Sir Angus Houston speaks for first time on Defence Strategic Review

The co-author of Australia’s Defence Strategic Review has spoken out, revealing his top concerns including for the Navy’s surface fleet.

The co-author of the Albanese government’s plan to transform the Australian Defence Force and combat China has sounded the alarm about the lack of lethality in the Navy’s surface fleet, foreshadowing a major shift to smaller and more heavily armed vessels.

Speaking publicly for the first time since the Defence Strategic Review was released last month, former Defence Force chief Sir Angus Houston also blasted the lack of progress in making missiles onshore, as he pushed for urgent action to retool Australia’s armed forces that were “not fit for purpose”.

Sir Angus said the review was driven by “the worst strategic circumstances in my lifetime” – including China’s “incredible build-up of military power” with “no transparency, no assurance, no explanation” – that had cut the warning period for conventional conflict below 10 years.

Sir Angus Houston delivers the Defence Strategic Review to Prime Minister Anthony Albanese and Defence Minister Richard Marles. Picture: Getty Images

He said Australia’s defence strategy through half a century of regional peace now “just doesn’t cut it” and had to be transformed with a defence force focused on deterring and denying adversaries north of Australia in the Indo-Pacific.

The review was criticised for ordering another report into the Navy’s surface fleet, including the $45bn program to build nine Hunter-class frigates and the $4bn plan for 12 offshore patrol vessels.

Sir Angus, who spearheaded the review with former defence minister Stephen Smith, said “further analysis” was necessary before decisions were made.

But he said it “isn’t acceptable” that the offshore patrol vessels were unarmed and raised concerns about the delivery of the frigates, amid new warnings of delays and cost blowouts from the Auditor-General.

“We were concerned about the cost of the program, we were concerned about the associated schedule and the risks,” Sir Angus told the Center for Strategic and International Studies in Washington DC.

“At this stage, the first vessel off the line that’s under production at the moment would arrive in the early 2030s. We think we need more lethality before we get to that point.”

He suggested Australia could mirror the US Navy’s shift to smaller ships to operate in the Indo-Pacific alongside its nuclear submarines.

Defence Minister Richard Marles with Sir Angus Houston. Picture: Gary Ramage/ NCA NewsWire

Sir Angus said acquiring guided weapons – particularly with long-range strike capabilities – was the most urgent move required to strengthen Australia’s defences.

But he was scathing of the lack of action on the Guided Weapons and Explosive Ordinance Enterprise, which was announced in 2021 to create a domestic manufacturing pipeline.

“We have the industrial capability to be able to do that. The announcement … was made two years ago and nothing has happened until the report came out,” Sir Angus said.

He welcomed the government’s $19bn investment in this month’s budget to meet the review’s recommendations, although he said it had rejected three of the 108 proposals in the full confidential report. He would not say which recommendations were shot down.

Originally published as Sir Angus Houston speaks for first time on Defence Strategic Review