Inaugural Northern Australia Defence Summit
Speech by Minister for Defence David Tollner
Good morning everyone. I extend a personal welcome to all delegates and visitors here at the
Darwin Convention Centre.
In particular, I acknowledge the presence of Senior Members of the Australian Defence Force; The
National President of the Australian Industry and Defence Network; and Industry Leaders and
visitors from Australia and overseas.
It is a great pleasure to address this inaugural Northern Australia Defence Summit.
Earlier this week I had the opportunity to speak to members of the Australian Industry Group
Defence Council. As I explained then, I have the privilege of holding the portfolios not only for
Defence Industries and Community Support, but also Business, Employment & Training, and
Treasurer.
I have my finger on the pulse of the Territory’s economy and, today, I want to speak about our
vision for the future. Not just a vision for supporting Defence in the North, but a more wide ranging
vision about Northern Australia; its strategic location as the Northern Gateway of Choice to Asia;
and the opportunities that are on the horizon for our development and growth.
Of course, Defence is an integral part of this picture.
Ten weeks ago, the Northern Territory Government released a draft blueprint called Framing the
Future. It will guide decision-making processes and help maximise new and evolving opportunities
within the Territory, Northern Australia, and with our Asian neighbours.
In releasing this document, the Chief Minister stated: “It is time to realise our full potential. We have
to make the most of our strategic position: Our people, location, growing economy, and our
important role in national and international issues.
We need to think big and be open to all ideas. We need to realise the opportunities that are
possible and take bold action to achieve them.”
If we are to be successful in this endeavour, we must farewell siloed thinking and narrow vision.
We must look at the outcome we are trying to achieve in Northern Australia and consider what
each of us can contribute to that outcome. Let me begin with a piece of history:
The Snowy Mountains Hydro-electric Scheme was by far the largest engineering project ever
undertaken in Australia. In 1949, comprehensive planning was developed and approved by the
Australian Government and governments of Victoria and New South Wales.
The vision became a reality – a massive engineering project seen by many as a defining point in
Australia’s history, a coming of age. We must learn from this as we consider the development
potential of Northern Australia. We must develop a common foresight and engender united
support.
There is no doubt - scepticism is the enemy. If the initially sceptical public had won the day with the
Snowy Mountains Scheme, the project may never have been realised.
The same applies to the development of Northern Australia. We therefore want to make it clear –
The Northern Territory is open for business.
This means consideration of HOW to do things, not deliberation of all the reasons why it is too
hard. This government is committed to building a Territory with a future across the economic
sectors, rather than reliant on the resources sector alone.
The strategic value and potential of Northern Australia has long been known by those of us that
live here. More recently, the Australian Government has identified our significant natural
advantages relating to agriculture, mineral and energy resources and tourism; the proximity to
centres of economic activity associated with the booming economies of our Asian neighbours and
the fact that the Tropics are emerging as increasingly critical areas.
More than 40% of the world’s population now lives in the Tropics, and the region generates around
20% of global economic output. The worldwide initiative – the State of the Tropics Report, due to
be published shortly, will provide a timely focus on the underutilised potential – geopolitical,
economic and strategic.
On 21 June 2013, Prime Minister Tony Abbott launched the Coalition’s 2030 Vision, “Developing
Northern Australia”. His government’s emphasis is clearly defined, and totally in step with our
ethos: “No longer will Northern Australia be seen as the last frontier: it is in fact, the next frontier.”
Our Framing the Future blueprint lists objectives and priorities, including:
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To build an economy that is open, competitive and innovative;
To work with partners to deliver major projects; and
To lead the development of Northern Australia.
We now await the White Paper on Northern Australia, and I note that Mr Warren Entsch MP, Chair
of the Joint Parliamentary Committee responsible for its production, has noted that defence is one
of the aspects for consideration.
This is certainly a strategic opportunity to develop a cohesive whole-of-government approach to
realising the full potential of Northern Australia.
The Northern Territory has a strong economy. Deloitte Access Economics forecast in their
September 2013 Business Outlook that the Territory economy will outperform the national
economy over the next 5 years.
October’s CommSec State of the States Report ranked The Territory as the third strongest
jurisdiction, behind WA and the ACT, coming first in economic growth and construction work done,
and second on retail trade.
