Rex Patrick (SA, Nick Xenophon Team) Share this | Link to this | Hansard source

My question is to Minister Payne, representing the Minister for Defence Industry, and relates to definitions around sovereign defence industry. In last week's release of the government's Defence Export Strategy, which I broadly support, 'Australian defence industry' was defined as consisting of:

… businesses with an Australian Business Number …

Surely this can't be correct. Surely it's not that simple. Surely in order to be considered a part of Australian defence industry, and indeed to get access to Commonwealth grants, a company must have firmly demonstrated a commitment to our country by having created and sustained jobs, having invested in skilling the workforce, having made capital investments, having developed intellectual property and having developed product. Can the minister explain how the government came to the view that to be considered Australian defence industry a business only needs to have an ABN?

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

I thank Senator Patrick for what is a very important question about the government's Defence Export Strategy. We were very pleased to release Australia's first ever defence export strategy last week. The strategy is part of our defence industry policy to deliver the defence capability that is necessary to achieve the strategy which we set out in the 2016 Defence white paper. The definition of 'Australian defence industry', to which Senator Patrick refers, in the Defence Export Strategy reflects the continuity with the 2016 Defence industry policy statement—which I happen to have here because I carry it with me everywhere—and its broad definition of Australia's diverse defence industry base and how Australian industry is considered as part of the Australian Industry Capability Program.

The reason that the defence industry policy statement and the subsequent release of the export strategy is important for Australia is because it demonstrates our ambition for this country—for our defence forces, for our defence industry and for the Australian economy indeed. We think it's an ambitious and positive plan to boost the Australian economy, to increase investment and to create more jobs for Australian businesses. All of that said, what it fundamentally will do is enable us to deliver capability for the ADF.

The strategic goal is to achieve greater export success to build a stronger, more sustainable, more globally competitive Australian defence industry to, as I said, support Australia's defence capability needs. What the strategy does is bring together all of the levers available to government, to Defence and to industry to provide end-to-end support for defence exports, whether that's building defence export readiness, identifying export opportunities and to ultimately realising export outcomes. The companies that export are more successful, they are more profitable, they are more stable and they are more able to support the development of ADF capability. (Time expired)

Scott Ryan (President) Share this | Link to this | Hansard source

Senator Patrick, a supplementary question.

Rex Patrick (SA, Nick Xenophon Team) Share this | Link to this | Hansard source

The government has indicated that it will release the definition of what constitutes 'sovereign industry capability' in their sovereign industry capability assessment framework. Can the minister confirm that the shallow and entirely inappropriate definition of Australian defence industry released last week will not be the same definition that is adopted in the assessment framework and will instead take on a broader definition with similar characteristics to those described in my primary question?

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

I think there are some aspects of Senator Patrick's question which use perhaps slightly confusing terminology, but let me see if I can understand the direction you were heading, Senator Patrick. It's the defence industrial capability plan, of which the sovereign industrial capability assessment program is a part, which is currently under development by the department and the Minister for Defence Industry and myself. That plan will include a number of sovereign industrial capability priorities. They will be the key industrial capabilities that need to be resident in Australia to ensure the defence of our nation. Those sovereign industrial capability priorities will focus on those industrial capabilities that are highest priorities for Defence in supporting their operational and capability needs, rather than broader consideration of the Australian defence industry base and its diverse capabilities and support for Defence. The defence industrial capability plan itself— (Time expired)

Scott Ryan (President) Share this | Link to this | Hansard source

Senator Patrick, a final supplementary question.

Rex Patrick (SA, Nick Xenophon Team) Share this | Link to this | Hansard source

Noting that the government has already awarded a Pacific patrol boat contract, a future submarine contract and an APV contract—for which I congratulate you—can the minister confirm the date that the sovereign industry capability assessment framework, which will define sovereign capability, will be released? In other words, will the definition of 'sovereign industry capability' come before or after the Future Frigate tender is announced, that being the last step in the government's submarine shipbuilding— (Time expired)

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

I can advise the Senate that the plan for the release of the defence industrial capability plan, which will include those priorities to which I referred in my previous response, is scheduled for government consideration and release in the first half of 2018. That framework, as I've said, is one part of the whole ecosystem of the Turnbull government's support for the Australian defence industry and indeed the broader industrial base. In fact, it's almost two weeks to the day that the Prime Minister and I launched the defence white paper and its accompanying defence industry policy statement here. And what we've seen every day since then is a significantly expanding engagement by Australian defence industry, grasping the opportunities that the government is offering them, because of our investment in defence capability over the next decade. For Senator Patrick's information, that release is scheduled for the first half of 2018.