Sean Edwards (SA, Liberal Party) Share this | Link to this | Hansard source

My question is to the Cabinet Secretary, Senator Sinodinos, representing the Minister for Industry, Innovation and Science. Can the Cabinet Secretary explain to the Senate what the 2016 Defence White Paper means for Australia's defence industry?

Arthur Sinodinos (NSW, Liberal Party, Cabinet Secretary) Share this | Link to this | Hansard source

I thank Senator Edwards for this important question and I thank him for his continued advocacy for South Australian defence industry. He has been a powerful advocate of defence industry and made a dramatic intervention on that matter early last year.

May I begin by congratulating the Minister for Defence, Senator Payne, on the release of this white paper. It is the right strategy for a modern Australia in a more complex world. The white paper will see the government deliver a more capable, agile, potent Australian Defence Force that will be ready to respond wherever Australia's interests are engaged. Key to achieving this objective is this unprecedented partnership between the government and Australian defence industry, a partnership facilitated by a fully costed, externally assured, 10-year integrated investment program of $125 billion worth of investment in defence capability over the decade to 2025-26. Critically, for the first time, the defence white paper will bring together all areas of investment in capability and provides much greater transparency in industry's relationship with the government's defence procurement plans.

In contrast to the opposition, who led us through the valley of death when they were in government, we are supporting Australia's defence industry. Amongst other initiatives, we have reaffirmed the commitment to a continuous naval shipbuilding program—nine frigates and 12 offshore patrol vessels built here in Australia. The defence white paper is a real plan for our nation's security, backed by real funding. Fundamental to Australia's defence industry, it is achievable and affordable.

Sean Edwards (SA, Liberal Party) Share this | Link to this | Hansard source

Mr President, I ask a supplementary question. Will the Cabinet Secretary explain to the Senate the benefits of producing the defence industry statement?

Arthur Sinodinos (NSW, Liberal Party, Cabinet Secretary) Share this | Link to this | Hansard source

One of the things that got me particularly excited last week was the release by the Prime Minister and the Minister for Defence of a defence industry policy statement. This is a landmark document which shows the determination of the government to transform its relationship with defence industry. The government will cut red tape for our defence industry firms, making it easier to do business with government. We will build a new strategic partnership with industry for a strong and sustainable defence sector. We have formally recognised for the first time the vital role of Australian defence industry as an input to our capability. In particular, I draw the attention of the chamber to $1.6 billion over 10 years in new initiatives, such as $640 million for a defence innovation hub which will foster collaborative innovation from concept through prototyping, testing and introduction into service.

An opposition senator: That's exciting!

It is exciting for me.

Sean Edwards (SA, Liberal Party) Share this | Link to this | Hansard source

Mr President, I ask a further supplementary question. Will the Cabinet Secretary please outline for the Senate the role of the Centre for Defence Industry Capability?

Arthur Sinodinos (NSW, Liberal Party, Cabinet Secretary) Share this | Link to this | Hansard source

The new Centre for Defence Industry Capability is a $230 million investment from the government. With a focus on the delivery of defence capability, building defence skills, driving international competitiveness and opening access to Australian markets, the centre will invigorate our defence industry. The centre will be delivered through close collaboration between the private sector, the Department of Defence and AusIndustry. Additionally, the government will also invest $730 million into the Next Generation Technologies Fund. It is good news for Australia's defence industry and it is good news for Australian jobs, but, importantly, it is good news for innovation. It is a further downpayment on the government's agenda to promote innovation across Australian industry.