Reviewing the Defence Capability Plan 2004–2014

The good, the bad and the ugly

Click here to download the report: Reviewing the Defence Capability Plan 2004–2014

The 2004 revision of the DCP does three things. Firstly, it adds new projects and adjusts the timing of existing projects to take account of changed priorities. Secondly, it accommodates the cost increases that have arisen over the last three years. Thirdly, it adds three more years to the rolling ten year plan. All this is accomplished within a set resource envelope so that the new plan is budget neutral in real terms.

Comparing costs between the 2001 and 2004 DCP is complicated by inflation and exchange rate movements, but because these have shifted in opposite directions the effect is small so that broad comparisons are possible. The DCP does not give precise costs for projects but only broad cost bands. For the purpose of comparison we’ve taken the mid-point of the quoted cost bands.

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