SUBMARINE PROGRAM

Dr CLOSE (Port Adelaide) (15:13): My question is to the Treasurer. Can the minister inform the house about state advocacy efforts to promote an Australian build for the Future Submarine Project.

The Hon. J.J. SNELLING (Playford—Treasurer, Minister for Workers Rehabilitation, Minister for Defence Industries, Minister for Veterans' Affairs) (15:13): I would like to thank the member for Port Adelaide for her question. She obviously has a very keen interest in this project. It is incredibly important to her electorate. South Australia is active in the debate over our future submarines in support of the national interests, as well as our clear interest in ensuring as much work as possible is carried out here in South Australia. Submarines are, of course, a vital component of our national defence strategy. No-one would understate the importance of the decision, or series of decisions, that the commonwealth will make over the coming years.

Australia has a strong foundation of submarine expertise and shipyard infrastructure and, in collaboration with foreign design partners, this Future Submarine Project provides an unprecedented nation-building opportunity.

The state supports industry's vision for Australia to be a world leader in conventional submarine build and sustainment. Irrespective of which option the commonwealth selects, it is imperative that we build the future submarines in Australia, so we can readily adapt to technology shifts and guarantee our sovereign independence. South Australia is the leading state for naval submarine and ship building in systems integration. We pride ourselves on being the defence state and continue to invest heavily in necessary skills and infrastructure.

The government's commitment is mirrored by our strong and growing local defence industry. This industry provides thousands of jobs and has generated major capital investment in the Techport Australia naval shipbuilding precinct over the last five years. Techport Australia is home to Australia's largest concentration of specialised naval shipbuilding design, engineering and production expertise, with some 2,000 highly skilled workers located on site. It is an exemplar precinct for advanced manufacturing.

Modular ship production and systems integration techniques are being employed on the $8 billion air warfare destroyer build project, and the Collins class submarines are being efficiently sustained by the ASC. Highly capable subcontractors and component suppliers are located in close proximity to the heart of these projects. We are seeking to capture an array of work to ensure sustainability of the industry, including US naval voyage repair.

Members will be aware that we were able to promote Techport Australia's capabilities to US Secretary of State Hillary Clinton earlier in the month. Techport Australia will also be the place of assembly for Australia's future submarines, which will undoubtedly be the nation's most complex manufacturing project. It is vital that we get our submarine capability right, because the consequences are enormous in both a tactical and an economic sense.

The commonwealth's decision over the coming year will not only determine our future strategic position in the region but the future of Australia's naval shipbuilding industry and its many reliant communities. As Treasurer, I understand some of the pressures that the commonwealth is under. Frugality is the order of the day, and cheaper options will always have their appeal, but a brave cabinet will resolve that a local build is in the nation's long-term interests.

I conveyed these messages in my recent address to the Submarine Institute of Australia's sixth biennial conference in Canberra with key government and industry leaders in attendance. The state, particularly through our highly active and influential Defence SA Advisory Board, will continue to advocate in this critical project, focusing on two key points: first, Australia cannot effectively manage and evolve the submarine throughout its life without a local build and thorough understanding of its design; and, second, we should not spend this amount of money without considering the broader economic benefits to our nation.