Claire Clutterham (Sturt, Australian Labor Party) Share this | Link to this | Hansard source

I move:

That this House:

(1) acknowledges the Government's initial $3.9 billion investment in the Submarine Construction Yard at Osborne in South Australia, to deliver the infrastructure needed to build at least eight nuclear-powered SSN-AUKUS class submarines, meaning:

(a) record support for the creation of significant direct employment opportunities, numbering approximately 4,000 for the construction phase and 5,500 for the peak submarine production phase;

(b) opportunities for small and medium sized businesses to contribute to, and benefit from, this significant investment over a period of decades; and

(c) confidence for industry and workers of significant and durable opportunities for partnership and growth through the construction and build phases; and

(2) notes the Government's commitment to ensuring Australia has both the capability and the skilled workforce needed as outlined in the 2024 National Defence Strategy, through measures like:

(a) calling for and supporting partnerships with the private sector;

(b) investing $480 million in the Skills and Training Academy Campus at Osborne to train the skilled workforce for constructing and maintaining nuclear-powered submarines; and

(c) providing young Australians pathways in the AUKUS submarines industry through skills and training programs.

This motion speaks directly to the huge opportunity before us. It's an opportunity with many parts, but principally it's an opportunity that speaks to the Albanese Labor government's deliberate decision to build a future made in Australia. First and foremost, this motion is about our sovereign capability and defence industrial base, which means a sovereign supply chain and skilled workforce. There has never been a clearer moment to argue in favour of efficiently and effectively entrenching our sovereign defence capability. I want to be clear that, in doing this, it doesn't mean turning our back on our allies or reacting impulsively because of shifting international relationships and the changing approaches of the world's great powers. What it means is acting every time in Australia's national interests by shoring up our own national security and sovereign capability in partnership with our allies when appropriate.

No rational person wants conflict or war—no-one. But we are an island nation and we need a capability that is effective as a deterrent, and we need to continue to prosecute strategies that shore up our seaborne supply now more than ever. Just as no reasonable person wants war, no reasonable person could possibly argue against self-sufficiency, conflict deterrence and protection of our maritime supply chains that are so critical to the security of this country. Secondly, the opportunity before us as we embark upon that sovereign capability journey is also an economic one. Well-paid, meaningful, secure and highly skilled jobs for decades—that is what is on offer for kids who haven't even been born yet.

This national security and economic opportunity is what underpins the Albanese Labor government's initial $3.9 billion down payment investment in the submarine construction yard at Osborne in South Australia to deliver the infrastructure needed to build at least eight nuclear powered SSN-AUKUS class submarines. AUKUS is a national endeavour. It may have its heart in South Australia, but the opportunity is there for all states and territories to contribute to Australia's national security and to embrace that economic opportunity. Small, medium and large businesses are already benefiting. People are moving to South Australia for the work opportunities on offer. Most importantly, we are quite rightly on a pathway with our allies to a greater deterrence capability.

At the submarine construction yard at Osborne, where I proudly used to work, the $3.9 billion investment means support for the creation of thousands of jobs, numbering approximately 4,000 for the construction phase and 5,500 for the peak submarine production phase. Those workers will be highly skilled. We need them to be. This underscores the government's commitment to ensuring Australia has both the capability and the skilled workforce needed, as outlined in the 2024 National Defence Strategy.

Importantly, the government has called for and supports partnerships with the private sector. AUKUS, as I said, is a national endeavour and cannot succeed without the government's support or the support of private industry. New and innovative ways to reward innovation and risks taken by the private sector in supporting this endeavour will be required, with a particular focus on speed to capability.

Again, however, none of this is possible without skilled workers, which is why, in addition to the $3.9 billion investment, the Albanese Labor government invested $480 million in the Skills and Training Academy campus at Osborne to train the skilled workforce for constructing and maintaining nuclear powered submarines, providing young Australians pathways in the AUKUS submarine industry through these skills and training programs.

I recently met two young Australians who were working as apprentices for BAE Systems at the shipyard at the same time as completing their studies at the Regency Park TAFE. We often hear that young people have no hope for the future and they're despondent about work and life. These young Australians were not despondent. They were excited about their career prospects. They are young enough that in their late 20s and early 30s they will literally build the nuclear powered boats when submarine construction begins in the 2030s. The opportunities underscored by this investment are immense—an economic opportunity but, more importantly, a sovereign defence capability imperative. (Time expired)

Sharon Claydon (Newcastle, Australian Labor Party) Share this | Link to this | Hansard source

Is there a seconder for this motion?

Matt Burnell (Spence, Australian Labor Party) Share this | Link to this | Hansard source

I second the motion and reserve my right to speak.

