The defence industry today welcomes key funding for Defence industry outlined in yesterday’s Federal Budget. They said the focus can now shift to looking at the most effective way of delivering substantial benefits for Australia’s Defence capability.
The $90 billion allocated to Australia’s shipbuilding industry by the Federal Government, coupled with a further $1.6 billion until 2026 for Defence industry initiatives puts Australia on strong footing to build and develop our domestic capabilities.
“The Government has made an important commitment to a strong and supported defence industry with a key focus on innovation and development, now we need to look at how to best deliver on these commitments,” said Mr Burns.
“This budget backs up the measures outlined in the 2016 Defence White Paper and the crucial announcement that Australia’s fleet of twelve submarines will be built in Australia by Australians.”
The Federal Budget allocated $1.6 billion over the next decade to roll out:
- The Centre for Defence Industry Capability to promote greater collaboration between Defence and industry.
- The Next Generation Technologies Fund for research into emerging technologies
- A Defence Innovation Hub to bring together different Defence programs and enable greater collaboration.
“These three initiatives will ensure industry, Defence and government can work together and deliver the best outcomes for our local capabilities,” said Mr Burns.
“It is very good news not only for our Defence capability but for local jobs and the local economy that the Government has now committed to a continuous local build of our naval ships. The future is at last looking brighter for Australian shipbuilding.
“We now need to start having a conversation about how we are going to best deliver on the commitment to build our ships on shores.
“The Government is moving away from the one-off project approach to defence acquisition – which is positive for industry. We also support the Government’s commitment to a national naval shipbuilding strategy.
“We need to consolidate on this momentum and develop a long term shipbuilding plan, covering naval and non-naval government vessels, which will further promote and build our local capabilities, innovation and, ultimately, make Australia globally competitive.
“A long term shipbuilding plan led by an independent National Shipbuilding Authority comprising all stakeholders, will secure work well into the future – past the OPV and Future Frigate programs – and take the politics out of shipbuilding once and for all.
“We fully support the Government’s commitment to a continuous build strategy and look forward to working with them to delivering on these promises,” said Mr Burns.
