Greens leader Bob Brown says the Rudd Government's commitment to an annual 3% real increase in defence spending for the next decade will drain billions of dollars from schools, hospitals and the war on climate change.

"No country is threatening Australia. At a time of zilch external threat but rising unemployment and small business stress, this commitment is out of whack. With a budget deficit forecast to be up to $80 Billion and inevitable consequent cuts, this policy will increase defence spending by $660 Million this year and by up to $1 Billion per annum over coming decades," said Senator Brown.

"Mr Rudd should spell out which public services will be cut to fund the extra for defence."

Senator Brown said the increased military budget over the next twenty years would go a long way to funding the Greens' proposal to retro fit every house in Australia with solar hot water and insulation.

"This would be a wise investment in the war against climate change, which the white paper cites as a potential new source of conflict," said Senator Brown.

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