Keynote, Hunter Defence Conference

The Hunter Defence Conference is one of the first events to go into my calendar each year.

But I know the work of the Hunter Defence Taskforce isn’t just limited to this one event…

…it’s a year round endeavour, supporting the more than 10,000 people in the Hunter who work for Defence or defence industry.

So at the end of yet another successful conference, I want to take this opportunity to acknowledge the work of our host, Tim Owen, and his team at Hunter Defence.

As a cabinet minister I get to engage with regional groups across a wide range of different sectors from all around Australia.

And I can honestly tell you – without any bias of course! – that Hunter Defence is first rate at what it does…

…demonstrating the capability of the Hunter defence industry both within Australia and on the world stage.

So please join me in thanking Tim and the Hunter Defence team for all the work they do to keep the Hunter at the forefront of Australian defence industry.

It is almost a year to the day since I last addressed the Hunter Defence Conference.

I spoke then of the changing strategic environment…

…and the global picture has become even more fractious and complex in that time.

As has the nature of warfare itself, as reflected in your conference theme this year.

The pace of technological change is impacting defence forces around the world...

And Australia is not immune.

This means we must work even harder to accelerate the introduction of capability for the Australian Defence Force.

And we are doing exactly that.

I stood here this time last year and announced that the Government was investing $850 million to partner with Kongsberg Defence Australia to manufacture missiles at Williamtown from 2027.

And I’m pleased to confirm that the Williamtown missile factory is on track…

…and the Hunter will be producing Naval Strike Missiles for the Navy from 2027, to be followed by Joint Strike Missiles for the Air Force.

This is one of many critical steps we are taking to boost our sovereignty and self-reliance…

…helping to free us from the backlogs that plague overseas production lines.

But as the wars in the Middle East and Ukraine have showed, while missiles will remain a key feature of modern warfare…

…the threat from cheap, mass-produced weapons has been a revolution in contemporary military operations.

That’s why earlier this week I gave an important update on Project Land 156.

It’s our plan to rapidly acquire the capabilities we need to respond the threat posed by small uncrewed aerial systems – drones.

So it’s a timely subject given the theme of this conference.

And I will admit to being bemused at times by the narrative that has emerged – pushed along by some people in this room – that the Government is not responding to this threat.

Nothing could be further from the truth.

Defence went to market in February to acquire urgent initial quantities of dismounted counter drone sensors and effectors.

And four months later the first rolling-wave contracts were issued to 20 companies totalling $38.7 million…

...60 per cent of which is going to Australian companies like Droneshield, Daronmont, Silentium and SouthTech Systems.

Further counter-drone acquisitions will be announced in the coming months.

And by the end of the year, at least 120 of the most capable effectors and sensors from this pool of industry providers will be introduced into ADF service.

But that is just the beginning.

Defence is also in the final stages of evaluating tender responses for a counter-drone Systems Integration Partner.

This will provide the ADF with a command and control capability, as well as additional advanced counter-drone sensors and effectors in a rapidly changing technological landscape…

…and giving the ADF options to better protect Defence bases.

As you have heard over the past two days, the technology development cycle for drones is not measured in years, but in months.

Using a traditional procurement model would have risked these counter-drone technologies being obsolete before they entered service.

That’s why Defence adopted an innovative new contracting model for this project.

One that will allow us to be agile and move at the speed of the threat…

…to rapidly acquire and integrate the latest sensors and effectors as new threats emerge…

…to fail fast, and to stop using capabilities which are no longer effective.

Industry has been asking for this kind of approach, and Defence has listened.

Most importantly, this is all backed by an allocation of around $1.3 billion in the Defence Integrated Investment Program.

So this is a project I am particularly proud of. And we’ll have more to say soon.

It demonstrates we are not only learning the lessons from modern day conflicts…

…but it will serve as a blueprint for how we will deliver speed to capability in the future.

Rounding out our approach to missiles and counter-drone systems is our investment in drones themselves.

While we are very mindful of the rapid evolution of drone warfare…

…we must be wary of overcapitalising on technology that will quickly become obsolete.

Australia has a highly capable sovereign industrial capability in all aspects of autonomous systems.

But we have a very different strategic geography to the Ukraine and the Middle East.

We do not share a land border.

And we enjoy positive relationships with our neighbours throughout South East Asia and the Pacific.

This is not to minimise the threat – but to put it in context.

