Japan and South Korea Trade Mission

Ms VLAHOS (Taylor) (14:42): My question is to the Minister for Defence Industries. What job and investment opportunities did the minister identify during his recent trip to Japan and South Korea?

The Hon. M.L.J. HAMILTON-SMITH (Waite—Minister for Investment and Trade, Minister for Defence Industries, Minister for Veterans' Affairs) (14:43): I thank the member for Taylor for her question.

Mr Whetstone interjecting:

The Hon. M.L.J. HAMILTON-SMITH: What was that? As members would be aware, I recently led a defence and trade delegation to Japan and South Korea, something I recall the member for Chaffey asking us to do. I was accompanied by Mr Andy Keough, Chief Executive of Defence SA, Mr Matt Johnson, Executive Director, and Mr David Blackstock, General Manager of Investment, Trade and Immigration in the Department of State Development, and Mr Chris Burns, Chief Executive of the Defence Teaming Centre. Defence was the primary focus of the trip, in particular assessing the capacity and intention of the Japanese with regard to their bid to build the next generation of submarines for the Australian Navy, a task that will involve 120,000 man years of jobs and opportunity for this state, if we get it right.

It became clear in my meetings with Japan's Ministry of Defence officials and the Vice Minister for Defence, Kenji Wakamiya, that there was a strong recognition of the South Australian role in naval shipbuilding. The Japanese government understands that the South Australian government is a very important partner, should they be selected as the preferred designer and builder of Australia's future submarines, and their reception for our delegation reflected that fact.

The clear message was that they have confidence to be able to work closely with South Australia as the centre for a local build of the Soryu class submarine. We were also given a tour of naval shipbuilding yards in Kobe and I was privileged enough to have a submarine brought back to shore for our delegation to tour. The strength of the Japanese technology was indeed impressive. Their shipbuilding technology, however, is by no means further advanced than that on display at the ASC headquarters at Osborne, where Australia's Collins class submarines were built. We have the same capability, the same capacity and very similar facilities.

I am confident that the South Australian industry can work effectively with Japan's major companies to deliver a local build and the thousands of jobs that go with it. We are now in a position where South Australia has developed a strong relationship with all three bidders for the Future Submarine. Our delegation also travelled to South Korea to meet with DSME, a Korean shipbuilding company, which is one of two potential offshore builders of Australia's ancillary supply vessels in the Sea 1654 program, to ascertain potential supply chain opportunities for South Australian companies.

With regard to trade and investment, I met with high-level contacts within the Japanese and Korean governments as well as the Australian ambassadors in both countries to discuss and gain support for the North Asia strategy. I also met with importers of key sectors and Austrade to discuss ways to improve export performance for both our countries, as well as put in place initial steps to prepare for a full business mission in late 2016, and I would encourage companies to attend.

I think that there is a high level of goodwill from both countries toward South Australia, and a willingness to work together to create jobs through further export and investment across our borders. Japan and Korea are Australia's second and third largest export markets, and Japan is the world's second largest supplier of foreign direct investment. They are vast, vibrant and highly intelligent markets and we need to sell more of our goods and services to them.

I reported to the house earlier this week that 65,000 jobs in this state depend on export activities. We have scope to grow further our export engagement with Japan and Korea and the government is determined to deliver exactly that jobs and investment outcome for South Australians.

Members interjecting:

The SPEAKER: Before the leader asks his question, I call to order the member for Davenport, I warn the member for Mount Gambier, and I warn the member for Chaffey for the second and final time. Leader.