Defence Shipbuilding

The Hon. T.T. NGO (15:43): I rise to strongly express my concerns regarding the future of the defence industry in our state, an advanced manufacturing and highly skilled sector that represents a core element of our economic plan for decades to come. I have no wish to talk down our economy or frighten people unnecessarily, but the Liberal federal government's mixed messages about the future of submarine building in South Australia is a real concern for me and for thousands of families.

South Australia is already home to a number of major maritime projects: the $8 billion air warfare destroyer build project, the most complex ship construction project ever undertaken in Australia; the multibillion dollar Collins class submarine; other smaller but equally important contracts like the LHD mission system design, development and integration; and the ANZAC ship combat system in-service support.

It is estimated that around 27,000 people are directly and indirectly employed in the defence sector in South Australia. The capability of our defence industry has been built up and proven over the past 25 years since the set up and the construction of the Collins class submarines began in the late 1980s. Over this 25-year period, South Australia has become the defence state of Australia, with around 25 per cent of Australia's procurement spending worth around $1.8 billion to our state economy. What other industry has accumulated such knowledge, skills, technology and innovation?

The Hon. R.L. Brokenshire: Agriculture.

The Hon. T.T. NGO: Quite close. Multinational companies like BAE, AFC, Lockheed Martin and Saab have offices in Adelaide, employing thousands of highly-skilled engineers. We also have hundreds of smaller local companies like Axiom, Diemould and Nova Systems, as well as smaller international companies like Ultra Electronics, who employ or have employed up to 20 or 50 people to make devices, equipment or provide support for the submarines or the AWDs. Just consider the intellectual property, wealth of knowledge, our strong industry base and the critical mass of high-end naval ship building and sustainment skills that reside in our state.

On top of that, over the years, the South Australian government has invested over $300 million to build world-class infrastructure at Techport Australia. Techport is uniquely positioned to play a key role in delivering Australia's future naval fleet. The Future Submarines project will be an enduring symbol of what Australians can achieve and its impact on our nation's economy, industry capacity and national security will be enduring.

If the federal government decides to buy submarines overseas and no sustainment work is done in South Australia then the majority of the naval ship building industry will close down. Once lost, it will be practically impossible to resurrect. Other countries will benefit from this, strengthening their capability and economy of scale.

South Australia and Australia's future generations cannot afford to lose this project. Thousands of workers and their families are desperate for the Future Submarines to be built here. Hundreds of small businesses face financial ruin, not due to their mismanagement but due to the prevailing ideology of the federal government. I urge all members of both houses to put politics and to fight for the submarines to be assembled here.