Pat Conaghan (Cowper, National Party) Share this | Hansard source

If the global pandemic has reminded us of anything at all it's the importance of national security and our sovereign capability and their impact on Australian jobs and the Australian economy. Minimising our reliance on and the impact from external supply chains and other state forces has never been more important. Thankfully, this government is committed to effectively facilitating all of the above, and Australia's shipbuilding industry forms an important part of this commitment. In fact, a recapitalisation commitment this significant has not been seen since World War II.

The sad fact is that Australia's national security and strategic environment has seen a negative downturn in recent years, with military modernisation evolving at speeds not experienced before. The capabilities of potential threatening sources have been rapidly advancing and expanding, meaning our homegrown technology edge is not what it used to be. We are now in a position that we must act swiftly to meet the evolving threat, with the Indo-Pacific region now at the centre of strategic competition. It is uncomfortable to realise that our naval shipbuilding enterprise faces a real threat from foreign espionage.

I've said this when discussing matters relating to national security, but the sad fact is that what you can't see can hurt you. There are those with different interests to our own that seek to compromise or collect Australian intelligence. Unfortunately, this includes our next generation of naval capability. Thankfully, under the current proposed reforms to the security of critical infrastructure act, the federal government is introducing a naval shipbuilding identity assurance program. Harnessing the capabilities of AusCheck, it will provide a constant and consistent level of background checking and identity assurance for every person requiring unescorted access to our naval shipyards and multi-user sustainment sites. It will be modelled on the aviation security identity card, also managed by AusCheck, which is used to conduct background checks on people requiring access to restricted areas in airports, and to date this has proven to be very effective. It is a relief to see the program will be rolled out very quickly in the coming year.

On a very positive note, in my own electorate of Cowper, companies like Birdon Group and Bale Defence are set to benefit directly from the renewed focus of national naval shipbuilding enterprise. Both Port Macquarie based companies have previously secured large-scale overseas contracts, and in recent months it was great to see Bale Defence awarded the ADF contract to supply 40 rough terrain vehicles, with potential for larger future orders. It will be exciting to see mid-North Coast local ingenuity being utilised for our own naval capability, as it absolutely should be. Seeing our world-class local heavy engineering and industrial manufacturing capabilities used to their full potential is a gratifying prospect. This commitment to naval shipbuilding will support at least 15,000 jobs nationwide by the end of the decade, and I look forward to seeing Birdon Group and Bale Defence expand their teams and capabilities.

But in the process we must recognise that mid-sized and small Australian companies are more cost-competitive than the large overseas primes and their subsidiaries and suppliers. Australian companies must be given the opportunity to compete and participate on a level playing field as prime contractors. Examples like Birdon Group and Bale Defence in my electorate have already proven their capability and cross-competitiveness in not only US military contracts worth billions of dollars, just for the two, over the past decade, receiving high praise for quality performance. Before now, I appreciate, there has been a reluctance for local companies to invest in equipment and manpower without the security of Australian contracts to shore up the spend. This government's longer-term commitment now and into the future will allow local industry to invest with confidence.

See this speech in context