F-35 fighter purchase reasonable: report

EDS: THIS STORY NOT FOR USE UNTIL 0005 AEDT MONDAY, MARCH 24

CANBERRA, March 24 AAP - Australia is likely to push ahead with the acquisition of its first operational F-35 Joint Strike Fighter (JSF) aircraft, according to a report by an independent defence think tank.

In a report released on Monday, the Australian Strategic Policy Institute says it makes most sense for the federal government to commit to spending between $8 billion and $10 billion on 58 of the fighters, which are expected to enter service in 2020.

Report authors Andrew Davies and Harry White say the F-35 is a capable fighter with an ability to penetrate sophisticated air defences, but note that other factors, including political relations, point towards a likely buy.

"Because we're an international program partner on the JSF, the economies of scale for other buyers - including the US - will be reduced if we don't purchase the aircraft," they say.

Start-up costs to take on the JSF are predicted to be $2 billion, with a ongoing annual cost of about $200 million.

"In the final analysis, the government seems likely to be prepared to pay a moderate premium to maintain a high-end air-combat capability, and to preserve the other benefits to industry and the alliance with Washington," the report says.

"On balance, that looks like a reasonable decision for Australia."

As the government keeps a watchful eye on Australia's budget, the report suggests an option of reducing the F-35 order to 50, thus saving about $800 million on the initial cost.

Australian industry has secured contracts worth more than $US300 million ($A332.54 million) to manufacture F-35 components, with the injection to the economy possibly reaching $US5 billion over the lifetime of the program.

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