Reports and Publications

• Defence Long-Term Development Plan (LTDP)
  • Contents
  • Preface by the Minister of Defence
  • Introduction
  • The Long-Term Development Plan and Defence Policy
  • Funding
  • Managing the LTDP
  • Projects Approved and in Acquisition Phase
  • Projects Approved in Principle by Government
  • Projects Critical to Avoid the Failure of Policy
  • Projects Essential to Avoid the Failure of Policy
  • Projects Necessary to Avoid the Failure of Policy
  • Projects that have Benefit but are Less Critical to Achieving Policy Objectives
  • Projects Previously on the LTDP and Moved to the Defence Capital Programme - Minors

Within this section

• Funding Parameters
• Project Summary Sheets

Defence Long-Term Development Plan (LTDP)
(October 2006 Update)

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1. Introduction

1. First released on 11 June 2002, and updated in 2003 and 2004, the 'Defence Long-Term Development Plan' (LTDP) is a key capital planning tool to enable decisions on defence acquisitions to be taken in the context of the Government's defence policy, the priority of projects and affordability. The LTDP links the Government's defence policy objectives, which were set out in the Defence Policy Framework released in June 2000, with the capability requirements announced in the Defence Statement of 8 May 2001. This LTDP contains a comprehensive list of projects, with preliminary costing, timings, and priorities. The LTDP has a rolling forward focus over 10 years and was constructed as an active document, to be updated regularly. This is the third update of the plan.
2. The LTDP:
   1. describes major acquisition projects required to provide military capabilities that meet the Government's defence policy objectives;
   2. reflects relative priorities of the projects, measured against the Government's defence policy and security needs and interests;
   3. works within agreed financial limitations; and
   4. sets out planning and decision-making processes incorporating management of both operational and financial risks to ensure that investment in defence provides the best value for money.

Funding Parameters

3. The LTDP is managed within approved financial parameters. These are:
   1. up to $1.3 billion, in nominal terms, in capital injections over 10 years commencing in 2002; (and including the additional funding provided in the Defence Sustainability Initiative Package in 2005);
   2. any inflationary pressure to be managed within these constraints until 2005/06; and
   3. leasing options may be considered where there is a fiscally neutral trade-off between capital and operating expenditure.
4. Funding amounts in the LTDP are the capital cost of bringing the asset into service and exclude GST. They do not include operating costs such as depreciation, personnel, maintenance, and consumables.

Project Summary Sheets

5. A project summary sheet has been prepared for these projects in sections 5 to 9 of the LTDP. Each summary sheet describes the project, how it contributes to the Government's defence policy, links to other capabilities, timing issues, costs and possible options where these are known. Options and trade-offs for defence acquisitions are properly investigated, costed and presented to Ministers as projects are brought forward for approval.

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