EDITORIAL: Shake-up must deliver better outcomes for Defence

The Nightly
Labor is setting up a new agency to streamline defence acquisition.
Labor is setting up a new agency to streamline defence acquisition. Credit: Gaye Gerard/News Corp Australia

The warning that we live in uncertain times is a constant refrain when defence matters are debated.

There are plenty of reasons for that to be the case.

China continues to beef up its armed capacity amid growing assertiveness on the world stage.

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On Monday the latest potential flare-up relating to Beijing became apparent with the revelation that the Australian Defence Force was monitoring a Chinese flotilla in the Philippine Sea amid uncertainty about its activities and whether it would sail closer to Australia.

Meanwhile war rages in Europe as Ukraine continues to fend off Vladimir Putin’s expansionist Russia.

The Middle East remains on a knife edge and what Donald Trump’s United States does next remains as unpredictable as ever.

For some time now Australia’s Defence policy debate has seemingly been heavily focused on the AUKUS deal.

But as vital as it is, it is important that AUKUS is surrounded by the most efficient and agile Defence structures.

And so there are solid reasons for the Government to have reviewed Defence capability development and delivery, the outcome of which was revealed on Monday.

The Government touted the review outcome as the biggest reform to Defence organisation in 50 years.

It will bring about a new agency dedicated to delivering multi-billion-dollar military projects “on time and on budget”.

Defence Minister Richard Marles announced sweeping changes to his department that will see three existing agencies absorbed into a new body that will report directly to government.

Defence’s Capability and Sustainment Group, the Guided Weapons and Explosive Ordnance Group and the Naval Shipbuilding and Sustainment Group will be integrated into a new Defence Delivery Agency, which will be independent in mid-2027.

Mr Marles said the establishment of the Defence Delivery Agency would bring “a much bigger bang for buck for the defence spend”.

Defence Industry Minister Pat Conroy said the reforms would make sure “the record increase in the Defence budget will be spent wisely”.

The Government will appoint a National Armaments Director to lead the new agency, who will be responsible for providing advice on acquisition strategies and the delivery of acquisition and sustainment projects.

According to Malcolm Davis, a military analyst at the Australian Strategic Policy Institute, having the leader of the Defence Delivery Agency report to Mr Marles and Mr Conroy is a sign that there is a lack of confidence that Defence will deliver projects on time and within budget.

How that will be seen by the Defence establishment remains to be seen.

Historically our Defence programs have been too often beset by costly delays.

So what is needed now is speedy establishment of the new structure so it can get down to work without delay.

The uncertain times demand nothing less.

Responsibility for the editorial comment is taken by Editor-in-Chief Christopher Dore.

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Labor ministers to outrank generals and admirals in ADF’s biggest overhaul in 50 years.