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Report: Planned Acquisition of the F-35 Lightning II The Senate Foreign Affairs, Defence and Trade References Committee Planned acquisition of the F-35 Lightning II (Joint Strike Fighter) October 2016 Commonwealth of Australia 2016 ISBN 978-1-76010-455-9 Foreign Affairs, Defence and Trade Committee Department of the Senate PO Box 6100 Parliament House Canberra ACT 2600 Australia Phone: + 61 2 6277 3535 Fax: + 61 2 6277 5818 Email: [email protected] Internet: http://www.aph.gov.au/senate_fadt This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivs 3.0 Australia License. The details of this licence are available on the Creative Commons website: http://creativecommons.org/licenses/by-nc-nd/3.0/au/ Printed by the Senate Printing Unit, Parliament House, Canberra. ii Committee Membership Senator Alex Gallacher, Chair ALP, SA Senator Chris Back, Deputy Chair LP, WA Senator Sam Dastyari ALP, NSW Senator David Fawcett LP, SA Senator Scott Ludlam AG, WA Senator Claire Moore ALP, QLD Substitute members Senator Peter Whish-Wilson AG, TAS (replaced Senator Ludlam for the inquiry in the 44th Parliament) Participating members who contributed to the inquiry Senator the Hon Stephen Conroy ALP, VIC Senator Nick Xenophon NXT, SA Secretariat Mr David Sullivan, Committee Secretary Mr Owen Griffiths, Principal Research Officer Ms Casey Mazzarella, Senior Research Officer Ms Kimberley Balaga, Research Officer Ms Shannon Ross, Administrative Officer iii iv Table of Contents Committee Membership ................................................................................... iii Recommendations .............................................................................................vii Chapter 1.............................................................................................................. 1 Introduction .............................................................................................................. 1 Referral of inquiry .................................................................................................. 1 Conduct of the inquiry ............................................................................................ 1 History of the Joint Strike Fighter in Australia ...................................................... 1 Past parliamentary inquiries ................................................................................... 3 Structure of report ................................................................................................... 4 Acknowledgements ................................................................................................ 5 Chapter 2.............................................................................................................. 7 Australia's air defence needs ................................................................................... 7 Introduction ............................................................................................................ 7 Defence capability needs ........................................................................................ 7 F-35A Lightning II Joint Strike Fighter ............................................................... 10 Chapter 3............................................................................................................ 17 Performance of aircraft in testing ......................................................................... 17 Introduction .......................................................................................................... 17 Testing and evaluation .......................................................................................... 17 Manoeuvrability and flight capabilities ................................................................ 19 Stealth capabilities ................................................................................................ 21 Mission systems .................................................................................................... 24 Mission data loads and Autonomic Logistics Information System ...................... 28 Escape system ....................................................................................................... 31 Verification Simulator (VSim) ............................................................................. 32 Chapter 4............................................................................................................ 37 Acquisition timeline and potential alternatives ................................................... 37 Introduction .......................................................................................................... 37 Acquisition schedule ............................................................................................ 37 v Alternative aircraft ................................................................................................ 41 Chapter 5............................................................................................................ 51 Effects of the F-35 Program on Australian industry ........................................... 51 Introduction .......................................................................................................... 51 The cost of the F-35 Program ............................................................................... 51 Australia's participation in the program ............................................................... 54 Benefits to Australian industry ............................................................................. 56 Benefits to the Australian economy ..................................................................... 64 Chapter 6............................................................................................................ 67 Committee view and recommendations................................................................ 67 Performance of aircraft in testing ......................................................................... 67 Acquisition schedule and capability gap .............................................................. 68 Potential alternatives ............................................................................................ 69 Benefits to Australian industry ............................................................................. 70 Dissenting report by the Australian Greens ................................................... 73 Additional comments by the Nick Xenophon Team ...................................... 77 Appendix 1 ......................................................................................................... 83 Submissions ............................................................................................................. 83 Appendix 2 ......................................................................................................... 87 Tabled documents, answers to questions on notice and additional information .................................................................................................................................. 87 Appendix 3 ......................................................................................................... 91 Public hearing and witnesses ................................................................................. 91 Appendix 4 ......................................................................................................... 93 Air Power Australia's ZOCT Table ...................................................................... 93 vi Recommendations Recommendation 1 6.11 The committee recommends that the Department of Defence develop a hedging strategy to address the risk of a capability gap resulting from further delays to the acquisition of the F-35A. The strategy should be completed by 2018 and capable of implementation by 2019 at the latest. Recommendation 2 6.19 The committee recommends that the Department of Defence develop a sovereign industrial capability strategy for the F-35A to ensure that Australian aircraft can be maintained and supported without undue reliance on other nations. Recommendation 3 6.20 The committee recommends that the government endeavour to establish Australia as the Asia-Pacific maintenance and sustainment hub for the F-35. vii viii Chapter 1 Introduction Referral of inquiry 1.1 On 2 December 2015, the Senate referred the following matter to the Foreign Affairs, Defence and Trade References Committee for inquiry and report by 1 May 2016: Planned acquisition of the F-35 Lightning II (Joint Strike Fighter), with particular reference to: a. the future air defence needs that the aircraft is intended to fulfil; b. the cost and benefits of the program to Australia, including industrial costs and benefits received and forecast; c. changes in the acquisition timeline; d. the performance of the aircraft in testing; e. potential alternatives to the Joint Strike Fighter; and f. any other related matters. Conduct of the inquiry 1.2 On 17 March 2016 the Senate agreed to extend the reporting date for the inquiry to 28 June 2016. On 9 May 2016 the inquiry lapsed with the dissolution of the Senate and the House of representatives for a general election on 2 July 2016. On 13 September 2016 the Senate agreed to re-adopt the inquiry with a reporting date of 13 October 2016. 1.3 The committee advertised the inquiry on its website and wrote to individuals and organisations likely to have an interest in the inquiry and invited them to make written submissions. 1.4 The committee
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