Thank you very much, Mr. Chair.
Minister, thank you for making yourself available to answer our questions.
I'd like you to talk to us about the short term. The plan deals with what's going to happen in 5 or 20 years' time, but I'd like you to give us some details about what's going to happen between now and the end of the current Parliament, because there's a lot of uncertainty about what's going to happen next.
I'd like to do a little math. Last September, defence cuts were announced. For the 2024–2025 financial year, there will be a reduction of $810 million, while for the 2025–2026 financial year, there will be a reduction of $851 million. Total cuts will therefore amount to $1.661 billion over the next two years.
The updated policy announces new funding of $612 million for the 2024–2025 financial year and another $1.118 billion for the following year, for a total of $1.73 billion in new funding. The difference between the new funds and the cuts is equivalent to an increase of just $69 million over two years, which doesn't even cover inflation.
I'd like to hear your views on a comment we heard following the policy update that defence reinvestments were being “shovelled into the backyard” of the next government.