CEDA

Defence needs more transparent relationship with industry

This is an archived CEDA media release. It reflects the state of events at the time it was issued; it may not reflect current facts or CEDA's current view.

Embargoed until 12.01am
Thursday 3 August, 2006


More transparency in relationships between the Australian Defence Force and Australian business supplying Defence will produce better strategic and economic outcomes, says a new report from CEDA.

The report, The Business of Defence - Sustaining Capability, contains nine papers from leading experts in the defence field. Among the contributors are Professor Paul Dibb and former Defence Chief Chris Barrie.

CEDA Chief Executive Catherine Baldwin says the report comes at a critical moment in the evolution of Australia's defence capability.

"In a globalising world, our military will call on private suppliers from all around the world," she says. "But it's clear that Australian-based businesses have a vital contribution to make in sustaining Australia's defence forces."

"Businesses supplying goods and services to the Defence Force need to have more clarity and certainty about what Defence intends to do and buy.

"This is a tough challenge in a world where Defence is being asked to take on various roles in places from Afghanistan to the Solomon Islands."

CEDA suggests that a high-level Defence Industry Council, similar to that in the UK, could play an important role in delivering this close yet transparent relationship at a strategic level.

Among the key themes of the nine papers:

The report acknowledges the tensions that exist between sustaining military capability in a cost-effective way and ensuring the private sector delivers the investment and innovation required.

All of the report's authors support the view that a review of defence industry policy is timely. The Federal Government has announced that such a review is underway.

CEDA Growth Report 57, The Business of Defence - Sustaining Capability, can be downloaded by CEDA members from the CEDA Web site or purchased for $38.50.


For further information please contact:

John Harris
Corporate Relations Director
Phone 03 9652 8415

Email info@ceda.com.au

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