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Australian government to re-think defense spending

Australia has up to A$23 billion (US$21.5 billion) in risky defense projects under way and will re-think several costly purchases, including US fighter planes, Defence Minister Joel Fitzgibbon said yesterday.

"This is a list of projects that are under real risk, real risk in terms of capability and real risk for the Australian taxpayer," Fitzgibbon told reporters, brandishing a confidential list of troubled military purchases.

Fitzgibbon's Labor government, which won power in November, may dump several projects including the A$6.5 billion purchase by the former conservative government of 24 Super Hornet fighter planes from Boeing.

"The Super Hornet project is of great concern to us," Fitzgibbon said.

The Super Hornets were intended to fill a six-year gap between the retirement of Vietnam-era strike bombers and the 2016 arrival of F-35 Joint Strike Fighters (JSF), but Labor believes they may not be needed despite JSF delays.

Also under review are a A$1.5 billion fleet of naval Seasprite helicopters, manufactured by Kaman Corp and the problem-plagued A$1.4 billion upgrade of guided missile frigates by the local division of French defense electronics group Thales.

Fitzgibbon has ordered a review of Australia's military needs, as well as a fresh comparison of fighter aircraft plans amid delays in the A$16 billion purchase of 100 F-35 JSF's, built by Lockheed Martin Corp.

"The reality is defense didn't really have much choice about which fighter to purchase if they were to deliver one so quickly," Fitzgibbon said. "So there was no comparative analysis with other aircraft, it was a rushed, ad hoc process, and sadly the taxpayer now looks like paying the price."

Fitzgibbon said reports that two aircraft carriers and three advanced air warfare missile destroyers already ordered from Navantia SA and Raytheon, may be dumped were wrong.

"We made a firm commitment to those projects pre-election and we are absolutely committed to them," he said.
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