BLOHM+VOSS INDUSTRIES DEFENCE DIVISION: German-based Krauss-Maffei Wegmann (KMW) has acquired the defence division of Hamburg-based Blohm+Voss Industries (BVI), effective 31 January 2007 on the assumption of its receipt of Government regulatory approvals. The acquisition decisively strengthens KMW’s key position on the military land systems market given BVI was already an important supplier to KMW in the area of highly developed turret and hull manufacturing for military wheeled and tracked vehicles – with KMW the main customer of this division. Over the past several decades, BVI has produced more than 10,000 turret and hull structures for German and foreign customers, including the ‘Leopard’ 1 and 2 main battle tanks. [15.12.06]

DEFENCE SIGNS-UP FOR UNSPECIFIED TACTICAL UAV CAPABILITY: The Defence Materiel Organisation (DMO) has confirmed the signature of contracts with Boeing Australia Limited for the delivery and support of a Tactical Unmanned Aerial Vehicle (TUAV) capability for the Army. Initially advertised (via RFT) in July 2004, Joint Project 129 was to see a number of 3-4 aircraft operational group’s operated by the Enoggera (Qld)-based 20th Surveillance and Target Acquisition Regiment, at an estimated cost of $100-150m for an in-service date of 2008-2010. Boeing Australia teamed with Israel Aerospace Industries Ltd’s MALAT Division (formerly Israel Aircraft Industries), for provision of the 6.7m wingspan/four hour endurance ‘I-View’ 250A UAV and supporting control system. Defence says the contracted capability “will enable 24 hour surveillance for the protection of Australian forces and identification of enemy targets,” which would require several batteries of TUAV’s - now scheduled to commence operational service in late-2009. [14.12.06]

PHIL GOFF IN TURKEY TO DRUM UP AFGHANISTAN BUSINESS: Visiting Turkey to sign-off on livestock and education export agreements, New Zealand’s Defence (and Trade) Minister, Phil Goff has also met with Turkey’s Defence Minister Gönül, and Foreign Minister Gül. According to Goff, “Turkey’s location on the borders of Europe, Eurasia and the Middle East gives it a strategically important (position) and a valuable perspective on trouble spots in which NZ takes a keen interest. I had excellent discussions with both Ministers on the outlook for Iraq, Iran, Afghanistan and Israel and the Palestinian Territories.” NZ and Turkey currently provide Provincial Reconstruction Teams in the neighbouring Afghanistan provinces of Bamyan and Wardak. After Turkey, Goff went on to visit Jordan, Oman and Egypt. [14.12.06]

HMAS ‘TOOWOOMBA’ PREPARED FOR MIDDLE EAST DEPLOYMENT: Recently assessed by Navy officials as ‘mission ready’, the RAN’s ‘Anzac’-class frigate, HMAS ‘Toowoomba’, is to deploy early in the New Year to the North Persian Gulf to assume the duties of HMAS ‘Warramunga’ in providing (in ADF speak), “an ongoing contribution to the rehabilitation and reconstruction of Iraq.” As part of the ship’s preparations, the ‘Toowoomba’ made history 25 October when it took part in the first operational replenishment at sea with Australia’s newest member of the RAN fleet, the tanker HMAS ‘Sirius’ (formerly the ‘Delos’). In the first 12 months of her service (8 October anniversary), the ship had sailed 41,517 nautical miles, and by the end of her second year will have served in Operation ‘Resolute’ (Australian border protection) and Operation ‘Catalyst’ in the Middle East. [14.12.06]

GERMAN ‘BOXER’ ACQUISITION OPENS DOOR INTO PROJECT LAND 400: The German Parliament’s approval 13 December for acquisition of the ARTEC (Krauss-Maffei Wegmann - 36%, Rheinmetall Landsysteme - 14% and Stork - 50%) ‘Boxer’ armoured vehicle has given assurance to a joint German/Netherlands program of at least 400 of the 8x8 wheeled, transport vehicles (200 each), with Germany holding an option for a further 72 in the field ambulance configuration. The ‘Boxer’ also can be used in a combat engineering or tactical communications role. Weighing in at 32 tons, a fully equipped ‘Boxer’ can carry a useful load of up to seven tons. It can be transported by air (A400M and C-17) and provides protection against anti-tank mines and medium-calibre fire. The ‘Boxer’ will replace various vehicles in the Bundeswehr inventory, including the aging M113 armoured personnel carrier, and has relevance to elements of Australia’s project Land 400 acquisition. [14.12.06]

AUSTRALIA FIFTH SIGNATURE ON JOINT STRIKE FIGHTER PSFD MOU: The Minister for Defence, Dr Brendan Nelson, has officially confirmed his signature in Washington 12 December of the Joint Strike Fighter (JSF) Production, Sustainment and Follow-on Development (PSFD) Memorandum of Understanding (MoU). Australia is the fourth international Partner to sign the PSFD MoU, following the Netherlands, Canada and the United Kingdom. The four remaining SDD partners (Denmark, Italy, Norway and Turkey) are expected to sign the MoU in the next few months – well past the initial deadline set by the US. Dr Nelson added the MoU and associated documents “guarantees Australia’s access to the technology and data it needs to operate and support the JSF to meet Australia’s sovereign defence needs.” [13.12.06]

INDUSTRIAL BENEFITS LESS VISIBLE IN PSFD MOU SIGNING: Unlike other JSF partners - who released details of cost estimates and industrial benefits from their PSFD MoU signatures - Dr Nelson said only that “entering into the MoU opens up billions of dollars in opportunities for Australian industry, building on its success in the development phase.” To date, twenty-one Australian companies are said to have won some US$100m worth of work in the SDD phase, to which Australia contributed US$150m. Dr Nelson added, “work is expected to multiply significantly into the production and subsequent sustainment phases.” Second pass approval for the RAAF’s acquisition of up to 100 F-35 fighters appears to have been further delayed, with Dr Nelson confirming the critical commitment decision is now scheduled “for late-2008.” [13.12.06]

‘SUPER HORNET’ PURCHASE SET TO BRIDGE JSF PROGRAM DELAYS: A new edition of Australian Defence Business Review (ADBR) magazine has undertaken a full analysis of three acquisition options currently being prepared by three separate areas in the Department of Defence in order to fully brief Government in late-2008 when Cabinet is scheduled to finally decide on Australia’s new aircraft combat capability (NACC). ADBR’s analysis comes on the back of media reports of comments in Washington by Defence Minister Nelson that the Government was considering endorsing an A$2.5 billion acquisition of 24 Boeing F/A-18F (dual seat) ‘Super Hornet’ aircraft to bridge anticipated delays in initial JSF deliveries, as well as open up additional savings from an earlier than planned (ie: pre-2010) phasing down of F-111 aircraft numbers. Surf www.adbr.com.au to download this story. [13.12.06]

