Defence Industry
Development
Defence Industry Development in SA
for the 21st Century
isobelredmond.com.au
Defence Industry Development
Contents
Page
FOREWORD
3
DEFENCE SCIENCE
4
OUR DEFENCE INDUSTRY
5
INNOVATION & ENTREPRENEURSHIP
5
LOCAL INDUSTRY
5
EXPORTS
6
MINING AND DEFENCE
6
AUSTRALIAN DEFENCE FORCE (ADF) INVESTMENT IN SA
7
DEFENCE INFRASTRUCTURE
8
THE ROLE OF GOVERNMENT
9
FEDERAL
9
STATE
9
LOCAL
9
THE FUTURE
10
EXPORTS
10
SKILLS & TRAINING
10
CONCLUSION
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Defence Industry Development
Foreword
The defence industry represents a great opportunity for South Australia. It is high-tech and
managed by savvy, well educated people. It is exactly the type of industry that a state like ours
should attract.
A State Liberal Government will establish a dedicated defence portfolio. Defence SA and the
Department of Trade and Economic Development will support the new portfolio.
The opportunity to develop SA’s defence business has two parts; first defence industry
development based around major defence projects like war ships, aeroplanes, vehicles and
high-tech equipment. Secondly, the economic spin-offs from Australian Defence Force (ADF)
bases within the State in particular the Royal Australian Air Force (RAAF) and Army. With these
bases come people and families, investment and business.
We must grow the quantum of defence business won by SA enterprises in the years ahead.
We must be particularly clever at creating a base for defence exports so that the range of
customers is extended and so that versatility is built in to this opportunity. In doing so we will
ensure a long term viable industry into the future not a boom and bust industry centred around
building one or two ships.
SA must ensure that this State remains an attractive base for ADF units and formations and
for the families of ADF personnel. This policy spells out how a State Liberal Government will
approach the challenge.
Isobel Redmond MP
Leader of the Opposition
Election 2010
Martin Hamilton-Smith MP
Shadow Minister for Defence Industry Development
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Defence Industry Development
Defence Science
Science and Defence
Science and Technology will underpin defence industry development and growth throughout
the 21st century and beyond. The Defence White Paper 2009 makes it clear that its focus will
be on the exploitation and application of new advanced technologies to ensure the ADF has
access to highly advanced and networked capabilities.
Defence Science and Technology Organisation (DSTO)
DSTO has major research facilities located in Adelaide. We have scientists, engineers, IT
specialists and technicians working in crucial defence technology areas such as aircraft,
maritime platforms, land operations, command, control and communications and intelligence.
They also focus on electronic warfare and radar, airborne Intelligence, Surveillance and
Reconnaissance Technology (ISR), weapons systems, joint operations, human protection and
counter terrorism.
DSTO supports ADF operations directly and supports ADF decision making. DSTO is also
involved in research into forward looking technologies such as hypersonics, computer security,
electro-optics and smart materials. DSTO is also investigating emerging technologies such
as nanotechnology and biotechnology. The Federal Government is funding a program of
technology upgrades in DSTO laboratories and technical facilities.
Other Centres of Excellence in Defence Science
Apart from DSTO, SA has other important defence science assets including Adelaide
University, Flinders University and the University of South Australia. These are complemented
by Carnegie Mellon, University College London and Cranfield University all of which are
focused on teaching rather than research, but which remain relevant. The Royal Institution
(RI) is now located in SA and a number of Cooperative Research Centres, in defence related
fields are based in South Australia or have South Australian input. The private sector also
has considerable R&D capability within companies such as British Aerospace (BAE) and ASC.
Private sector R&D capabilities extend to parent international bodies. Some international
companies now based in SA engaged at the cutting edge of aerospace, maritime, weapons
research and other defence related capabilities at an international level. As Defence explores
opportunities in biotechnology and information technology, other companies will become
engaged.
Unlocking Opportunity
Optimising the economic opportunity offered by defence investment will depend on the
State’s ability to develop cutting edge science, to innovate and to spawn business through
entrepreneurship. We must harness the intellectual energy at DSTO, our universities and other
centres of excellence, link them together and grow opportunity from them.
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Defence Industry Development
Our Defence Industry
Innovation & Entrepreneurship
Economic Leverage. Improved capacity to leverage defence science into business
opportunities is required in SA. The combined R&D capabilities of DSTO and our three
universities, CRC’s and the private sector must be directed towards economic growth. The
Government and private sector must innovate and ensure that business is clustered around our
R&D engine rooms.
Connectivity. Innovation will require South Australian businesses to create new opportunities
from our R&D centres of excellence. The creation of something new for national and
international markets is the key to growing the defence industry in SA. The interconnections
between small business, big business and our R&D Centres of Excellence together with
government must be seamless. Security concerns and commercial considerations must be
systemised to enable a free flow of information between joint venture partners and between the
private and public sectors.
