The 鈥渞eal issue鈥 with Australia鈥檚 defence spending is not if the Albanese government is splashing more cash but whether it is 鈥渆nough鈥 and flowing 鈥渇ast enough鈥, an ex-spy chief says.
Duncan Lewis headed the Australian Security Intelligence Organisation (ASIO) from 2014 to 2019.
Since departing the country鈥檚 domestic spy service, he has become chair of the European Australian Business Council and the Australian arm of weapons maker Thales.
Mr Lewis said on Monday there was no doubt Labor had increased the defence budget since coming to power.
鈥淭he government has increased defence expenditure and spending over the last couple of years, and the projections going forward continue that increase,鈥 he told the ABC.
鈥淭he real issue is whether it is enough and whether it is fast enough.鈥
Mr Lewis noted that the defence budget was sitting about 2 per cent of GDP or $59bn.
Under Labor鈥檚 spending commitments, that would increase to about 2.35 per cent of GDP by 2034 鈥 the same year the Albanese government has warned a major conflict could break out.
At roughly $100bn in the space of a decade, Mr Lewis said 2.35 per cent was 鈥渁 sizeable increase鈥.
鈥淏ut the question is, is it enough to have the kind of defence force that we might require in the future?鈥 he said.
Anthony Albanese is facing domestic and international calls to boost the defence budget, with the US warning of a potentially 鈥渋mminent鈥 threat from China in the Indo Pacific.
But the Prime Minister has resisted, making Australia an outlier in the West 鈥 a position highlighted by NATO鈥檚 decision last week to dramatically hike military spending to 5 per cent of GDP.
The Trump administration has asked Australia to lift spending to 3.5 per cent.
Both Labor and the opposition have pushed back on that target, with the Coalition proposing 3 per cent instead.
Asked point blank if 2.35 per cent of GDP was enough, Mr Lewis said he thought Australia would need to front up more.
鈥淚鈥檓 of the view that if we are going to run a fleet of nuclear-powered submarines, together with an effective defence force that鈥檚 capable of doing the kind of things that we expect might be required in the future, there will have to be an increase in due course,鈥 he said.
鈥淏ut look, I鈥檓 cognisant of the fact that there are competing challenges for the public purse, and it鈥檚 up to the government to get their balance right.
鈥淏ut I think there is a sense of urgency in this matter, which is not universally being exhibited, and I think that needs to be something that we should pay more attention to.鈥
Mr Lewis also said defence companies were not getting the 鈥渃ertainty鈥 needed to do business in Australia.
鈥淭here is a concern that we are unable to get into long-term, reliable partnerships with government,鈥 he said.
鈥淭he defence industry in Australia requires long term, regular contractual arrangements if we are to develop sovereign defence capability, and that is a stated objective of the government.
鈥淵ou can鈥檛 have just episodic buys and expect defence companies to continue operating in Australia.鈥