Andrew Wallace (Fisher, Liberal National Party) Share this | Link to this | Hansard source

I rise to speak on this motion relating to AUKUS and the future of Australia's submarine capability. Let me say at the outset that this side of the House will always support investment in Australia's defence capability, because the first duty of any government is to keep Australians safe and protect our way of life. But support for capability must be matched with strategy, leadership and seriousness of purpose.

AUKUS did not begin with this Labor government. It was conceived, negotiated and delivered by the former coalition government as one of the most significant defence partnerships in our history since the ANZUS Treaty in 1951. AUKUS is about deterrence, capability and ensuring Australia can operate with our partners in the UK and US in an increasingly contested Indo-Pacific. As chair and deputy chair of the Parliamentary Joint Committee on Intelligence and Security and the defence subcommittee, I've seen firsthand the scale of the challenges that we face. The strategic environment that we are in is deteriorating and deteriorating rapidly. It's more uncertain, it's more contested and it's more dangerous than at any time since 1945. This motion speaks at length about infrastructure, jobs and training, and, yes, these things are very important, but defence policy is not an employment program. It's not a regional development strategy dressed up as national security. It is about keeping Australians safe in a dangerous world, and that is where this government continues to fall short.

I ask this question: where is the government's national security strategy? It's all well and good to have a defence strategy, but where is its national security strategy? Where is the framework tying together defence, intelligence, cybersecurity space, critical infrastructure and economic security? We've seen announcements, we've seen press releases and we've seen spin, but we have not seen a coherent plan. Without one, even the biggest investments risk being poorly directed, delayed or diluted.

Labor is very good at spending—we all know that—but spending isn't always delivering. We are seeing delays, uncertainty and serious questions around AUKUS timelines. Capability gaps are emerging. The government talks about submarines in the 2040s while the threat is real today. The government has even ordered the Auditor-General to stop producing its major projects review on Defence's biggest projects, which are collectively over 33 years delayed. That is the reality that Australians are facing today.

The workforce challenge is real. Building and sustaining nuclear-powered submarines will require tens of thousands of skilled Australians engineers, tradies, technicians and Defence personnel. We support investment in skills, but where is the pipeline? Where is the plan to attract, train and retain that workforce? This cannot be switched on overnight, and, while we build this workforce, the government continues to fail to recruit and retain members of the Australian Defence Force. This requires long-term planning and coordination with industry and education providers. AUKUS must be about building sovereign capability. That means backing Australian industry. It means ensuring small and medium businesses are not locked out. It means genuine partnership with the private sector, not just rhetoric, because our national security depends on our own industrial capability. That's sovereign capability.

We are living in a time of growing strategic competition in our region—an increasingly unstable period that demands a clear government led response. We're seeing militarisation, coercion and instability. AUKUS is critical, but it cannot stand alone. It must be part of a broader national security strategy built on stronger sovereign capability. Australians expect strong leadership on national security. They expect clarity and consistency and a government that understands the seriousness of the moment, not one that plays catch up after it's too late.

The coalition will always support measures that strengthen Australia's defence capability. We support AUKUS, we support our submarines and we support our ADF personnel.

Matt Burnell (Spence, Australian Labor Party) Share this | Link to this | Hansard source

The delivery of AUKUS is one of the most significant nation-building efforts in our country's history. AUKUS is a central pillar of the Albanese government's national security policy, designed to protect Australia, our interests and our place in the world. It is something I feel passionately about, as one of the co-chairs of the Parliamentary Friends of AUKUS, because the strategic environment we face is becoming more complex, more contested and more uncertain. As the National Defence Strategy makes clear, we are confronting the most challenging circumstances since the Second World War at a time when our economic connections to the world have never been greater. That reality demands a new approach. It demands that we build an Australian Defence Force with greater reach, greater endurance and greater capacity to project greater capability—not for conflict but for deterrence, for stability and for security across our region. That is what AUKUS delivers.

Our investment in conventionally armed nuclear-powered submarines represents a step change in Australia's capability. It will allow our defence force to operate over longer distances, remain undetected and respond to challenges with confidence. We recognise the scale of this investment. It is one of the largest industrial undertakings Australia has ever seen, shaping industry, infrastructure and jobs for decades to come. This is about building sovereign capability here at home—a future made in Australia.

We're acting to bridge the capability gap, bringing forward the acquisition of these submarines by a full decade. That acceleration matters because capability delayed leaves Australia exposed. Through AUKUS, Australia will join a small group of nations globally, as one of only seven to operate submarines of this capability. That is a significant shift in our strategic position, and it is one we are delivering with purpose and responsibility.

Nowhere is that transformation clearer than in South Australia. At Osborne we are seeing the foundations of this national effort take shape. In February this year, the Prime Minister announced a $3.9 billion investment as a down payment for the Osborne submarine construction yard. This investment is not just about infrastructure; it is about jobs, skills and opportunities for future generations. The construction of the yard itself will support close to 10,000 jobs, with projections of up to $30 billion in total investment flowing to South Australia over time, driving economic activity, strengthening local industry and delivering benefits across the state.