We need to learn the right lessons from current conflicts, and apply them to the geography of the Indo-Pacific.

This is all about ensuring the ADF can defend and protect Australia in the era of drone warfare.

That’s why we are investing more than $10 billion on drones, including at least $4.3 billion on uncrewed aerial systems.

Australian companies like SYPAQ, AMSL Aero, Grabba Technologies and Boresight are delivering capability to Defence right now.

And a range of drone capabilities have just recently been tested at Exercise Talisman Sabre to accelerate evaluation and delivery into the hands of the ADF.

I’m grateful to the Prime Minister for agreeing to my request to remain in the Defence Industry portfolio.

Many of you have heard me say that continuity in ministerial leadership is a good thing for industry.

In the nine years from 2013 to 2022, there were six Defence Ministers lasting an average of 18 months.

In contrast, by the end of this term, Richard Marles will be the longest serving Defence Minister since Sir James Killen in the 1970s.

And I will be the longest serving Minister for Defence Industry or Supply since 1950.

I don’t just say that as a talking point or to be self-serving.

Far from continuing to deliver the status quo, we need continuity in ministerial oversight of Defence to drive a reform agenda…

A reform agenda that sets Defence up for success to deliver on the commitments we have made.

To do that, the DPM and I have said that everything is on the table, including bureaucratic reform of the Department of Defence, of the Australian Defence Force, and of defence agencies.

We know from the Defence Strategic Review that Defence’s approach to capability acquisition was not fit for purpose…

…and while we’ve made real progress, I’m committed doing more to ensure Defence is set up for success.

Our primary role as a Government is to ensure Defence has the resources it needs to do its job.

We have been very clear on this issue.

Friends, the Prime Minister has said we will invest in the capabilities we need.

The conversation doesn’t start with the dollars – it starts with the capability.

That is why we have increased defence funding by $57 billion, the biggest increase in defence funding in peacetime since World War II.

We all have a role to play in giving Australians confidence that every dollar spent on Defence goes to improving the capability of the Australian Defence Force.

And we are making some important decisions about where to invest our defence dollar.

For example, this year the Government will consider the next steps for fielding a collaborative combat aircraft – the MQ-28 Ghost Bat.

Australia leads the world in this technology, and the Ghost Bat recently successfully completed its first interoperability demonstration with flying colours.

This would not be possible without the partnership between Boeing, the RAAF and Defence Science and Technology Group.

A partnership which was on full display during the recent test events at RAAF Base Tindal as part of Exercise Carlsbad.

We are now seeing first-hand how to protect our pilots in missions against airborne targets and, importantly, how these aircraft fit into a future force mix.

And contrary to some reports, Ghost Bat is not only capable of being armed, but a test firing is planned to take place in coming months.

We are incredibly excited by the progress of Ghost Bat, and even more so because Australian industry has played a huge role.

The Ghost Bat is the first Australian-designed, developed and manufactured military combat aircraft in half a century.

And it has already attracted interest from a number of international partners.

The Government is also accelerating the delivery of a larger and more lethal surface combatant fleet…

…working months ahead of schedule on the SEA3000 General Purpose Frigate Program.

Earlier this month, we announced the upgraded Japanese Mogami-class frigate has been identified as the preferred platform for the Navy’s future fleet of general purpose frigates to progress to the next stage of the procurement process.

Mitsubishi Heavy Industries’ Mogami-class was assessed as best able to quickly meet the capability requirements and strategic needs of the ADF.

This accelerated program will see the first three frigates built in Japan, with the first scheduled to be delivered to Australia in 2029 and operational in 2030.

That means, under the Albanese Government, the Navy will receive its first new surface combatant five years earlier than was planned when we came to office.

This decision reinforces the Government’s commitment to delivering capability at speed, and transforming the ADF into an integrated, focussed force.

I’d like to acknowledge the presence tonight of Takizawa-san, the Deputy Commissioner of the Japanese Acquisition, Technology and Logistics Agency (ATLA)…

…as well as visiting representatives from Mitsubishi Heavy Industries (MHI).

I’ve been really encouraged to hear how constructively MHI has already engaged with Australian defence industry on this project.

That includes visiting Hunter businesses this week including Varley, UGL and BAE Systems.

I know Tim (Owen) recently visited Japan to understand how Hunter businesses can play a role in this program, and he is very bullish about the opportunities for our region.

