Senator Bob Carr: The Minister for Defence has provided the following answer to the honourable senator's question: From a financial perspective and using the Department of Treasury Modelling a Carbon Price, Defence has forecast the impact on its cost base by using the following method: Total Defence Operating Funding of $24.8b (PBS 2012-13, Page 99, Table 60) Less Employees of $9.8b (PBS 2013, Page 99, Table 60) Less Budget spent overseas of $3.5b (FOREX volume in AUD used for PBS 2012-13) Times 0.7% (As per Treasury Model) Equals Carbon Price effect of $80.4m Using the above methodology, the estimated effect of a carbon price on the cash budget in 2012-13 is in the order of $80.4m. This represents 0.32% of the Defence total budget. Using the above methodology, the estimated effect of a carbon price on the forward estimate cash budget in 2013-14 is in the order of $77.7m or 0.31% of the Defence forward estimate.