Military modernisation hit by price hikes and delays

The Air Force will have to keep its ageing F/A18 Hornet jets in service longer than planned. Photo / Kenny Rodger

CANBERRA - Australia is struggling to keep pace with an ambitious modernisation of its Defence Force.

As well as upgrading equipment and systems already in operation, the nation is building two helicopter-equipped amphibious ships the size of small aircraft carriers, three air-warfare destroyers, and new equipment for the Army.

The Air Force is planning to buy fifth-generation F-35 stealth fighters in the nation's most expensive single defence buy ever, and the Navy is planning the replacement of its submarine and surface warship fleets.

But the ADF is already struggling. The Air Force, which has retired its F111 bombers, will have to keep its ageing F/A18 Hornet jets in service longer than planned.

The Government placed a A$3billion ($3.7billion) order for 14 F-35 fighters in November, and intends spending about A$16billion for up to 100.

The RAAF wanted to have the aircraft in service by 2012. But delays and cost overruns were confirmed in Adelaide last week by United States Deputy Secretary of Defence Bill Lynn, who told the Australian that the aircraft would be late and cost more. The jets are not expected until at least 2018.

The Navy also continues to have problems with its six Collins Class submarines. Last month a generator failure meant HMAS Farncomb joined three others undergoing maintenance in South Australia.

This month Defence Personnel, Materiel and Science Minister Greg Combet announced a new submarine project office to keep more in operation.

"The Government has made clear to all parties involved in the maintenance of the Collins Class submarines that we expect better results," he said.

This week Combet said the submarines headed a list of 10 projects of concern, drawn up to overcome a "logjam" of continued delays, contractual stand-offs, cost overruns and failures.

But Combet said there had been successes.

"Since the Government has implemented the projects of concern process we have seen hard decisions taken and good results achieved," he told a defence industry conference.

Among these was the cancellation of the A$1billion ($1.23billion) programme to equip the Navy with a trouble-plagued version of the Seasprite helicopter used by the New Zealand Navy.

Other trouble-ridden projects, including new Tiger helicopter gunships, and the upgrading of FFG guided missile frigates and Vietnam-era M113 armoured personnel carriers, had since been removed from the list as problems were solved.

But the Air Force's overdue fleet of Wedgetail early warning aircraft, new anti-ship missile defence systems for the Anzac frigates, and new Army vehicles remained headaches.