Government knocks wheels off Army's plea over LAVs

By KEVIN TAYLOR

The Government has rebuffed a Defence Force request for an extra $6 million to build up spare parts for the Army's LAV3 vehicle.

But Defence Minister Mark Burton denies the request was made because the LAV3 was proving more expensive to run and maintain than previously thought.

A spokeswoman for the minister said the request came because the Army had wanted to be conservative about the amount of spare parts it built up.

She said the request was declined because the Government thought it unnecessary to grant it this year.

The rebuff is revealed in parliamentary questions to Mr Burton about the operational costs of the LAVs (light armoured vehicles) from National Party defence spokesman Simon Power.

He attacked the Government's explanation yesterday, saying it was "clearly a cry for further assistance that the Government has declined".

Mr Power pointed out that the $6 million came on top of annual running and maintenance costs of $12-14 million. "To then ask for another $6 million is not conservative at all.

"It is clearly a cry for further assistance."

The Defence Force referred the Herald to the minister.

Replies to Mr Power's parliamentary questions show the Chief of Defence Force, Air Marshal Bruce Ferguson, asked for the money to be provided in this year's Budget.

It would have been on top of $12.9 million for the LAV3 operating budget for 2004-05.

Mr Power said the 25 to 30 per cent increase sought in the vehicle's operating budget raised questions about whether the LAV3 was a "bottomless pit" of extra costs.

"What the minister has to show the public is that the investment in 105 of these things is not only a wise investment from a military hardware perspective, but also they are a good investment from an ongoing operational cost perspective."

The Government is buying 105 LAVs from Canada for $672 million to replace the Army's ageing M113 armoured personnel carriers.

The first are already in service and the last batch will be delivered this year.

Opposition MPs criticised the vehicles after the first six examples experienced mechanical faults, but the maker defended their reliability.


Running costs Operational budget for the LAV3 in its first five years:

2003-04: $6.6m

2004-05: $12.9m

2005-06: $14.155m*

2006-07: $14.458m*

2007-08: $15.219m*

*Estimated