Defence Shipbuilding

Mr ODENWALDER (Little Para) (14:14): My question is to the Minister for Defence Industries. Can the minister provide an update on the contribution of naval shipbuilding to the South Australian economy?

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) (14:14): Can I thank the member for his question. I recently attended, in Langkawi, the International Maritime and Aerospace Exhibition (LIMA), hosted by the Malaysian government. LIMA is one of the largest maritime aerospace exhibitions in the Asia-Pacific region focused on both defence and civilian industries.

Fifteen Australian companies participated, along with the Chief of Navy, including four South Australian companies aiming at maximising defence export opportunities for themselves and for Australian industry more broadly. The event was attended by Chiefs of Navy from around the region, and their representatives, including 38 countries—all countries from South-East Asia, but also from other nations.

As part of this event, I met with the Malaysian Chief of Navy, the Malaysian defence minister and key leaders in the South-East Asian defence industry. I was honoured, on behalf of the South Australian government, to have been invited by the organisers not only to attend and participate in the round table but to address the round table about the emergence of the premier naval shipyard in the Southern Hemisphere, at Techport in South Australia, about which there is considerable international interest.

The address focused on our vision for the local defence industry and our goal to make a long-term significant contribution to the local economy as outlined in South Australia's various strategic documents on this subject. It's very much front of mind for our neighbours that South Australia is emerging as the destination and the home of naval shipbuilding in our precinct, in our strategic area of interest.

The timing could not have been better because the visit coincided with the federal government's announcement of a $25 million maritime technical college, to be based in Adelaide, to train Australian workers for our $90 billion shipbuilding program. The announcement followed news that three South Australian public universities, TAFE SA and the defence industry sector had grouped together to ensure that Australian jobs were at the forefront of shipbuilding programs. It's another indication of the benefits this program will offer. That's what our three-year campaign for the local build of submarines and frigates has been all about—jobs, jobs, jobs.

I congratulate the federal government on backing the local option. We will work closely with them to make this happen, but I do make some observations of concern to everyone in this house. I am advised that the federal government and French shipbuilder DCNS are on the record as committing to a 90 per cent Australian industry content for the submarine program. DCNS said it, the federal minister (member for Sturt) repeated it over and over and over and was happy to have ownership of that promise.

Now it appears that the federal minister and the federal government are backing away from that commitment that 90 per cent of the work would go to Australians and we're talking about 60 per cent. Notably, he says 60 per cent in South Australia. Well, we will at least hold him to that. But a promise made during an election campaign is a promise. Ninety per cent is what was told and what was indicated. What the federal minister should be doing is holding DCNS to account on that.

The RFT for the nine ship frigate build has been given. We are expecting the shipbuilding plan shortly. Australian workers and Australian industry were told by DCNS and the federal government that 90 per cent of the work would go to Australian industry. That is what they expect. That is what must be delivered. I hope members opposite are doing all that they can to ensure that promise is delivered. They were complicit in it and I hope they are raising with the member for Sturt their concerns—

Members interjecting:

The Hon. M.L.J. HAMILTON-SMITH: —that he's backing away to 60 per cent because it's about South Australian jobs and South Australian industry.

The SPEAKER: The member for Mount Gambier is warned, and the member for Hammond is called to order. Leader.