Sinews of War: The Defence Budget in 2003 and How We Got There

Release of an Australian Strategic Policy Institute (ASPI) Policy Report on the Defence Budget

The Honourable Peter Costello, MP, Treasurer, today launched the ASPI report “Sinews of War: The Defence Budget in 2003 and How We Got There” in the Mural Hall at Parliament House in Canberra.

Defence spending is back in the news, with reports of major funding shortfalls. And yet the Government has provided major funding boosts in recent years. How could this happen?

“Sinews of War” explores the background to today’s Defence funding crisis, and offers some proposals for how to improve things: 

Imperative 1: Deliver new capabilities on time. An external ‘Procurement Task Force’ is scheduled to report to the Government later this year. The Government should move quickly to consider its recommendations. 

Imperative 2: Continue to improve Defence management. There are three things to be achieved as a priority. The cost of capability needs to be better understood. Financial discipline needs to be established so that efficiency can be targeted. And steps need to be taken to improve accountability within Defence. 

Imperative 3: Sort out the DCP and the strategic policy that underpins it. The Government is reviewing the DCP. To be credible the review must provide an achievable program of capital investment underpinned by a clear statement of our strategic and force structure priorities, along with a renewed funding commitment.

The report was prepared by Dr Mark Thomson, ASPI Budget and Management Program Director.

To find a copy of the report go to ASPI’s web site: http://www.aspi.org.au