Entrepreneurship. Pivotal to the success of SA’s defence industry will be a pervasive
culture of entrepreneurship. A Liberal Government will encourage and promote business
entrepreneurship in the defence sector. We will encourage entrepreneurship through our
schools, our universities and through government programs that support industry investment
and attraction. Entrepreneurs must be heralded, supported and recognised.
Venture Capital. Success will flow from cooperation between research centres of excellence,
innovators, entrepreneurs and venture capital. A Liberal Government will do all it can to
facilitate connections between innovators, entrepreneurs and venture capital (for example
through Playford Capital and the Venture Capital Board). State Government has become
co-investors in projects but this should be the exception rather than the rule. Risk should
be carried by the private sector. We will encourage a vibrant venture capital market in South
Australia. The money will follow the ideas and the innovation.
Local Industry
The principal customer of defence in SA is the Australian Government. Local industry will
continue to be geared to contracts to build air-warfare destroyers, submarines, vehicles and
other hardware for the ADF. The ongoing maintenance and repair of this hardware will create
further opportunity. Local industry will also benefit from supporting and sustaining the ADF
presence in SA. The key to bedding down industry capability in SA is to use this local industry
base to grow exports.
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Defence Industry Development
Exports
Building on Local Industry for Export. We must build on the base created from producing
for the Australian Government and penetrate overseas markets using SA based defence
companies. This will be a difficult challenge but we can seize market share in niche areas if
we are determined and creative. To deliver export success the Federal Government, State
Government and Local Government must fully support the private sector by reducing red tape,
dealing with security concerns and facilitating financial arrangements so that the private sector
can prosper. Legislation and regulation to protect intellectual property will be a key role for
government.
Government Leverage and Support. Opportunities to export must be pursued with vigour for
SA to maintain its market share. We must leverage our US alliance and ensure that foreign
companies here are fully utilised. We must focus on those areas of defence, science and
industry where we could achieve global leadership based on known strengths; for example
submarines, air-warfare destroyers and technologies associated with existing or coming
programs.
Mining and Defence
With significant tracts of land within SA under Defence control it is in this State’s interests to
ensure that mining and defence co-exist. This may require special arrangements in regard
to access, infrastructure, occupational health and safety and security. The fact is, we need
success in both defence and mining to secure the State’s economic future.
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Defence Industry Development
Australian Defence Force (ADF) Investment in SA
General. Apart from the defence industry, considerable economic opportunity exists from the
ADF’s presence and investment in SA. These investments include bases, defence housing
and construction, defence personnel, training activities and logistics. This investment involves
Commonwealth investment and the relocation of people, in particular families to this State.
Maritime. The maritime ADF presence has principally linked to the submarine and Air Warfare
Destroyer programs combined with port visits and exercise opportunities. SA should seek
opportunities to grow the RAN’s (Royal Australian Navy) presence in SA. One such opportunity
to be more fully explored with the ADF could be an expansion of RAN reserves.
Land. The relocation of a Battlegroup from 1 Brigade (BDE) centred around the 7th Battalion
the Royal Australian Regiment (7RAR) presents great opportunity for SA. SA should seek
further basings from 1 Brigade and other units and formations. Maximum economic benefits
will come from the relocation of soldiers and families to SA. The valuable contribution of
service spouses in the SA workforce should not be underestimated. Training facilities at
Murray Bridge, the Upper Spencer Gulf and at other locations are particularly beneficial to
regional businesses. Woodside Army establishment is a significant investment along with the
ADF’s Adelaide facilities which include Keswick, Warradale. The SA Government should work
with the ADF on this goal towards growing the Army Reserve in SA.
Air. The location of the Aeronautical Research and Development Unit (ARDU) is very significant
to SA. This joint force unit interfaces with DSTO and the three services to provide significant
economic opportunity. Like DSTO, ARDU presents a great opportunity for adding value to the
private sector and State Government should negotiate with the Commonwealth to ensure that
the private sector is able to take full advantage of this Centre of Excellence. The P3 ORION
Force is perhaps the most significant air capability in SA. Private sector opportunities flowing
from this capability must be optimised.
Logistics. SA should promote defence logistics in SA including maintenance and supply. The
defence industry distribution system (DIDS) is important. SA can be a centre for transport and
communications across the country. Adelaide and Port Augusta are very central and readily
accessible as logistics centres. WE can be a centre of transport and communications across
Australia.
Families. Significant economic opportunity flowing from the ADF’s presence in SA is the
housing, education, child care and other needs of the families of ADF personnel. State
Government must ensure these and other needs are met.
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Defence Industry Development
Defence Infrastructure
RAAF Base Edinburgh
The Edinburgh base is the principal ADF investment in SA and will house most of the defence
personnel in the State for many years to come. State Government must ensure that urban
encroachment does not limit the ADF’s operations at its base. The ADF has rights and
privileges to generate noise and activity and urban development must only be undertaken with
an understanding of these limitations.
