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

My question is to the Minister for Defence, Senator Reynolds. Can the minister outline how the Morrison government is building an outward looking and globally competitive defence industry here in Australia?

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

Thank you, Senator Henderson, for the question and for your unrelenting support for Australian defence industry. The Morrison government is fully committed to delivering a globally competitive Australian defence industry that delivers three sovereign outcomes for our nation: firstly, to meet our contemporary defence needs; secondly, to create thousands of multigenerational jobs right here in Australia; and, thirdly, to achieve greater export success.

We are providing unprecedented opportunities for Australian industry to participate in defence work. We are very purposely and very deliberatively maximising opportunities for Australian industry involvement in defence programs. As our companies bid for work, they are now required to submit Australian industry capability plans detailing how they will maximise opportunities for Australian businesses. We absolutely hold these companies to account on their contracted commitments through enforceable deliverables. We are now also developing an independent Australian capability audit program to validate delivery of this contracted commitment.

At the heart of our industry policy is a commitment to support the global competitiveness of Australia's defence industry, as seen in our Defence Export Strategy. To that end, this government has committed $20 million per year to support Australia's defence industry achieve greater export success; we've established the Australian Defence Export Office and a grants program; we've appointed a Defence Export Advocate; we've released this year's Defence Sales Catalogue, the fourth and the largest; and, finally, we have also invested $1.3 billion to support Australian technical innovation in defence industry.

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 how this government's defence industry policies are creating opportunities for Australian companies and workers, both here and overseas?

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

I certainly can, Senator Henderson. The Morrison government's $200 billion investment in defence capability provides unprecedented opportunities for Australian companies—and, let me tell everybody in this chamber, they are embracing these opportunities in record numbers. Thanks to the policies of those on this side of the chamber, global defence companies are establishing uniquely Australian entities that are today employing thousands and thousands of Australians and are exporting Australian-built cutting-edge capability to the world. I'm so proud of companies like Thales Australia, of French origin, which is now employing almost 4,000 Australians. They are now delivering for Australia and also now exporting high-technology products for defence, including the Bendigo-built Bushmasters. Another wonderful example is the 50 Australian companies, such as Chemring Australia, just outside of Geelong, who are now exporting over $1.7 billion of— (Time expired)

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 these policies are setting the foundations for building the Attack class submarine here in Australia?

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

Again, Senator Henderson, thank you for the question.

Senator Sterle interjecting—

Let me be very clear. The Attack class submarine is on time and it is on budget, Senator Sterle. In the current preliminary design phase, we are starting to select many of the systems and the future suppliers. As Naval Group Australia approaches industry, it is a mandatory requirement for Australian industry plans to be developed as they approach the Australian market. This will ensure that we are maximising Australian industry content—a minimum of 60 per cent. To ensure we are developing our sovereign knowledge base, we already have over a hundred Australians working in Cherbourg, in France, including 20 of Naval Group Australia's 200 employees. As this project ramps up, I am absolutely confident Naval Group Australia will succeed in ensuring that its presence in Australia generates thousands of multigenerational jobs and, in time, more defence exports.