| Australia
Updates Defense Plan To Counter Changing Threats
By AMI INTERNATIONAL
AMI International, Inc., Bremerton, Wash., is an international consulting
and naval intelligence services company located on the Web at amiinter.com.
The Australian Ministry of Defence has released an update to its White
Paper titled Defence 2000: Our Future Defence Force, which was released
in 2001. The update titled, A Defence Update 2003, acknowledges the changing
strategic environment over the past two years. The update--released on
26 February 2003--now accents global terrorism and the threat of weapons
of mass destruction (WMDs) as new threats that Australia must take into
consideration.
The new document also suggests that the Australia Armed Forces in their
current form will remain the same; however, added capabilities will be
developed to respond to the new challenges of terrorism and WMDs through
close cooperation with allies, and that these threats will be faced on
a world-wide scale. The document also suggests that the armed forces will
have to grow in size to continue with their current missions in the region
as well as adding the capabilities for countering future threats.
Australian defense officials said that all of the procurement initiatives
(71 total) under the Defence 2000 plan were approved and funded, but made
the point that future major initiatives such as the Joint Strike Fighter
and Anti-Air Warfare Destroyer Program will not be approved for a number
of years. Defence may believe it has a window of several years to fund
(and possibly increase funding) the changes required to field the additional
capabilities to meet the changing threats as envisaged under the 2003
update.
Australia will require large naval units in order to operate globally
to meet the new threat. If anything, the changing threat further justifies
the Royal Australian Navy's requirement for new Anti-Air Warfare destroyers
as well as new amphibious transport ships and replenishment vessels to
support the force far from home.
Canadian Navy Faces Procurement Shortfalls
Recent documentation and press coverage continues to reveal that the
Canadian Navy (CN) is desperately short of funds, raising the possibility
that it will be unable to fulfill its global responsibilities. Current
planning calls for funds to be diverted away from important procurement
and modernization plans for all the services to fund current operations,
which are continuing to increase. The CN also is faced with increased
ship deployments at a time when overall defense funding is in decline
In late 2002, the Prime Minister, Chief of Defense Staff, leading Parliamentarians,
and Canadian defense experts, made it clear to the Canadian public that
action would be needed in the near future, resulting in a larger increase
for the 2003 defense budget and beyond. In 2003, the Canadian Armed Forces
will enjoy its largest single defense budget increase in a decade.
Funding for 2003 provides the Department of National Defense (DND) with
$1.6 billion in new funding in each of the next two fiscal years, and
with a sustained annual level of $800 million thereafter. In addition,
the Canadian government has renewed its commitment to reassess the future
needs of defense following a review of Canada's foreign and defense policy.
The DND has stated that the influx of additional funds will permit the
Canadian forces to address the following shortfalls:
* Continue to support ongoing recruiting and training programs;
* Restock spare parts and ease pressure on the defense budget for operational
support;
* Support and enhance Canada's reserves;
* Buy new equipment and modernize capabilities in selected areas;
* Address pressing infrastructure maintenance and replacement needs;
and
* Ease pressure on Canada's Navy, Army, and Air Force operations both
at home and abroad.
As evidenced by the DND's priorities, the annual increases will be used
as a catch-up budget for the shortfalls of the past decade as well as
future operations and maintenance. It is hardly enough funding for any
significant procurement effort. Most of the funding for 2003 will probably
be utilized for increased operations including the task force that was
recently sent to the Persian Gulf (Operation Apollo).
Defense Cutbacks Strike German Navy
The German Defense Minister has announced major changes regarding ongoing
weapons programs and the reorganization of the Federal Armed Forces. With
a projected annual defense budget of $24.6 billion from 2003 through 2006,
the German government expects to save at least $3.46 billion. For the
Navy, the announcement mentioned that adequate numbers of advanced DM2
A4 torpedoes would be procured for the first four Type 212 submarines,
as well as unspecified decommissionings of ships and craft.
The Ministry of Defense later specified the ships and craft to be decommissioned
as being the ten units of the Albatros-class fast attack craft (FAC).
All ten units will be decommissioned by 2005, and will become prime candidates
for transfer to other navies. Although commissioned in the 1970s, these
craft could be quite useful to new Baltic NATO members including Latvia,
Lithuania, and Estonia, as well as to Black Sea NATO members including
Romania and Bulgaria. In addition, NATO aspirants such as Ukraine may
also be interested in a Western FAC force.
Portugal Seeks Proposals For New Submarine
The Portuguese Government has announced that it is seeking new proposals
for its submarine program.
Portugal, which is strapped for cash, announced that it is reducing its
purchase from three to two submarines in order to realize savings but
now also is looking for additional benefits not included in the last offers.
Proposals are expected to include better prices for new submarines and
economic benefits, as well as new a new demand for used vessels to satisfy
the Navy's subsurface requirements as the new boats would now be commissioned
well after the present submarines are to scheduled to be decommissioned.
The two prospective suppliers, the German Submarine Consortium and DCN
International, responded to the initial request for proposals in 1998
and--after being down-selected--submitted their revised bids in summer
2000. A sufficient budget was never appropriated and the offerors have
worked strenuously to find a financing solution only to run into elections
and a brand new government in April 2002, which took the project back
to the financial drawing board and has now reduced the purchase from three
to two submarines.
Portugal has begun a serious reappraisal of the mission requirements
of its Navy, with the primary objective now being identified as the protection
of the economic exclusion zone (EEZ). This transition will accent the
need for more offshore patrol vessels (OPVs) and fewer surface combatants
and submarines. Perhaps most importantly, the government has recognized
that the cost of new ships exceeds its naval budget and that it will be
acquiring ships from the used ship market.
DCN International initially offered three Scorpene submarines for $1.89
billion and the German offer was for two Type 214 submarines for approximately
$2.25 billion, with both parties offering economic incentives. With Portugal's
worsening economic situation, in which the nation is now facing a 4.1
percent of GDP deficit ($6.6 billion), the government is attempting to
get the best deal it can while modernizing its naval force. * |
