Space Industry

Mr PATTERSON (Morphett) (14:46): My question is to the Minister for Defence and Space Industries. Did the Minister for Defence and Space Industries advocate to his federal counterparts for additional funding for the South Australian space industry in the federal budget? With your leave, sir, and that of the house, I will explain.

Leave granted.

Mr PATTERSON: The federal budget confirmed the $20 million cut to the federal government's contribution towards the nation-leading Australian Space Park.

The Hon. S.C. MULLIGHAN (Lee—Treasurer, Minister for Defence and Space Industries) (14:46): I thank the member for Morphett for his question. I acknowledge his keen interest in the space industry here in South Australia, because it is an industry which promises the potential of really significant increases to economic activity here in South Australia, and principally bringing people not just from interstate but from overseas to participate in economic activity.

It was only last week, when I was in the member for Flinders' electorate, we went and had a look at the proposed southern launch facility at Whalers Way, which I know has mixed reception, I think, locally, but that is one example of how the space industry, should it be successfully underway, would deliver significant economic benefit.

I share the view of my predecessor in this role, the Deputy Premier, that it was regrettable, to say the least, that federal funding has been withdrawn from that. I am pleased to say that the Deputy Premier was very keen, if not insistent, to make sure that the state was maintaining its support for the space industry and I think that that is really important. The significant support, which is being deployed now in support of the whole industry here in South Australia, not just a smaller number of companies, I think sets a good standard. Of course, we will continue to champion the cause to the federal government, that this is an industry worthy of investment here in South Australia.

I would also say, more broadly, in the other part of that portfolio, I was absolutely delighted to see the federal government confirm its commitment to South Australia for the massive industrial expansion that will be underway here—well, it is underway here already in South Australia—not just the $2 billion of civil infrastructure and other works that are being delivered at Osborne, and will continue to be delivered over the next 3½ years, in particular, but the recommitment to the defence funding and the increase in the defence budget, so that we can roll out those extraordinary investments in naval shipbuilding here in South Australia.

While the headline is always going to be taken by the construction of nuclear submarines here in South Australia, we do, of course, have a very busy agenda over the next 25 years, in particular, with finishing the offshore patrol vessels, delivering the future frigates, the life-of-type extension for the Collins class submarines, and, of course, the refit of the Hobart class air warfare destroyers. They themselves were only delivered in the course of the last 15 to 20 years here in South Australia, potentially setting us up for the next generation of air warfare destroyers.

I share his concern about that funding being removed from last year's federal budget, and that it wasn't reinstated in this year's federal budget, but in terms of the broader portfolio I don't think anyone can question the federal government's commitment to South Australia with how much money they are deploying for the benefit of the nation and for the benefit of our economy.