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Legislative Council - Fifty-Third Parliament, Second Session (53-2)
2016-05-17 Daily Xml
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Defence Shipbuilding

The Hon. G.E. GAGO (14:37): Can the minister inform the chamber about the benefits of long-term shipbuilding here in South Australia for local manufacturers?

The Hon. K.J. MAHER (Minister for Employment, Minister for Aboriginal Affairs and Reconciliation, Minister for Manufacturing and Innovation, Minister for Automotive Transformation, Minister for Science and Information Economy) (14:37): I thank the member for her question and her interest in supporting both our defence sector and our manufacturing sector. Since this chamber last sat, South Australia's defence sector has received some very welcome news as it has secured a number of shipbuilding contracts, most significantly the future submarines.

When it looked like South Australian jobs were on the line the community, the government and many here in South Australia stood up for this state. The South Australian government through that time has called for and pushed for a local build that would provide jobs here in South Australia for South Australians. Now that that announcement has been made we have committed to ensuring that we can get every single job possible from naval defence shipbuilding contracts.

Members interjecting:

The PRESIDENT: Order! I do not want the Leader of the Opposition to be bending my ear after this session about your behaviour. Can the honourable minister please continue in silence.

The Hon. J.S.L. Dawkins interjecting:

The PRESIDENT: The Hon. Mr Dawkins, sit and listen to this very important contribution.

The Hon. K.J. MAHER: Thank you for your protection from the Hon. John Dawkins, Mr President. That is why the Premier met with the successful bidder for the submarines, DCNS, and visited its shipyards just days after the announcement. This proactive measure will help the government to understand all of the things that we need to do to maximise the benefits for South Australia.

We are committed also to supporting our auto companies and auto supply chain that have the ability to diversify where they can into the defence sector. We are already seeing some do this and we will do what we can to support further diversification. Now that there has been an announcement, companies from all over the world will want to get involved with naval shipbuilding in South Australia.

We want as many as possible of those international companies based here, and we want to make sure that companies that are already located here in South Australia get as much work as they possibly can, particularly those companies that are looking to transition, as some are doing, from the automotive sector to the defence sector, because that means employment, that means jobs here in South Australia.

It is not just about the raw number of jobs. Shipbuilding will provide smart high-tech careers for decades to come for South Australia's young people. This is not just about short-term jobs; this is about long-term careers. I am told that DCNS estimates that the construction of the submarines in South Australia will create somewhere in the order of almost 3,000 direct jobs; something in the order of 1,700 jobs at ASC, including things such as naval architects, marine engineers, draughtsmen, boilermakers, hull welders, electricians, mechanical fitters, pipefitters, welders, painters and production managers.

There will also be some jobs—possibly 100 jobs—in the DCNS head office; an estimated 600 jobs in supply chain—things such as mechanical and electrical engineers, supply chain managers, configuration managers and project managers; and an estimated 500 jobs in combat systems integration—jobs such as software architects, software engineers, software developers, electronic engineers and sensor specialists.

I am also told that the indirect jobs impact could be as high as 3:1. We know we need to provide as much support as we possibly can to make sure that local workers and companies are ready to take advantage of these shipbuilding opportunities, so we have to be flexible with the support that we provide. That is why the Automotive Supply Diversification Program and the Automotive Workers in Transition Program will be reconfigured to include a stronger focus on ensuring workers and component manufacturers can best take advantage of South Australia's high-tech shipbuilding industry. We will work closely with shipbuilders to determine what skills and capabilities they need in our local suppliers to be part of their supply chain and make sure that our programs are directed at helping the transition into those requirements.

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