This growth is driven by a large number of major projects, and although most are not specifically
Defence related, we must look at the overall picture and recognise that we are a key player in the
following areas:
Energy Security
Northern Australia will play an important part in supplying the expanding appetite for energy
to fuel the continuing industrialisation and rapid modernisation of the powerhouse
economies to our north. The output from Ichthys and Conoco Phillips Darwin LNG projects
will eventually supply more than 10% of Japan’s future LNG demands, and Darwin has the
capacity for these projects to expand to triple the supply to Japan.
This government is also convinced that the future development of our energy sector, will
require the provision of connecting gas pipelines linking Territory onshore resources with
Australia’s existing national energy grid.
Food Security
Northern Australia offers strong potential for agricultural and primary industry expansion.
We recognise that countries, such as Indonesia, seek food security for their own
development. Last week we saw the Australian Agricultural Company, “AA Co”, invest in
two properties southwest of Darwin and apply for a pipeline licence connecting to their
forthcoming Darwin Abattoir and the Ord River Scheme Stage 3, which will extend from WA
into the Territory, offers future agribusiness potential.
Deputy Prime Minister Warren Truss has noted the potential to double agricultural output
across the north, and Federal Agriculture Minister Barnaby Joyce summed it up as follows:
‘The future of the NT is ‘‘massive’’ compared with other states. It’s got product that SouthEast Asia wants to buy and it’s in the area closest to billions of people.
It’s got sunlight, water, mineral resources, a direct rail link to South Australia, proximity to
South East Asia — it’s got all the reasons in the world to go ahead. There’s no way to stop
the development of the Northern Territory.’
Regional Security
An important element, when we discuss regional prospects, is the Australian Defence
Force and its presence in Northern Australia. The strategic relevance of Darwin is
undisputed:
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Close to the Indonesian archipelago, South East Asia, major shipping lanes to the
South China Sea, The Malacca Straits, and the Indian and Pacific Oceans.
We have an increasing number of offshore energy platforms that will include Shell
Prelude and other Floating LNG projects as they come on line.
Darwin’s capital city infrastructure and capacity for growth places it in a central
position for the future.
The Australian Defence Force Posture Review highlighted the strategic value of northern Australia
and, in particular, the Port of Darwin and covered 3 main issues specifically relating to the Navy:
Firstly, the need for a long-term master plan to meet Force 2030 basing requirements and
increased United States activities.
Secondly, the upgrade of Navy and deep water port infrastructure to facilitate and accommodate
the larger vessels being procured.
And, thirdly, development of a new Naval Fuel Installation and expanded wharf facilities.
Not only do we see an increasing US Marines presence, but also increased use of our military
airfields and ports by their Defence Force in general. Darwin is an attractive training hub for many
reasons, and we will see more use of our northern military training grounds, such as Bradshaw
Field Training Area. This has the added benefit of providing opportunity for employment in remote
communities.
We now reach the crux of the presentation – this government’s vision for Defence and the Defence
Industry in the North - based upon a positive benefit for both Defence and the Northern Territory
economy.
Let us start a debate among the key decision makers in this room. Accepting that scepticism is the
enemy of vision, we cannot allow subjects of such import to be put in the too hard basket. Sydney’s
harbour bridge, the iconic Opera House celebrating its 40th anniversary, and the Snowy Mountains
Scheme, all took grim determination. We need to start the discussions and show the same
resilience when we plan for Northern Australia.
The first focus is on a second deep-water port for Darwin. Yes we must service our resource and
minerals export markets but we should expand the concept to also make it attractive to
Defence.The facts are that Darwin Harbour and East Arm Port are dealing with the impact of major
projects such as Ichthys, and also increases in other trade sectors such as bulk minerals,
containers, live cattle, visiting cruise ships – a total of 61 in the past financial year.
We also have the fishing fleet and Australian Customs and Navy vessels adding to this activity on
a daily basis. More wharf space is required. For example, the 230 metre-long 27,000 tonne
Landing Helicopter Docks and 147 metre-long 7,000 tonne Air Warfare Destroyers require space.
One role of the Landing Helicopter Docks is to embark, transport and deploy the Army. With the 1st
Brigade located in Darwin, our port is the ideal location for home berthing one of these vessels,
supported by an Air Warfare Destroyer, and perhaps even an ANZAC Frigate.
We should make the really bold suggestion that a Home Port North or Fleet Base North is
established for Northern Australia. The proposed second port is a green field site at Glyde Point.
