ANALYSIS: Recent comments by Paul Papalia have taken on new meaning after a major announcement on Henderson's defence future.
It is a refined political skill to give enough without giving too much.
Business News received a master class in political parlance during a September discussion with Defence Industry Minister Paul Papalia around the future of the Henderson precinct.
Excitement was obvious in Mr Papalia’s voice and commentary around the future of Henderson’s defence precinct; an area he has championed since before taking office in 2017.
Speaking at the time of an imminent-but-undisclosed announcement, a deliberately cagey Mr Papalia offered up the following. “It’s going to be really extraordinary, extraordinarily significant,” he said.
“Very soon we will be seeing defence industry become the second-largest sector in [Western Australia].
“For so long the state has, you know, desired and hoped for significant diversification.
“This is it.”
At the time, what "it" was, was not clear.
The idea that defence industry would become the state's second-largest sector had not been widely shared.
It even prompted an enquiry from within one government department as to the source of the comment.
The minister's mouth is as good an answer as you can give.
And the announcement in October of Henderson as a dedicated defence shipbuilding and maintenance precinct gave clear context to the words.
The revelation that state and federal governments would join to develop Henderson into a defence industry force on the west coast - at a cost of billions - was the news industry had been waiting for.
At this stage, the funding commitment is in the order of $127 million to be budgeted over three years, which will fund planning, consultation, design and feasibility studies.
However, the federal government projects spending on a much larger scale, in the order of billions, creating 10,000 jobs and combining with $8 billion already committed to HMAS Stirling’s redevelopment to make the largest submarine maintenance hub in the Southern Hemisphere.
While a final design is yet to be approved at Henderson, the state and region will finally get the dry dock it has been crying out for since Scott Morrison’s ill-fated promise of such a facility ahead of his 2022 election loss.
This publication’s Defence Feature (September 30, tearsheet, pictured) explored the prospect of one dry dock being built at Henderson, and the changes that needed to happen for that move to be made.
According to Defence Minister and Deputy Prime Minister Richard Marles, multiple dry docks will be delivered as part of October’s plan.
Mr Morrison’s campaign promise was pitched with a $4.3 billion price tag.
The delivery of multiple dry docks, as part of a dedicated precinct, will likely cost much more.
While the headline figures are astronomical, the federal government’s relatively modest commitment to Henderson over the three years ahead prompted cautious praise from some.
The urgency of delivery of a submarine maintenance capability at Henderson, which Mr Marles said in June would be needed in time for the presence of Aukus nuclear subs from 2027, makes a three-year assessment timeframe look lengthy.
Chamber of Commerce and Industry of Western Australia chief executive Chris Rodwell struck a wary tone in offering his praise.
“The defence industry in WA has often been lured by the vision, only to find the funding isn’t there to back it,” he said.
“There needs to be a detailed pipeline with clear funding milestones, so WA defence businesses and those seeking to enter the industry can invest and expand their businesses with confidence.
“CCIWA calls on the federal government to outline an indicative long-term funding timeline in the February budget papers.”
Any squabbling over the project’s delivery funding is likely seen as a tomorrow problem for a state government that has pushed so hard to develop a defence industry in the area.
“For a long, long time, a lot of people didn’t really understand what we were saying, and what we were arguing for,” Mr Papalia said in September.
“They’re all about to see, and witness firsthand, how significant this is.”