The Australian Defence Strategic Sales Office 

In an era of rising tensions, international industrial collaboration is critical to supporting the ADF’s capabilities and uplifting our own industrial capacity.

One area where the Government can play a key role is in supporting the export of Australian defence technology.

Exports enable industry to scale, and they support the long-term viability of production lines through access to new markets.

There is already great interest internationally in Australian defence science and innovation.

And often our domestic demand alone is not enough to sustain some of our production lines and the supply chains that support them.

To address this, the Government has established the Australian Defence Strategic Sales Office (ADSSO).

This is an idea that came directly out of feedback from industry.

Businesses wanted more targeted assistance on exports, above and beyond the existing support offered by Team Defence Australia at trade shows.

The ADSSO has been set up to go further than this…

…and to use the sovereign backing of the Commonwealth to sell Australian defence technology to trusted partners on a government to government basis.

It builds on the excellent work in 2023 to secure the $1 billion export of the Boxer Heavy Weapons Carrier to Germany – currently Australia’s largest ever defence export.

The ADSSO will be a joint endeavour between Defence, industry and other government agencies to maximise our competitive advantage.

Industry will have representatives embedded in the ADSSO, and the sales strategies will be jointly developed.

Our network of Defence Attachés and Advisers will also be mobilised to support these export campaigns.

The ADSSO will coordinate tailored support for industry to promote, negotiate and drive international sales of capabilities that are strategically important to Australia.

This is an important point – we can’t take this intensive approach to every defence export.

The ADSSO will be initially focused on supporting the export of five sovereign capabilities or production lines, including:

•    Bushmaster and Hawkei Protected Mobility Vehicles (Thales Australia – Bendigo);
•    Boxer Heavy Weapons Carrier (Rheinmetall Australia – Redbank);
•    AS9 Huntsman and Redback Infantry Fighting Vehicle (Hanwha Defence Australia – Avalon);
•    MQ-28 Ghost Bat (Boeing Defence Australia); and
•    Jindalee Operational Radar Network (JORN) (BAE Australia).

In particular, Over The Horizon Radar technology is of keen interest to a number of our close partners.

Australia and Canada are leveraging decades of research, development and operation based on Australia’s world-leading capability...

…in particular, 50 years of R&D by DSTG…

…and drawing on Canada’s expertise in operating high-frequency radars in the Arctic.

It opens the door to a potential significant export opportunity.

And we are working to support Boeing Defence Australia in advocating eventual export opportunities for the Ghost Bat.

Friends, the Hunter defence industry continues to do Australia proud.

With more than 120 defence businesses, the Hunter’s standing as the regional epicentre of defence manufacturing in NSW grows with each new project.

This isn’t just limited to our deep pedigree as an aerospace hub.

A good example is 3ME Technology, where I recently announced $3 million in support under the federal Government’s Industry Growth Program.

3ME is commercialising Battery Powered Transport Trailers, building on their work on the electric Bushmaster.

Martin-Baker Australia is delivering ejection seat training for PC-21 trainer aircraft for Lockheed Martin Australia.

Cardiff-based Nupress Group also recently secured a Defence Industry Development Grant of over $715,000 to support advanced manufacturing for the GWEO supply chain...  

… and has a contract with Kongsberg Defence Australia to manufacture and deliver mechanical components for the Naval Strike Missile.

Many local businesses will be supplying the Kongsberg missile factory.

As I said at the outset, Kongsberg is on track to start manufacturing missiles in the Hunter from 2027.

All up, this factory will inject $100 million into the local economy.

It will create more than 500 jobs in the construction phase and employ around 100 workers once complete.

Last year the Government added Kongsberg Defence Australia to the Global Supply Chain Program.

And I announced last week that Australian companies are now contributing to the export of missile launchers and command and control consoles to Poland, Spain and Denmark…

…under export deals worth $80 million.

This demonstrates the opportunities that are available to Hunter businesses once the missile factory is operational.

And I’m confident the Hunter will seize those opportunities.

Friends, I have covered a lot of ground tonight, but I know that these kinds of updates are critical to your own planning.

We intend to do more classified and unclassified briefings to continually strengthen our vital relationship with industry.

It is absolutely vital that Australia’s defence industry has a seat at the table as part of Australia’s national defence…

…so we that we can work together to give the brave men and women of the ADF the capabilities they need to protect Australia.

Thank you.