Air control system on shame file

Parts of a new Australian traffic control system covering military and civilian aviation has been added to Defence's shame file of troubled projects.

Defence Minister Marise Payne and Defence Industry Minister Christopher Pyne announced on Friday that the OneSky program would become the sixth item on the project of concern list.

"The project has experienced schedule delays since approval, and initial delivery is expected almost two years later than originally planned," Senator Payne said.

"The challenges revolve around issues with ensuring value for money for the taxpayer."

The system will cover 11 per cent of the world's airspace, and integrate defence and civilian air traffic for the first time anywhere on the globe.

The project is expected to cost $600 million to set up and $1.5 billion over 25 years.

In April an auditor general report into the OneSky project found Thales Australia, which was picked to design and build the system, has not demonstrated value for taxpayer money.

Under the projects of concern process, defence officials work with responsible companies to achieve remediation. In a few cases, remediation has been deemed impossible and the project has been cancelled.

Other projects on the list include Collins submarine support, the multi-role helicopter and the air warfare destroyer project.