Melissa Price (Durack, Liberal Party) Share this | Hansard source

One of the most important lessons learnt by Australia during COVID is that our nation must continue to strengthen our manufacturing capability. We must be able to make what our nation requires and not rely upon others in the event that our borders are closed. Although the Morrison government already knew this from a defence perspective, the consequences of COVID were a stark reminder that we must be able to build at home to defend our home. During my three years as the Minister for Defence Industry, this became my mantra. Throughout this period there was a much greater emphasis on what areas of sovereign industrial defence capability Australia should be focusing its efforts on.

I was also determined that our men and women in uniform would have what they needed to do their job. Another of my priorities was to make sure that our Australian defence industry companies knew that we knew how important they were to the defence of our nation. I was determined to make culture change within the department so that when a new bit of the defence gear was required—and that happens often—a procurement manager didn't simply order it from an overseas supplier. In a relatively short space of time, together with industry partners and the Department of Defence, we achieved some remarkable feats. Not all these achievements got media attention—they didn't have their names up in lights—but they were important steps; indeed, they were important tools for securing a sovereign defence industry.

For example: we established the Australian Industry Content Division within CASG; we delivered a new mandated contracting model for Australian industry capability and content; we built a workforce through programs like the new and highly successful Defence Industry Pathways Program, which is currently running in Western Australia, and the expanded SADI program; we supported defence innovation, not just with words but with funding as well; and we created the Office of Defence Industry Support. We also created the AIC audit program, making sure we were holding the prime contractors to account. We made changes to the Commonwealth Procurement Rules, making it much easier for smaller defence industry companies to get their first foot on the defence ladder. And we established the Defence Industry Secondment Program.

So what has happened since then under Prime Minister Albanese's watch? Ask yourself: does our Australian defence industry have faith and confidence in its current government? Agile Market Intelligence's Australiandefence industry report for the 2024 financial year, commissioned by Defence Connect, paints a very concerning picture. Indeed, for myself, I think it's a very heartbreaking picture that has been painted. It found a whopping 47 per cent of defence businesses believe it is 'difficult' or 'extremely difficult' to operate in Australia's defence sector, including 64 per cent of small businesses and 48 per cent of medium enterprises. Forty-nine per cent of defence businesses believe it is 'difficult' or 'extremely difficult' to attract and retain staff in the current environment. Only one in four—some 25 per cent—of defence businesses are 'extremely confident' or 'very confident' that their existing or upcoming contracts will continue as planned over the next 12 months. I mean, honestly, how can you plan your business when you have such lack of confidence?

What did industry proponents have to say? 'There is a lack of confidence in timing of contract awards, making it very difficult to attract and retain staff and key suppliers. The defence strategic review is not funded, and there is no funding in the forward estimates. This reduces confidence and the ability for Defence to execute awards.' 'The DSR has resulted in complete decision paralysis within the Department of Defence and CASG.' It's not a very good resume, is it?

Under a Dutton led coalition government we will not be waiting around to invest in defence. We're all about restoring trust in our Australian defence industry. We have done it before and we are determined to do it again. We will beef up our industrial capabilities and we will help to rebuild our small and medium-sized businesses to make sure that we have what it takes to defend ourselves.

It is imperative that our defence industry has confidence in its government in order to take risks on defence contracts. This is urgent. War in the next decade is possible. The risk of conflict is ever present. We are hearing tough talk from those opposite, but I tell you what: words will just not cut it. On Labor's current projections, we cannot expect any new defence capability over the decade. This is why I am passionate about there being clarity around our strategic circumstances—a clear strategy to deter those who will do us harm. (Time expired)

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