This is a game-changing project because it is building a workforce and training Australians in highly skilled roles that will last for generations—jobs that are secure, skilled and future-focused. At Osborne, up to 4,000 jobs will be created to design and build the yard and training academy. Once it is operational, a further 4,000 to 5½ thousand direct shipyard jobs will support submarine construction—almost double what had previously been forecast.

Already, Australians are stepping into these roles. Around 180 workers are currently training at Pearl Harbor Naval Shipyard in the United States, building the expertise we need here at home. The scale of the build is extraordinary—a construction yard 10 times larger than the previous developments, requiring tens of millions of hours of work and vast quantities of material, including steel equivalent to 17 Eiffel Towers.

This is a project of national significance, and, alongside it, the government has committed $310 million to secure long-lead components from the United Kingdom, supporting the delivery of critical systems for our first SSN-AUKUS submarines and ensuring we are building capability in a timely and coordinated way.

But AUKUS is not confined to a single site. Its benefits extend across the entire country through supply chains, small businesses and advanced manufacturing. We are opening doors for Australian companies to participate. Through the Australian Submarine Supplier Qualification Pilot Program, businesses can enter the US submarine supply chain, working alongside global partners to deliver components and expertise. And, through the Defence Industry Vendor Qualification Program, Australian firms are being supported to meet the standards required to supply into both the UK and the US programs. This is about integration: ensuring Australian industry is part of the global effort while strengthening our own sovereign capability.

At every step, the focus is clear: maximising opportunities for Australian workers and businesses, because this is a once-in-a-generation investment—one that will strengthen our economy, secure our future and support thousands of families.

Michael McCormack (Riverina, National Party) Share this | Link to this | Hansard source

I find myself in furious agreement with the member for Spence, and, when I finish my remarks, the member for Spence—if he's still here—and the member for Adelaide should absolutely applaud. I'll tell you who else should be applauding, and that's Tom Koutsantonis, the Treasurer of South Australia, because, but for the investment, the hope and the opportunity that the Morrison-McCormack and Morrison-Joyce governments put into shipbuilding in Adelaide, his coffers would be nowhere near what they are going to be in the future.

I speak to the Treasurer of South Australia often. He's a good fellow, and he would, I'm sure, in a bipartisan way acknowledge the work the former federal coalition government did in this space. I know the member for Sturt has brought this important—and I will say it's important because AUKUS is important—private member's bill into the parliament. I know that Labor often does this victory lap when it comes to talking about defence spending and investment in the most critical area of government—that is, the protection of our people. But just listen to these couple of statistics. These are from the former coalition government. It's the last three years of delivery, in numbers: 70 defence vessels and 1,700 vehicles built in Australia, 100,000 defence industry jobs and 15,000 small and medium business supported—supported by both the member for New England and me, as former deputy prime ministers, supported by the coalition and supporting Australians. There is no more critical investment for our nation right now than defence because the world is a volatile place. We are facing headwinds, on both economic and certainly defence positions, that we haven't seen since 1945, the end of the Second World War.

They are worrying times. They truly are. You only have to turn on the news of a night or just look at your phones at any minute of the day and you'll see the contest for the Strait of Hormuz and see the price of petrol and diesel at the bowser. This is all because of global worries, global concerns and global interventions.

The AUKUS timeline is an interesting read. You'll see that, in late 2019, then prime minister Morrison tasked defence officials to look into the feasibility of acquiring nuclear powered submarines after doubts over the French contract. I was part of all of those discussions and I know full well why we had those doubts and why we did what we did as far as AUKUS was concerned. There are no greater friends—let's face it—than the United Kingdom and the United States when it comes to defence. The proposal for AUKUS was presented in May 2021 to the full National Security Committee, which gave permission to approach US and UK leaders with an official government policy that had been brought about because of what was going on at the time—which of course has followed on since then.

When AUKUS was announced, on 15 September 2021, it was a red-letter day for Australia and a red-letter day for South Australia, no less, because it did mean that there were going to be ongoing jobs and security. I appreciate that Adelaide suffered greatly when the car manufacturing companies left, and we needed to absolutely make sure that all of those highly skilled jobs were retained in Adelaide, in South Australia. It's an important part of our national fabric and certainly of our manufacturing in this country.