Infrastructure to and from Edinburgh, including roads, public transport, power,
telecommunications must be first class. Future planning must provide for schools, health
facilities, shops and other essential infrastructure to support families over the long term.
Techport/ASC
The Osborn Techport precinct has emerged as a major defence investment. A Liberal
Government will continue with the multi-user shiplift investment and will seek opportunities to
add value. SA’s strategic objective to become the home of ship building in Australia must be
upheld. The State Government must ensure that infrastructure and services are provided at
this location.
Woomera
The State Government must assist the Commonwealth at Woomera. This is a first class
aerospace site with vital ADF infrastructure. Efforts to attract other investment to the site will
be continued in cooperation with the Commonwealth. These have included use of the site
as a training base by foreign airforces (Singapore) and commercial space operations. State
Government must ensure that mining and defence can co-exist at the Woomera site.
Cultana
This training base for the ADF in cooperation with allied defence forces is being expanded
from 500 square kilometres to 2,500 square kilometres. State Government will ensure through
implementation of the existing Memorandum of Understanding that Defence is able to acquire
affected pastoral leases. Access for mining exploration at the Cultana range complex must be
maintained.
Opportunities will be sought to guarantee maximum benefits for small businesses and the
wider community in Whyalla and the Upper Spencer Gulf.
This unique training site can be used by combined land, maritime and air forces. Opportunities
exist to store equipment at the site, and add value to the SA economy.
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Defence Industry Development
Other ADF Investments
Other Defence sites of interest include Woodside, and various establishments in Adelaide such
as Keswick and Warradale, and the Murray Bridge range complex. The State Government
must present new opportunities to the ADF. For example, Peterborough as a former steam
town and railway centre has very sound infrastructure and hardstand which could be used by
infantry and armour for training purposes. Opportunities such as this should be investigated
and presented to the defence industry. State Government could make available State Forests
and National Parks in accordance with arrangements agreed with the ADF.
The Role of Government
Federal
The Commonwealth controls the ADF and its investment decisions for both industry
investment and ADF bases. It is in the interest of State Government to maintain a close and
cooperative working relationship with the Federal Government of the day. The Commonwealth
also decides issues linked to security access to defence intellectual property (IP). WE must
engage fully with the Commonwealth to explore ways to free up that IP for commercial use by
arranging for the appropriate security clearances for private enterprise.
State
It is the State Government’s job to optimise the opportunity defence business and the ADF’s
presence in SA provides. State Government will be competing for this investment with other
states. We must use our competitive advantages as a lever to secure defence opportunities in
our state. State Government must be alert to the needs of the ADF, we must be first to market
in the hunt for defence industry business, we must maintain good relationships with the private
sector and do all we can to help ADF with its basing and infrastructure needs.
Local
Local Government has a role to play in supporting defence industry development. Local
government must be part of the solution for providing support for ADF families and bases in a
range of areas from housing through to community services.
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Defence Industry Development
The Future
Exports
The real opportunity for the future in defence industry development is exports. We cannot
remain solely dependent on Australian Government contracts for air-warfare destroyers and
submarines.
Australia and SA can move to a future where we produce other country’s products, less
efficiently and less creatively at a greater cost, or we can through science, innovation and
entrepreneurship create our own future. The latter pathway is to global leadership in specific
fields of technology where we build on the opportunity before us to build cutting edge world
class advantages in defence industry technologies. SA’s great competitive advantage is our
talented workforce. We have smart people. SA must use this competitive advantage to build a
defence industry base that is designed to fight and win in the competitive world of exports.
Skills & Training
The best way to lock in a bright long term future for defence exports is to ensure that SA
continues to have at its disposal the best science, the best people and the most skilled
workforce in the world in those areas of technology we can claim as our own. State
Government must provide leadership to ensure that we train skilled people for jobs here in
South Australia. We must make sure that the potential of DSTO is unleashed to the benefit of
local industry and that our universities and centres of excellence are so closely intertwined with
smart, innovative local companies that we are unstoppable.
This coming together of the public and the private sector will require a level of cooperation
and trust between the three levels of government, academia and business not previously
seen. Smart legislation will be required to enable this cluster of excellence and this synergy to
develop and grow. A new model of excellence needs to be forged.
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Conclusion
A State Liberal Government will:
•
Establish the Ministry of Defence.
•
Champion defence industry development and encourage further ADF bases
in SA. The future hinges on the excellence of science and research within
SA’s Centres of Excellence.
•
Work with the Commonwealth and the private sector to capitalise on
defence opportunities and forge a new cooperation between government
and the private sector.
•
Focus on export development while growing our slice of the local market.
Venture Capital and entrepreneurship will be encouraged across the sector.
•
Aim to grow military bases here with a goal of attracting as much of
1Brigade (BDE) here as practicable. Encourage defence training in SA.
•
Build skills and training capabilities.
Printed and authorised by J Sheezel, Liberal Party, 104 Greenhill Rd, Unley 5061
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