Andrew Wallace (Fisher, Liberal Party) Share this | Link to this | Hansard source

Last week I held the latest in my series of Fisher Defence Industry Initiative events, a roundtable meeting with Air Chief Marshal Sir Angus Houston, AK, AFC, retired—try saying that too quickly! It was at the terrific Landmark Resort in Mooloolaba. Sir Angus spoke to a number of the businesses in my electorate who are taking the lead in our burgeoning local defence industry. He has an incredible depth and breadth of knowledge in this sector, and he was very generous in sharing his time with us. I am very grateful to him for giving us the benefit of his expertise.

One of the most striking insights which I took away from last week's meeting was just how far the sector in my community has come since my first Fisher Defence Industry Initiative forum in 2017. Thanks to some incredible hard work from entrepreneurs and academics on the Sunshine Coast, with the support of the coalition government's $200 billion defence industry capability investment, today our region is fast becoming a true defence industry hub.

At the meeting we had representatives of the University of the Sunshine Coast. The university began its work in defence modestly, with a contract for research on runway materials for the ADF. Today the university has a designated representative for developing its defence engagement, Dr Adrian McCallum, and has recently begun an exciting new defence collaboration with DTMC Ltd. USC is also now working with the Department of Defense in the United States on the prevalence of melanoma in the US Army. Professor Michael Kimlin, who is undertaking this research, spoke passionately about the need to conduct a similar study for ADF personnel in Australia, and I believe this is very worthy of consideration. Finally, USC's Thompson Institute will soon be opening its post-traumatic stress disorder clinic, partnering with institutes in the UK and US who are already achieving 85 per cent remission rates. I've no doubt that this centre will fast become Australia's leading treatment facility for current and former members of the ADF suffering from this debilitating condition.

We also heard from David Baird of Praesidium Global. David's business is young but it has developed a unique unmanned ground vehicle which is already beginning to catch the eye of defence forces all over the world. Over the last three years, David has taken his business from its first exploratory contract with the ADF to a position as one of the world's up-and-coming innovators in this field. Not only are Praesidium now working with the ADF to develop Australia's approach to unmanned ground vehicles; they are well advanced in negotiations with defence forces in Europe, the Middle East and the Pacific to trial their products. Praesidium are even beginning to take their technology into civilian environments, creating potentially huge new markets which would bring a significant economic boost to our region and, of course, to Praesidium Global.

We heard from Don Pulver of Eniquest. Eniquest were our region's pioneers in defence, working on contracts for the military at home and overseas long before the Fisher defence industry initiative began. As they have for more than 10 years, Eniquest continue to quietly supply reliable, compact and lightweight electrical generators to the ADF for their Bushmaster vehicles as well as portable generators for a host of other military applications. Eniquest work for export partners all over the world, including the military of Singapore, and Don is already setting up to expand his work at home and overseas. Thanks for all your support, Don; you're a legend.

Finally, we heard from Will Shrapnel of HeliMods in Caloundra. Mr Deputy Speaker, if you want to keep up with everything HeliMods are doing, you can't take your eye off them for even a day. In the weeks since I announced $150,000 in Morrison government funding for a new vertical machining centre for the company, they have already had to move the machine into a new extension to their Caloundra aerodrome facility. In just three years, thanks to more than a million dollars in federal government funding and Will's truly tireless work, HeliMods have gone from their first defence contract to engaging with primes all over the world and working to improve the way the ADF look at their entire helicopter capability.

The defence industry in Fisher is going from strength to strength. It is already creating dozens of jobs for the future for locals in high-tech manufacturing and engineering. I commend our region's entrepreneurs for all their hard work. However, without this coalition government's dedication to a robust, resilient and internationally competitive Australian defence industry, none of this would have been possible. I congratulate the government on its foresight.

Fiona Phillips (Gilmore, Australian Labor Party) Share this | Link to this | Hansard source

I am proud to rise today to talk about the crucial role that local small business plays in supporting and working with defence. Our defence family on the New South Wales South Coast is an important part of our community. They are there for us in our times of need, lending a helping hand and working with us to make sure the community is safe and protected. There has been no better example of this than in the terrible summer we have just endured. I want to talk briefly about the great work of the ADF over the last few months before I get to small business.

