Defence Industries

Ms VLAHOS (Taylor) (14:40): My question is to the Minister for Defence Industries. Can the minister advise the house about what influence the state government can exercise when awarding major defence projects to be based in South Australia?

The Hon. M.L.J. HAMILTON-SMITH (Waite—Minister for Investment and Trade, Minister for Defence Industries, Minister for Veterans' Affairs) (14:40): I thank the honourable member for Taylor for her question. I am reminded today that—

Members interjecting:

The SPEAKER: The member for Newland has been doing it all day and accordingly is called to order.

The Hon. M.L.J. HAMILTON-SMITH: I am reminded that some 10 years ago, members from both sides of this house joined in high praise for the state's efforts in awarding the $6 billion air warfare destroyer project to SA. The decision was made by the National Security Committee of Cabinet in Canberra. It was influenced by 2½ years of work by a team of experts, headed by retired Rear Admiral Kevin Scarce. It was influenced by the bipartisan support for a state government decision to make a major investment in skills and infrastructure at the Osborne shipbuilding site known as Techport. We invested $350 million of state taxpayers' money in a package to help the federal government achieve its goals.

That most relevant decision resulted in 3,000 direct and indirect jobs and a major boost to the state's economy. It resulted in new technologies and spin-offs to other parts of the South Australian economy, particularly in the many SMEs that are the backbone of our economy. That $350 million state taxpayer/state government investment included: a ship lift, transfer system, wharf and associated dredging, and 30 hectares for subcontractors to set up operations at the time. There were partnerships between the South Australian government, the DSTO and the University of South Australia. South Australia won the role as the central site for the AWD by having a bipartisan political approach, done I might add with the support of the then Western Australian premier Geoff Gallop because the ASC maintain a fleet sustainment base in WA employing 185 people. The current WA government might want to reflect on that.

Major contributors to the SA effort included: the Defence Industry Advisory Board; the Economic Development Board; Robert Champion De Crespigny; Coalition defence minister Ian McLachlan; former chief of Navy, David Shackleton; John White, the former head of Transfield, who guided the ANZAC ships project; Malcolm Kinnaird; and, of course, Rear Admiral Scarce, to name just a few. Other relevant players from this state included: SA Unions, the AMWU, the Australian Workers' Union, the communications, plumbing and electrical trade union, all of whom worked with ASC management, with the cooperation of the state, to get a result.

At the time, there was great support from the then opposition leader, Rob Kerin. In May 2005, a gracious Mr Kerin stood up in the house and congratulated everyone involved in the bid, including the premier and the treasurer at the time, who I think is actually here in the chamber, in the very influential position of the minister for defence industries.

The SPEAKER: The minister is called to order for making reference to the gallery.

The Hon. M.L.J. HAMILTON-SMITH: Indeed, sir. In the time of the Howard Coalition government there was solid bipartisan support. A team of South Australian ministers in the Howard government were on South Australia's side, but today, Mr Speaker, the senior Liberal in South Australia says the South Australian government is irrelevant, we don't need a defence industries minister.

The SPEAKER: Point of order. Time on—deputy leader?

Ms CHAPMAN: Point of order: the minister is clearly now debating.

The SPEAKER: Yes, I uphold the point of order.

The Hon. M.L.J. HAMILTON-SMITH: Therefore we don't need a shadow minister for defence industries, because industry now know they want to get rid of Defence SA, they want to get rid of the board and they don't want us to be the defence state—a new Liberal policy. No longer the defence state, get rid of the board, get rid of Defence SA, don't have a minister—goodbye, member for Stuart.

The SPEAKER: I hope the minister has got that off his spleen now. Point of order, deputy leader?

Ms CHAPMAN: Debating the matter, defying your ruling—

The SPEAKER: Yes, I uphold all of those points of order and therefore I warn the minister for the first time. While I am at that, I call to order the members for Davenport, Hammond, Mount Gambier and Wright. The member for Davenport will not blame the member for Mount Gambier, as is customary. I warn for the first time and for the second time the member for Hartley. Member for Giles.