NELSON CONFIRMS LEADERS MEETING ON NATIONAL MISSILE DEFENCE: Speaking to media separately in Washington after the conclusion of the 12 December AUSMIN talks, Defence Minister Nelson has confirmed - in relation to joint discussions on national missile defence - that “early next year we’ll be having a policy leaders meeting to discuss how we can further develop our joint cooperation in missile defence capability. I also spoke to the Americans about the decision we’ll make halfway through next year on the design of our (project Sea 4000) Air Warfare Destroyer, and the importance of the ‘Aegis’ Combat System as being a part of a missile defence capability that Australia may choose to develop. And we also discussed the Global Peace Operations Initiative where Australia will be working with the US to see that we have about 15,000 peace-keepers (that’s police and military) trained in our region to provide support where it’s necessary.” [13.12.06]

ACTION COMING ON DELAYS IN ACCESSING US MILITARY TECHNOLOGY: Dr Nelson added that in respect to speeding up approval for access to US military technology, “at the moment we’re spending about 144 days a year getting clearance on a number of our … capability acquisition projects. I’m advised by the US Deputy Secretary for Defense (that this) will be a priority for addressing over the next year. I think it’s very important that Australians understand that our alliance with the US has never been stronger … it’s clear that we’ve got very much (an) open door, significant access to all of the key capabilities and intelligence, surveillance, reconnaissance and everything we need with the United States.” [13.12.06]

THALES STEPS UP FOR DEFENCE HEADQUARTERS IT INTEGRATION: ADI Limited (now trading as Thales Australia) has been selected to deliver the integrated suite of command, control, communications, computing and intelligence (C4I) systems for the new $300m Defence Headquarters Joint Operations Command (HQJOC) facility being constructed under Joint Project 8001 near Bungendore, NSW. Under a $58.3m contract, Thales will be required to integrate at least 45 individual and separate computer network and software systems operating across various security domains and serving around 750 military and civilian Defence staff. The majority of the proposed systems will first be built and tested off-site in the period leading up to the new headquarters being completed in July 2008. The subject C4I systems will then be installed direct into the HQJOC in time for Defence staff to commence work in late-2008. Queanbeyan-based Codarra Advanced Systems was also contracted in late-2005 (under a three-year/$7m arrangement) to provide project management and systems engineering services to assist Defence in delivery of the C4I systems into the facility. [13.12.06]

‘APEC AUSTRALIA 2007’ THREATS BRIEF FOR REGIONAL SECURITY STAFF: Security personnel from across the Asia Pacific region have met in Sydney for briefings on security arrangements for the coming Asia Pacific Economic Co-operation (APEC) forum. Meetings for now trade marked ‘APEC Australia 2007’ Security Conference are said by the Attorney-General, Philip Ruddock, to have “allowed delegates to meet with APEC 2007 Taskforce representatives and discuss organisational, logistical and security arrangements for the ‘APEC Australia 2007’ year.” With 21 member economies taking part in 100 days of meetings, Ruddock described Australia’s hosting of APEC in 2007 as the nation’s “largest and most complex dignitary protection event in our history.” Funding of $167.5m over four years has been provided by the Federal Government to ensure security over the ‘APEC Australia 2007’ year. [13.12.06]

NEW PA CONSULTING GROUP CHIEF TO VISIT AUSTRALIA: The former UK Armed Forces Chief of the General Staff, General Sir Mike Jackson, is to join the PA Consulting Group in February 2007 (after retiring from the British Army), and will function as a Senior Advisor and Chair of PA's Defence Advisory Board. According to company officials, the appointment “further strengthens PA's position as one of the world's leading public sector consulting firms.” Jackson is also to visit Australia in 2007 to share his knowledge and first hand experience of key national defence issues with Federal MPs, Department of Defence officials, industry analysts and the media, and including: critical defence capability challenges, improving defence procurement, interoperability with allies and addressing defence skills shortages. [13.12.06]

US DEFENSE TRANSFORMATION LOOKED AT THROUGH AUSSIE EYES: A new Australian Strategic Policy Institute (ASPI) report authored by Richard Bitzinger (a Senior Fellow with the Institute of Defence and Strategic Studies in Singapore), has examined how the US policy of defence transformation will affect leading nations and their militaries in the Asia-Pacific region and, in turn, how countries are responding to a rapidly transforming US military. Bitzinger says that, for Australia, “there might be hard choices to make in how far we should adapt our military capabilities given US transformation strategies and their implications.” ASPI’s Mark Thomson also takes up this theme in a short counter-point to Bitzinger’s writings. Surf www.aspi.org.au for publication details. [13.12.06]

JUSTICE MILDREN RE-APPOINTED TO ADF DISCIPLINE APPEAL TRIBUNAL: The Attorney-General, Philip Ruddock, has confirmed the re-appointment of Justice Dean Mildren RFD (of the Supreme Court of the Northern Territory) as a Member of the Defence Force Discipline Appeal Tribunal. Justice Mildren was first appointed to the Tribunal in 1996, and was re-appointed for a further term of five years in 2001. He has been a Judge of the Supreme Court of the Northern Territory since 1991, and is a former Judge Advocate and Defence Force Magistrate. Ruddock added, “Justice Mildren has been an asset to the Tribunal and I am pleased to announce his re-appointment.” [13.12.06]

NH90 HELICOPTERS NOW CLEARED TO UNDERTAKE TRAINING: Eurocopter reports that “following a period of complex evaluation and comprehensive qualification processes, (it is) proud to now be able to officially launch the NH90 for training purposes,” with the first three NH90 Tactical Transport Helicopters (TTH) just handed over to the German Army for subsequent use for flight training at the German Army Air Corps Weapons School in Bückeburg. Qualification of the NH90 TTH was completed by the NATO Helicopter Management Agency (NAHEMA) on 31 March, with German type certification granted on 1 December – thus clearing the way for deliveries initially to Germany as well as for the respective national certifications of the NH90 TTH for other NAHEMA and export customers. Eurocopter says it plans to deliver 14 aircraft to Bückeburg through to the end of 2007. The NH90 currently boasts an order backlog for 500 contracted deliveries (400 firm, plus 100 options) to equip 18 armed forces in 14 countries, including Australia via project Air 9000. [13.12.06]