In September 2021, an 18-month consultation period began into how Australia would acquire nuclear-powered subs and which model it would go with. I know that there were important talks going on between Prime Ministers Morrison and Johnson, from the UK, and the then president of the US, Joe Biden, and there was agreement to determine by March 2023 the optimal pathway for an Australian conventionally armed nuclear-powered submarine capability. I spoke to former president Biden on the sidelines—I suppose you could call it that—of the late pontiff's funeral, in Rome, and he was so pleased that they were partnering up with Australia, because if you ask any American Marine, any American serviceman or servicewoman, they will tell you that the best partners in the world are Australians. They know of our defence capability; they know we train them well—of course at Wagga Wagga, through the home of the soldier, Kapooka—and they know that, if Australia gives its word, it means it.

Steve Georganas (Adelaide, Australian Labor Party) Share this | Link to this | Hansard source

I rise in support of this motion, and I do so because it is one of the most important projects that's been undertaken in South Australia not just for South Australia but for the entire nation, for Australia, for our defence industry, for manufacturing and for the creation of jobs. I heard what the member for Riverina was saying, and I accept that the Morrison government put things into action to ensure that we had the AUKUS partnership and that the nuclear powered submarines, which are so important to our defence strategy, are built in South Australia.

But I also would like to say that, prior to that, there was a lot of campaigning taking place from the previous premier Jay Weatherill right through to the then opposition Malinauskas et cetera to make sure that these projects came to fruition and that work was done to ensure that we got this project up and running. When I think of AUKUS in South Australia, I think of 30,000 to 40,000 jobs being created in our state just to support AUKUS, 5,000 to 10,000 jobs at AUKUS plus another 30,000 to 35,000 in small manufacturing—cutting-edge technology jobs for AUKUS and to support AUKUS. When I think of AUKUS, I think we're on the cusp of the next cutting-edge manufacturing revolution in Australia, and I say so based on the history of South Australia.

Back in the 1940s, there was a factory called Holden's that was producing cars. It got together with General Motors from the US, and they produced manufacturing industries that produced motor vehicles for the next 60 or 70 years. Back then, there were two people that had a vision. They were Premier Playford, a Liberal premier—and I give credit to him—and Ben Chifley. They got together and supported the industry. At the time, there were a lot of sceptics around saying: 'This cannot be done. This won't be done. We can't produce like Ford in the United States.' But these two had a vision, and they created it. That created jobs in South Australia, Victoria and other places for many years to come. My father was one of the beneficiaries of General Motors-Holden's. He worked there for most of his life and supported his family. Thousands of people worked there not only in General Motors-Holden's but also in the manufacturing jobs that supported Holden's.

Today, we have that same opportunity with AUKUS. We have that same opportunity to ensure that it goes smoothly and that people with vision are supporting it. We know that the United States is supporting it. We know that Britain is supporting it. The creation of jobs and the creation of work for future generations of Australians—this is a once in a lifetime opportunity for governments to get this right and to ensure that it takes place. When we look at the types of jobs that are being created—and I've been down there on a number of occasions with ministers and shadow ministers over the years—we are creating cutting-edge jobs of the future with good pay and good conditions. At the same time, we are ensuring that we are looking after our defence needs in a region that we will need to look after for many years to come.

This is, as I said, a once-in-a-lifetime opportunity. We're on the cusp of this manufacturing revolution that will create jobs for many generations to come. We just have to make sure that we get this right and that we put everything in place. Things are already starting to happen down there. They're starting to build the premises down there that will house AUKUS. There alone, there are about 2,000 to 3,000 jobs. Once AUKUS gets up and running, there'll be thousands and thousands of jobs. The important thing is the industries that will feed into AUKUS. Already, I've seen statistics saying that people who have moved to South Australia have got their front-end offices already set up in the hundreds. This is a magnificent opportunity. We should all be supporting it. We want to see it come to fruition, which will provide jobs for the future for many generations of South Australians and Australians.

Tom Venning (Grey, Liberal Party) Share this | Link to this | Hansard source

I'd like to acknowledge, along with the member for Spence, the member for Sturt and member for Adelaide, the great work that this government is doing to support AUKUS, which, of course, started under the coalition. I also acknowledge the initial $3.9 billion investment in the submarine construction yard at Osborne in South Australia, my home state, to deliver the infrastructure needed to build at least eight nuclear powered SSN AUKUS submarines here in Australia, which is a fantastic initiative. The South Australian Osborne Submarine Construction Yard will begin construction in 2030, and this will be the home of Australia's domestic submarine-building capabilities. The funding of $3.9 billion is the first stage towards $30 billion worth of work to get the yard up and running. And this is a good thing, because sovereign capability in Australia is extremely important, whether it's submarines, steelworks or making fertiliser. Right now, in the current fuel and fertiliser crisis, we're seeing what happens when we don't make stuff here. We must support AUKUS for the good of Australia and the safety of Australians and the broader Asia-Pacific region. AUKUS has wide-reaching impacts across Australia, not just in South Australia.

Sharon Claydon (Newcastle, Australian Labor Party) Share this | Link to this | Hansard source

Then the time allocated for this debate has now expired.