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House of Assembly - Fifty-Second Parliament, First Session (52-1)
2011-11-24 Daily Xml
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Grievance Debate

DEFENCE INDUSTRY

Mr HAMILTON-SMITH (Waite) (15:15): I rise to talk on the subject of the defence industry, as the shadow for that portfolio. I note today the tabling of Defence SA's Annual Report 2010-11, just a few moments ago. I also note questions in regard to the Auditor-General's Report that have been underway this week and in the previous week's sitting and also the recent release of a discussion paper by myself, on behalf the opposition, titled 'Building on our defences: the future of South Australia's defence industry', which is located on my website.

It is appropriate at this time of the year to reflect back on defence industries; all that has been achieved and all that is yet to be achieved. Can I start by commending Andrew Fletcher and his team at Defence SA for their fantastic contribution to this state and for their excellent report. I have had a quick read of it. It looks to be an outstanding report on an outstanding year, in difficult financial circumstances. I will have a more detailed look at it after this.

I particularly note the support of those members of the SA Defence Advisory Board: General Peter Cosgrove, Dr Ian Chessell, Air Marshal Les Fisher, of course Andrew Fletcher, Beth Laughton, Lieutenant General Peter Leahy, Rear Admiral Trevor Ruting and Dr John White. I note that premier Rann and the then minister Kevin Foley were ex-officio members, but the premier did not attend any meetings. The minister, Kevin Foley, attended three of the seven meetings, but otherwise, the meetings were very well attended.

The defence story in this state is a good one. It is not to be overstated as, I think, the government is inclined to do from time to time. I think we need to deal in the facts. These facts are addressed fairly bluntly in my discussion paper. We have achieved a lot, but we need to be truthful and factual about what we have achieved and what is yet to be achieved.

There has been a level of bipartisan support and that will continue so long as I have a say in it, and I know that comes with the best wishes of all on this side. We do not want to see defence turned into a political football: we want to see it prosper, and that is certainly the approach that I have been taking as shadow for this area.

I want to note however, that there is one thing that I would like to have seen more emphatically emphasised in the Defence SA annual report and that is the partnership between Defence SA and industry. Of course, that takes several forms but two in particular: that is, their relationship with the Defence Teaming Centre and all of its members from industry, and also its relationship with Business SA and, of course, all of their members, many of whom carry out defence work. I would like to have seen this partnership more heavily emphasised in the report.

I note in the Auditor-General's report grants to industry of $605,000 last year, but reducing to $475,000 to 30 June 2011 to the Defence Teaming Centre; and grants of around $1.4 million to the ASC AWD Shipbuilder Pty Ltd. Of course, there are other grants. Could I just say that I think these grants are grants well spent and, in particular, the grant given to the Defence Teaming Centre. I have contacted many of its members, and I understand good work is being done in regard to leadership training, skills training, networking and coordination with Defence SA. I note too that the government has also made contributions towards Business SA to help in a range of areas, export-related and in other fields, many of which will spin off and deliver benefits to defence industries.

I think this partnership between the Defence Teaming Centre and Defence SA is pivotal to the success of defence industries, and it will certainly be an opposition plan, should it become government, to further develop and enhance that relationship. If anything, we will be looking at ways to increase the financial support to the Defence Teaming Centre, because I think, provided it can be shown that it is delivering results, this partnership is the way to go. Defence SA, brilliant job though it does, must ultimately rely on industry to get the real results, so we need to support and nurture industry.

I commend my discussion paper to the house. I encourage members to download it from my website. I am looking for feedback on the questions I have raised on the way forward across a raft of issues, particularly with regard to naval shipbuilding and defence procurement and whether the state should be more heavily involved in strategies for the future. This is an important industry, and I encourage all members of the house to give it their full support come the budget.

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