EXPLORACIÓN Y MUESTREO DE SUELOS

5.38 The ANAO examined the levels of maintenance funding proposed for GS vehicles in 1998–99. This funding was primarily for spare parts, tyres and contract labour. The total funds sought and the expenditure allocation are shown in Table 5.

Table 5:

Total funds sought and allocated

Vehicle Requirement $ m Allocation $ m Shortfall $ m

Mack 8.124 5.725 2.399

Other Mdm/Hvy (a) 3.184 3.184 0.000

Unimog 10.504 8.799 1.705 Prime Movers 1.306 1.143 0.163 Trailers 1.841 1.208 0.633 ERL (b) 2.196 0.000 2.196 Other Light (c) 1.557 0.912 0.645 Perentie 14.624 11.673 2.951 Total 43.336 32.644 10.692

(a) includes the Army fire vehicle fleet, medium recovery vehicle, maintenance funding for 26 Transport Squadron and central procurement of tyres.

(b) funding for refurbishment of Mack, Unimog and Perentie vehicles that have exceeded the extensive repair limits.

(c) includes motorcycle and lightweight trailer fleet.

5.39 The table reveals that funds were available to satisfy only 75 per cent of the funds requested. A range of strategies were employed to address the funding shortfall. High readiness units were provided with 100 per cent of the funds requested. Lower readiness units were allocated between 75–85 per cent. Funding of modifications, other than those for occupational health and safety reasons, was restricted, as was funding for engagement of contract labour and the purchase of canopies. It was recognised that these funding allocations would impact on the already limited availability of vehicles, particularly for Reserve units. Although no funds were allocated for the refurbishment of vehicles requiring repairs beyond the extensive repair limit, this requirement was expected to be met by opportunity funding.

5.40 In advising Regional Fleet Managers of the funding allocations the NFM set out the priorities for local repair and maintenance. First priority was to be given to ambulances, fuel and water tankers and fire vehicles, second priority was Support Force and Ready Deployment Force units, third priority was units involved in trials for Restructuring the Army, and fourth and fifth priorities were Training Command units and other Land Command units respectively. The ANAO observed that these

priorities were based on the functions being performed by the vehicles and units rather than on the condition of the vehicles to be maintained. 5.41 In the absence of detailed information on the condition of vehicles, this strategy is reasonable but it does not necessarily allocate funds to the areas of greatest need. Data collected by the Reliability and Maintainability study revealed that, on average, vehicles in high readiness units travelled less distance than vehicles in units located in southern States that were on longer readiness notice. This information indicates that vehicles covering the greatest distances are in units receiving reduced maintenance funds. Distance travelled is not the sole factor influencing maintenance needs but it is an important, measurable, factor. The ANAO acknowledges that vehicles travelling in northern Australia could be operating in more arduous conditions with a higher maintenance requirement. The development of more sophisticated information systems and inspection protocols would be of benefit in assessing the condition of vehicles and the most cost-effective allocation of maintenance funds.

5.42 The ANAO also noted that the budgeted shortfall does not appear to be carried forward to future years. Consequently the impact of budget cuts may be compounding and having a long term detrimental effect on fleet condition and the ability of units to maintain their vehicles at a serviceable level.

5.43 Arising from a series of serious accidents causing death and injury in the early 1990s, an Army Directive was issued in 1994 limiting the carriage of personnel in the rear of GS vehicles. A subsequent study, in 1997, revealed that one of the effects of this instruction had been an overall reduction of 22 per cent in the distance travelled by GS vehicles. In the material examined by the ANAO there was no indication that this reduction has been taken into account in the assessment of maintenance funding needs. In addition, the ANAO noted that there is no direct link between maintenance and operational funding. As a result, it is possible that units may increase the level of their operational activities leading to a greater demand for vehicle maintenance at the same time as there is a reduction in maintenance funding. These two examples illustrate that operational decisions may have a significant impact on support functions, especially equipment maintenance, and there would be merit in ensuring that funding decisions have regard to this relationship.

5.44 The maintenance backlog in the 3rd _{Brigade was also influenced}

by a shortage of uniformed mechanics. In March 1998 the Brigade had an approved establishment of 62 mechanics but only 47 personnel, a deficiency of 24 per cent. This shortage was indicative of an overall shortage of mechanics in Army. The ANAO was advised that in September

1998 the approved establishment was 689 but the number of uniformed mechanics was 562—a deficiency of almost 20 per cent. This is in contrast to a surplus of mechanics as recently as 1994. The ANAO was informed of a review of Army personnel establishments that could affect the approved establishment for mechanics.

5.45 Despite the apparent shortage of uniformed mechanics, funding has not been provided to increase the employment of contract civilian labour. Depending on the outcome of the current review of Army’s personnel establishment, there would be merit in having regard to the relationship between the availability of uniformed mechanics and the funding for contract labour.