Offshore Patrol Vessel Program

Mr COWDREY (Colton) (15:02): My question is to the Minister for Industry and Skills.

Members interjecting:

The SPEAKER: Order!

Mr COWDREY: Can the minister update the house on the construction of offshore patrol vessels here in South Australia?

The Hon. D.G. PISONI (Unley—Minister for Industry and Skills) (15:02): I thank the member for Colton for his question. I know that Henley Beach and surrounding suburbs—the entire electorate of Colton—is a very desirable place to live, but it will be even more desirable when it is so close to such a big source of work for South Australians at Osborne.

It was my absolute pleasure to represent the Premier this morning at Osborne to celebrate the start of construction of the $4 billion offshore patrol vessel program. It's important for the house to understand that this is happening just 12 months after contracts were signed—just 12 months. When I was talking to the Americans, who are out here from the Naval Shipbuilding College, they said that it was unheard of that such a large contract could be signed and then started within such a short time. I thank the Minister for Defence for his work in achieving this.

It is such an exciting time in South Australia that marks a significant milestone for the program and Australia's continuous shipbuilding strategy, which will grow our economy and create thousands of jobs for decades to come. I joined the Hon. Christopher Pyne, the Minister for Defence; her Excellency Dr Anna Prinz, the German Ambassador to Australia; and Rear Admiral Mark Hammond. The member for Playford would be interested to understand that he is an Ingle Farm High School boy, who has come back to South Australia for this momentous occasion; and Peter Lurssen, managing partner of Lurssen Shipbuilding, to mark this momentous occasion this morning.

South Australia is an important contributor to the Australian naval shipbuilding industry. The offshore patrol vessel program is the first step in Australia's continuous naval shipbuilding program. The first offshore patrol vessels will be built right here at the Osborne naval shipyard before transferring to Western Australia. The program is expected to create 400 direct jobs, plus many more flow-on jobs and also within the supply chain. More importantly, it will see an end to the boom-bust nature of naval shipbuilding and help preserve and enhance the shipbuilding skills required when the future frigates commence here in 2020

Our high-tech manufacturing future is looking bright, with significant opportunities on the horizon. The Marshall government is supporting workforce training to ensure that we have the necessary skills needed by our growing industry sectors. As an example, through our $203 million—

Mr Malinauskas interjecting:

The SPEAKER: Order!

The Hon. D.G. PISONI: —Skilling South Australia investment, we have announced two new higher apprenticeships developed by industry here in South Australia: the Diploma of Applied Technologies, where students will be paid to be trained in a pathway in defence manufacturing, studying things such as robotic systems, cloud-based data and computer-aided design tools; and a cybersecurity traineeship right here in South Australia.

Just last month, we celebrated the cutting of the Australian steel for the offshore patrol vessels, which was an important precedent for using Australian content on this project and future naval shipbuilding projects. Using an Australian supply chain for the offshore patrol vessels program will preserve industrial capability and ensure that it is ready to support the larger, more complex Future Frigate Program.

We have a strong and positive relationship with offshore patrol vessel, German designer and prime contractor Luerssen, which has established a local base at the ASC south shipyard. The Premier recently met with Luerssen during the Euronaval 2018, and representatives from South Australian companies saw firsthand the company's world-class shipbuilding facilities and capabilities. It is also an excellent chance for our local supply chain to engage—

Mr Malinauskas interjecting:

The SPEAKER: Order!

The Hon. D.G. PISONI: —with Luerssen to explore new future opportunities for collaboration.

The SPEAKER: Order! The minister's time has expired.