This major CEDA report finds that more transparency in relationships between the Australian Defence Force and the businesses that supply it will produce better strategic and economic outcomes.
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Growth 57: The Business of Defence - Sustaining Capability
Growth 57: The Business of Defence - Sustaining Capability
Posted : Wednesday, November 18, 2009
Report highlights
It's clear that Australian-based businesses have a vital
contribution to make in sustaining Australia's defence forces. Now
the Defence Force needs to ensure that businesses supplying it with
goods and services have more clarity and certainty about what
Defence intends to do and buy.
This is a tough challenge in a world where Defence is now 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:
- Defence needs to clearly identify those capabilities that must
be maintained within Australia, particularly for through-life
maintenance and systems integration.
- Government has an important role to play in facilitating
alliances between local suppliers and large international military
suppliers to maximise the benefits of global markets.
- Capability Plans introduced by Defence in recent years have
been only partly successful and should be reviewed.
- Australian innovation in science and technology should be more
highly recognised for its contribution to Defence capability and
could be further exploited to competitive advantage.
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.
About the report
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.
The report was launched by the Defence Minister, Brendan Nelson,
at CEDA's Business of Defence conference in Adelaide.
Conference speakers included: Lieutenant-General David Hurley,
chief of the Department of Defence's Capability Development Group;
Catherine Baldwin, CEDA Chief Executive; and Professor Paul Dibb,
chairman of the Advisory Board at the ANU's Strategic and Defence
Studies Centre.
Reaction to the report
"A set of thought-provoking essays on Australia's defence
industry ... 'The Business of Defence' offers a broad analysis of
defence-industry needs and contains some persuasive arguments about
the changes needed to the support systems of the Australian Defence
Force."
- Allan Behm, writing inthe August/September edition
of The Diplomat
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