David Gillespie (Lyne, National Party) Share this | Hansard source

The coalition government certainly is supporting defence industry capability in Australia by contracting local work to build boats to defend our nation. We are all aware of the development of 12 attack class submarines and the Hunter class frigates in Osborne in South Australia. The Arafura class offshore patrol vessels are not only great boats but also a great way of us engaging with our Pacific partners. They are going to be built at Henderson in WA. The guardian class patrol boats, two minehunter support vessels, a hydrographic survey vessel and more patrol boats are also being built at the Henderson shipyard in Western Australia—with all Australian workers, Australian steel and Australian skills being developed as a result. There are at least 15,000 jobs, which means dollars circulating in the Australian economy.

I recall in this very house, in my first term, leading a series of engagements with my colleagues about why we don't get local procurement happening. I heard every excuse under the sun as to why we couldn't do it—for example, we'd be breaking WTO rules or free trade agreements. But somewhere along the line the penny dropped, and suddenly the contracting stuff in Australia was really good for the Australian economy—lightbulb moment, Australia. It is great to contract and do things in Australia because the economic multiplier stays here—and we are certainly doing that in Defence.

Before I finish, I would just like to highlight that there are Australian boat builders who are manufacturing technology for our most significant ally, and that is the United States of America. The humble Birdon marine, which is based in Port Macquarie, in a strategic location near the highway and on the Hastings River, have secured over $700 million worth of contracts to build bridge erection boats for the US Army. They have received their second contract. They have also received contracts to extend the life of existing coastguard vessels for the US Coastguard. They are also building ferries for the New South Wales government. They are doing all sorts of work around the world, manufacturing facilities in partnerships around the world.

So, when we are looking to expand our industries, we shouldn't always look to the primes, which are generally overseas. If we are really going to grow our manufacturing capability we should, like US defense does, put aside a slice of the funds for contracting to the smaller providers so that they're not always tied in by getting a piece of the action out of the primes. That's not to say that the primes aren't doing a good job, but I think we should really be looking to how we grow our manufacturing capability in the defence space in a more bottom-up rather than a top-down fashion. We have great capability in Australia.

I commend our government's policy of building up our defence capability by focusing on local production. It's such a great idea. But, remember, there are lots of gems hiding here onshore in Australia. The rest of the world recognises them, and I'm sure they're on the radar of people over in the Russell Offices. So don't always assume that you need a big prime contractor to get great work done in Australia.

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