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Defence Chief flags mixed effects from global crisis

Posted November 22, 2008 00:23:00
Updated November 22, 2008 00:34:00

Air Chief Marshal Angus Houston says it's too early to say what effect the financial crisis will have on the Defence Force. (ABC TV)

The Chief of the Australian Defence Force says it is too early to say what impact the global financial crisis will have on his running costs.

Air Chief Marshal Angus Houston says the global financial turmoil has seen the price of oil drop to $US50 a barrel, meaning the running costs for the Defence Force are down.

An economic downturn might also help boost recruiting levels.

But it also means the Government is struggling to keep the Budget in the black at a time when Defence is working on a white paper.

That paper will be released in the middle of next year and will set out the organisation's priorities and major new acquisitions.

Air Chief Marshal Houston is extremely positive about one potential purchase, the Joint Strike Fighter aircraft.

He says its performance is fabulous and exactly what is needed for the air combat role.

Taliban solution 'not close'

Meanwhile, Air Chief Marshal Houston says he does not think a political settlement with the Taliban insurgents is close in Afghanistan.

He says the threat to Australian troops in Afghanistan remains high but he says the soldiers and and their Dutch partners have made good progress in disrupting the Taliban in Uruzgan province.

Overall he says the Coalition forces in Afghanistan are denying terrorists the opportunity to use the nation to launch attacks like those of September 11, 2001 or the Bali bombings.

But he says they are still able to operate from the tribal areas of Pakistan.

Air Chief Marshal says in his view it is too early to start peace talks with the Taliban, saying negotiations should only happen after the insurgents promise to give up their weapons.

Tags: defence-and-national-security, defence-forces, unrest-conflict-and-war, afghanistan, australia