Why Glyde Point? Because of its access to open water and close proximity to Robertson Barracks;
It has been previously identified, together with a major industrial site; there are road and service
corridors and the area can be developed in stages.
It can support visiting US Marine Expeditionary Units and their associated Amphibious Assault and
Amphibious Transport Dock ships, such as those that recently visited Darwin as part of the annual
rotation and Exercise Koolendong.
A rail spur line could link the new port to the existing rail line, enabling the transport of vehicles,
stores, and equipment from the port to Robertson Barracks, and onto the national rail network.
Let us go a step further and link the north/south rail from Katherine out to Bradshaw Field Training
Area. But why stop at Bradshaw? Continue the line to Kununurra and the Ord River Scheme. The
line could service not just Defence but the growing agricultural industry around the Ord.
Turning our focus to the east: how about a rail link from Tennant Creek to Mount Isa and the
Queensland rail network? A truly strategic result, connecting the 3 Brigades located in Darwin,
Townsville and Brisbane.
Again, a spinoff could be the link to the Mount Isa/Carpentaria minerals province, the Barkly cattle
region, and the rich food growing areas of North Queensland, thus providing direct transport
through Darwin to the export markets of Asia.
So, in this way, we have added an expanded rail network providing strategic infrastructure for
Defence across the north. Let us revisit the new port facility. What about adding an airfield to the
picture to provide for rapid deployment and redeployment operating away from the restrictions of
the urban areas of Darwin?
The result? A single logistics precinct with efficient air, sea, rail and road access.
Let me reiterate - we see an opportunity for all associated infrastructure to be developed, including
fuel installation, load/offload facilities, roll-on/roll-off facilities, warehousing and hardstand facilities.
Darwin Harbour is not alone in suffering mounting pressure. In Sydney Harbour, Defence may
have to move from Garden Island.
Our proposal for a new Home Port North at Glyde Point provides an alternative well worth
considering in all aspects. It can include accommodation and multi-user facilities for maritime
maintenance and support.
Why not add a ship lift or dry dock facility, hard stands, and undercover maintenance facilities?
Maritime support for everything from patrol boats and landing craft to rig tenders and tugs?
Industry must be part of this vision. The development of Northern Australia requires increased
population, a broader industry base, and the technologies and skills to service the wide-ranging
opportunities in this Region.
We need to ensure a permanent industrial base, not one that fluctuates with major projects and an
associated fly-in/flyout workforce.
In order to achieve these goals, a whole-of-government approach to regional development is
essential and defence industry could have a major impact.
An impact that meets Defence strategic objectives and benefits nation building outcomes and
helps build sufficient scale for industry to invest in the development of infrastructure and technical
capability that value adds to all industry sectors.
Defence holds the trump card. If defence procurement policies mandated regional development
and support alongside defence capability, then other industries would strategically align their
capabilities.
The ideal for Northern Australia is a scenario where prime contractors, with investments in
technology and skills, are strategically located with Defence, in partnership with local industry - a
fully functional supply chain. Look, for example, at the oil and gas industry which has partnered
with Charles Darwin University to develop the North Australian Centre for Oil and Gas.
The Centre is linked with Robert Gordon University in Aberdeen, Scotland, and Western Australia’s
Curtin University and Challenger TAFE. It is also supported by the Australian Institute of Marine
Sciences.
The outcome is a hub for petroleum research and education programs. This model could equally
be applied to Defence. In fact, there are research areas which overlap – the effects of corrosion in
the Tropics being just one example that comes to mind.
What is needed to bring this to fruition? The development of partnerships and sponsorships with
key stakeholders such as Charles Darwin University, The Defence Science and Technology
Organisation, and national universities with research projects tailored for this Region, combining to
build industry skills and technology in Northern Australia to support Defence and industry.
As I stressed earlier this week, there is an Australian Defence Force Posture Review; but no
accompanying review to strategically align industry capability to that of Defence.
It is certainly time for leadership and results – for a review that feeds into Australian Government
policy for the development of Northern Australia.
Let remind you that scepticism can be the enemy. In 1815, Francis Greenway had his vision of
building a bridge from North Shore across Sydney Harbour. Considered farfetched at the time,
nevertheless the seed had been planted and reality would follow more than eleven decades later.
Ladies and gentlemen, the pulse of the Northern Territory’s economy is quickening. It’s certainly
timely to look at a nation defining project and our challenge to the rest of the country is to work to
make things happen here in Northern Australia.