Future defence industry projects vital to establish workflow for WA shipbuilders.
This column has noted the impact of Western Australia losing out on full-cycle docking work on the Collins-class submarines but also highlighted many reasons for optimism within the local defence industry.
FCD had become the prominent project for WA, and in recognition of that, many programs were listed in this column (Business News, October 18) to boost morale and keep confidence high.
The WA defence sector is so much more than any singular project.
The programs listed represent a wonderful opportunity for WA, but promises must now turn into firm commitments.
These firm commitments, plus others that will be needed, will play a vital role in establishing a continuous workflow for WA shipbuilders that enables the employment of a skilled workforce, enabling WA to genuinely maintain the capability required in support of national defence objectives.
Speaking to Business News, WA Minister for Defence Industry Paul Papalia reaffirmed his disappointment at the FCD decision and backed the push for commitment and continuity.
“I urge the federal government to provide WA’s internationally recognised and competitive defence industry with greater certainty on future shipbuilding projects in Western Australia,” he said.
“There are currently only three naval shipbuilding projects under way in WA. All work associated with those projects will end by 2029.
“WA shipbuilders need a commitment to continuous shipbuilding.”
The importance of commitment and continuity was also put to federal opposition spokesperson for defence Matthew Keogh, who further validated these concerns.
Mr Keogh supported the nuclear submarine decision for its enhanced capability in a changing defence environment.
He identified the importance of on-time, on-budget acquisitions of new defence capability.
Additionally, he noted how vital it was that new capability utilised “our Australian defence industry and develops our sovereign capabilities”.
Mr Keogh claimed that the previous submarine program had promised 90 per cent Australian Industry content, which was down to 60 per cent at the point of cancellation with the French builders.
Mr Keogh also indicated that early reports suggested there was as little as 40 per cent Australian industry content in the nuclear-powered submarine program.
This is indeed a significant concern for Australian industry if the initial estimates become a reality.
“It is fundamental that our Australian Defence industry is supported, not cast aside, and Australian advanced manufacturing developed along with it … Australian defence industry must be supported, and our sovereign industrial capability enhanced,” Mr Keogh said.
A key promise mentioned by Prime Minister Scott Morrison was that the federal government would engage in discussions with WA over a large vessel dry berth.
This would be a significant commitment for WA and one that is strategically important for the country.
Mr Keogh said: “With Australia’s only dry dock going into long maintenance soon, it is imperative that the federal government give a clear commitment very soon about where and when it will start work on the strategically necessary second dry dock.” He points to those affected by the Naval Group contract cancellation; a concern shared across the sector.
The Department of Defence has established, via the Centre for Defence Industry Capability an ‘impacted SME support cell’ for companies affected by the cancellation. Contact SME. support@defence.gov.au.
Mr Keogh outlined several Labor Party plans and future commitments aimed at assisting defence industry. These include:
• Enhanced support for the development of sovereign industrial capability.
• Implementing specific and transparent contractual obligations that are audited and enforced.
• A $15 billion national reconstruction fund to create secure jobs, drive regional economic development, boost sovereign capability and diversify the economy. In defence, the NRF will also develop and foster the current mid-tier defence industry businesses to develop indigenous prime defence contractors.
• A federal Labor government will ensure at least one in 10 jobs on major projects is filled by an apprentice under its “future made in Australia” policy.
• It will conduct the first Defence Force posture review since 2012. These are strong promises that will need to be converted into firm commitments if Labor wins the next election.
WA’s defence industry needs promises to become commitments, enabling the continuity that is so critical to maintain jobs and capability.
• Kristian Constantinides is the general manager of Airflite, and chairperson of AIDN-WA; the opinions expressed are purely his own
