Defence projects have suffered $6.5bn worth of cost blowouts and are collectively running decades behind schedule, the federal government has revealed
What we know:
• Defence Minister Richard Marles will today detail how 18 projects were running over budget with “at least $6.5bn of variations from the approved budgets identified” (The Guardian);
• At least 28 major defence projects are a cumulative century behind schedule, including offshore patrol vessels, the Hunter-class frigates, and the battlefield command system (The West Australian);
• “The former Coalition government’s investment in defence saw key defence projects blow out in both cost and time, money being flushed down the toilet,” Marles will say;
• The $4bn offshore patrol vessel program is among the projects delayed, and has also been hit with concerns about “seaworthiness” and whether the vessels are adequately armed (ABC);
• Labor claims the delays were exacerbated by the previous government demanding WA-based shipbuilder Austal be included in the project as a subcontractor;
• The blowouts mean the defence budget is set to rise from $48.6bn in the March budget to about $80bn a year by 2032 (The Australian $);
• This does not yet include the expected heavy cost of delivering a fleet of nuclear submarines or plans to increase the size of the nation’s military;
• Marles will commit to reforms including monthly reports to ministers and the application of “early warning” rules to trigger extra scrutiny of projects that hit trouble.
