Govt yet to reveal defence budget cuts

Whether defence spending will be slashed by $3 billion a year won't be known until the release of a white paper in two months' time, the government says.

The Australian newspaper has reported an independent audit of the defence budget
recommends cutting annual spending by $3 billion from the current rate of $23
billion.
It also suggests a big reduction in the number of civilian staff employed by Defence.
But a spokesman for Defence Minister Joel Fitzgibbon says any speculation regarding
the audit is just that, until the final report is released.
"We do have the report and it's being considered as part of the White paper
process," the spokesman said.
The Defence white paper, the first since 2000, is expected to be released in March
or April.
George Pappas, a former senior vice-president of Boston Consulting Group, was
appointed to review the defence budget last year.
Mr Fitzgibbon said in July the independent audit "will be a key tool in our efforts
to put the dysfunctional defence budget we've inherited back on track".
Mr Fitzgibbon set himself the target of saving $1 billion a year for the next 10
years, with the funds to be reinvested in higher defence priorities.