ComDef West 2011 Export Control Implementing Change David Marshall Minister-Counsellor Defence Materiel Washington DC

Transcription

1 ComDef West 2011 Export Control Implementing Change David Marshall Minister-Counsellor Defence Materiel Washington DC

2 CONUS & Australia A Comparison

3 THE DEFENCE BUDGET Defence: $26.9 billion in US92c exchange rate Plus DMO s direct appropriation relating to workforce & operating expenses (Approx $0.9 billion) TOTAL = $27.8 billion 6.0% more than the forecast outcome Increase driven by Capital equipment and military operations Approximately 2.3% of Australia s GDP Defence Material Organisation: $11.5 billion of funding to support the ADF $6.1 billion on Acquisition (up from $5.6 billion forecast outcome) $5.3 billion on Sustainment (up from $4.9 billion forecast outcome) $0.1 billion on Policy Advice, Management Services and Industry Programs About 40.4% of Defence portfolio budget

4 US Australia Cooperative Acq Programs Joint Strike Fighter Aust committed to purchase up to 100 Aircraft Joint Light Tactical Vehicle - Up to 1300 Vehicles P-8 Poseidon Replacement Maritime Patrol Capability Wide Band Global Satellite (funded 6 th Sat) UHF Satcom - Shared payload on Commercial Satellite. Submarine Tactical & Weapon Control System Heavy Weight Torpedo Program C-130J Block Upgrade Nulka Program - Anti Ship Missile Decoy

5 FMS A large component of Acquisition Aust FY 09/10 (1Jul-30Jun) - Approx 540 open FMS cases - Total value US $ 13.4Bn - 38 new cases valued at $US1.161Bn Annual Expenditure on FMS (Aust FYs) 07/08 US $ 988m - 08/09 US $1.276Bn - 09/10 US $1.54Bn - 10/11 Projection US $1.1Bn

6 The Law Export Control in Australia Customs Act 1901 & Customs (Prohibited Exports) Regulations. The List Defence & Strategic Goods List (DSGL):- identifies articles classified as prohibited exports unless a license or permission has been granted by the Minister of Defence (or authorised person). The Enforcer Australian Customs Service for Border Control & Australian Federal Police for initiating Legal proceedings in cases of violations.

7 Agencies Involved Export Control in Australia -2 Dept of Defence:- Military items, Dual-use goods & technologies. Dept Resources, Energy & Tourism:- Fissile materials. Dept of Foreign Affairs & Trade:- Goods controlled under sanctions & Embargoes. Coordination Standing Interdepartmental Committee on Defence Exports (SIDCDE) Chaired by Defence, members from; Foreign Affairs & Trade, Prime Minister & Cabinet, Australian Customs & Border Protection & Attorney Generals.

8 AUS/US Defense Trade Cooperation Treaty Establishes a License free environment for the US and Australian Government, and US and Australian companies and sites in the Approved Community. Applies to bilateral collaborative programs, operations and support, Australian Defence and counter terrorism end-use programs, and US Government end-use Normal licensing remains an option use is voluntary Covers classified and unclassified data, software, services and material Preserves all the normal rights conveyed by contracts and agreements Provides for the exclusion of highly sensitive technologies, manufacturing know-how, source code, etc,..

9 Treaty Implementation Australia needs to: Pass legislation to give effect to the Treaty Consult on implementing requirements, including: regulations, fact sheets, policy guides, application forms Bilateral implementation plan is being developed, including: Regular Implementation Working meetings Planned Management Board meetings Coordinated Outreach Establishment of a pilot program Road test processes on a select project to gain assurances

10 CHANGE IS GOOD 11