This year my electorate, on the New South Wales South Coast, has endured a summer like never before. The devastating bushfires that raged for months have wreaked havoc on our community, causing so much destruction. But there was always a source of comfort to us: the familiar sound of local Navy helicopters and aircraft flying overhead. HMAS Albatross and HMAS Creswell played a crucial role during the fires. HMAS Albatross was a base of operations for a fleet of fixed-wing water bombers and observation platforms, with the Airfield Coordination Centre providing 24-hour air services support to visiting RFS firefighting aircraft and crews. The Naval Air Station Weather and Oceanography Centre also provided detailed daily meteorological and oceanographic forecast support for RFS air operations. It was very important work in difficult conditions.

Defence industry and the Royal Australian Navy worked together to support firefighting efforts on the North Coast, South Coast and beyond over many months. This was crucial to the firefighting efforts, and our community is eternally grateful. I again take the opportunity to thank each and every member of our defence family for all they have done. It has meant so much.

A couple of weeks ago I got to experience one of my favourite exhibits at the Nowra show: the defence industry tent. On display were some of the best examples of how local small business can work with and support our defence teams. Global Defence Solutions had their amazing range of deployable catering equipment on display as well as their expandable hard and soft shelters. Normally at the show this tent is used as a bit of relief from the searing heat—GDS also display their field air conditioners and generators—but this year the tent provided a different sort of relief: relief from the pouring rain. GDS are a Nowra based, family owned company that have been building and supplying mobile field shelters for the ADF for more than 20 years. These deployable shelters can be used as hospitals, kitchens, operation centres and accommodation, but the best part is that GDS live and work in Nowra and support the Shoalhaven community.

Air Affairs Australia is another local Nowra business based in Albatross Aviation Technology Park. Air Affairs has been providing specialist airborne and engineering services to defence, government and multinational companies around the world for 25 years. It was fascinating to hear how these two local companies are creating job opportunities, training local people and supporting Defence, all on the South Coast. My electorate has the highest unemployment rate in New South Wales, and there are so many opportunities available when government, defence and small business work together. Tactical surveillance products are becoming more and more important as time goes by. During the bushfires, Air Affairs' Firescan was put to great use, mapping the fireground and providing important imagery in very difficult conditions. This was logistically critical in supporting our firefighting crews on the ground, and again I thank them for this great work.

There is really no better place for small business to integrate with defence than the New South Wales South Coast. Being close to HMAS Albatross and HMAS Creswell is just one reason. The Shoalhaven Defence Industry Group is working to encourage businesses to start their defence journeys on our beautiful coast. Albatross Aviation Technology Park has been designed specifically to support defence and aviation industries, boosting local aviation, defence support and advanced manufacturing industries, creating and supporting local jobs.

The possibilities for small business and defence partnerships in my electorate are endless, and we need to make sure that we are taking advantage of these opportunities. The recent bushfires have had a tremendous impact. We have a long road to recovery, but I am excited to see the possibilities that defence and small business can achieve when they work together.

Melissa McIntosh (Lindsay, Liberal Party) Share this | Link to this | Hansard source

The Minister for Defence Industry and I are both committed to supporting the local defence industry in Western Sydney. I know that, by creating jobs in defence, we're not only building our economy but building the capacity of our Defence Force and keeping us all safe. Last year in Orchard Hills I was proud to represent the minister in announcing $95 million in investment into the delivery of the Naval Guided Weapons Maintenance Facilities Project. This new facility will enhance maintenance components for the Navy's guided weapon systems, which will directly support the operations of the Australian Defence Force. This includes working accommodation for 30 personnel, seat and dispatch areas, a maintenance workshop and specialised electronic testing facilities. I was taken on a tour of these facilities and I am very proud of the hard work our defence industry does in our local area. It is important work that keeps all Australians safe.

