PETER LA FRANCHI / CANBERRA
Government falters over proposed $150 million entry fee for Lockheed Martin project
Australia may opt for lower level participation in the Joint Strike Fighter (JSF) programme than planned because the proposed $150 million (A$282 million) entry fee being considered by the government presents budget difficulties.
Defence minister Robert Hill also says next month's defence budget will not include funding for additional airborne early warning and control (AEW&C) aircraft. A decision on exercising options for an additional two aircraft will now be considered by the cabinet late this year or in early 2003.
Hill says the Australian government's JSF decision will now be made by June. The Australian Department of Defence and the Royal Australian Air Force (RAAF) are to provide a submission later this month.
Hill describes the proposed level three membership as "further money for which you don't get any assured outcome… but still a big [risk] at A$300 million".
Documents seen by Flight International show that the JSF industry package offered by Lockheed Martin to Australia contains little in the way of high technology workshare. Options include participation in the design, manufacture and development of the speed brake and other "selected structural parts and assemblies". Subsystem packages on offer include ice detection, fire protection, air data system, design and development of the cockpit lighting system, and inertial measurement unit.
Deferring a decision on additional Boeing 737-based Wedgetail AEW&C aircraft comes despite a push within some areas of government late last year to increase the planned fleet as part of Australia's strategic reaction to the war against terror.
Hill says any major changes to Australia's long-term defence capability plan remain dependent on a new strategic review which will now not be finalised until September.
The forthcoming Department of Defence budget, however, will see expansion of defence spending on top of multi-billion dollar increases announced in December 2000.
The draft defence budget for 2002-03 was considered by the cabinet's expenditure review committee on 8 April and will be released on 14 May.
Well-placed government sources say the budget is giving lower priority to funding replacement in-flight refuelling aircraft for the RAAF. The sources say that while the government acknowledges the need for new aircraft, funding is unlikely to be approved in the near term and is likely to be the subject of separate cabinet decisions later this year.
The sources say funding to acquire Lockheed Martin AGM-154 JASSM low observable cruise missile has also taken a back seat despite the weapon being selected more than a year ago.
Source: Flight International
