|From the ABC news.
"Defence Minister Stephen Smith today announced a shake-up of some of the nation's biggest Defence assets.
Among the projects which are being scrapped or reviewed are the LCM2000 landing craft project, the high-profile MRH-90 helicopter program, and a scheme to protect diggers from improvised bombs in Afghanistan.
Mr Smith says the changes will not blow the Defence budget, which is still on track to find $20 billion in savings.
But he has warned the department needs to be more rigorous in its procurement process.
"We're announcing that the [LCM2000] watercraft project has been cancelled and will not continue," he said.
"That's a project which has been outstanding for some time, [in] 1997 it was started by the previous government.
"The great tragedy of this project is that when the watercraft were produced, they were not in the position to be utilised by Australian defence forces.
"So that project regrettably is cancelled at a cost of some $40 million to the Commonwealth."
The landing craft have been found to be too heavy and too big to be launched from HMAS Kanimbla and Manoora.
They cannot be used for anything else, so Defence will now have to dispose of them.
Defence has been plagued by expensive project cancellations and reviews and today's announcements by Mr Smith and the Minister for Defence Materiel, Jason Clare, continue that tradition.
"As you would have gathered from the cancellation of that project, that was not a project which Defence covered itself in glory, at a cost of some $40 million to the Australian taxpayer," Mr Smith said.
"This is precisely what we are seeking to avoid in the future."
Also on the operating table is the high-profile MRH-90 helicopter project.
Australia has ordered 46 new MRH-90 helicopters but the project is already at least a year behind schedule because of problems with engine failure, oil cool fan failures and a shortage of spare parts.
"The proposed replacement to the Sea King and the Black Hawk will be the subject of a fully-fledged diagnostic review," Mr Smith said.
"That project has been the subject of delays and technological difficulties."
The HMAS Manoora transport ship has sailed for the last time and the sea-worthiness of HMAS Kanimbla is in doubt.
HMAS Kanimbla will be in dock for at least 18 months, so the search is on for replacements.
In the short term, the Government is looking at leasing a ship from Britain, but Mr Clare says Defence will buy two new replacements.
"These ships are bigger than any ships Navy has ever operated before," he said.
"They are bigger than our last aircraft carrier, HMAS Melbourne.
"They are two football field lengths in size, they can carry up to 1,000 troops, up to 100 armoured vehicles as well as 12 helicopters.
"The way they operate will be very different to the ships that we've got now."
The Government has also decided to abandon work on another couple of fronts - measures to protect troops in the field.
"One which is to do with hearing protection is not - the technology's not available to effect that - so that project will not continue," Mr Smith said.
"A second project - a high technology, anti-IED measure, will also not proceed on the basis that the technological application is not currently available."
Mr Smith says Defence needs to develop early-warning mechanisms to avoid costly and time consuming cancellations and delays, and that will be the subject of a reform package to be developed in the first half of this year.
But the Minister does not blame Defence hierarchy or the head of the Defence Materiel Organisation, Stephen Gumley.
"I have the highest regard for Dr Gumley, as I have the highest regard for the Secretary of Defence, as I have the highest regard for the CDF and the service chiefs," he said.
"We're dealing here with an institutional problem that the institution of Defence itself has to grapple with and come to terms with.
"In the past, there has been too much of an attitude or a culture that irrespective of the cost, irrespective of the outcome, a Defence project was somehow immune from rigour.
"That is no longer the case. It has not been the case under this Government and we need to put in place further detailed internal rigour and early-warning systems to avoid the sorry repeat of these examples, of which the ones we've detailed today are but one or two examples.""