Western Sydney will be at the forefront of defence technology and advanced manufacturing through investment in sensing technology for satellite based sensing systems at Western Sydney University. This is another project unlocking opportunities for our community. At home we will be driving technology that will be used across the country by our Australian Defence Force. Watpac, a national construction company, has committed to sourcing 95 per cent of its subcontract work from local industry at the Orchard Hills facility. Local jobs are so important to me and my community, and this is a win for Western Sydney jobs.

We're not only seeing this investment in areas like Lindsay; Australia's growing defence industry will deliver multiple projects across the country. The offshore patrol vessel project is worth up to $4 billion. The OPV plays an integral role in Operation Sovereign Borders and our ongoing commitment to keeping our borders safe and secure for all Australians. We are also supporting Australian steel manufacturers and shipyards creating jobs right here in Australia.

Families and small businesses across the country are benefitting from the record investment by the Morrison government into our defence industry. Currently, there are over 30,000 Australians employed in our defence industry and nearly 3,500 local, small and family businesses that are contributing to keeping us safe and secure in creating new jobs.

The Army's Land 400 project will create 1,450 jobs throughout Australia, and many communities will be benefiting across our country. Over 211 combat reconnaissance vehicles for the Australian Defence Force will be purchased to keep our Defence personnel safe. We are also taking advantage of the opportunities in global supply chains for the Joint Strike Fighter program. There are over 50 companies in Australia, employing over 2,400 people involved in this program, worth $1.3 billion in production contracts. This ensures our major Defence projects are prioritising Australian businesses. Over time, this will increase to over $2 billion and 5,000 jobs in Australia by 2023. We need to continue to support the 3,500 small businesses contributing to our defence industry, including in my electorate of Lindsay, so they can maximise the opportunities created from our $200 billion investment in Australia's defence capability.

Our Local Industry Capability Plan provides greater opportunities for our local tradies, small businesses and suppliers to secure work for Defence infrastructure projects. In the last 12 months, over 900 subcontractors have worked on projects, contributing over $1.7 billion into communities across Australia. This is expected to increase, which is fantastic news for our local businesses and our Australian economy. We're also ensuring small businesses can access grants through the Centre for Defence Industry Capability, with over 98 grants, worth $3.4 million, awarded to small and medium Australian businesses so far.

With the Morrison government's leadership, the Australian Defence Force has certainty. We're investing $200 billion in our defence capability, and we're delivering the largest regeneration of the Navy since the Second World War, with a $90 billion plan for 57 new vessels. By backing Australian businesses we'll ensure that we have the capacity to keep us safe. And we know that, when we invest in Defence infrastructure projects, it directly benefits our local communities. In Lindsay, we know that that will create even more jobs.

Milton Dick (Oxley, Australian Labor Party) Share this | Link to this | Hansard source

I want to thank the member for Herbert for putting forward this motion so that members from both sides of the House have an opportunity to place on record our support for our Defence Force industries and small business in this country. I note the contributions from the member for Gilmore and, following me today, the member for Macquarie, who are both committed to ensuring that our defence capabilities continue to grow and that they are connected to small businesses right across this country. While we may not agree on most things with the government, you can be assured that, when it comes to supporting our Defence Forces and small businesses, both sides of the chamber are fully committed to ensuring both thrive.

I wanted to speak on this motion particularly today for a number of reasons. The first is that I come from a military family myself; my father served in World War II as a signalman aboard the HMAS Ararat in New Guinea. Whilst my dad didn't speak too often about his experiences in the Navy for many years after completing his services, in later years he told our family more and more about what his role had been and what he had seen, and that made me appreciate even more the great sacrifices our Defence Forces men and women make to serve our country, protect our values and keep us safe. I know from participating in the Australian parliamentary ADF program and from visiting our troops in Afghanistan, Iraq, and other places just how important it is that this parliament recognises and continues to support our Defence Forces and the industry underpinning it.

