Matt Williams (Hindmarsh, Liberal Party) Share this | Link to this | Hansard source

This week's announcement of 12 submarines being built in Adelaide is a great result not just for the state but also for our country, and let me explain why. As a South Australian member of parliament I am naturally very pleased to have secured the project in Adelaide, but I disagree with some of the comments from those around Australia that the government's decision to build submarines in Adelaide was based more on politics than on national security and the needs of our Royal Australian Navy.

Believe it or not, Adelaide is strategically and geographically important for our national security, and I understand the experts at the Department of Defence who provided advice to this government know this as well. A series of federal government decisions over the last few decades has helped create a long-term defence hub in Adelaide. We have the established infrastructure from the Collins Class program and the Air Warfare Destroyer program, and South Australia also has a community of defence companies supporting these programs. This is recognised internationally too. During her visit to Adelaide in 2012 United States presidential hopeful and then Secretary of State, Hillary Clinton, said:

Adelaide is, from our perspective, one of the great, critical industrial centers in the world, the heart of Australia's defense manufacturing, and a place where American and Australian companies work in close partnership every day.

Given we have this hub of defence industries at Techport, it makes sense for Australia to build on this existing infrastructure for the future submarines. This is acknowledged by international defence companies too. Leading defence companies have said to me that Adelaide has the best defence shipbuilding infrastructure.

An often criticised point about Adelaide is its location and it is argued that it is too far away from our submarines for servicing. Few people think about the strategic benefit of Adelaide's isolation. Having little naval activity off the coast means our submarines are easier to protect when they are going in and out of service, which happens quite regularly. Being able to slip under water in a quiet and unobserved location is a huge technical advantage few people think about.

As to the national benefit, I want to touch on the suppliers around Australia. Most of the work will be done in Adelaide in terms of the build—and many suppliers are in Adelaide and South Australia. DCNS has confirmed that 90 per cent of the build is likely to occur in Australia, and this is great news for the supply chain around Australia. The member for Canning, from Western Australia, has just left the chamber and the member for Banks is here. Those two states are huge beneficiaries. I will not go through all of the companies, because there are so many, but I will say that a significant number of companies are involved in not only the submarines but also the Air Warfare Destroyer program. There are 15 in New South Wales and eight in Victoria. I know Tasmania builds the accommodation units and I am sure Queensland also has a few quality suppliers. There is also the multiplier effect, which is estimated to be $2.3 billion per annum for suppliers around Australia. Seventy per cent of Australian-made goods go into these projects and also other service industries. This is a great nation-building project for Australia.