David Fawcett (SA, Liberal Party) Share this | Link to this | Hansard source

My question is to the Minister for Defence, Senator Payne. Will the minister advise the Senate how the 2016 white paper will benefit Australia's defence industry?

Marise Payne (NSW, Liberal Party, Minister for Defence) Share this | Link to this | Hansard source

I can, and it is right here: the Australian government's Defence Industry Policy Statement, released today with the white paper, and the Integrated Investment Program. That is a very important question from Senator Fawcett, because in this white paper and this Defence Industry Policy Statement we recognise that industry is a fundamental input of capability to defence acquisition, most importantly. It is recognised for the first time in this policy statement.

We set out in this document a plan to transform the relationship between Defence and industry, and that comes with an acknowledgement that it has not historically always been, necessarily, the most productive on either side of the process. Defence and industry have both been a lot of time working on this policy statement so that we can change the relationship and so that we can change the balances where there were issues and put together the two partners to make a much more productive relationship.

We are going to build a very good, strong strategic partnership with Australian industry, because they are, as I said, a fundamental input to capability—the part of the system that makes it possible for us to do what we do. The first step in creating the partnership is the publication of the full Integrated Investment Program, which I spoke about in response to Senator Reynolds's questions. That will help industry know what procurements are coming and when. It will be a much more focused, coordinated and transparent approach, and that has been one of the criticisms in relation to how industry is able to engage with Defence. We are going to ensure that we engage much earlier in the process to build those relationships.

We will also introduce a new approach to defence innovation to ensure that industry are able to access research funding more easily. We want to help them maximise their export potential. As I said today, when the Prime Minister and I walked onto the Monegeetta Proving Ground in Victoria to see the Hawkeis and sign the contract for those, the first thing he said is, 'What extraordinary export potential is here for Australia!' (Time expired)

Stephen Parry (President) Share this | Link to this | Hansard source

Senator Fawcett, a supplementary question?

David Fawcett (SA, Liberal Party) Share this | Link to this | Hansard source

Thank you. Will the minister inform the Senate how the $1.6 billion will be invested to implement the government's ambitious industry and innovation plans and how this will complement the National Innovation and Science Agenda recently announced by the Prime Minister?

Marise Payne (NSW, Liberal Party, Minister for Defence) Share this | Link to this | Hansard source

I can indeed, because Defence and Industry, as departments in the government, have been working very closely also on the development of the industry policy statement. We are going to establish a new centre for defence industry capability, one of the industry growth centres, which will be funded with about $230 million over the decade. That is going to be delivered through a very close collaborative approach between Defence, the private sector—itself to be involved—and AusIndustry, and in fact it will have co-chairs between Defence and the private sector. Its focus will be on the delivery of defence capability, on building industry skills, on driving our international competitiveness, and on pursuing our access to global markets—all aligned very closely with the National Innovation and Science Agenda, particularly as we seek to increase the level of collaboration between industry and Defence and as we build the skills of Australians to work on what are going to be the most cutting-edge and innovative defence capability problems. (Time expired)

Stephen Parry (President) Share this | Link to this | Hansard source

Senator Fawcett, final supplementary question?

David Fawcett (SA, Liberal Party) Share this | Link to this | Hansard source

Thank you, Mr President. Given that innovation is at the heart of a strong economy, will the minister explain how the Defence Industry Policy Statement will bring a new approach to innovation for Defence and defence industry?

Marise Payne (NSW, Liberal Party, Minister for Defence) Share this | Link to this | Hansard source

I am very excited about these opportunities, but my excitement is nothing beside the Prime Minister's and the industry minister's, let alone that of the head of the Defence Science and Technology Group, Dr Alex Zelinsky. We are establishing a $730 million next-generation technologies fund which is going to be used to very strategically invest in technologies that have the potential to deliver game-changing capabilities and commercialisation opportunities for Australian defence industry. We are also going to establish a $640 million new virtual defence innovation hub, which has the capacity to foster innovation from concept through prototyping, through testing and then through introduction to service—a real change in our capacity to engage with industry that is really at the forefront of this level of creativity and innovation in the defence space. As with the centre for defence industry capability, these programs will directly complement the National Innovation and Science Agenda.