‘SUPER HORNET’ DEVELOPMENT ENGINE SUCCESSFULLY TESTED: General Electric (GE) Aviation's F414-based advanced technology demonstrator engine – the XTE77/SE2 –has successfully completed a test program demonstrating its advanced two-stage, all-blisk (blade and disk) fan and new high-pressure turbine (HPT) design. The engine ran to 100% of maximum steady core speed over 20+ hours of testing. The new fan design incorporates 3D-aerodynamic forward-swept airfoil technology (providing 10% higher airflow), improved efficiency and reduced parts count compared with current F414 fans in engines which power the Boeing F/A-18E/F ‘Super Hornet’ fighter. This second phase of testing builds on work completed in 2005 to verify an advanced, six-stage compressor configuration. The testing was funded jointly by GE and the US Navy under the US Government’s Integrated High Performance Engine Technology (IHPTET) program. [13.12.06]

SMITHS AEROSPACE CUTS DEAL WITH GE OVER F404 ENGINES: US-based Smiths Aerospace has confirmed its entry into a ‘Risk and Revenue Sharing’ program with GE Aviation involving five F404 engine components manufactured by its facility in Asheville, North Carolina. The F404 engine family engines powers multiple aircraft performing a broad spectrum of missions from low-level attack to high-altitude interceptors, and including the US Navy's fleet of F/A-18 A/B/C/D carrier-capable aircraft. Some 3,700 units of the F404-GE-400 engine family have been built, with the USN inventory said to exceed 1,300 engines. Under the program, Smiths will produce the specified parts for new and spare engines. Deliveries will continue through 2023, with a potential sales value to Smiths Aerospace of more than US$60m. [13.12.06]

SECOND USN MARITIME DEMONSTRATION ‘GLOBAL HAWK’ DELIVERED: The second of two US Navy RQ-4A ‘Global Hawk’ Maritime Demonstration (GHMD) unmanned aircraft has arrived at NAS ‘Patuxent River’ (Maryland), and joins the first aircraft delivered in March 2006. The GHMD program is described as “a pathfinder” for a variety of US Navy objectives for its unmanned air system program. These include the development of maritime endurance unmanned aerial vehicle sensors; concepts of operations; tactics, techniques, and procedures; and Fleet integration with manned aircraft. The GHMD also includes specific maritime modes for Maritime Surveillance, Maritime Moving Target Indicator and Inverse Synthetic Aperture Radar, as well as 360 degree passive electronic sensors. The Australian Government earlier linked progression of its project Air 7000 UAV acquisition to a separate US Navy initiative, its Broad Area Maritime Surveillance (BAMS) program. [13.12.06]

NUCLEAR MISSILE THREAT DOMINATES 2006 AUSMIN TALKS: Meeting in Washington for the 21st Australia-United States Ministerial Consultations (AUSMIN) held under the 55 year old ANZUS security pact, the US Secretary of State (Condoleezza Rice) and Deputy Secretary of Defense (Gordon England), have met with Australian Ministers for Foreign Affairs (Alexander Downer) and Defence (Dr Brendan Nelson). The meeting’s official communiqué confirmed agreement between the two nations that the alliance “has never been stronger … (and) especially since 11 September 2001 (it) has moved from strength to strength and amply demonstrated its critical importance to both countries.” Australia has agreed to host the next AUSMIN meeting in 2007. [12.12.06]

TRILATERAL BOOST TO NATIONAL MISSILE DEFENSE COOPERATION: The two countries further pledged at AUSMIN to continue to work closely with Japan through the Trilateral Strategic Dialogue on a wide range of issues, and noted their agreement to hold a ministerial meeting in the first quarter of 2007. The US welcomed the efforts of Australia and Japan to develop a closer bilateral security relationship, whilst the two nations undertook to explore with Japan areas for possible trilateral defence cooperation, as an early priority. It was further noted that North Korean and Iranian missile tests in 2006, and the widening proliferation of ballistic missiles, has reinforced the importance of missile defence. As such, they agreed to intensify cooperation under the bilateral Memorandum of Understanding on Missile Defence, and committed to further collaboration in coming years. They also welcomed ongoing bilateral work on exploring options for cooperation in this area. [12.12.06]

MILITARY COOPERATION INCREASINGLY FOCUSING ON INTEROPERABILITY: Also reaffirmed at AUSMIN was the critical importance of strong bilateral defence relations in advancing shared US-Australia strategic objectives. Joint experience in Iraq and Afghanistan was said to have “reinforced the vital importance of interoperability between US and Australian forces.” As such, agreement was reach to “continue to strengthen this interoperability,” including through information sharing, training and exercises, capability development – involving cooperation in R&D – as well as acquisition and support of materiel, with activity extended to strengthening bilateral defence industry linkages, including through improved access. The two countries also welcomed signing of the Memorandum on Production, Sustainment and Follow-on Development for the F-35 JSF, noting that an enhanced Australian air combat capability “will benefit the continued effectiveness of the alliance.” Australia’s Joint Combined Training Capability (JCTC) was also noted as an important element for training, and the future building of US-Australian interoperability. The two nations also agreed “to intensify cooperation in intelligence, surveillance and reconnaissance, including in the context of acquisitions.” [12.12.06]

AUSTRALIAN ROLE TO COMBAT THE SPREAD OF WMDs IN SE ASIA: Both AUSMIN nations condemned North Korea’s nuclear test on 9 October, along with Iran's failure to comply with international obligations on nuclear activities. This prompted mutual agreement in regard to the potentially devastating consequences of allowing nuclear weapons and materials to fall into the hands of terrorists, and leading to a re-emphasis of their commitment to the Global Initiative to Combat Nuclear Terrorism, and continue efforts to build international support for this initiative through outreach activities.” The United States welcomed Australia’s commitment to outreach in Southeast Asia. They also agreed to promote the goals of the Proliferation Security Initiative (PSI) and to further strengthen their cooperation to interdict the flow of illicit WMD materials. [12.12.06]

COUNTER MANPADS INITIATIVE LINKED TO APEC ACTIVITIES: The two countries further agreed that man-portable air defence systems (MANPADS) in the hands of criminals or terrorists pose a serious potential threat to commercial aviation and military aircraft around the world. As such, both countries agreed to take concrete steps to counter the emerging MANPADS threat to the international community, such as through Australia’s multilateral leadership on the issue as chair of APEC and its role in the Wassenaar Group and the USA’s stockpile security and destruction programs. In regional terms, the two nations also agreed to continue their efforts “to build partnership capacity in key security areas such as maritime security, counter-terrorism and intelligence sharing, disaster relief and emergency response, and counter-insurgency and governance capabilities.” They also agreed to continue to work under the Global Peace Operations Initiative to help build peacekeeping capacity in the Asia-Pacific. [12.12.06]

