Defence White Paper

The Hon. P. CAICA (Colton) (14:46): My question is to the Minister for Defence Industries. Can the minister update the house on recent consultation with the local defence industry and how this is shaping the government's submission on the Defence White Paper?

The Hon. M.L.J. HAMILTON-SMITH (Waite—Minister for Investment and Trade, Minister for Defence Industries, Minister for Veterans' Affairs) (14:46): I thank the member for his question. I know there are many working in the shipbuilding industry and advanced manufacturing sector in his electorate. The federal government has invited submissions to their 2015 Defence White Paper and the state government has undertaken a thorough consultation process with the South Australian defence industry through our agency Defence SA, the Defence SA Advisory Board and the industry body, Defence Teaming Centre; and, of course, we have closely consulted with the Economic Development Board.

The culmination of these activities was the South Australian Defence White Paper industry summit, held here in this chamber on 21 October. The event was highly successful. It was attended by over 100 people, including the CEOs of every prime and large SME in South Australia as well as a number of small businesses. Subject matter experts Professor Hans Ohff, Professor Barry Burgan and Professor Göran Roos presented, along with speeches from industry leaders, state government and unions regarding their concerns about federal government industry policy and the future of naval shipbuilding in South Australia.

Feedback received after the event was extremely positive. The information provided at the summit has been collated and included in the South Australian Defence White Paper submission, which was forwarded from the Premier to the federal government on Wednesday this week. The state government's submission emphasises the following key recommendations. It asks the federal government to:

recognise the critical partnership of the states and territories in delivery of defence objectives through training and skills infrastructure and industry program,

acknowledge that industry is the critical fourth arm of defence,

ensure that priority local industry capabilities for defence's strategic self-reliance are clearly defined, promulgated and genuinely supported, and

provide work flow continuity as a key strategy to reduce costs and increase innovation, productivity, global competitiveness and military capabilities.

Importantly, the submission says that the federal government should provide consistent strategy, policy and investment surety, including a continuous build approach to underpin development of a robust, indigenous naval shipbuilding and sustainment capability in Australia by committing to build surface ships and submarines in Australia over 30 years.

Also, the submission says that the federal government should make use of Australia's extensive military and commercial automotive experience when defining local industry involvement in plans to build the Army's combat vehicles through the program known as Land 400. There are a number of other very important recommendations in our submission.

The state government will produce a report regarding the summit for distribution to all attendees which will include the South Australian government Defence White Paper submission and supporting economic data. This is a crucial time for South Australia. The most important white paper we have seen for decades is being prepared. If this goes the wrong way for South Australia, then the government is seriously worried for our children and our grandchildren.

To be perfectly frank, this is probably the most important manufacturing decision this country has faced since World War II. It is far bigger than the automotive industry in terms of its consequences—$250 billion on naval shipbuilding over 30 years is a nation-building amount of money. It is a mountain of investment, and our white paper submission makes it clear that it must be spent in Australia. To do otherwise would be a catastrophe for jobs in this state.

The information that appeared in the media this morning leaked, apparently, from Canberra, regarding the future frigate build is positive speculation—but it is speculation all the same. I think the people of South Australia would see a clear program of work with a budget to accompany it as a preferred course.

I assure the house that the Premier and the government will continue to advocate the case for South Australia—for our industry, for our workers and for our businesses. To borrow from US President Barack Obama, 'Yes, we can.' We can have an advanced manufacturing sector; we can do this. Every business, every small business—whether a restaurant retail outlet or otherwise—will suffer if we get this wrong.