We know that there is a tremendous amount of hard work and perseverance in making a small business a success. In my electorate—and there are 10,386 small businesses throughout the local Oxley community—many have strong links to the Defence Force. RAAF Base Amberley is on our doorstep in the electorate of Blair, and there's a whole range of Defence Force industries which are just starting to pick up the pace in the south-west of Brisbane. I've witnessed this firsthand when I've visited industrial workplaces throughout the local community, some of which have been supplying products and support to our defence forces for decades, and some of which are new to the field and are providing state-of-the-art technological advances so that our troops are some of the safest in the world.

I want to highlight to the chamber today that some of these small businesses are also part of important supply chains to larger defence companies, include Boeing Defence Australia, with the capability of improving small-business connectivity in the south-west of Brisbane. I recently had the opportunity to tour Boeing Defence Australia's new facility in Redbank, at their official opening, with the shadow minister for defence and the Deputy Leader of the Opposition, Richard Marles. This facility now plays an instrumental role in delivering Project Currawong, the Integrated - Battlefield Telecommunications Network, to the Army and Air Force. As part of this, Boeing will engage some 200 Australian businesses, many of which are Queensland based, for the production and supply of components and parts.

There is another project I want to highlight to the House. I'm a strong supporter of it and I know our local small business community continues to look forward to delivering it. Rheinmetall Defence Australia recently established its Australia-New Zealand headquarters and Military Vehicle Centre of Excellence, also in Redbank, in the electorate of Oxley. Rheinmetall was the successful tenderer for the Australian government's Land 400 phase 2 contract, which will deliver a program of continuous design, build and support for up to 5,000 military vehicles throughout Australia and the Asia-Pacific.

I commend the Queensland Palaszczuk government for its vision of a 10,000-person strong, $7 billion defence industry sector by 2028, driven by a newly released plan which underpins $15 million in industry development programs, led by the Premier and the minister for state development, the Hon. Cameron Dick. This plan, with a range of initiatives, could see the creation of 3½ thousand new jobs on top of the more than 6½ thousand people who are already employed in the defence force sector in Queensland. Our state is home to 27 per cent of Australian Defence Force personnel, with 14 significant defence facilities. These figures show the importance of the industry for our Queensland economy.

Finally I want to thank our dedicated men and women in the defence forces, who are the best in the world at what they do. I look forward to playing a constructive role in ensuring our small-business sector continues to support them.

John McVeigh (Groom, Liberal Party) Share this | Link to this | Hansard source

I join with other members of the House in supporting this motion moved by the member for Herbert in relation to the importance of small business and its integral role in our defence industry right across the nation. Those of us from regional Australia, particularly, recognise the industry's potential for significant growth across regional Australia and applaud efforts to maximise the participation of Australian small business, in particular, in defence industry procurement and other activities as our defence plan is rolled out across the country. It's all about ensuring that we have a robust, resilient and of course internationally competitive Australian defence industry.

I'm thrilled that these efforts are underpinned by the government's 10-year Defence Industry Capability Plan that is rolling out across the country. In building a strong and sustainable Australian defence industry, the government recognises the need for local businesses, particularly small businesses, to have an opportunity to be involved in all aspects of defence activities across the nation. That means construction, project management, capital equipment acquisition and, most definitely, sustainment of such equipment. I'm thrilled that our tenders require that these projects demonstrate how they will maximise Australian industry capability and involvement in such projects over their lifetime.

Like so many others in this House, I celebrate the fact that I enjoy the company of defence bases in my electorate. Swartz Barracks at Oakey, in Groom electorate, is home to the Army Aviation Centre, which accommodates primarily Army pilot and aircrew training activities. Logistic support functions for the Black Hawk and Kiowa helicopters have been a big part of the history at Oakey as well. We also acknowledge the presence of a Republic of Singapore Air Force helicopter squadron. My wife, Anita, and I are very much looking forward to attending, this Friday night, the Rotary Wing Aircraft Maintenance School dine-in night at the Australian Army Flying Museum. We will talk about their activities, no doubt, and what they mean to the local Oakey community.

