Australian Industry Group

Thank you Innes for your kind invitation, and to Greg Barsby and Paul Chase, Co-Chairs of the Defence Council at AIG. 

And thank you for organising this event tonight and hosting an important conversation.

Let me start with the global context… There is a strategic contest that is underway. 

And our region is at the centre of this context. It is in our national interest to ensure there is a rules-based order, international rule of law.

And for countries to abide by rules around trade and the security framework.

Because our prosperity is dependent on all of these things.

We no longer face the benign world of the 1990s - the strategic calculus has changed dramatically. Things are more volatile. 

And we will not have the luxury of long lead time warning us of oncoming conflict. 

Our potential adversaries are already arming themselves. The work is being done now to provide credible deterrence.

Since our first day in Government, we’ve worked hard toward making Australia stronger in the world and safer at home.

All of this diplomatic and defence work is aligned with the propping up of the international rules-based order…

What is it? Why do we need it?

Must evolve the rules-based order to be inclusive of our partners – to own it, to protect it. 

The main tool we have – alongside the fulcrum of middle powers - is deterrence.

What is Collective Deterrence? 

Includes Defence, intelligence, cyber, diplomacy, and development. 

The tools of statecraft work together/in tandem.

Our defence capability is about enhancing deterrence and avoiding conflict.

The more we strengthen and enhance our defence capability.

The more we can build global collective deterrence.

Which lessens the possibility of the factors that may lead to conflict and safeguards the liberal rules based order, our security, stability and prosperity. 

The greater your defence capability, the less likely adversaries are going to use force to change their strategic circumstance to their advantage.

And deterrence is delivered through an investment in defence. 

And with all the breathless hyperbole about defence spending, that facts are we’ve allocated an additional $70 billion into our defence spend.

Because to put it plainly, investing in our defence development assistance, our diplomacy, as well as our defence – or the three D’s as I like to call it – is critical. 

I cannot stress enough how crucial it is for Australia to strategically engage, to play a part in shaping the security and trade frameworks, as well as building and rebuilding our unilateral architecture in our region and across the world.

You have the opportunity to shape the world we live in. Shape the Indo-Pacific. 

The success of Australia’s Defence capability, and therefore our deterrence, is not only for government. We need industry’s help. You’re all part of this broader strategic objective. 

The defence industry has a direct a role to play in giving Australians confidence that every dollar spent on Defence goes to improving the capability of the Australian Defence Force.

Our Government is 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.

This would not have been possible without the partnership between industry, the RAAF and Defence Science and Technology Group.

It is absolutely vital that Australia’s defence industry has a seat at the table as part of Australia’s national defence so that we can work together to give the ADF the capabilities they need and combat supply chain issues that arise.

AUKUS – trilateral security and technology-sharing arrangement that is beneficial to all nations. 

There is no doubt that the Nuclear-Powered Submarine Program is also the most significant industrial and technical endeavour in Australian history. 

The program will deliver a major boost to Australian industry, jobs, infrastructure and our defence capability to keep Australians safe.

And our Government is putting our money where our mouth is. 

For example, the $25 billion investment in Henderson Defence Precinct and other Australian shipbuilding will support 10,000 direct jobs over the next two decades as well as providing opportunities for small and medium sized businesses across the country.

The Government’s investment will underpin the delivery of: 

• The construction of surface vessels for the Australian Defence Force, starting with Army's Landing Craft and, pending successful consolidation, the domestic build element of Australia's future general purpose frigates;
  • Facilities to support the sustainment of Australia's surface combatant vessels;
  • Contingency docking capabilities for Australia's future conventionally-armed, nuclear­ powered submarine fleet from the early 2030s; and
  • Depot-level maintenance, including graving docks.

Progressing these capabilities will be critical for Australia's delivery of the AUKUS pathway and ensure Australia is ready to receive its first Virginia class submarine in the early 2030s.

But AUKUS is more than just submarines.

Warfare has changed dramatically in recent years. We no longer think just about conflict by air, land and sea, but also in the realms of space and cyber. 

Each week we’re seeing news headlines about the impacts of cyber-attacks on critical infrastructure and against private enterprises. 

On the battlefield, we are seeing the use of digital technologies to reduce the latency between sensors and shooters.

And in cyberspace, Australia is being targeted by both financially motivated criminal groups, and by state-sponsored adversaries. 

Forums like todays are key to zoning in on the issues that impact both the challenges and opportunities ahead.

Technology is evolving rapidly, but so are we.

Guiding us in this space, is the Defence Digital Strategy and Roadmap. This live plan is shaping how we will deliver mission-capable information technology for Defence.

This is part of our ambitious digital strategy to find, employ and deploy the best people, using the best technology available, while building strong partnerships with industry to strengthen our sovereign capabilities. 

Notably, I’d like to highlight AUKUS Pillar 2.

The fundamental purpose of Pillar 2 is to convert best-of-breed technology from all three countries into timely, relevant military capabilities.

As many here may know, this has a massive scope, spanning technological, commercial, and communication spheres with game-changing strategic opportunities.

For example, we are developing and deploying AUKUS advanced AI algorithms on the P-8A Maritime Patrol Aircraft – allowing us to process data from each nation’s sonobuoys, assisting our anti-submarine operators to detect submarines faster. 

AI & Autonomy are already dominating the broader technological and social debates, and these technologies provide a large range of opportunities for our defence force and partners.

At Talisman Sabre 2025, AUKUS AI models were deployed onto autonomous air, land, and sea platforms and used to disrupt amphibious landings in Shoalwater Bay. This was the first time AUKUS AI and autonomous technologies were placed under the direction of a military command.

Innovation is one of the key pillars of the AUKUS alliance, with accelerated defence innovation and integration of commercial technology critical to achieving our strategic goals. And that’s what we’re achieving.

There has been substantial progress on AUKUS Pillar I and Pillar II. 

This is not just about jobs. Public strategic debate is needed for social license. Why are we doing what we’re doing? 

It promises not only access to cutting-edge technologies but also the integration of Australian, US, and UK military forces. 

And a joint commitment to democracy as a governance model, a model increasingly under threat in the contest with authoritarianism 

Thank you for your support of Australia’s Defence capabilities, we wouldn’t be able to bring these capabilities online without our sovereign Defence industry. Those of you in this room tonight. 

Our defence capabilities rely on our defence industry. Our ability to effectively deter our potential adversaries, and support the international rules-based order. 

I’d now like to open for questions.