Radio Interview, Sky News Newsday

SUBJECTS: Mogami-class frigates being built for the Royal Australian Navy, transferring the production of the Mogami frigate to WA, Australia and Japan's defence relationship.

KIERAN GILBERT: The big news out of Canberra this morning, the government confirming that Japan's Mitsubishi Heavy Industries has been chosen to build the next generation, $10 billion worth of frontline warships for our military. I caught up with the Defence Industry Minister Pat Conroy. Defence Industry Minister Pat Conroy, great to have you on the program. Can you just tell our viewers why was this the right choice for our navy?

MINISTER FOR DEFENCE INDUSTRY, PAT CONROY: Well, we announced in 2024 the need to rapidly expand our navy and we have plans to more than double the surface combatant fleet for the Royal Australian Navy. We face really challenging strategic circumstances so speed capability was critical. We needed ships as fast as humanly possible as well as being really capable. And the Mogami-class frigate offered by Mitsubishi Heavy Industries was the clear winner on speed, on capability and cost.

KIERAN GILBERT: And delivered by 2029, in the water by 2030. Operational possibly?

MINISTER CONROY: Yes. First one delivered in 2029. Operational by 2030.

KIERAN GILBERT: Are you confident they can deliver on that time [indistinct]?

MINISTER CONROY: Very confident because there's an existing production line and this is one of the critical decisions we made. We wanted something that had an existing production line. The Japanese have already finished 11 of these. They're constructing their 12th right now before they move on to an upgraded model. They've allocated us production slots that were originally allocated to the Japanese Maritime Self Defence Force. Importantly, from our end no changes other than two. One, translating the combat management system into English and any changes required for seaworthiness Australian laws and even those have to be signed off by the Secretary and CDF of the department and myself and the Deputy Prime Minister.

KIERAN GILBERT: Just in broad terms as opposed to sort of military language. Most of our viewers would be well aware of Japan's technology and industry capacity. Does that give you reassurance their record, their history, their tradition of being so efficient when it comes to their heavy industry?

MINISTER CONROY: Oh absolutely. They're churning out these frigates already at I think two a year. This is one of if not the most advanced frigates in the world. It is a stealth frigate. It has the ability to fire 128 self defence, air defence missiles. Its range is 10,000 nautical miles compared to 6,000 for the Anzac. Importantly, even though it's almost twice the size, it's got a crew of 90 compared to 170 for the Anzac-class. So, fewer people on a bigger, more capable ship. This is a great day for the Royal Australian Navy.

KIERAN GILBERT: And for industry, they're going to build the Japanese will build the first few, then it moves to WA. How important is that in your view in terms of building Australia's industrial capacity here?

MINISTER CONROY: Well, the Albanese Labor government was the first government to commit to continuous naval shipbuilding in WA to complement what we're doing in Adelaide. It's important to have a steady drumbeat of work over there to build up a workforce. They build our navy. But secondly, repair and sustain and upgrade our navy. And transferring the Mogami production line to Henderson is a critical part of that. It [indistinct].

KIERAN GILBERT: Is there a chance that this just simply, as you say, it's the continual shipbuilding program, but that this frigate becomes a permanent construction capacity in Henderson?

MINISTER CONROY: Well, certainly our plan is to build eight in Henderson -

KIERAN GILBERT: To start with but can it grow from there.

MINISTER CONROY: Potentially, but we're talking in decades time. Henderson is already starting to, will begin construction to landing craft medium shortly and then landing craft heavy. That will then translate into Mogami. So, these are tens, sorry, 10,000 jobs in the WA economy and importantly, uplifting capability. And Australian workers are really skilled. They just need steady demand to provide that economies of scale.

KIERAN GILBERT: When you, when you look at the Hunter-class, you know it's been a debacle in many respects. The cost blowouts. Why, why should our viewers feel reassured that this will come in within that $10 billion envelope?

MINISTER CONROY: They should be reassured because we learn the lessons from the Coalition government stuffing up Hunter and a critical one is no changes. Well, sorry, not no changes, very little changes. So, translating the combat management system and the bare minimum required around Australian seaworthiness laws, other than that, no changes. Which means we're getting exactly what the Japanese are building right now for their own Maritime Self Defence Force. And that was the key driver of so much issues with the Hunter was the last government kept chopping and changing the design, which added billions of dollars to the cost and delayed the capability.

