Defence Airbus proving a burden: DA
Date: 16 August 2005
The Airbus deal, which will see South Africa's replacement of the Hercules aircraft with the A400M military training aircraft, is already proving to be "an enormous burden" says the DA.
Noting an earlier response to his parliamentary question DA MP and defence spokesman Moulana (Rafeek) Sayedali-Shah, said Defence Minister Mosiuoa Lekota had revealed that the South African Air Force recently spent close to one billion rand upgrading its current fleet of Hercules C-130s.
This was despite the fact that it had committed up to 10 billion rand to purchase what Sayedali-Shah described as 'top of the line' A400M military transport aircraft to replace the Hercules fleet.
"While there may be justifiable operational reasons for this expenditure, the reality is that this expenditure is further straining an already over- stretched defence budget. Just last week the Department of Defence (DoD) informed Parliament that it faces a 300 million rand budget shortfall, largely because it has to pay for the first 215 million rand installment of the A400M acquisitions.
"In order to meet its financial commitments, related to the A400M, the DoD will have to shift surplus funds from other programmes, including landward defence. This could have a negative effect on the operational efficiency and combat readiness of the defence force. Therefore it is clear the DoD cannot afford to have its cake and eat it."
"The Airbus deal is already proving to be an enormous burden expenditure, just as the DA warned right from the beginning. I will pose further questions on the cost implications of the A400M to the minister, as well as on what other defence programme will suffer as a result."
Earlier this year Public Enterprises Minister Alec Erwin said the cost of the eight military aircraft ordered from Airbus Military was expected to be 830-million euros but revenue through South African participation in the production processes of the A400M was expected to bring in revenue of some 430-million euros.
Erwin said the South African involvement in the Airbus Military A400M airlifter programme was "a big step" for South Africa's aerospace industry but it was "an exciting" one.
South Africa is scheduled to take delivery of eight of the military aircraft from 2010 to 2014.
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