RICE WEDDING SHOWER NOT SUFFICIENT TO EMBED ADF IN IRAQ: Speaking at the conclusion of the AUSMIN press conference, US Secretary of State Rice – when speaking glowingly of Australia’s role as an ally – said, “this is a country that not only in Iraq, not only in Afghanistan, not only in tsunami relief, not only in support for all that we're doing in the Asia Pacific, but also in taking really primary responsibility in places like the Solomon Islands, Fiji, East Timor, has put its resources and its assets at the disposal of peace and security in the region and in the spread of freedom. And I just can't think of a better friend and a better ally.” The words of praise were not sufficient, however, to turn Defence Minister Nelson’s view on a US proposal to embed Australian troops with Iraqi combat units. According to Dr Nelson, “in terms of embedding, we are certainly prepared and have already been doing embedded training. But what Australia is not disposed to do is to embed our soldiers in combat units.” [12.12.06]

NORTH WEST SHELF ‘VIRTUAL’ UAV TEST RESULTS PRESENTED: Results from the modelling and simulation exercise to support the North West Shelf Unmanned Aerial System trial undertaken at Northrop Grumman’s Cyber Warfare Integration Network (CWIN) in San Diego, California, have been presented to the Department of Defence by the company. The CWIN facility was used to simulate and model ‘Global Hawk’ UAV surveillance missions over Australia’s North West Shelf, and assess its ability to operate with RAN ‘Armidale’-class patrol boats.” The CWIN-based outcomes are to be combined with those of ‘live’ trials undertaken in September, and involving General Atomics’ ‘Mariner D’ UAV. According to the Deputy Chief Defence Scientist, Dr Ian Sare, the final report on the ‘real-world’ phase of the trial will be presented to government by the end of the year for use in helping to define requirements for the first phase of the project Air 7000 acquisition. [12.12.06]

SAAB FORGES TASMAN LINK TO TARGET KIWI DEFENCE PROJECTS: Adelaide-based Saab Systems (part of the Swedish Saab Group) and Auckland (NZ)-based Beca Applied Technologies have announced their formation of a strategic alliance to win defence systems work in New Zealand. The two firms have been collaborating over the past year exploring opportunities to work together in the defence market, and have identified a number of areas where their skills are complementary and can be focused on NZ Defence Force projects, including: the Joint Command and Control System currently being progressed by the Ministry of Defence; and the self defence upgrade of the RNZ Navy’s two ‘Anzac’-class frigates, initially built by Tenix Defence. The new collaboration agreement covers the design, development, sale, delivery and support of products and services in New Zealand. [12.12.06]

NAVY TO STAY PUT IN VICTORIA AT HISTORICAL HMAS ‘CERBERUS’: As part of a review of future RAN training infrastructure requirements - undertaken under the auspices of the Defence Force Disposition Program - Defence Minister Nelson has confirmed that HMAS ‘Cerberus’ (at Crib Point in Victoria), and four Sydney bases (HMAS ‘Kuttabul’ - the primary support base for Fleet Base East; HMAS ‘Watson’ - Watson’s Bay; HMAS ‘Waterhen’ – Waverton; and HMAS ‘Penguin’ – Mosman, the latter three being training and operational support bases), will be retained in their present locations. Dr Nelson said that analysis of the implications of closing HMAS ‘Cerberus’ and relocating those functions elsewhere showed that there would be “no measurable advantage to Navy personnel or to the Defence operating cost budget from such a proposal.” [12.12.06]

UK SIGNS UP TO JOINT STRIKE FIGHTER PSFD MEMORANUM: The US Deputy Secretary of Defense (Gordon England) and UK Minister for Defence Procurement (Lord Drayson) have signed a memorandum of understanding to begin future cooperation in the Production, Sustainment, and Follow-on Development (PSFD) phase of the Joint Strike Fighter (JSF) program. The UK was the first JSF partner, and has committed US$2 billion to the program’s development phase. The UK's increase in financial commitment into the PSFD stage was said by officials to be £34m. Over 100 UK companies have already won development contracts for the JSF, and will now turn to competing for PSFD work expected to exceed US$29 billion. [12.12.06]

DRAYSON DEFINES JSF ‘OPERATIONAL SOVEREIGNTY’ RULE: Lord Drayson further told media, “I have always been clear that the UK would only sign if we were satisfied that we would have operational sovereignty over our aircraft. I have today received the necessary assurances from the US on technology transfer to allow me to sign the MoU." 'Operational sovereignty' was said by UK officials to be defined as, “the UK having control over essential aspects of the aircraft so that it can be operated through life at the time of the UK's choosing. We need to be able to integrate JSF into the UK operating environment; operate, maintain, repair and upgrade the UK fleet to meet evolving through-life requirements; and certify the aircraft as safe to fly.” [12.12.06]

BALLISTIC MISSILE DEFENSE RADARS ON THE MOVE: US-based Raytheon reports it has shipped ahead of schedule and under budget the second Ballistic Missile Defense System (BMDS) Forward Based X-Band Transportable (FBX-T) radar to the Missile Defense Agency (MDA) at ‘Vandenberg’ AFB (California) for final testing and acceptance. The FBX-T is a high- power, transportable X-Band radar designed to detect, track and discriminate ballistic missile threats early in flight, maximizing the capability of the BMDS to identify, assess and engage threats to the U.S., deployed forces and allies. Raytheon IDS, which was awarded a BMDS radar contract by the MDA in April 2003, delivered the first FBX-T radar in November 2004. The radar, currently deployed in Japan, is the first new MDA system to be developed and deployed as an operational asset outside the United States. [12.12.06]

LOCKHEED MARTIN TESTING UNMANNED GROUND CONTROLLERS: Lockheed Martin (LM) reports it has successfully conducted a series of tests of a new centralised controller device for unmanned air and ground vehicles. During these tests, the company demonstrated control of four different unmanned systems (a Honeywell ‘Micro’ air vehicle UAV; LM's ‘Silver Fox’ UAV and its ‘roll based operations architecture’ robot; and a LM unmanned ground vehicle demonstrator), from one centralised control device. LM is also currently experimenting with control of the iRobot Corporation ‘PackBot’ from the same centralised controller – thus covering the spectrum of small to medium UGVs, to vertical take-off and landing UAVs as well as fixed wing UAVs. [12.12.06]

NEW AIRLINE TO SERVICE AUSTRALIAN ANTARCTIC TERRITORY: Environment & Heritage Minister Campbell has confirmed the Government will lease an Airbus A319 to complement the current $46.3m fleet of Antarctic-based helicopters and CASA 212s which now fly personnel to field locations and between Australia’s stations within Antarctica. The A319 will be leased and operated by Sydney-based Skytraders for an initial period of five years, beginning in late January 2007. Construction of a snow-capped ice runway to handle jet flights began in December 2005, and will continue during the 2006/07 summer season. Campbell says utilisation of the A319 “will reduce the time it takes to travel from Australia to Wilkins runway in Antarctica from 10 days to four hours … (with) its inaugural flight to the new Wilkins runway expected in early February 2007.” [11.12.06]

