$7BN essential defence satellite system gets cancelled to pay for $16BN Albanese election student-debt stunt
Monday, 04 November 2024
Unbelievable.
Don't have $7BN for essential defence communications project.
Do have $16BN for non-essential student loan election stunt.
The Albanese government is poised to cancel a planned $7bn military-grade satellite communications system it gave the green light to just 18 months ago because there is no money in the Defence budget to pay for it.
US defence giant Lockheed Martin was selected in April last year to deliver what was to be the nation’s biggest-ever space project – a hardened sovereign system of three to five satellites boasting the highest-level protection against cyber and electronic warfare attacks.
But The Australian can reveal the government will announce early this week – under the cover of the Melbourne Cup and the US election – that the project will not proceed.
It’s understood the government will blame the decision on multiple factors including rising costs and advances in technology that might offer a better system.
The system was to use geo-stationary satellites to create an uncrackable data network across the Australian Defence Force, providing communications and data links for its advanced fighter jets, naval assets and the army’s land forces.
The planned long-term budget for the project was put by the government at $5.2bn to $7.2bn, but it had approved only $150m to deliver it from its decade-long, $330bn capability investment plan.
The project, which was set to create 200-300 direct jobs, was to include multiple ground stations across Australia, an advanced satellite management system, and two new operations centres. Defence Minister Richard Marles’s office declined to comment on the decision when contacted by The Australian.
But a defence industry source said: “There is no money. There needs to be money to actually start the program.”
Another source said the planned budget for the project was insufficient for Lockheed Martin to deliver it.
The company beat Airbus, Northrop Grumman and Optus to be named preferred tenderer for the project, known as JP9102. It was yet to sign a contract for the work.
The government and Defence officials are set to be grilled over its cancellation during a Senate Estimates hearing this week.
Its axing follows the government’s decision last year to cancel a $1.2bn NASA-backed satellite program to monitor climate change, natural disasters and maritime threats.
The Australian has also previously revealed Defence spent $40m of taxpayers’ money on two Airbus satellites to provide surveillance, positioning and communications capabilities before killing off the project.
Defence head of space systems Air Vice-Marshal David Scheul said last year that the project would deliver the first Australian-controlled military satellite system covering the Indo-Pacific region.
“Currently across Defence there is up to 89 capabilities which depend on satellite communications,” he said.
“Once delivered, the new system will increase the resilience, agility and flexibility of Defence’s military satellite capability.”
ENDS
No money for that.
Plenty of money for this:
The Albanese Labor Government will cut a further 20 per cent off all student loan debts, wiping around $16 billion in student debt for around three million Australians.
By 1 June next year, the Government will cut 20 per cent off all student loans to reduce the debt burden for Australians with a student loan.
This will cut around $16 billion in debt, including all HELP, VET Student Loan, Australian Apprenticeship Support Loan and other income-contingent student support loan accounts that exist on 1 June next year.
For someone with the average HELP debt of $27,600 they will see around $5,520 wiped from their outstanding HELP loans next year.
This will provide significant relief to Australian students and workers with a student loan debt and builds on our reforms to fix the indexation formula, which is cutting around $3 billion in student debt.
This means, all up, the Albanese Labor Government will cut close to $20 billion in student loan debt for more than three million Australians.
This builds on the Government’s announcement that from 1 July next year it will reduce the amount Australians with a student debt have to repay per year and raise the threshold when people need to start repaying.
Together these reforms also build on the Government’s substantial tertiary education reforms, including:
- Delivering 500,000 Fee-Free TAFE places
- Doubling the number of University Study Hubs
- Introducing legislation to establish the Commonwealth Prac Payment and expand Fee-Free Uni Ready Courses; and
- A commitment to introduce a new managed growth and needs-based funding model for universities, and establish an Australian Tertiary Education Commission.
Quotes attributable to Prime Minister Anthony Albanese:
“I will always fight for every young Australian to have access to a good education. My Government will make sure our education system is fairer and affordable for every Australian and we won’t delay unwinding the damage caused by the former Coalition Government.
“We’re already fixing indexation and today, we are going further by taking 20 per cent off student debt – for everyone with a student debt.
“This will help everyone with a student debt right now, whilst we work hard to deliver a better deal for every student in the years ahead.
“No matter where you live or how much your parents earn, my Government will work to ensure the doors of opportunity are open for you.”
Quotes attributable to Minister for Education Jason Clare:
“This is a game-changer for the more than three million Australians with a student loan.
“By 1 June next year, we will wipe around a further $16 billion from all Australians with a student dent, including Australians who went to uni and vocational education.
“This builds on our changes to make indexation fairer and all up this means we are wiping close to $20 billion in student debt.
“This is another significant reform that will help us build a better and fairer education system.”
Quotes attributable to Minister for Social Services Amanda Rishworth:
“This is great news for Australians with student debt – whether from studying at university or vocational education – the Albanese Government will reduce their debt alongside our changes to make indexation fairer.
“We want all Australians to have the opportunity for higher education, and our changes are making the system fairer and more affordable.”
Quotes attributable to Minister for Skills and Training Andrew Giles:
“This will deliver very welcome cost-of-living relief to the more than three million Australians who have student loans and is an example of the great Labor tradition of making education more accessible.
“This support applies to all government student loans including vocational training, so whether you’re an apprentice or a tradie, a carer or a nurse, if you’re paying off a student loan you’ll receive this cost of living relief.”