I thought the money for the C-17 was coming from approx $400 million surplus from the defence budget.
Incorrect. The money is coming from that already put aside for the two extra J's under Phase 1 of Air 8000. Despite what The Canberra Times has claimed, there is no direct link to last year's underspend! It actually helps the Govt because the money for the
Js was allocated for FY13-14 which is when Govt wanted to return to surplus. That money will now be brought forward to FY11-12, and about $100 million will actually be returned to the DCP.
The decision to purchase hasn't exactly been made, just a letter of inquiry essentially.
It's a formality - a tail number HAS been assigned, and it's on the line now. Trust me when I say it'll be here by the end of September...unless we get another budget busting national emergency on the scale of QLD floods/Yasi/Christchurch etc.