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Wednesday, 1 March 2017 Senate Page 9<br />
Senators, our contribution to the Middle East region accounts for approximately 70 per cent of all ADF<br />
personnel currently deployed on operations. Importantly, today newly promoted Major General Simon Stuart<br />
takes over as force commander overseeing the multinational peacekeeping observer force in the Sinai Peninsula.<br />
He is only the second Australian to command the multinational force and observers since the mission began 30<br />
years ago. The remainder of our personnel are undertaking important work on a range of operations at home and<br />
abroad, including in South Sudan. In our immediate region, the interagency relationships established on border<br />
protection operations have allowed the ADF, Australian Federal Police and Australian Border Force to<br />
successfully conduct a number of joint counter narcotic operations. Using the same skills as our boarding parties<br />
in the Middle East, sailors in Australian navy ships Newcastle, Adelaide and Bathurst have intercepted shipments<br />
of cocaine and methamphetamines with the combined street value of over $426 million, including the largest ever<br />
cocaine bust, which prevented 1.4 tonnes of cocaine hitting our streets.<br />
Our ability to support these joint operations in support of whole-of-government outcomes demonstrate the<br />
ADF's agility and our interoperability. We pride ourselves on being able to complete our mission, whatever the<br />
task we are asked to perform and wherever that may be.<br />
CHAIR: CDF, I will ask you to table that report. Secretary, you have an opening statement?<br />
Mr Richardson: I would like to say a few words about the department in overall terms and also in particular<br />
about the work of public servants in Defence. In respect of the APS in Defence, it is worth noting that over 10 per<br />
cent of them work in the intelligence agencies on counterterrorism support to ADF operations and other activities.<br />
Around 10 per cent of public servants in Defence are in contract and procurement management and over 20 per<br />
cent of the APS in Defence are scientists, engineers and also technical. Other public servants in Defence work on<br />
policy. There are doctors, psychologists, social workers, estate base and infrastructure managers, project<br />
managers, they work on ICT, personnel, finance and security. So the work of public servants in Defence is<br />
diverse.<br />
We have completed the downsizing of the Defence APS. To put that in perspective, since the downsizing<br />
began, in the four years following the commencement of the downsizing in late 2012, the full-time staff<br />
equivalent of public servants in Defence has gone from 22,300 to under 17,200. That is a reduction of over 22 per<br />
cent. We are now building the APS back to its ceiling of 18,200. We deliberately took it down below the ceiling<br />
because we need to have a different workforce mix to what we had previously, consistent with the white paper<br />
and other demands on the department. In particular, the beneficiaries of the build back will be in the ship building<br />
area and in the cyber area. The Australian Signals Directorate will grow by around 350 over the next three years.<br />
That is a part of the organisation which is important to the government overall and an important part of the<br />
intelligence community. It is a part of the department that has a different remuneration structure to other parts of<br />
Defence. For quite some time people in ASD with particular skills have been paid more than their APS<br />
equivalents so as to compete with the demands on people with those skills outside of government. About three<br />
months ago I approved a special arrangement whereby a limited number of people in ASD with selected skills can<br />
receive up to 40 per cent more than their APS equivalents.<br />
We have had challenges in recruitment in the intelligence and other parts of Defence as a result of requirements<br />
of security vetting, but we are now getting well on top of that. The implementation of the first principles review is<br />
now well advanced. As you know, the two-year implementation of the first principles review commenced on 1<br />
July 2015. The oversight board, chaired by David Peever has continued to meet regularly and the CDF and myself<br />
chair an implementation committee that has met every week but four since April of 2015. Four meetings have<br />
been missed since April of 2015—persistence and consistency being the message. The new Defence committee,<br />
the investment committee and the enterprise business committee are now working effectively and I would note<br />
that the investment committee has a representative from each of the Department of Finance and the Department of<br />
Prime Minister and Cabinet.<br />
The Pathway to Change program was a cultural change program that commenced in April 2012. It was a fiveyear<br />
cultural change program. We commenced work some months ago on a successor to that and we will have a<br />
successor in place by the middle of the year. I would simply note that over the last 12 months, some 46 per cent of<br />
all SES appointments were women. The number of women in the Defence senior executive service has grown<br />
from 31 to 45 over the last 12 months. The proportion of women in the Defence graduate program has also<br />
increased from 39 per cent in 2014 to 45 per cent today. I note that three years ago the percentage of Indigenous<br />
Australians in Defence APS was 0.7 per cent. Today it is two per cent. That is almost a threefold increase. It is<br />
still below where it should be but it is a significant improvement.<br />
I would also note the initiatives that Defence has taken outside of any government requirements, particularly in<br />
the area of employment of people with disabilities. We have a partnership with Hewlett-Packard. They have a<br />
FOREIGN AFFAIRS, DEFENCE AND TRADE LEGISLATION COMMITTEE