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 inform the Senate how the new Centre for Defence Industry Capability will drive innovation and competitiveness and boost jobs in the Australian defence industry?

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

I thank Senator Fawcett very much for his question and particularly for his interest in this issue. The Centre for Defence Industry Capability is actually a good news story, which of course means that those opposite will not be interested in the least. It was announced last week, with the Prime Minister and the Minister for Industry, Innovation and Science, that it would be headquartered in Adelaide, but it will have national reach. Its role is to develop defence industry and to foster and direct drive innovation in defence right across Australia, as well as opening up important export opportunities. It is in fact a key initiative of the Defence Industry Policy Statement. It is about bringing together the private sector, Defence and AusIndustry and helping to drive a transformative relationship between Defence and industry to deliver exactly the cutting-edge capability our forces require.

What is really innovative about the CDIC is that it will be specifically charged to go out and to work with small to medium enterprises in the defence space right across the country. It is going to be staffed by experts who understand business and understand defence, who will work with individual enterprises on how they can contribute to defence capability and place them in a strong position to win those contracts, and it is going to be a two-way street. What the CDIC will be able to do is to let industry know what Defence needs and to give businesses greater certainty to invest in innovative ideas and in technology and a connection back into Defence—ensuring that Defence knows what capabilities, technologies and solutions exist in industry. So, by working with industry to boost skills, to boost competitiveness and to open up export opportunities, what the Centre for Defence Industry Capability will do is help industry capture more of the defence dollar, create more jobs and drive growth here in Australia.

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

Mr President, I ask a supplementary question. Will the minister outline to the Senate how the Centre for Defence Industry Capability will reset the relationship between Defence and industry to help to deliver the technology required by the Australian Defence Force?

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

Through the defence industry white paper and through the first principles review, the government recognises particularly that a strong relationship between Defence and industry ensures that we get the cutting edge technology we need for our Defence Force and jobs growth in defence industries. So the CDIC is going to be co-chaired by a Defence lead and industry co-lead. They will provide the organisation with very strong leadership, and with the expertise to deliver across its three core activities. Firstly, industry development, which will include mentoring for those SMEs that will benefit from that process. They are looking to get into the defence sector. We will also be able to fund skilling programs. Secondly, it will facilitate innovation, including providing grants for companies to be able to more fully develop and commercialise the innovative, cutting edge technology that lives at the heart of the defence industry. And, thirdly, to boost business competitiveness and export, particularly helping companies to access global supply chain programs. (Time expired)

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

Mr President, I ask a further supplementary question. Will the minister inform the Senate how the Centre for Defence Industry Capability will drive jobs and growth in my home state of South Australia?

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

Senator Fawcett, as you know the CDIC will be headquartered in Adelaide just to start with. We know that South Australia is home to many innovative and leading-edge small to medium enterprises, particularly in the defence sector. Last week, I had the opportunity to visit a very impressive business called Fugro LADS, which supports the Navy in particular by providing laser airborne depth sounder capability using highly innovative technology that originally came from DSTO, as it then was. It is actually mapping the process we want to ensure the Centre for Defence Industry Capability can help Australian industry with. Over the coming years, as that significant acquisition program that we have spoken about before in the chamber unfolds, I know that your home state of South Australia, Senator Fawcett, will grow even more as a defence industry centre. For example, I note the government's commitment to constructing the $30 billion Future Frigates in Adelaide just for starters. So having the CDIC also headquartered in Adelaide will position those small to medium enterprises in South Australia to work closely with Defence. (Time expired)

George Brandis (Queensland, Liberal Party, Attorney-General) Share this | Link to this | Hansard source

I ask that further questions be placed on the Notice Paper.