AIR WARFARE DESTROYER

The Hon. M.J. WRIGHT (Lee) (14:48): My question is to the Treasurer. Can the Treasurer tell the house about the recently announced—

Members interjecting:

The SPEAKER: Order!

The Hon. M.J. WRIGHT: —contract on the—

Members interjecting:

The SPEAKER: Order! I can't hear a word you are saying, member for Lee.

The Hon. M.J. WRIGHT: Can the Treasurer tell the house about the recently announced contract on the air warfare destroyer project that has been awarded to a Port Adelaide based company?

Dr McFetridge interjecting:

The SPEAKER: Order!

The Hon. J.J. SNELLING (Playford—Treasurer, Minister for Workers Rehabilitation, Minister for Defence Industries, Minister for Veterans' Affairs) (14:48): Madam Speaker—

Members interjecting:

The SPEAKER: Order!

Dr McFetridge interjecting:

The SPEAKER: Order, member for Morphett!

The Hon. J.J. SNELLING: There is a bit of difference between an air warfare destroyer and a police boat, Madam Speaker—a bit of difference. It might be—

Dr McFetridge interjecting:

The SPEAKER: Order, member for Morphett!

The Hon. J.J. SNELLING: It would be a pretty impressive police boat to have an air warfare destroyer—a pretty expensive police boat, as well. It would be a pretty well-armed police boat—an AWD. I would like to thank the member for Lee for the question and for his interest in the defence industries. Defence is a critical industry for this state, forming the foundation of our advanced manufacturing future, which members will be aware the government has identified as a major priority. Indeed, defence industries are now central to our state's economic development plan.

That is why I was delighted last week when the Minister for Defence Materiel (Hon. Jason Clare MP) announced the awarding of a $3.25 million contract to construct the three masts for the air warfare destroyers to Port Adelaide-based company MG Engineering. This will involve the construction of three 22-metre long masts, each weighing roughly 25 tonnes. Once constructed, they will be transported by barge down to Techport where the AWDs are being assembled.

This contract will result in MG Engineering taking on an additional 10 staff to do the work over the next two years. This is a magnificent local success story of a company that commenced as a father and son operation in 1995 and now employs a total of 70 employees, ranging from qualified engineers, project managers and draftsmen through to highly skilled tradespeople.

MG Engineering has become a highly respected provider in diversified advanced manufacturing disciplines to defence industry clients that include ASC Shipbuilding, BAE Systems, Defence Maritime Services and the Royal Australian Navy. Having won this important contract for a critical part of the AWD project, MG Engineering is now well placed to bid for and win further defence work.

The $8 billion AWD project is the single largest and most complex defence project in the nation and is providing enormous opportunities for local industry and long-term jobs for South Australians. The AWD project is in its peak years and is making an average annual contribution of about $292 million and 1,783 jobs to South Australia's economy.

This reinforces that securing work on major projects like the AWD project and the future submarine project is critical to the long-term growth and sustainability of our local defence industry. These are enormous opportunities for local industry and will provide advanced manufacturing jobs for many South Australians.

The SPEAKER: The Deputy Leader of the Opposition—who has been reasonably well behaved this afternoon.