Radio Interview, ABC News Breakfast

SUBJECTS: Sexual violence in ADF; defence reforms; defence exports

Bridget Brennan: To politics now, because a landmark inquiry into sexual violence in the Australian Defence Force will be announced. Defence Industry Minister Pat Conroy joins us now from Newcastle. Good morning, Minister, and thanks for joining us on News Breakfast.

Pat Conroy: My pleasure.

Brennan: This inquiry will be a really long time coming, won't it, for servicewomen who've alleged abuse or harassment within Defence?

Conroy: Well, I think that will be a key part of Minister Keogh's address to the National Press Club. I want to pay tribute to the leadership of Minister Keogh, the Minister for Defence Personnel and Veterans in really responding to the Royal Commission into veteran suicide. It was a Royal Commission that we called for prior to the change of government and we're getting on with implementing it. And I'm looking forward to Minister Keogh updating the Australian people at his press club address later today.

Brennan: I think there'd be a lot of, a lot of people within Defence perhaps who've lost mates or have alleged abuse or a very challenging culture within Defence that would question why it has taken so long to have a full response to that Royal Commission.

Conroy: Well, we've been working through the recommendations in a systematic way. Lots of the recommendations have either been implemented or are in a good state of implementation, and that's important. We put our money where our mouth is. We've increased funding to the Department of Veterans' Affairs. One of the key issues was when we came to power, we found that the last government had slashed staff, billions of dollars in backlogs of claims and that was leading to huge distress for veterans who served and deserve to be treated well by the government of the day. They weren't getting that under the Liberals. And under us, we're seeing record numbers of processing of DVA claims. And that's a tribute to Minister Keogh. It's a tribute to our finance minister and treasurer and a tribute to the prime minister, who've applied those resources so that our veterans get what they're entitled to. They've served our country and they deserve to be treated fairly and equitably.

Brennan: The concerns of some women who've served within Defence, do you think there are persistent cultural issues within Defence that really inhibit victims and survivors coming forward?

Conroy: Well, we've seen some very distressing claims, make no doubt about it. And we are really intent on improving the culture of the organisation so that people's claims are treated seriously, with due respect, and that people can feel like they're part of an organisation that values them. And that's really critical. And that's what Minister Keogh will go to today.

Brennan: Let's talk about some of the overhauls planned for Defence in the coming years, including taking responsibility away from the department in terms of procurement and some decisions on big equipment and acquisitions. Why is this happening and is this an acknowledgment from the government that some poor decisions have been made?

Conroy: This is an acknowledgment that mistakes were made in the past, particularly under the last government that abolished the Defence's project management organisation and slashed thousands of staff members, which led to massive performance issues. When we came into power, we inherited 28 projects running 97 years late. We saw challenges with projects like the Hunter class that we're well on the way to fixing. So, this is about an independent agency that controls its own budget, that reports directly to the minister for defence and the minister for defence industry, ensuring that we've got a great project management agency that will do the most complex acquisitions that this country does, which is around defence. It's also about providing contestability so that when Defence puts up proposals to ministers, this agency will say, yes, this is industrially realistic, commercially realistic, we can deliver this, and then they get on with delivering these capabilities. So, this is all about bang for buck, better bang for buck for the record investment we're making in the defence budget, but also ensuring that we get the equipment to the Australian Defence Force as soon as possible to defend our nation.

Brennan: So, is there likely to be some disagreement between the department and then the new agency that will report directly to the minister? This is quite a large change. And will there be any positions cut at that high level?

Conroy: As we said, there will be no job losses. What we've been focused on is having a capable project management agency that can deliver equipment. Once government decides that we're going to get X or Y for the Australian Defence Force, then effectively the National Armaments Director, as the leader of this agency and his or her team will get on with delivering it. But we do want some contestability. Often one of the challenges we've seen in Defence is proposals put to ministers that haven't been as commercially realistic as they could be. So, having a dedicated stream of people who have strong industrial and commercial expertise, providing that advice will improve the submissions that go to government and then they can get on with delivering the job. The other thing is this will impose greater change, discipline. What we saw under the last government, particularly with projects like the Hunter class frigate, is that they kept changing the design of the project after decisions were made. And anyone who's built a house knows if you make changes after you've signed a contract with your builder, that adds schedule and it adds massive cost. So, having an independent agency that says no government's asked us to get this, that's what we're going to do. Rather than being subject to changes because a mid level official in the Department of Defence thinks something looks bright and beautiful.

Brennan: Interesting. What about what's going on in terms of our exports overseas? Because human rights organisations say the Department of Defence is reported to have written to arms manufacturers earlier last month outlining new restrictions on exports to Israel. Did that happen?

Conroy: There's been no changes to our policy around exports to Israel. The only export licences that are being approved are for Australian Defence Force equipment that's either being made in Israel to supply to the ADF or equipment being repaired or upgraded. They're the only licences being approved. Anyone who's saying otherwise is lying. Importantly, that's just one small part of what we do around the world. We've just signed last year the biggest export deal in the history of the country, a defence export deal to supply combat reconnaissance vehicles to Germany. That's worth billions of dollars. That's employing thousands of people in Brisbane. We've just announced an even bigger deal to supply radar technology to Canada. These are good paying, secure jobs that make Australia safer as well as providing export revenue to the country. Our policy on Israel is clear. The only new licences being approved is for ADF equipment to be supplied to Australia or for repairs or upgrade. We're being very conscious of that.

Brennan: All right, Pat Conroy, thanks for your time on the program this morning.