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CANBERRA - Australia's new Labor Government has confirmed it will tighten the financial strings on the region's largest defence force, pruning its operating budget and reviewing billions of dollars worth of new hardware.
While it will keep its pre-election commitment to exempt Defence from the razors now being drawn across other departments and increase military spending by a real 3 per cent a year for the next decade, the Government will demand new efficiency and dump projects it does not believe will match the nation's security needs.
These will be identified in a new white paper announced last week, and in a series of associated reviews into specific areas. But it will also maintain close ties to the United States, whose reaction to a Labor Administration in Canberra was tested at the weekend during the annual Ausmin talks with US Defence Secretary Robert Gates and Deputy Secretary of State John Negroponte.
Despite concerns over Australia's decision to withdraw combat troops from southern Iraq, and questions hanging over the planned purchases of US jets, the talks reinforced Labor's argument that the alliance transcended party politics.
Gates also indicated that Washington could review laws which at present prevent Australia buying America's most advanced jet, the F-22 Raptor. Australia intends replacing the Air Force's existing strike force of aging F-III bombers and F/A-18 Hornet fighters with the F-35 Joint Strike Fighter which is also a generation ahead of other aircraft in the region, but less capable than the Raptor.
Labor wants the Raptor, and intends lobbying key Congressmen to amend the 1998 law that precludes foreign air forces - even those of such close allies as Britain, Australia and Japan - from buying the aircraft.
Gates told ABC TV that while it was "probably not appropriate" for Canberra to directly approach Congress, he could see no reason why Australia could not be trusted with the F-22. "I think it's up to us to try and see if we can get this statute changed."
Defence Minister Joel Fitzgibbon told ABC TV that A$23 billion worth of defence projects including a A$6.5 billion deal already signed for 24 Super Hornets were at medium to high risk of failing. "There was no due diligence, there was no due process, there was no comparative analysis with other aircraft."
The Government has not indicated any intention to step away from two other major contracts, for three air defence destroyers and two big, helicopter-carrying amphibious ships. The future of the Navy's four remaining guided missile frigates - not ready after a four-year, A$1.4 billion upgrade - and its A$1.5 billion fleet of Seasprite helicopters, is under review.
The Government has also ordered Defence to hew 5 per cent from the operating costs of all its equipment, mainly through efficiencies.