PERMIAN ACQUIRED BY SMS MANAGEMENT & TECHNOLOGY: SA-based systems and software engineering firm, Permian, has been acquired by SMS Management & Technology (SMS), Australia’s largest publicly listed management services company. Permian aims to benefit from SMS’s extensive infrastructure, quality accreditation, and financial strength, whilst for SMS, the acquisition provides a solid footprint into the growing Defence market in Adelaide, including a number of major defence industry clients nationally, including: BAE Systems, Boeing, Defence Science & Technology Organisation, Tenix, Raytheon, Lockheed Martin and Saab Systems. Under the new arrangements, former Adelaide-based Permian MD, Dr Mabbs, will maintain responsibility for managing and growing Permian’s existing work scope, and reporting directly to SMS CEO, Tom Stianos. [11.12.06]

UPGRADED NAVIGATION SYSTEMS FOR BPC PATROL BOATS: US-based Northrop Grumman Corporation has confirmed that its Sperry Marine division is to supply electronic navigation systems for the 13th and 14th RAN ‘Armidale’-class patrol boats being built specifically to protect Australia’s Northwest Shelf oil & gas facilities. Sperry Marine will supply the equipment through contracts awarded by Austal (the ‘Armidale’-class builders) to Electrotech Australia, which is supplying and installing the complete navigation and communication package for the new vessels. The subject electronic navigation equipment includes Sperry Marine radars with navalized features, as well as steering controls, autopilot, digital GPS, and heading and speed sensors. Electrotech has supplied similar navigation and communications systems for each of the previous 12 vessels first approved under project Sea 1444. [11.12.06]

NEW ROUND OF FUNDING OFFERED FOR EMERGENCY SOLUTIONS: Local governments and volunteer organisations are being invited to apply for 2007/08 grants which help communities develop increased self-reliance in the face of disasters. The funding comes through an Australian Government initiative called ‘Working Together to Manage Emergencies’, which has set aside $49m over four years for projects across Australia. Applications for funding in 2007/08 will close on 2 March 2007. Officials estimate about 500,000 Australians volunteer their services in an emergency management capacity, and 350,000 of those have been directly involved in the first response to an event. Grants are administered by Emergency Management Australia (EMA), a Division of the Attorney-General's Department. Surf www.ema.gov.au/communitydevelopment for further details. [11.12.06]

CANADA SIGNS UP TO JOINT STRIKE FIGHTER PSFD MEMORANDUM: US Deputy Secretary of Defense, Gordon England, and the Canadian Deputy Minister of National Defence, Ward Elcock, have signed a memorandum of understanding to begin future cooperation in the Production, Sustainment, and Follow-on Development (PSFD) phase of the Joint Strike Fighter (JSF) program. Canada joined the SDD MOU in February 2002 for a cost of US$150m (after an initial $10m investment), and is the third JSF partner nation to sign up to the PSFD phase. The United States and the Netherlands signed on 14 November 2006. It is estimated Canada’s PSFD costs will exceed C$500m over 44 years, matched against some C$8 billion in local industry opportunities. Fifty-four Canadian organizations have so far won 154 JSF-related contracts worth C$157m. [11.12.06]

SECOND HULL FOR AUSTAL-BASED LITTORAL COMBAT SHIP: The General Dynamics Littoral Combat Ship (LCS) Team – whose LCS design is based around an Austal trimaran hull - has been awarded a US$208m contract option to build its second LCS for the US Navy. The ship is required to deliver high-speed response in coastal waters operations supporting mine detection and elimination, anti-submarine warfare and anti-surface warfare, and is designed to be particularly effective against small surface craft. The 127m surface combatant ship, equipped with open architecture-based combat systems and computing environment, is scheduled for delivery in July 2009. The first trimaran-based LCS, the ‘Independence’ (LCS 2), is already under construction at Austal USA, in Mobile, Alabama. [11.12.06]

NATO FOLLOWS AUSTRALIAN BUY OF FOUR C-17 AIRLIFTERS: The US Defense Security Co-operation Agency (DSCA) has notified Congress of a possible US$589m Foreign Military Sale (FMS) deal with the NATO Strategic Airlift Capability (NSAC) consortium covering support equipment and logistics for four Boeing C-17 ‘Globemaster III’ aircraft. The proposed deal includes up to two Pratt & Whitney F117-PW-100 spare engines, up to four AN/AAQ-24V(13) Large Aircraft Infrared Countermeasures (LAIRCM) Systems, and up to fifteen AN/AVS-9 Night Vision Goggles. NATO also requires a variety of software packages. The C-17s will partially serve NATO's agreed military requirement for eight transport aircraft to rapidly deploy a force around the globe, including the NATO Response Force. [11.12.06]

FITZGIBBON TAKES DEFENCE IN RUDD SHADOW GOVERNMENT: Recently elected Opposition Leader, Kevin Rudd, has appointed Hunter (NSW)-based Joel Fitzgibbon as Shadow Minister for Defence (including defence-industry and procurement), replacing Robert McClelland, who moves to the Foreign Affairs Shadow portfolio. Fitzgibbon will be supported by Alan Griffin in regard to Defence Science & Personnel. Arch Bevis will continue as Shadow Minister for Homeland Security, with Kelvin Thomson appointed as Shadow Attorney-General. Joseph Ludwig continues as Shadow for the Justice & Customs ministries. [10.12.06]

UK ‘TRITON’ TESTBED TO POLICE AUSTRALIAN FISHERIES: A former UK R&D trimaran, the 98m ‘Triton’, is to be leased by Customs for 12 months at a cost of $17m to beef up Australia's response to illegal foreign fishing. Built in 2000, the diesel-electric powered ‘Triton’ has a top speed of 20 knots and is capable of remaining at sea for extended periods. Customs Minister Ellison says the vessel will sail with a civilian maritime crew of 14, however, can also carry up to 28 armed Customs officers capable of boarding and securing vessels operating illegally in the Australian Fishing Zone. The vessel will also be armed with two .50 calibre machine guns. The ‘Triton’ was selected for its “range, speed and capability of operating independently or as a command ship, working in tandem with other Customs and Royal Australian Navy patrol boats,” says Ellison. [10.12.06]

NEW YEAR’S TRANSITION NOTE FOR DIAR.COM READERS: DIAR.com will complete the balance of its 2006 coverage of Australian and overseas defence and national domestic security issues with its next edition, to be published on Monday, 8 January 2007. We trust all readers experienced a happy Xmas and extend our best wishes for a prosperous 2007 - which includes several key Australian Government decisions on major defence projects (ie: Sea 4000 and Joint Project 2048) - as well as the prospect of a Federal election in the period between September and mid-December 2007, that is, unless Prime Minister Howard chooses to opt for an early poll in the March to May period. [10.12.06]

