Llew O'Brien (Wide Bay, National Party) Share this | Link to this | Hansard source

My question is to the Minister for Defence Industry. Will the minister outline to the House how the national accounts reflect the role defence industry plays in creating jobs for hardworking Australians and creating a stronger economy? How is this vital part of our economy undermined by the risks associated with an unreliable and unaffordable energy supply?

Christopher Pyne (Sturt, Liberal Party, Leader of the House) Share this | Link to this | Hansard source

I thank the member for Wide Bay for his question. What the national accounts show today is a real exclamation mark along the journey for the defence industry in Australia and for the success of the Turnbull government's policy about using the defence industry to help drive the economy, jobs and investment. What the national accounts show today is that Commonwealth defence spending grew by 34.2 per cent over the quarter and 15.2 per cent higher over the year before. So the defence industry is doing exactly what the Turnbull government had hoped it would do. It is working in the economy to drive jobs, investment and growth.

Over the last few months, a number of significant businesses in Australia have announced huge expansions of their workforce. Lockheed Martin will double their workforce in South Australia because of the combat system integration on the submarines. Those are submarines that Labor never committed to when they were in government. They never ordered them. They never showed any indication they would never do it. We did it. We made the decision that meant the combat system integration could be awarded. It was won by Lockheed Martin, doubling their workforce.

Northrop Grumman have announced a doubling of their workforce across Australia from 500 to 1,000 employees. New offices are opening in Canberra and around Australia—Huntington Ingalls Industries and Fincantieri Australia here in Canberra and DCNS in Adelaide. The training, skills development and investment that is going on in the economy in the defence industry is driving high-tech, advanced manufacturing and high-value jobs so that we can compete in manufacturing. It is growing real jobs in our economy. We cannot always compete with some of the countries around us in some of the areas where they need low labour costs, but we can certainly compete where it involves high skills, advanced manufacturing, high technology and innovation.

The Turnbull government decided to invest in that when we said we would put $195 billion into growing our defence capability over the next 10 years. The national accounts as released by the Treasurer today are showing that that policy is working. It is also flowing into exports. We are seeing companies such as EOS working in the Middle East to sell their remote warfare system. The Nulka anti-ship-missile decoy is being sold all around the world as a billion-dollar export product. Austal ships are selling and working to get into the Middle East. Thales Australia with their rifle, the Bushmaster and Hawkei are winning new markets overseas. They are growing jobs in places like Melbourne, Brisbane, Lithgow, Adelaide, Perth— (Time expired)