canberra times,cont'd
The Federal Government's review of air combat capability could result in Australia dumping the Joint Strike Fighter and Super Hornet aircraft at a cost of several hundred million dollars.
A spokeswoman for Defence Minister Joel Fitzgibbon confirmed yesterday Labor's promised review of air combat capability was about to begin, but would not comment on reports the Super Hornet could be dumped.
Mr Fitzgibbon had promised to honour the $6.6billion Super Hornet contract for 24 planes but said last week few of the previous government's decisions were as controversial as its decision to buy them "without proper due process or capability justification".
"I want to make sure Australia remains the dominant player in our region and taxpayers are receiving value for money," he said.
The head of the Australian National University's Strategic and Defence Studies Centre, Professor Hugh White, said he did not want to guess how much it would cost the Government to cancel the $6.6 billion Super Hornet contract, "but I think it would be several hundred million dollars involved".
Manufacturer Boeing would be able to claim any costs incurred so far it might have already ordered components from its suppliers, for example and could seek damages.
Although no contract had been signed for the Joint Strike Fighter, the Government would be unable to recoup any of the $300million it had already spent if it decided not to continue with the $15 billion program.
Cancelling plans to buy either plane would carry the additional cost of acquiring alternatives, especially if the review decided a stop-gap was needed between the retirement of Australia's ageing F-111s and F/A-18s and the introduction of the Joint Strike Fighter.
"I have a lot of criticisms of the decision that the last government took to buy the Super Hornets or at least the way they took the decision but ... we have a serious risk of a serious capability gap, which may well need to be covered by the purchase of another interim aircraft," Professor White said.
Labor's review was a sensible step to determine whether a stop-gap such as the Super Hornet was needed, he said.
"It [future air capability] is clearly one of the biggest issues for Australia's future defence capability and the fact they are getting stuck into it at this fairly early stage has got to be taken as a very promising sign."
Professor White said the review had to be separate to the white paper and completed more quickly. A decision on whether to buy the Super Hornets could be made within three months.
Australian Strategic Policy Institute analyst Andrew Davies said the review would be better served coming after the white paper.
"The very first thing you have to do is work out what air capability you want, and that is a job for the white paper, and everything else should flow from that," he said.
"... One of the first things you have to decide is what exactly you want your air force to do, and if it is to go up against state-of-the-art front-line defences, then you need state-of-the-art equipment yourself.
"If, however, you think that you would only do that in coalition, then perhaps what you should be looking at is equipment that is more suited to coalition operations, in which case the Super Hornet is actually not a bad choice."
He urged the review also consider the future of the Joint Strike Fighter.
"We still don't know how much we will have to pay for them, and it is not 100 per cent clear when we would get our aircraft, either."
Other aircraft options could include the Eurofighter Typhoon or F-22 Raptor.
The Joint Strike Fighter, or F-35 Lightning II, is planned to be a fifth-generation stealthy multi-role fighter but is still being developed.
Australia plans to buy up to 100 of the planes by about 2015 at a cost of up to $15billion.
The Government must decide late this year whether to continue with the in-principle agreement to buy them.
Mod edit:
Thread merged with normal Royal Australian Air Force thread.
AD