ARMY BULLDOZERS HEADING TO FIGHT VICTORIAN BUSHFIRES: Subsequent to Emergency Management Australia (EMA) activating the Commonwealth Disaster Plan, the Attorney-General, Philip Ruddock - as Minister responsible for national emergency management - has signed off on the provision of two Army fuel tankers to deliver diesel fuel to fire trucks and bulldozers at the fire fighting front line. Ruddock says a further request for assistance seeks to establish whether ADF assets could be used to effect temporary repairs in areas where bridges are burned, and beyond safe use. Up to six Army bulldozers and crews will arrive on Monday to assist Victorian bushfire authorities in north-east Victoria and East Gippsland to help cut firebreaks, and to clear debris caused by damaged trees. [10.12.06]

AUSMIN TALKS EXPECTED TO GET A RESULT ON HICKS TRIAL: Australian Foreign Minister Downer and Defence Minister Nelson are expected to raise at AUSMIN talks in Washington this week the need for the trial of David Hicks to be resolved as quickly as possible. Speaking to media, the Attorney-General, Philip Ruddock, confirmed an expectation the US would charge Hicks shortly after 17 January. Ruddock added, “regulations have to be proclaimed within three months (of Congress approving the military commission system), (and) that means they have to be in place before mid-January. (The regulations) provide the basis upon which a charge - and the particular charges that might be brought against David Hicks - will be outlined, and also procedures for the conduct of the military commission.” [09.12.06]

GLOBAL STRATEGIC AGENDA TAKES DEFENCE MINISTER OVERSEAS: Subsequent to the rising of Federal Parliament for the year, Defence Minister Nelson has departed Australia to attend the annual Australia-United States Ministerial talks (AUSMIN) in Washington, for discussions on Iraq and Afghanistan, combating global terrorism and preventing the proliferation of weapons of mass destruction. Dr Nelson will then visit London to attend the inaugural Australia-United Kingdom Ministerial (AUKMIN) meeting, a new forum to discuss issues of mutual strategic interest, including the future of each nation’s military presence in Iraq and Afghanistan. Whilst overseas, Dr Nelson’s Parliamentary Secretary, Senator Sandy Macdonald, is visiting ADF troops deployed to the Regional Assistance Mission in the Solomon Island (RAMSI). [08.12.06]

IRAQ COALITION DRIVES THE RISE OF A EUROPEAN AGENDA: During his overseas travels, Dr Nelson will also meet with his Ministerial counterparts in France, and the Netherlands. He is scheduled to sign an Australia-France Defence Cooperation Agreement (DCA), which aims to provide flexibility for both nations to pursue further cooperative activities to meet their strategic needs. In the Netherlands, Dr Nelson will discuss developments in regards to Australia’s Oruzgan Province econstruction Task Force, deployed as an element of the Netherlands Provincial Reconstruction Team. On the way back to Australia, the Minister will visit the Middle East to attend the International Institute for Strategic Studies (IISS) Gulf Dialogue in Bahrain (considered an important forum for the discussion of Gulf security issues), whilst also conducting a number of strategic bi-lateral meetings. [08.12.06]

RELEASE OF DRAFT DEFENCE-INDUSTRY POLICY STATEMENT: The Minister for Defence, Dr Brendan Nelson, has released for public comment a Draft Statement on Defence and Industry Policy. Comments on the draft statement need to be lodged by 21 December 2006, so as to enable formal Government consideration to occur early next year. In releasing the draft statement, Dr Nelson was careful to label the work as “the product of the advice provided by the stakeholders who contributed to the review process, and the intellectual horsepower of the review team.” Dr Nelson is known to have been unhappy with the level of detail provided in initial drafts of the policy statement, and went on to describe the work as “an evolution that builds on the success of existing Government defence industry policy,” which was last updated in 1988 via the Defence and Industry Strategic Policy Statement which led to the birth of ‘Bishop’s Rules’. Surf www.defenceindustrypolicyreview.com.au for further details. [08.12.06]

TWENTY-TWO KEY POINTS BEGET NINE INDUSTRY POLICY STRATEGIES: The draft policy statement argues that the Government’s primary goal for industry policy should be “to ensure the cost effective delivery of equipment and support to the ADF in line with Australia’s strategic circumstances.” As such, and in future, this goal should be achieved through nine strategies: A strategic approach to equipping and sustaining the ADF; Maintaining priority local industry capabilities; Securing value for money through best-practice procurement; Creating opportunities for Australian firms; Encouraging small and medium enterprise; Supporting the development of skills in defence industry; Facilitating defence exports; Driving innovation in defence technology; and ensuring Defence and industry work more productively together. [08.12.06]

CENTRAL ROLE FOR STRATEGIC PLANNING LINKED TO CAPABILITY: Heading the list of defence-industry initiatives is a proposal to institute every two years a classified ‘Defence-Industry Self Reliance Plan’ – which will underpin delivery of both the existing Defence Capability Plan, along with the broader preparedness posture of the ADF (ie: as represented in the CDF’s formal ‘preparedness directive’). All these classified plans would then be distilled into a publicly-released Defence Capability Plan, which would include more extensive statements of Priority Industry Capabilities. Defence would then report to the Government each year on progress in matching strategic guidance with new capability acquisition and the involvement of local industry in delivering new military capability (and sustaining existing capabilities), via a ‘Priority Local Industry Capabilities Report’. [08.12.06]

MORE ACTIVE PROGRAM TO DEVELOP SMALL DEFENCE ENTERPRISES: Consistent with earlier statements made by Dr Nelson, the draft defence-industry policy statement also contains a recommendation that prospective suppliers for large military capability acquisition projects (or sustainment contracts) will be required to fully examine the scope for involvement by Australian firms when bidding for work. The Government’s clear expectation, the statement says, is that “suppliers will use Australian sub-contractors where it is cost-effective to do so.” For predominantly overseas acquisitions, the statement says, “the goal will be to secure enforceable commitments to provide Australian firms with the opportunity to compete on their merits to supply multinational programs that Australia is involved in.” [08.12.06]

NEW DEFENCE-INDUSTRY ROUNDTABLES & DEFENCE EXPORTS UNIT: The draft statement goes onto propose the creation of an annual series of Defence-Industry Roundtable discussions involving both large and small firms to ensure “unhindered and constructive” communication. A confidential feedback mechanism to Defence will also be established to inform an “ongoing procurement reform process,” while industry will be afforded “improved access to end-users through Defence-led focus groups to help suppliers improve the effectiveness of their products.” Subsequent to the appointment of Jim Molan as Defence Materiel Advocate in 2005, the draft statement proposes the establishment of “a dedicated Defence Export Unit within the Department of Defence with the objective of further boosting defence exports by Australian firms.” [08.12.06]