KIERAN GILBERT: The Japanese constitution since World War II has restricted their military, their expenditure in defence. That's changed in recent years. And becoming an exporter as well of military capacity. Where does this fit in that process? Is this the biggest export deal they've done since they've broadened their approach when it comes to their own military and military industry.

MINISTER CONROY: It's certainly amongst the biggest, and potentially it is the biggest export they've ever provided to anywhere in the world. And it signals a strategic realignment in Japan. Importantly, as the DPM made this point in a press conference, there are no two countries who have greater strategic alignment in our region than Japan and Australia.

KIERAN GILBERT. So, it's important, given that alignment, that we show support for their industry as well.

MINISTER CONROY: Well, I think it's the other way. It's a happy coincidence. We made the decision on the Mogami based on cost, capability and schedule. But obviously the strategic alignment is a bonus and that those industrial opportunities is something we're intent on pursuing.

KIERAN GILBERT: I noticed the ambassador pointed out that there are a dozen other major Japanese companies that will invest in in Australia. Can you explain that to us off the back of the deal with Mitsubishi Heavy industries? There are 12 more companies going to invest. Where, how and when do they do that?

MINISTER CONROY: Well, a critical part of this announcement is to transfer production to Australia to build out that workforce and company ecosystem in WA. So, we would expect companies associated with the build in Japan to to come over to Australia and employ Australians, but also Australian companies to win work in the Australian production. So, it will be a combination of those. But this isn't the only cooperation we're doing. Japanese companies are already working with the Defence Science and Technology Group on advanced technologies and we've been in discussion about other capabilities. So, it's not all one way. We're hopeful that we can sell Australian defence products to Japan. We've got some great capabilities that we're talking to them about. And you'll see more of this into the future.

KIERAN GILBERT: This week marks the 80th anniversary of the bombing of Hiroshima and Nagasaki. It's quite an extraordinary coincidence the way history works, the way our relationship with that country has evolved over the last eight decades. And I know that precedes your and yours in my time covering and being within government, but it's an extraordinary evolution of the Japan-Australia relationship now that they are one of our closest allies, not just in the region, but in the world.

MINISTER CONROY: Oh, absolutely. It's a remarkable transformational relationship and I pay tribute to governments of both persuasions who've put work into that and founded willing partners in Japan. From Menzies opening up the trade relationship in the 1950s to the Hawke government negotiating those landmark energy deals that gave energy security to Japan and led to a huge boom, particularly in Western Australia. We've worked very hard at this and we've had recent exercises between the Australian Army, US Marines and the Japanese Self Defence Force. So, think about that. These three countries whose armed forces were fighting each other 80 years ago are now working very closely together.

KIERAN GILBERT: There'd be some of those ANZAC diggers who would find it hard to believe where we are today.

MINISTER CONROY: Yeah, but Japan is a modern liberal democracy. It's one of the biggest democracies in our region. Their values are very similar to ours and we're both committed to an international rules based order in Indo Pacific which is under challenged a lot at the moment.

KIERAN GILBERT: And it didn't take long, did it, for the Japanese to be able to shift that industry capacity or industrial and technology prowess into enhancing its, its military production? It doesn't - it wouldn't take a country of that advanced capacity long to shift.

MINISTER CONROY: Not at all. They have one of the most advanced economies in the world. Their, their technology sector is world's best amongst the world's best. So, to move into the defence industry was relatively easy for them and it's something they've been focused on for a long time now.

KIERAN GILBERT: I know you've got to get going, but what's the message to China, then, out of this?

MINISTER CONROY: Well, I wouldn't talk about a message to any particular country, but I finished my remarks by saying this decision today makes Australia safer. It gives reassurance to our allies and gives greater deterrence to any potential adversary. We are acquiring 11 of the most advanced stealth frigates in the world that will make our navy more lethal and bigger. And that's a good day for Australia.

KIERAN GILBERT: Defence Industry Minister Pat Conroy. Appreciate your time. Thanks.

MINISTER CONROY: My pleasure.

ENDS

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