Industry suspicious of Defence budget cuts, reallocations ahead of National Defence Strategy

Industry
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By: Robert Dougherty
Deputy Prime Minister and Minister for Defence Richard Marles MP, Chief of Navy Vice Admiral Mark Hammond AO RAN and Prime Minister Anthony Albanese MP during the change of leadership announcement in Canberra. Photo: Rodney Braithwaite

Defence industry representatives are increasingly anxious about possible Defence budget cuts and reallocations during the release of the new National Defence Strategy later this week.

Defence industry representatives are increasingly anxious about possible Defence budget cuts and reallocations during the release of the new National Defence Strategy later this week.

Media speculation has already marked several billion dollars in funding for autonomous and uncrewed systems under Defence’s Integrated Investment Program, although it’s not known where that funding could be reallocated from to support potential increase.

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“(The National Defence Strategy) will stand the test of time. It does reflect a lesson from not just what we’re seeing in the Middle East right now, but the lessons from the Ukraine conflict,” Minister for Defence Industry Pat Conroy said, speaking at a television interview with ABC Afternoon Briefing on 13 April.

 
 

“It will emphasise our continuing strategy around national defence, increasing national sovereignty through things like missile manufacturing. It will reflect the fact that we’re re-equipping and doubling the Royal Australian Navy’s Surface Combatant Fleet.

“As well as seeing the biggest peacetime increase in the Defence budget. So, it’s a document that reflects our times and reflects the deep commitment to national security that the Albanese Labor government holds.”

Funding will reportedly be directed towards drone mainstays, including MQ-28 Ghost Bat uncrewed aerial vehicle and Ghost Shark long-range, extra-large autonomous underwater vehicle programs. Light drones, potentially including first-person view attack drones currently undergoing Australian Army integration, could also get funding according to media reports.

“It’s not a zero-sum equation. We shouldn’t have to defund something in order to fund something else,” according to comments from Australian defence and security consultant Malcolm Catchpole.

“We need a massively expanded offensive drone capability, and we need to tackle the huge issue of our extremely limited air defence capability. You can’t nickel and dime this kind of thing.

“Let’s wait to see the government’s numbers but it will be short odds that this will mostly be funding stolen from other defence programs.”

Robert Dougherty

Robert Dougherty

Robert is a senior journalist who has previously worked for Seven West Media in Western Australia, as well as Fairfax Media and Australian Community Media in New South Wales. He has produced national headlines, photography and videography of emergency services, business, community, defence and government news across Australia. Robert graduated with a Bachelor of Arts, Majoring in Public Relations and Journalism at Curtin University, attended student exchange program with Fudan University and holds Tier 1 General Advice certification for Kaplan Professional. Reach out via email at This email address is being protected from spambots. You need JavaScript enabled to view it. or via LinkedIn.

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