DEFENCE CONTRACTING CONSULTATIONS RUNNING TO FEBRUARY: Following a series of industry briefing sessions held in Canberra, Melbourne, Sydney, Brisbane, Adelaide, Hobart, Perth and Darwin over the last few weeks, the Defence Materiel Organisation (DMO) has now released for comment draft contracting forms arising from progression of the Procurement Improvement Program (PIP), described as “a major change initiative which will ultimately lead to the development of improved procurement and contracting templates which will incorporate best national and international commercial practices, reflecting the global nature of Defence business.” The DMO says the templates “will support better business outcomes for both the Commonwealth and Defence industry by modernising and standardising contracts.” Stakeholder consultation and feedback will continue until 12 February 2007. Surf www.defence.gov.au/dmo/gc/pip for details. [08.12.06]

ASC 2005/06 ANNUAL REPORT DECLARES $18.5 MILLION PROFIT: ASC Pty Ltd (the former Australian Submarine Corporation) has released its 2005/06 annual report, detailing $260m of annual revuenue (cf $229.3m in 2004/05), and declaring an $18.5m of profit (cf $16.1m in 2004/05) on shareholders’ equity of $114.2m (up 6% from the previous year) – thus yielding a 16.2% return on equity, compared with 15% in 2004/05. ASC Managing Director, Greg Tunny, said delivery of outstanding performance outcomes on ‘Collins-class’ submarine support/maintenance had helped to drive record financial results for the year. A full analysis of ASC’s financial results and their implications for supporting the air warfare destroyer program (and ultimately, full privatization of the company in 2008), will be provided in the December edition of Australian Defence Business Review (ADBR) magazine. Email busicom@ozemail.com.au to reserve and electronic copy. [08.12.06]

REDEVELOPMENT OF THE ADF’s SCHOOL OF SIGNALS: The Parliamentary Joint Standing Committee on Public Works has received a reference to examine a proposed $101.3m redevelopment of the ADF’s School of Signals, currently located at Simpson Barracks, Watsonia (Victoria). The redevelopment includes the construction of new working and teaching facilities, the refurbishment of some existing facilities, and the construction of new live-in accommodation rooms for long-term trainees. Defence says it is aiming to create a signals training institution that is matched to the high technology equipment and high calibre personnel required to effectively develop the ADF as a fully networked defence force. The redevelopment at Watsonia also provides an opportunity to allow for the collocation of the school’s Maritime Wing from HMAS ‘Cerberus’. Subject to Parliamentary clearance, construction will commence in early-2008, and will be completed by late-2009. [08.12.06]

COMET GRANTS TO BENEFIT SPECIAL MILITARY/POLICE OPERATIONS: Sydney-based RNO Industries has been awarded a $64,000 Department of Industry ‘Commercialising Emerging Technologies’ (COMET) grant to help bring to market the company's ‘Blueprint OPS’ solution, which Industry Minister, Ian Macfarlane, says provides a “relatively low-cost tactical system” for use in the field by police, military, fire and ambulance services. According to Macfarlane, the ‘Blueprint OPS’ system “integrates operational planning with multimedia real-time intelligence and information in the operational environment. An internet search shows other systems are either designed for desk-based intelligence, for higher strategic-level command and control, or for more complex systems designed for military use in war situations." The program is one of four NSW projects sharing in more than $2m via the latest round of innovation funding. Surf www.ausindustry.gov.au for details. [08.12.06]

UK TO INVOLVE AUSTRALIA IN NEW UAV DEVELOPMENT PROGRAM: BAE Systems (BAES) has been contracted as the industry lead and prime contractor for a £124m Joint (with the UK Ministry of Defence) project to develop a world-class unmanned air vehicle (UAV) technology demonstrator called ‘Taranis’. Working with Rolls-Royce (propulsion), Smiths Aerospace (vehicle systems), QinetiQ and BAES Australia (flight control computing), the four-year ‘Taranis’ project has been positioned at the head of the UK Government’s Strategic Unmanned Air Vehicle (Experimental) - SUAV(E) – program, with expectations it will yield a UAV with fully integrated autonomous systems and low observable features. Ground testing of the ‘Taranis’ UAV is expected to take place in early 2009, with the first flight trials taking place in 2010. [08.12.06]

‘HAWK’-SIZED UAV TO BETTER POSITION BAES AUSTRALIA IN AIR 7000: Said to be about the size of a BAES ‘Hawk’ (operated by the RAAF as its Lead-in Fighter Trainer), the ‘Taranis’ project is expected to not only provide a wealth of information on UAV capabilities, but also help inform decisions on the future mix of manned and unmanned fast jet aircraft. BAES Australia is said by company officials to have already played a major role in the development of the ground station and flight trials for the system. Involvement in the ‘Taranis’ program is further considered to strengthen BAES Australia’s ability to pitch for a leading role in the development of an ADF multi-mission UAV system, as currently proposed under phase 1B of project Air 7000. [08.12.06]

F-35 MOVES UNDER ITS OWN STEAM TOWARDS FIRST FLIGHT: Lockheed Martin (LM) has confirmed the first F-35 ‘Lightning II’ JSF aircraft has moved under its own power for the first time, and initiating the last series of tests before its first flight. After a series of systems checks at LM in Fort Worth, the aircraft’s pilot is said to have advanced the throttle and moved the aircraft out of its hangar to begin taxi tests. The jet then traveled at up to 30 knots on the runway, testing systems such as brakes and nosewheel steering. Medium-speed taxi tests of 65 knots and 80 knots are now planned, weather permitting. The first flight of the ‘Lightning II’ is expected in the period 11-14 December. [08.12.06]

UK STILL FIGHTING TO SECURE JSF OPERATIONAL SOVEREIGNTY: The UK House of Commons Defence Committee has urged the Ministry of Defence to play hardball on the issue of technology transfer regarding the Joint Strike Fighter (JSF), and to be prepared to walk away from the project if needs be. The UK has been seeking a guarantee of operational sovereignty over the 150 STOVL ‘Lightning II’ aircraft it plans to operate from the Royal Navy's new CVF aircraft carriers - due to enter service in the next decade. In a recent Defence Procurement 2006 report, the UK Defence Committee stated - "it is still uncertain whether the US is prepared to provide the required information.” It then recommended, "if the UK does not obtain the assurances it needs … then it should not sign the MoU covering production, sustainment and follow-on development.” Currently the UK has no fallback (or 'Plan B') should it withdraw from the JSF program, so would have to quickly fund an alternative aircraft development otherwise it would risk not having aircraft to operate from the two new aircraft carriers when they enter service. [08.12.06]

