House of Assembly: Wednesday, October 17, 2012

Contents

RHEINMETALL DEFENCE

Mr PICCOLO (Light) (14:40): My question is to the Treasurer. Can the minister inform the house about the recent announcement involving the German company Rheinmetall Defence?

The Hon. J.J. SNELLING (Playford—Treasurer, Minister for Workers Rehabilitation, Minister for Defence Industries, Minister for Veterans' Affairs) (14:40): I thank the member for Light for his strong interest in defence industries in South Australia. As members will be aware, I have recently returned from an official visit to Europe where I met with a number of major defence industry companies, including Rheinmetall Defence and Simulation Australia, to promote investment in South Australia's defence industry.

I am pleased to tell the house about my meeting with Rheinmetall Defence, who have announced that they are expanding their presence in Australia with a newly founded subsidiary, Rheinmetall Simulation Australia, which will set up its headquarters here in our state. This is a fantastic result. Rheinmetall Defence is one of Europe's leading companies for combat systems, electronic solutions and wheeled vehicles. Rheinmetall also has significant capability in maritime and power plant simulation, and surface and subsurface control simulators. The state government is committed to the modelling and simulation sector.

Success in achieving a large share of national and global high-value modelling and simulation activities cannot be assumed: we have to work very hard to achieve it. It has been demonstrated in the US and Europe that the combination of strong research capabilities, responsive industry and government support can lead to the creation of a sustainable knowledge-intensive industry that contributes to the success of innovative and agile resources and manufacturing industries.

In South Australia, we are working hard to bring together all aspects of the simulation sector—users, providers, suppliers, trainers, developers, researchers, facilitators—so we can truly understand and maximise our capabilities to ultimately deliver a more innovative, effective and productive Australia. South Australia's defence sector has grown at a rapid pace, now directly and indirectly employing close to 27,000 people, an increase of 18 per cent over the last four years.

The government would like to welcome Rheinmetall Defence's decision to establish its regional headquarters in South Australia, further reinforcing our position as the defence state and helping to secure advanced manufacturing jobs for South Australians for decades to come.