Paul Scarr (Queensland, Liberal Party) Share this | Link to this | Hansard source

My question is to the Minister for Defence, Senator Reynolds. Can the minister update the Senate on how the Morrison government is continuing to strengthen the Australian defence industry?

Linda Reynolds (WA, Liberal Party, Minister for Defence) Share this | Link to this | Hansard source

I thank Senator Scarr for that question, and I'd also like to acknowledge your engagement and support for Queensland industry—thank you. Australia's burgeoning defence industry is essential to ADF operations and it's also critical to generating the capability we need here to protect Australia and our nation's interests. Because of the Morrison government's strong economy, we are able to invest a record $200 billion in completely transforming the ADF and to take our defence expenditure up to two per cent of GDP—something that those opposite completely failed to do. Not only are we completely re-equipping the ADF; we are also the first government to fully engage and support Australian industrial capability through programs such as the $90 billion Naval Shipbuilding Plan, the $20 billion to modernise the Australian Army's fighting vehicles and the $18 billion to deliver the next generation of strike and air combat aircraft systems.

This is an opportunity not only for primes but also for small to medium business, which are the engine room of the Australian economy. In fact, in the last financial year alone, over $8 billion of defence contracts were awarded to Australian SMEs, which equates to thousands and thousands of new high-tech jobs right here in Australia. A great example of this growth is that, since the inclusion of the Local Industry Capability Plans in major construction contracts, 80 per cent of all subcontracts are going to local companies right across this nation, which directly benefits local businesses and injects over $3 billion into local economies right across our nation. In addition, the government is investing about $1.5 billion across the Next Generation Technologies Fund and also the Defence Innovation Hub. We are supporting defence industry and we are backing them in and we're backing— (Time expired)

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

Senator Scarr, a supplementary question?

Paul Scarr (Queensland, Liberal Party) Share this | Link to this | Hansard source

Can the minister outline to the Senate how Army's vehicle programs will create jobs for Australians and support Australian defence industry, particularly in my home state of Queensland?

Linda Reynolds (WA, Liberal Party, Minister for Defence) Share this | Link to this | Hansard source

I thank Senator Scarr again for that question. This government is investing over $20 billion in modernising Army's fighting vehicles and a further $5 billion in Land 121 for logistics vehicles, which are now ready to commence exercises and training. But, under the $5 billion Boxer combat reconnaissance program, 211 vehicles will be delivered to create an estimated 1,450 jobs across the country—in particular, nearly 350 jobs in Queensland. Over the 30-year life of the Boxer, Australian industry is expected to secure $10.2 billion of work to build and to maintain the fleet. That, again, is thousands of jobs throughout the supply chain over that time. The majority of these vehicles will be built in Australia by Australians using Australian steel at Queensland's Rheinmetall Australian facility in Redbank. Local businesses, including Frontline Manufacturing and Rockpress— (Time expired)

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

Senator Scarr, a final supplementary question?

Paul Scarr (Queensland, Liberal Party) Share this | Link to this | Hansard source

Can the minister outline to the Senate how our air combat programs will create jobs for Australians and also support our Australian defence industry, particularly in my home state of Queensland?

Linda Reynolds (WA, Liberal Party, Minister for Defence) Share this | Link to this | Hansard source

As I've said, this government has an incredibly proud record of delivering defence capability by Australians for Australians using Australian equipment and metal. The next generation of the Air Force strike and air combat capabilities is part of our record investment in the ADF. For the Joint Strike Fighter global supply chain program, over 50 Australian companies have already shared in $1.7 billion worth of contracts under this acquisition, and we are on track to deliver more than 5,000 Australian jobs for this project alone. Queensland based companies—Ferra Engineering in Brisbane, TAE Aerospace at Amberley and Heat Treatment Australia in Brisbane—have been successful in winning JSF work not only for the ones that we are acquiring but for the global supply chain for the Joint Strike Fighter. In addition, more than 90 per cent of Boeing Australia's new $280 million contract to sustain and upgrade our Super Hornets and Growlers will be delivered by Australian industry. (Time expired)

Mathias Cormann (WA, Liberal Party, Vice-President of the Executive Council) Share this | Link to this | Hansard source

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