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Defence officials have held talks with Thales executives to address issues related to key capability procurements projects.
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Minister for Defence Industry Pat Conroy has met with Thales Australia’s chief executive officer, Jeff Connolly, and senior Defence, Infrastructure and Airservices Australia officials at a Projects of Concern Summit in Canberra — the first since 2020.
Stakeholders discussed remediation issues associated with the Thales-led Civil-Military Air Traffic Management System (CMATS) project, which the Albanese government listed as a “project of concern” in October.
The project aims to replace existing air traffic management systems with an advanced, integrated management and control system for civilian and military aviation.
However, the government identified “significant schedule, technical and cost challenges”.
The project has also reportedly experienced a two-year delay in forecasting initial and final operational capability.
During the summit, stakeholders agreed to an undisclosed set of principles for remediating the OneSKY-CMATS project.
Minister Conroy welcomed the opportunity to engage with industry to explore ways to address key issues.
“Top-level focus is essential to ensure we put this project on track to deliver a new civil and military air traffic management system for Australia,” he said.
“I thank Jeff Connolly and his senior leadership team for the spirit of cooperation and the constructive ideas they brought to the table today.
“The government is strongly committed to successful delivery of the CMATS project.”
Minister Conroy said he is confident Thales can address shortcomings.
“The measures we agreed today will strengthen the process and provide leadership of project delivery,” he said.
“I’m pleased to say there is a strong commitment from all parties to move forward on resolving and remediating these complex endeavours.”
CMATS is among a number of Defence projects flagged by the Albanese government.
Earlier this year, the government released data from the Australian National Audit Office (ANAO), which identified issues relating to a number of key Defence capability projects, valued at a combined $69 billion.
At least 28 projects are behind schedule by a cumulative 97 years and at least 18 projects are over budget, with variations totalling at least $6.5 billion.
Projects listed by the government in a statement to the media include:
- $44 billion Hunter Class Frigate program — construction delayed by four years and expected cost is $15 billion higher than initially anticipated;
- $1.4 billion C-27J Spartan Battlefield Airlifters — delivered four-and-a-half years behind schedule and unable to be deployed into battlefields;
- $3.7 billion offshore patrol vessel project — running one year behind schedule;
- $356 million Evolved Cape Class patrol boats — running nearly a year behind schedule;
- $970 million Battlefield Command System — three years behind schedule;
- Defence SATCOM projects worth $906 million — running between two and four years behind schedule.
According to the Albanese government, these “significant and systemic issues” are the result of mismanagement from the former Morrison government.
[Related: Defence updates ‘projects of concern’ list]
