SENATE
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Wednesday, 1 March 2017 Senate Page 37<br />
Air Chief Marshal Binskin: I think before the minister and the secretary get a chance to talk about that, the<br />
reference point that the US administration incoming president was using was a NATO standard of aiming for two<br />
per cent of GDP. Any reference that we would have on being able to answer that would be what our current<br />
percentage of GDP is and what the goals of the white paper are.<br />
Senator LUDLAM: The goals of the white paper are to reach two per cent.<br />
Air Chief Marshal Binskin: So we are actually at the point where I would think the US administration would<br />
come from.<br />
Senator LUDLAM: That arbitrary settling of a target of two per cent of GDP has been criticised from within<br />
and outside of the Defence establishment because it is utterly arbitrary. Shouldn't we be deciding what capability<br />
we want and then figuring out how much it costs rather than just setting a completely artificial benchmark?<br />
Air Chief Marshal Binskin: It is iterative. You work along the capabilities that you would require, what the<br />
strategy would require us to fund and what is affordable and then you would be able to set the targets in that<br />
space.<br />
Senator LUDLAM: And that number magically arrives at two per cent for Australia and every—<br />
Air Chief Marshal Binskin: It did not—not 2.0 per cent. It is a goal that is a common reference around the<br />
world for what is an appropriate amount of spend.<br />
Senator LUDLAM: For countries with totally different strategic circumstances to Australia, it magically<br />
arrives at two per cent?<br />
Senator Payne: I do not think you can expect any of us to comment on the matter for other countries. But<br />
clearly what we have set out as a government in the defence white paper and in the Integrated Investment<br />
Program, which is underpinned by that, is a capability development program—and support to the key enablers,<br />
for example, of defence that literally make it work every day—that is targeted, carefully planned and based on a<br />
full structural review which preceded the development of the white paper and the Integrated Investment Program.<br />
As that Integrated Investment Program and the spend associated with that tracks, we are able to indicate that<br />
Australia will reach about two per cent of GDP spend on defence in the year 2021. That is something which I and<br />
the Prime Minister have spoken about regularly in the public environment. In terms of the observations of the<br />
United States, it is true to say that Secretary Mattis, in discussions with his NATO colleagues in Brussels at their<br />
most recent meeting, raised this with them. Australia was not and is not part of that discussion. As regards any<br />
correspondence or engagement, I most certainly very strongly advised Secretary Mattis of where we were, what<br />
our plan was, what our Defence white paper set out and what our Integrated Investment Program set out. I<br />
indicated to him that that would achieve a spend of two per cent of GDP by 2021. But, more importantly, it would<br />
satisfy Australia's capability needs across Airforce, Navy, Army and the Defence organisation and the things that<br />
it needs to do to properly address capability and serve the nation entirely appropriately.<br />
Senator LUDLAM: Thank you for that. I was not expecting you to go into details of that conversation. But,<br />
since you have, did the secretary—<br />
Senator Payne: It is a public statement.<br />
Senator LUDLAM: Did the Secretary of Defense invite Australia to make a greater contribution either in<br />
procurement or in military commitments around the world?<br />
Senator Payne: No, not at this point. I have also said that publicly.<br />
Senator LUDLAM: That is okay. That is what you said publicly a few days ago. It is worth bringing it up just<br />
to see if there are any updates. Are you expecting a request for a greater commitment of ADF resources or<br />
personnel?<br />
Senator Payne: There is a new administration, a new Secretary of Defense, new secretaries of the services<br />
and a new National Security Adviser. I would expect any responsible administration to review their strategic<br />
commitments, as any new government would in Australia. What flows from that we will wait to see.<br />
Senator LUDLAM: Is any contingency planning underway for a greater commitment of Australian personnel<br />
or resources to anywhere in particular overseas?<br />
Senator Payne: We are constantly reviewing our commitment. It is not caused by or as a result of changes in<br />
the US administration or, for that matter, any of our other allies or partners. We are constantly reviewing our<br />
commitments. Government is regularly informed of and advised by the Chief of the Defence Force and the<br />
secretary of the department in relation to those matters, as you would expect and as should be the case. As I said,<br />
we will wait to see what comes from any review that the United States makes in relation to its strategic<br />
commitments.<br />
FOREIGN AFFAIRS, DEFENCE AND TRADE LEGISLATION COMMITTEE