Sarah Henderson (Victoria, Liberal Party) Share this | Link to this | Hansard source

My question is to the Minister for Defence, Senator Reynolds. As Australia responds to the coronavirus pandemic, can the minister outline to the Senate what actions the Morrison government has taken to support businesses and workers in defence industry through these challenging times?

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

I thank Senator Henderson for her question and also for her tireless support for defence industry in her home state and across the nation. The Morrison government remains resolutely committed to delivering in ADF capability and also to backing in Australian defence industry throughout the COVID-19 pandemic. Our actions are focused in three main areas: firstly, supporting our sovereign industrial capability; secondly, supporting our nation's essential skills, trades and expertise; and, thirdly, supporting our domestic and international supply chains.

To ensure we respond quickly to emerging issues in defence industry, Minister Price and I hold weekly teleconferences with Defence, defence industry CEOs, peak industry bodies and also state and territory advocates. And because of our swift action to support defence industry, since 23 March over $4.7 billion of payments have been made early to defence industry here in Australia. With that payment, I conveyed very strongly my expectations to primes that those early payments must be passed on to small and medium enterprises. I am delighted that that is exactly what they are doing.

This action is supporting over 15,000 Australian companies in the defence supply chain and, most importantly, it is supporting 70,000 Australian livelihoods during this time. Vital defence industry activities are also continuing during COVID-19. For example, Chemring Australia, based near Geelong, secured a US contract to produce countermeasure flares for global F-35 Joint Strike Fighter fleet. The rollout of the first Loyal Wingman aircraft occurred. We commissioned the build of six new Cape Class vessels in Western Australia, and we've also shifted Land 400 Phase 3 roadshows online to ensure Australian businesses have the opportunity to pitch their capability. (Time expired)

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

Senator Henderson, a supplementary question?

Sarah Henderson (Victoria, Liberal Party) Share this | Link to this | Hansard source

Can the minister outline what actions Defence has taken to provide economic stimulus?

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

Thank you very much, Senator Henderson. Yes, I can. This government's $200 billion investment in new defence capability is now more important than ever. We must ensure that both our ADF and our defence industry here in Australia remain strong. This government's investment in Australia's defence industry will play an increasingly important part in our nation's economic recovery. In addition to paying out early over $4.7 billion to defence industry, we've implemented a number of other measures to assist defence industry and also to help stimulate our nation's economy. These include increasing and accelerating $850 million in state infrastructure expenditure right across the nation and supporting defence innovation, skilling and sovereign industrial development through our grants programs. We are continuing to proactively identify new opportunities to ensure that defence industry weathers the COVID-19 pandemic.

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

Senator Henderson, a final supplementary question?

Sarah Henderson (Victoria, Liberal Party) Share this | Link to this | Hansard source

Can the minister outline how the government is continuing to deliver defence capability so our men and women in uniform can continue to defend Australia and its national interests?

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

Thanks, Senator Henderson, for that question. Can I be very clear to all in this chamber: COVID-19 will not affect funding for the government's $200 billion investment in defence capability, nor will it prevent defence expenditure reaching two per cent of GDP next financial year, which is three years earlier than we promised in 2013. I'm working with Defence to ensure we adapt to the current environment and continue to find innovative ways of doing business during this time. Let me remind all of you in this chamber that, in our six years of government, we've commissioned the Australian build of 63 naval vessels, including 12 Attack-class submarines, and this is backed up with real funding. Under our plan, we have already delivered six naval vessels, with another nine under construction in both Perth and Adelaide. This investment is ensuring our ADF personnel are provided with the capability they need to keep them safe. (Time expired)