This "run away" scenario described above will be a consequence of either direct cost increases within the EPP (say from mis-estimation), which can only be accommodated by delay of some elements of EPP spend when real cost levels materialise, or from the delay itself, either unavoidable, or from re-profiling.
In reality, in each planning round, programme costs and available expenditures are brought back into temporary balance either through trimming capability within projects in the plan, or occasionally, through outright cancellation of projects. The current problems in balancing the plan have been made more acute by lack of significant corrective action through cancellation for an extended period, which itself has been a function of the lack of a strategic defence review. The future scenario also looks bleak with EPP planned expenditure significantly in excess of likely affordable levels for at least the next 10 years.
The unaffordability problem with the EPP is driven by deep-rooted causes. Left unchecked by regular or radical pruning, cost and average time to deliver productive output will grow at an exponential rate. At present the system appears to have been broadly accepting of increasing delays as a solution to the problem. This masks the inefficiencies both within the EPP, but also within the Department and the industrial base that are not directly captured in the project costings.