Disposal of Defence Equipment - RSL NSWrslnsw.org.au/uploads/Con Pres/Con10 DMO.pdf · Why talk to...
Transcript of Disposal of Defence Equipment - RSL NSWrslnsw.org.au/uploads/Con Pres/Con10 DMO.pdf · Why talk to...
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Disposal of DefenceEquipment
Ian DonoghueDirector General
Defence Asset & Inventory Management
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Why talk to you about disposals?
• Current Defence disposal issues
• How to acquire surplus equipment that is appropriate for heritage preservation
• Potential barriers to acquiring equipment
• Potential solutions
• People who can help
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Background• More than 80% of Defence assets will be either
upgraded or replaced in the next 10 to 15 years
• Reduce the number and size of warehouses and clear obsolete inventory
• 73% of current inventory is sourced from other countries
• 57% of this was acquired from United States
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Sources of Defence equipment
27%
57%
1%2%
3%
1%
1%
8%
Aust StockCodes
USA
UK
Germany
France
Italy
Canada
All Other countries
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Equipment disposal objectives• Obtain the best outcome for the Commonwealth
• Use the most economical means wherever practical
• Meet obligations of treaties, caveats and licences with foreign governments and original equipment manufacturers
– Meet International Traffic in Arms Regulations (ITAR) obligations
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ITAR obligations• US technology is not used for any purpose other
than as authorised in original licence or agreement
• Defence will observe retransfer controls and gain consent for change of
– ownership
– use
– location
• Selected equipment will be demilitarised before disposal
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Controls are important to USA• ITT: $100m fine for illegal exports of military night vision
technology to China, Singapore and UK
• Boeing: $10m civilian fine, $2.5m mandated compliance program and corporate restructuring
• Lockheed Martin: $13m fine and mandated compliance program
• Loral: $20m fine, $6m compliance program and corporate executives fined $100,000 for their roles in violations
• BAE Systems plc: $400m fine, breaches of AECA, ITAR and Foreign Corruption Practices Act
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Retransfer applications• Defence has no control
• Applications may have to be approved by US Congress
• Approvals can take up to 18 months to obtain
• Approval is not guaranteed
• Applications can be denied without explanation
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Retransfer applications (cont)• Age of equipment or currency of technology are
not grounds for US or Defence relaxing the rules
• Equipment available commercially does not guarantee approval will be granted
• Defence pays for administration, storage and maintenance whilst waiting for US approval
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A potential solution• Defence has submitted a proposal to the USA
– Blanket Demilitarisation and Disposal Arrangement
• To enable Defence to demilitarise and dispose of selected surplus US-sourced equipment more effectively
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Disposal Options• Re-use within Defence as training aid or display
• Transfer to a third party e.g. another country
• Sale– As ongoing concern– For preservation of military heritage
• Gift
• Destruction and recovery of scrap
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Preserving military heritage• Defence understands the absolute importance of
service to country and preserving military heritage in Australia
• Requests to acquire surplus equipment are almost always higher than the numbers of items available for disposal
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Acquiring equipment for display• Establish military heritage, historical and cultural
connections to the equipment
• Recipient pays for all costs in acquiring equipment
– obtaining retransfer approval
– demilitarising and preparing for display
– removing or sealing hazardous materials
– transport to display location
– ongoing management and preservation of equipment
• Obtain necessary licences to display (eg an innocuous weapon)
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Disposal activity… now to 2015• Planning for disposal already occurring even
though equipment could still be in service for a number of years
• Disposal strategies for some equipment are yet to be submitted for Minister’s approval
• Equipment may still be required following withdrawal from service to maintain or upgrade other assets or capabilities
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Maritime• Not available before 2012
– HMAS Tobruk
– HMAS Manoora
– HMAS Kanimbla
– Guided Missile Frigates
• Patrol Boats not available before 2020
• Submarines not available before 2026
• Scuttling large ships for use as dive wrecks managed by State Governments
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Aerospace• F-111G, destruction to commence shortly
• Caribou and B-707, tender later in 2010
• F-111C, not before 2011
• C-130H, not before 2013
• FA-18, not before 2018
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Aerospace (cont)• Helicopters
– Iroquois, gifting, retained within Defence
– Sea King helicopters, not before 2011
– Kiowa, not before 2015
– Blackhawk, not before 2015
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Land - Artillery• Tender later in 2010
– 0.30 calibre machine guns
– M60 machine guns
• Tender when withdrawn from service (up to 2012)
– M2A2 Howitzer field guns
• To be destroyed
– MG3 machine guns
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Land - Vehicles• Land Rovers, not available before 2015-2020
• M113 Armoured Personnel Carriers, not available before 2025
• Field vehicles, trailers & fleet modules, not available before 2017
• ASLAVs, not available before 2021
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Leopard Tanks
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What is available• Metal pieces, propellers, some components
• Artillery pieces– M2A2 Howitzer– 30 calibre machine gun– M60 machine gun
• Vehicles– Demilitarised– Hazardous materials removed or sealed– Possibly rendered inoperable for display
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What is available• Museum display type items may be available on
loan from Defence military heritage units
– Army History Unit
– RAAF Museum
– Navy Historical Collection
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What is not available• Items that cannot be demilitarised
• Equipment from the US or other foreign government where approval is not given
• Equipment containing hazardous materials
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What is not available (cont)• Army amphibious vehicles
• Platform equipment such as ships, aircraft, larger vehicles
• Presentations, relics and trophies such as ex-HMA ships’bells
• Older aircraft such as Nomad, Jindivik, Dakota, Macchi, Lear
• Owen, 25 pounder, Bren guns
• World War (I & II) weapons and artillery
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Acquiring equipment for display• Defence Disposals Agency administers
Expression of Interest Register
• Contact Defence Disposals Agency directly to record your interest in an item
• Surplus equipment suitable for preservation as military heritage usually offered for sale via public tender
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Defence Disposals Agency• Help Desk [email protected]
• Write to: The Director
Defence Disposals Agency
Level 12, Defence Plaza
270 Pitt St
Sydney NSW 2000
• Phone: 02 9393 2914
• Fax: 02 9393 3542
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You need to tell us• Details of the equipment you want to acquire
• Your full contact details
– Position title
– Official email and mailing addresses
– Telephone number/s
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Defence Disposals Agency contacts
John O’ReillyDirector02 9393 2356
Ann-Marie McLeanAssistant Director (Platforms)02 9393 3188
David McCartneyAssistant Director (Inventory & Governance)02 9393 2917
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Questions?