Vince Connelly (Stirling, Liberal 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 Morrison government is building a stronger defence industry and creating more Australian jobs?

Melissa Price (Durack, Liberal Party, Minister for Defence Industry) Share this | Link to this | Hansard source

I thank the member for Stirling for his question. I would also like to take the opportunity to thank him for his outstanding former service to the ADF and also for his strong passion for the defence industry. Because we have a strong economy, the Morrison government is investing a record $200 billion in our defence capability. This is creating jobs and backing small business right around the country. In the last financial year alone, $8.1 billion worth of defence contracts was awarded to Australian small and medium-sized businesses. Just last week I had the pleasure, together with the member for Capricornia, to announce a $125 million contract for upgrades to the Shoalwater Bay training area in northern Queensland. It is a significant contract. In fact, 80 per cent of the work under that contract will go to local industries, with $70 million flowing to those local companies, creating some 220 jobs right across Mackay, Gladstone, Emerald and Rockhampton.

Recently I joined Luerssen Australia at an event in Perth to recognise the Australian small businesses that are contributing to the build of the 12 offshore patrol vessels. I had the pleasure to meet representatives from around 100 small and medium-sized defence businesses that are part of the build of our offshore patrol vessel project. In a win for the Tasmanian defence industry, Taylor Bros Marine were recognised for their contribution to this $3.6 billion project. As part of Taylor's $89 million contract they will design, produce and install the accommodation spaces for all 12 of the OPVs. Penske Power Systems were also represented at the Luerssen event. Penske has been contracted to supply the MTU engines for all of the 12 OPVs.

It's small, highly-skilled businesses like Taylor Bros and Penske that are contributing to the creation of over a thousand jobs on the OPV projects. We're delivering thousands of jobs right across Australia, opening up new opportunities in the defence industry, and we're building new skills and sovereign capability. Our policies are backing small businesses to help us deliver $200 billion worth of defence capabilities.

In the time remaining I'd like to draw to the attention of the Australian small-business community the fact that our government has just announced the beginning of the Land 400 phase 3 roadshows. This program, worth up to approximately $15 billion, will create Aussie jobs and opportunities for many small businesses who aren't already in the defence industry, as we deliver our 450 infantry fighting vehicles for our ADF men and women.