Defence vote cut likely

Press, 27 July 1988, Page 8

Defence vote cut likely

By

DAVE WILSON

High-level meetings at Defence Headquarters are believed to be in anticipation of tomorrow’s Budget announcing a big put in the Defence vote. Senior staff at Defence Headquarters say the Armed Forces are psychologically preparing for a “big hammer” to fall on them — some capital programmes and possibly personnel levels being trimmed.

The Ministry of Defence is believed to be arranging for Defence chiefs to be available to handle news media inquiries after the Budget has been presented tomorrow evening. “There is no secret we are facing serious Budget

cuts, but the detail of what they are and how they affect operational and capital programmes is a closely kept secret,” a source said.

Three areas of speculation, including the Navy’s logistic support ship, the R.N.Z.A.F.’s Strikemaster jet replacement programme and personnel levels in the Army, might be targeted for cost-cut-ting.

The ongoing Armed Forces Pay Review, due for completion in December, is regarded in the Forces as sacrosanct.

In the last eight years Defence spending has tripled, $1096 million being spent in the 1986-87 year, compared with $B7O million in the previous financial year.