David Van (Victoria, Independent) Share this | Hansard source

I rise to address a matter of critical importance: our sovereign defence manufacturing industry. As global threats escalate, Australia's preparedness is alarmingly inadequate, yet we continue to retreat from the vital support that sovereign defence manufacturing provides, leaving us dangerously exposed. The urgency of our situation cannot be overstated. The decisions made by the Minister for Defence Industry and Capability Delivery are destroying our defence manufacturing sector at a time when our circumstances demand a resurgence. The National Defence Strategy emphasises:

A sovereign defence industrial base is vital for developing higher levels of military preparedness and self-reliance.

However, very many defence manufacturers I speak with express concern that the minister's actions favour overseas defence industries over our own. A stark example of this is his recent decision to purchase the US-made Switchblade 300 strike drone. It was a blow to the many and wonderful drone manufacturers that have this capability nationally.

This is a plea for foresight, preparation and investment in our national security. The war in Ukraine has starkly demonstrated the dangers of relying on foreign supply chains for weapons. While Australia will always need to import high-end platforms, there are many weapons and munitions that we could and should be producing domestically to build resilience. This must be addressed urgently. The Australian Industry and Defence Network reports that orders to Australian defence manufacturing companies have plummeted by 30 per cent. The defence industry employs 64,000 Australians and contributes $10.6 billion in gross value added and is a vital component not just of our security but of our economy.

In the previous financial year alone, $4.4 billion was awarded through foreign military sales. That is the purchase of Australian defence material from foreign governments. We have nearly 3,000 companies in Australia with defence related capabilities, yet most are left to compete for scraps alongside foreign companies working here. This is not how we build a resilient and sovereign defence industry. Adding to this concern, we have committed over $9 billion to fund the expansion of the American and British shipyards that will build our submarines. While this expenditure is necessary, I must ask: where is the support for our industry?

The strategic implications of our under preparation are clear. The Defence strategic review and the National Defence Strategy both underscore the necessity for sovereign defence manufacturing, particularly in the production of weapons and munitions, but the government has allocated only $150 million in the Defence Industry Development Strategy over four years, averaging a paltry $37.5 million annually. This funding represents only 0.7 per cent of Australia's total Defence budget.

The recently announced Future Made in Australia initiative is going to make a significant contribution to strengthening Australia's economy through domestic manufacturing, but defence is not listed as a priority sector, even though the framework sets out that it's for economic resilience and security. Designating sovereign defence manufacturing as a priority sector is essential to ensuring that Australia can independently produce and maintain military equipment, munitions and technologies. The Future Made in Australia commitment by Prime Minister Albanese is commendable. However, it could do much more—like funding our onshore defence manufacturing. We must prioritise defence manufacture to ensure Australia is equipped to navigate the complexities of an increasingly unstable world.