The Morrison government has cancelled Australia’s only armed drones project as it diverted Defence’s long-term programs to pay for its cyber capability upgrade, known as project REDSPICE.
Officials revealed during budget estimates hearings on Friday the SkyGuardian lethal remotely-piloted aircraft, also known as Reapers, had been cancelled as part of the government’s $9.9 billion REDSPICE decision.
Officials also revealed Australia’s cancelled French submarine program could cost taxpayers $5.5 billion after reparations were made to contractor Naval Group.
The drone cancellation was not mentioned in the budget papers on Tuesday and Defence Minister Peter Dutton on Wednesday dodged providing detail on changes to his department’s Integrated Investment Program when questioned by the Canberra Times.
“There’s new money going into this [REDSPICE] program and it’s paid for within the IIP. We’ll make more announcements about more projects that are coming up that I think we must fund to defend our country – we’re in a very uncertain time,” Mr Dutton said.
Labor’s defence spokesperson Brendan O’Connor criticised the government for not having “the good grace to tell Australian defence industry the program was scrapped”. The decision demonstrated the government did not care about Australian manufacturing, he said in a statement.
“Cancelling a $1.3 billion project without notice will reverberate around Australian defence industry, already reeling from the Attack Class cancellation and the secret-offshoring of the Pacific Support Vessel,” he said.
“Defence industry firms will rightly ask what is next on this government’s secret chopping block?”
Australia had sought to purchase the drones for about $2 billion since 2018, but only received permission last April when the US government gave the green light to “assist our ally in developing and maintain a strong and ready self-defence capability”.
Air Force intended to use the long-range drones for combat and surveillance capability. They were to be based in South Australia where contractors had invested more $30 million.
STATEMENT ON THE CANCELLATION OF PROJECT AIR 7003
From David R. Alexander, President of General Atomics Aeronautical Systems Inc. (GA-ASI):
The Australian Department of Defence has advised of its decision to cancel Project Air 7003, after nearly a decade of efforts toward that acquisition program. Project Air 7003 was expected to provide the Australian Defence Force with a reliable and desperately needed capability: An armed, medium-altitude, long-endurance, remotely piloted aircraft system providing persistent airborne Intelligence, Surveillance, Reconnaissance, Electronic Warfare and precision strike capability for both land and maritime environments.
The cancellation is disappointing for a number of reasons. Project Air 7003 offered a cost-effective, multi-domain capability that is deeply relevant to Australia’s future strategic environment. Equally disappointing, our many Team SkyGuardian Australia partner companies have invested in the start-up and future support for this capability in Australia and will lose considerable sovereign capability opportunities following this decision.
Our MQ-9 aircraft maintain the highest mission-capable rates in the U.S. Air Force at nearly 90 percent and have logged more than 2 million total flight hours. The MQ-9B takes that experience further, providing greater flexibility, increased reliability, and the ability to operate safely and effectively within busy civilian airspace. It offers advantages no aircraft in its class can match.
We remain committed to maintaining a focus on Australian defense and security opportunities and others across the INDOPAC region through our many RPA systems, including our recently announced range of short take-off and next-generation Mojave and Evolution series aircraft. If recent world events have shown us anything, it’s that such capabilities are crucial to the future of global defense and security. We look forward to continued work with the ADF to advance these capabilities for Australia.