EUROPEAN TACTICAL BALLISTIC MISSILE DEFENCES TESTED: The Royal Netherlands Navy reports its ‘De Zeven Provinciën’ (LCF)-class frigate - HrMs ‘Tromp’- has successfully participated in two US Navy tactical ballistic missile defence (TacBMD) test events at the Pacific Missile Range Facility near Hawaii. The ‘Tromp’ is equipped with Thales' SMART-L Volume Search Radar, which was fitted with a recently developed extended long range (ELR) mode capable of detection out to a maximum instrumented range of 480km – meaning it should be able to detect and track targets representing Tactical Ballistic Missiles. Initial tests at 200km and 300km using ‘ARAV-B’ and ‘Aries’ test missiles saw the ‘Tromp’ detecting the missiles shortly after launch, and being able to track them though a trajectory that passed the vessel at a range of 150km. According to officials, the tests clearly demonstrate that the LCF (and similarly equipped F124 frigate) anti-air warfare suite can be developed to full TacBMD capabilities. [08.12.06]

STAGE 1 OF ARMY GROWTH PLAN APPROVED BY CABINET: Defence has received approval from the Government to implement Stage 1 of its Enhanced Land Force (ELF) plan, initially involving an increase in the size of the Army by one additional Battalion, with attendant supporting battle-group and Joint capabilities. The new Battalion is to be raised in 2007, and have core capabilities in place by 2008 in order to be deployable by 2010. Under the ELF Plan, a second battalion will also be raised, bringing the total strength of the Army to eight Battalions, and requiring approximately 2600 additional personnel to be recruited. Implementation of Stage 1 of the ELF Plan also requires the acquisition of over 100 ‘Bushmaster’ Infantry Mobility Vehicles (project Land 116), taking the size of the Australian fleet to more than 400 vehicles. [07.12.06]

INFANTRY BATTALION LOCATIONS IN 2012 NOW CONFIRMED: Defence has further confirmed that the Australian Army’s growth to eight Battalions (2 Mechanized, 5 Light and 1 Commando) by 2012, will be structured in the following manner: 1RAR – Light Infantry Battalion, Townsville (Qld); 2RAR – Light Infantry Battalion, Townsville; 3RAR – Light Infantry Battalion, Townsville; 4RAR – Commando Battalion, Sydney (NSW); 5RAR – Mechanised Infantry Battalion, Darwin (NT); 6RAR - Light/Motorised Infantry Battlion, Brisbane (Qld); 7RAR – Mechanised Infantry Battalion, Adelaide (SA); and 8/9 RAR - Light/Motorised Infantry Battalion, SE Queensland. [07.12.06]

SHIPBUILDING REPORT A WIN FOR STRATEGIC DEFENCE INDUSTRY: A year-long inquiry into Naval Shipbuilding recommends the Government should better articulate its policy on local industry involvement and provide a public statement on how it intends to involve such policy in naval procurement projects. According to the Shadow Minister for Defence Industry, Procurement & Personnel, Senator Mark Bishop, the 160-odd page report calls on the Government to more explicitly declare how it values - and the weight to be given, to Australian industry involvement in major defence projects. According to Bishop, “what we found at the inquiry is Australia has a vibrant small ship building industry, and Labor believes this should be developed more at the heavy end as well … Labor supports the local build of naval shipbuilding provided the Government gets the best deal for taxpayers." [07.12.06]

SHIPBUILDING AN ENGINEERING ACTIVITY & PART OF THE ECONOMY: The Senate Committee report takes particular note of recent technological developments in shipbuilding, noting it is “no longer a discrete industry, (but) part of an increasingly sophisticated and flexible heavy engineering industry, though still dependent on highly specialised design skills which are difficult to establish and retain in periods of low and unpredictable demand. More likely than not, shipbuilding now entails modular design and construction within an contestable fabrication market, but centrally assembled.” The analysis takes the Committee down the road of acknowledging that infrastructure built up as part of naval shipbuilding programs (including their skilled work forces) generally becomes part of the national industrial base, and therefore, major naval shipbuilding programs should therefore be undertaken in Australia. [07.12.06]

SUBTLE DIFFERENCE BETWEEN ‘HOBART’-CLASS & THE ‘DELOS/SIRIUS’: Having reached the point of encouraging the government, even at a cost premium, to support a local build for both the air warfare destroyers (Sea 4000) and amphibious ships (LHDs) under Joint Project 2048, the Senate Committee notes, it “does not necessarily believe that premiums should be paid for commercial-type ships such as the oiler ‘Delos’ (since converted to HMAS ‘Sirius’) – a tanker specially equipped and rigged for replenishing other ships at seat.” The committee nevertheless endorsed the decision to have the modifications done in Australia to convert the ‘Delos’ to its military role as and auxiliary oiler.” Against all this, the Committee noted that “costs must be quantified in order to provide a true measure of actual competitive design and construction costs, as well as the costs properly attributed to non-economic or political motives.” It went on to berate the Department of Defence for failing to respond to requests for quantitative data or analysis on the price premium attributed to local construction in recent naval combatant build programs. [07.12.06]

AS NO DATA TO THE CONTRARY, LET’S SPEND THE MONEY AT HOME: To conclude, and given the absense of any credible quantitative data to the contrary (which practically limited the value of the whole inquiry exercise), the Senate Committee stated it would “like to believe that a revitalised Australian ship building industry may well hold its own when compared with overseas naval shipbuilders, particularly when the value of (each) ship’s through-life support is considered. No categorical assertion, however, could be made on the basis of current evidence available.” The Committee accordingly recommended that the Government, “make a public commitment to maintain Australia’s naval shipbuilding and repair industry,” given it was “imperative that the government develop longer term naval defence strategies from which economies of scale and continuity of demand can be derived.” [07.12.06]

QUEENSLAND LOOKING TO BREAK INTO MILITARY/CIVIL UAV INDUSTRY: Speaking in Brisbane at at two-day Queensland University of Technology (QUT) workshop on aerospace automation, Queensland's State Development Minister, John Mickel, has told the forum the state government was working with the Civil Aviation Safety Authority and Kingaroy Shire Council to establish a test area and facility at Kingaroy (north-west of Brisbane) to test fly developmental unmanned aerial vehicles (UAVs). According to the Minister, “having an area to safely test these aircraft is extremely important to the development of the industry in Queensland. UAVs have a massive potential for both defence and civil applications, and exports.” Mickel cited a study showing that in the next six years the industry could generate more than $3.5b across the Asia-Pacific region. About a third of Australia's UAV industry is said to be in Queensland, led by QUT/CSIRO cooperation through the Australian Research Centre for Aerospace Automation (ARCAA). [07.12.06]