The case is the same for Borneo Barracks at Cabarlah, which has the Army's deployable electronic warfare unit and its electronic warfare operator training unit. It's just north of Toowoomba. Significant capital works continue at both these bases. Earlier last week I spent a day at the Army Aviation Centre at Oakey, as I mentioned, looking at significant airfield capital upgrades—pavement maintenance and aeronautical ground lighting. The Joint Health Command improvements will commence very soon for the new health centre at Oakey. And, of course, there is the Air Traffic Control Complex Infrastructure Project, which is being replicated across the country.

Our local business community recognises the potential for further engagement and further business development in and around the activities at both Oakey and Cabarlah. That's what the government's Defence Industrial Capability Plan is all about. I particularly acknowledge the efforts of one of our local chambers of commerce, the Highfields and District Business Connections group, which has led the charge. I acknowledge that they have a town centre, a greenfields development opportunity, that could certainly house jobs of the future. They predict, over the next 20 years, in collaboration with defence industry development, potentially some 20,000-plus jobs. That's in coordination with the Wellcamp Business Park, which houses our fantastic and international-capable airport. And, of course, there's the FKG Technology Park just west of Toowoomba, which includes Australia's first tier III Uptime-certified regional data centre. So we have the smarts and we can build the 21st-century jobs around this in our region.

USQ, the University of Southern Queensland, led in this respect by the Executive Director of the Queensland Institute for Advanced Engineering and Space Sciences, Peter Schubel, is also getting on board with defence industry development—in this case, research around fibre composites and other materials that can be used in defence equipment going forward. Interestingly, that will have a space industry application as well.

So we're seeing government working with the small-business sector, certainly with the education sector and, most particularly, with our community to realise defence industry development potential.

Susan Templeman (Macquarie, Australian Labor Party) Share this | Link to this | Hansard source

I am very pleased to support this motion from the member for Herbert looking at the importance of defence industries for small business, particularly in my electorate of Macquarie.

The recent bushfire crisis has more than demonstrated how pivotal RAAF Base Richmond is for emergency operations in our area and up the eastern seaboard. The New South Wales Rural Fire Service has permanently based a large aerial tanker and spotter aircraft at the base. Coulson Aviation Australia, which is an American company, is one of the suppliers of equipment, aircraft technology and logistics to the RFS. There is now a 10-year deal to provide flight and maintenance personnel for a Boeing 737 Fireliner and two lead-and-intelligence aircraft based at Richmond.

Members would be aware that the Coulson Aviation crew which died, tragically, on 23 January while helping to fight the fires had flown out of our RAAF Base Richmond. On 30 January, the base hosted an emotional farewell for the three personnel, Captain Ian McBeth, First Officer Paul Clyde Hudson and Flight Engineer Rick A DeMorgan Jr. Yesterday, of course, they were fittingly honoured at the memorial service in Sydney, along with the 22 others who lost their lives in the New South Wales fires.

The establishment of the RFS aerial firefighting resources at Richmond is really good for our community and complements the existing defence industry that takes place there. It is the perfect place for these industries to be, and we'd like to see them expanded because our local economy in the Hawkesbury—and, to a lesser extent, the economy that feeds off RAAF Base Glenbrook—has a really heavy dependence on this RAAF base and all the associated operations, including the RFS operations.

In the Hawkesbury, the RAAF base employs just under 10 per cent of people in the whole local government area. The Richmond base has been an integral part of the Hawkesbury community for more than a century. Richmond RAAF was the first base to be established in New South Wales, and as early as 1916 a school of aviation was operating on that site on Ham Common to train aviators for military flying. That became the Richmond aerodrome when it was taken over by the federal government in 1923, with the first squadron being formed in 1925. So we have a very long and proud history in the area with the RAAF and now the Army on the site.

According to data from Regional Development Australia, defence is by far the largest employment sector inside the base, with about 1,500 people, but other significant sectors include aircraft manufacturing and repair services, with more than 350 jobs, and there are other automotive repair and maintenance and engineering design and consulting services, which employ dozens of people. The presence of the private sector means there are more high-skilled jobs for a whole lot of people from aircraft maintenance engineers and computer technicians through to support services. It means more people are likely to live and work in our region, and that also has a vital flow on to our local economy We value that. This defence industry component is really crucial.

