DEFENCE INDUSTRY

Mr ODENWALDER (Little Para) (14:37): My question is to the Treasurer. Can the Treasurer tell the house what steps he has taken to bolster defence industries in South Australia since taking on the portfolio?

The Hon. J.J. SNELLING (Playford—Treasurer, Minister for Workers Rehabilitation, Minister for Defence Industries, Minister for Veterans' Affairs) (14:37): Since 2003 the state government has placed a deliberate focus on defence sector development as one of the five key industries to drive our state economy forward. Early efforts were led successfully by the Defence Industry Advisory Board and the Defence Unit, and later the Port Adelaide Maritime Corporation.

In 2007 the state elevated its commitment to the defence sector with the creation of Defence SA as the state's one-stop shop for all defence-related matters. The creation of Defence SA allowed for a more focused effort on delivery of projects already won and a stronger approach to winning and delivering new projects.

A new high calibre Defence SA Advisory Board (chaired by a great Australian, General Peter Cosgrove) was also created to provide strategy and policy advice to government. Defence SA remains the only dedicated state-based defence entity in Australia and is highly valued by the commonwealth Department of Defence.

Following the 2010 election a new portfolio—the Minister for Defence Industries—was created, further strengthening the state's commitment to defence sector growth and building on the then premier's and treasurer's longstanding support for the sector. South Australia is home to many significant and strategically-important defence assets, including the RAAF Base Edinburgh, the Defence Science and Technology Organisation, the Cultana Training Area and the Woomera Prohibited Area.

These assets generate significant economic activity in South Australia. Combined, they directly and indirectly support more than 6,000 jobs and contribute more than $430 million to the state's economy every year. South Australia is also home to significant naval shipbuilding capabilities, particularly driven by the multibillion dollar Collins-class submarine sustainment contract and the $8 billion air warfare destroyer construction contract.

The state has a longstanding reputation as one of Australia's leading military vehicle manufacturing sustainment hubs, with significant industry capabilities in defence electronics and aerospace components manufacture. In 2003, South Australia's defence sector employed about 16,000 people and today nearly 25,000 people are employed (directly or indirectly) in the sector. Both the Premier and I know the importance of this industry to South Australia.

Last week, we had the opportunity to call on federal ministers and senior departmental officials to reconfirm South Australia's ongoing commitment to defence and related industry growth. South Australia understands that defence policy is a matter solely for the commonwealth government and will continue to support that intent through the provision of strategic infrastructure and skills programs. The Premier and I, indeed the entire government, are committed to working in partnership with the commonwealth to ensure continued success for South Australia's defence industry and our growing defence presence.