Budget: War is good for Business : Melbourne Indymedia

Defence spending jumps 10.6pc to $22 billion
http://www.theaustralian.news.com.au/story/0,20867,21696256-31477,00.html
* Patrick Walters, National Security Editor
* May 08, 2007

DEFENCE spending will surge by $2 billion to $22 billion in 2007-8 with major new spending on both equipment and personnel driving the massive investment in the defence force.

The 2007-8 budget sees a 10.6 percent lift in defence spending-the biggest annual increase in defence spending in more than 30 years.

An extra $14 billion has been committed over the next decade on equipment, personnel, logistics and continuing military operations offshore led by Afghanistan and Iraq.

For the first time in more than a decade defence spending has hit 2 per cent of GDP as the government continues the most sustained defence buildup Australia has seen since WW2.

The $50 billion earmarked for new equipment over the coming decade includes the $16 billion F-35 joint strike fighter, $7 billion on three new air warfare destroyers and $6.6 billion on 24 F/A-18F Super Hornet fighters.

The biggest individual spends in 2007-8 include an initial $621 million down payment on the Super Hornets and $450 million on Australia's Afghanistan commitment which will see more than 1000 defence personnel serving in the country by mid-2008.

The government will spend an extra $2.1 billion on defence force recruitment and retention on top of the $1 billion announced last December including $864 million on subsidised defence housing loans as well as higher pay for higher-level skills.

The aim is to grow the overall size of the defence force by 6,000 to 57,000 by 2016 including a 30,000 strong army and rebuild the navy's strength which is currently 1000 below the targeted ceiling.

The government has also earmarked $100 million to expand the defence force cadet scheme with the hope of boosting future enlistments in the regular defence force.

Defence Minister, Brendan Nelson, said that defence spending would continue to grow to reach an estimated $30 billion within a decade.

"Since the coalition government came to power in 1996 the defence budget has increased from $10.6 billion in 1995-96 to $22 billion on 2007-8, which represents a real increase of about 47 per cent during this time," Dr Nelson said.