Labor has always been committed to ensuring local economic outcomes are a key objective of defence procurement. We want to see greater engagement by local small businesses in the defence industries and as suppliers to the Defence Force, we want to see Australian manufacturing businesses in the defence industry supply chain, we want to see Australian technologies, and we want to see Australian workers working for Australian companies. I like the principle of Australian self-reliance, a self-sustaining Australian defence industry which allows us to maintain and sustain the ADF and all of its equipment without reliance on outside sources. It allows us to build technological capability and workforce skills and has really positive consequences for other industries and innovation. Defence innovation has led to so many things like the internet, drones, weather radar, microwave ovens, digital cameras and the EpiPen. We'd like to see more of that happening in the Hawkesbury. I want to see this engagement with businesses in my region. The defence industry at Richmond is long term, but of course there is the threat that the all new and shiny aerotropolis which is planned next to Western Sydney Airport at Badgerys Creek will tempt these industries away from Richmond. I'm very pleased to work with Hawkesbury council, our chamber of commerce and Western Sydney University to make sure we have a thriving industry, and whatever incentives are being given to businesses to establish near the new airport should also apply to Richmond. It is one of the best things the government could do for our regional economy.

Ross Vasta (Bonner, Liberal Party) Share this | Link to this | Hansard source

I rise in the chamber today to speak in support of the Morrison government's commitment to building a strong and sustainable defence industry and ensuring Australian small businesses play an integral role in the future of our national and economic security. With a $200 billion investment in Australia's defence capability, we need to emphasise and encourage the involvement of Australian defence industry businesses to help create jobs for working Australians and boost the local economy in electorates like Bonner in South-East Queensland.

Currently, around 3,500 local Australian businesses are working to keep Australians safe and are creating new jobs through defence industry investment. In my electorate of Bonner, such investment is having a significant impact on local jobs, with total defence contributions surpassing $16 million. It's not only the manufacturing and construction industries that are benefiting from this spend but exciting new technological advancements, which are changing the way we look at keeping our country safe.

Late last year I visited a local business in my electorate called Skyborne Technologies, which had received a grant for defence industry capability. Skyborne Technologies used that grant to develop Cerberus, a lightweight multishot grenade launcher designed for use on drones and remote vehicles. This local business uses a combination of artificial intelligence and lightweight weaponised drone engineering to develop this device with capabilities for pinpoint precision strikes that drastically reduce collateral damage. This device provides air-force-level support and closes the margin of error to help defence drone operators make accurate decisions under pressure in the line of duty.

Another business in Bonner creating jobs and supporting defence industry is Teledyne Technologies. Thanks to a science and technology defence grant, this local business has developed vehicle mounted systems to combat improvised explosive devices, or IEDs, to help keep our defence personnel safe. At the moment the only way to detect these explosives requires soldiers to scan the environment on foot, which is very dangerous. Once finalised, this new device will attach to military vehicles to detect roadside IEDs using cutting-edge technology. This is a tremendous achievement and I'm so proud to share with the Chamber how local businesses in Bonner are developing new technologies to better protect our troops, who put their lives on the line for our country.

There are a number of other businesses in Bonner that have received defence industry grants to assist in the construction and management of services and the manufacturing of sophisticated radar and electronic warfare systems, as well as other military equipment. I've always encouraged businesses in my electorate to seek out these defence grants to help keep our country safe while also creating more jobs in the region. Next month we have the Land 400 phase 3, mounted close combat capability, roadshow in Brisbane, for local industry to pitch its capabilities to tenders to construct the Land 400 armoured vehicles. It is yet another exciting opportunity for local manufacturing and technology based businesses to get involved and to benefit from the Morrison government's investment in our defence industry.

The Morrison government's message to small businesses is that the Australian defence industry is clear: we need to support you. I'm very pleased to say that we have and we will continue to support these small businesses.

