Defence Industries

Mr GEE (Napier) (14:49): My question is to the Minister for Defence Industries. Can the minister update the house on South Australia's contribution to the federal government's project to procure the next generation of armoured fighting vehicles?

The Hon. M.L.J. HAMILTON-SMITH (Waite—Minister for Investment and Trade, Minister for Small Business, Minister for Defence Industries, Minister for Veterans' Affairs) (14:49): I thank the member for Napier for his question. The project to acquire 225 combat reconnaissance vehicles to replace the army's ASLAV combat vehicle and M113 personnel carrier fleet is in its second phase.

Two down-selected bidders, BAE Systems Australia and Rheinmetall, are engaged in a tender evaluation process for the project entitled LAND 400. It is during this phase that local companies can show their capabilities to the international manufactures that I just mentioned. The South Australian government is in constant discussions with both bidders and we made a major pitch to the entire industry at the recent Land Forces 2016 conference in Adelaide. The conference was the largest of its type—

Mr Whetstone interjecting:

The SPEAKER: The member for Chaffey is warned.

The Hon. M.L.J. HAMILTON-SMITH: —in Adelaide, with organisers advising that more than 13,000 visitors attended over the week. The Adelaide Convention Centre hosted over 500 exhibitors and 23 different countries were represented.

An example of the impact of this event is the connections local businesses can make with defence supply chains. The southern suburbs manufacturing business REDARC sent me a note last week thanking the South Australian government and Defence SA staff for the support and assistance they received throughout the conference. As a result, REDARC was able to host Brigadier Haydn Kohl, Director General of Land Vehicle Systems, and his staff on a tour of REDARC's manufacturing facility in Lonsdale, as well as some very productive discussions on the company's patented technology and products.

One of the most high-powered gatherings that coincided with Land Forces was the Chief of Army's Exercise, which attracted 22 different armies from around the world. I was honoured to represent the state government at the Chief of Army dinner, after speaking earlier at the Land Forces welcome breakfast and Defence SA official dinner the previous evening. Central to our state's pitch during that week were the facilities and support we are able to offer those involved in the LAND 400 bids for the replacement combat vehicles and armoured personnel carriers. The project is worth $4 billion to $5 billion.

The tender evaluation process concludes in August 2017 and it is the South Australian government's intention to work as hard as we can to maximise our state's role in the manufacture of these technologically advanced vehicles.