Helen Haines (Indi, Independent) Share this | Link to this | Hansard source

I commend the member for Herbert on his motion on small business and the defence sector, and I rise to highlight the major role and growth potential of the defence sector in my electorate of Indi. Firstly, I'll talk about Indi's small and medium-sized businesses and the role they play in supporting the defence industry and the local economy. Secondly, I'll speak to some concerns from those very businesses that measures intended to support Australian companies in defence procurement are not transparent enough and that this lack of transparency is leading to wasted time on bids, preventing businesses from being as efficient as they could be.

So what's at stake here? The Hume region, of which Indi makes up a significant part, is host to the largest Australian Defence Force presence in Victoria. In my electorate the Albury Wodonga Military Area consists of five sites and hosts the Joint Logistics Unit (Victoria) and the Army Logistic Training Centre. Therefore, many prominent defence industry businesses conduct major operations in the area. A recently released report, commissioned by the Hume Regional Development Australia Committee, quantified the current value, challenges and projected growth of the defence sector in the Hume region. This report found that the defence sector and relevant industries provided 5,600 jobs and $185 million per annum in spending for the Hume region. This spend is expected to increase to $266 million by 2021—an $81 million increase.

In the Hume region, prime contractors, vendors or original equipment manufacturers whose main business is defence contribute more than 1,300 jobs and $52 million in spending to the economy. Notable businesses include Thales Australia—who operate Australian Munitions in Benalla—BAE Systems, Hide-Away Safe Securities, Milspec Manufacturing and Scientific Management Associates. Another key group are contractors, service providers and vendors who conduct substantial business with Defence. This includes businesses such as Australian Textile Mills and Red Baron ALSE. This potential growth of $81 million for defence and industry showcases the economic and industrial potential of the Hume region. It's so important to us. However, this growth will be highly dependent on government effectively maximising the participation of Australian companies in defence procurement.

In December last year, as part of a quarterly meeting of the Hume region defence sector roundtable, I visited Milspec Manufacturing in Albury. Milspec specialises in electrical subsystems for defence and industry, with clients including Thales, BAE Systems, Rheinmetall, Boeing, V/Line and Metro Trains. They employ 75 people, including tradespersons, apprentices and engineers, and have a turnover of between $10 million and $20 million per year. They're located in Albury, but half of their employees come from the Victorian side of the border in my electorate. Wherever possible, they buy materials from local suppliers, putting an estimated $10 million into the local economy. On this site visit, Milspec spoke to me of their concerns regarding the Australian Industry Capability Program, the AIC program. Milspec told me this program is not transparent enough, depriving them of the ability to realistically plan their future business. The AIC program requires businesses bidding for defence contracts to describe how their proposed supply chain will enhance Australian defence industry capability.

Milspec are not alone in these concerns—that the AIC program lacks sufficient transparency for the Australian industry. During the last parliamentary sitting week, Minister Price herself launched a new defence business advocacy group, Industry Voice. Industry Voice have around 30 members, and they're calling for a measurable and enforceable AIC policy to ensure Australian businesses have the best chance to secure defence contracts. Industry Voice members, such as Milspec, are concerned that the current program leaves smaller Australian suppliers with little to no certainty when preparing bids. For example, Milspec prepared a bid with another Australian company for an element of a large defence company's project for 18 months. It involved trips overseas and intense research and development, but, at the last minute, they were told this element of the project was now closed to Australian bidding. This was because the Australian component required by the plan had already been met in the time it took Milspec to prepare their bid. There was no realistic way for Milspec to see that coming, and clearly this is not a level playing field.

There's great growth potential in Indi for businesses involved in defence, and the predicted $81 million in growth for my region is vital as it will underpin not only the defence industry but the wider local economy. But we need a level playing field.

Sharon Bird (Cunningham, Australian Labor Party) Share this | Link to this | Hansard source

The time allotted for this debate has expired. The debate is adjourned and the resumption of the debate will be made an order of the day for the next sitting.