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The Hon Peter Khalil MP
Assistant Minister for Defence
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24 February 2026
SUBJECTS: Cairns Common User Facility; $250 million upgrade to HMAS Cairns; Illegal Fishing; Border Protection
CHARLIE MCKILLOP [HOST]: If there was ever a time for Cairns and Far North Queensland to be on the front foot, it is right now. The rise and rise of China in the Pacific, the uncertainty around the United States and what President Trump will do next, and right on our doorstep, the almost daily incursion, and we've just heard about two more in our local news bulletin, illegal fishing boats. It's all highlighting yet again the strategic importance of HMAS Cairns and our region.
And yet the Australian Government's commitment to Defence in our region is being questioned on a couple of fronts, firstly by Torres Strait leaders, as you heard yesterday on the program who are tired of being told that they're the front and centre of our border security and yet not being given a seat at the table about how those security needs are met, and also by industry leaders who have been left disappointed and a little bewildered at the much touted Common User Facility on the Cairns border front, which has stalled and is seemingly at an impasse.
What is going on with the CUF, as the Common User Facility is known, and the Defence spending priorities more generally for our region? Well, the Assistant Defence Minister here is to tell you all about that. Peter Khalil is in Cairns today, heading down to HMAS Cairns just after speaking with you right here on ABC Far North. Assistant Minister, good morning.
ASSISTANT MINISTER FOR DEFENCE PETER KHALIL: Morning, Charlie.
MCKILLOP: You could tell us perhaps some in ‑ it wasn't that long ago before the federal election, before the more recent state election, when the multi‑million dollar CUF was at the top of the list of infrastructure projects that were going to breathe new life and jobs into our regional economy. What happened?
KHALIL: Well, it's a good question. I’m actually here, first of all, to visit HMAS Cairns and the $250 million that Defence has actually invested in the new wharf up at HMAS Cairns, which is going to allow the Royal Australian Navy's Arafura‑class offshore patrol vessels to be berthed there, so not just two, it's going to be expanded to five, it's going to go to a 212 metre long wharf, which is fantastic there, and there's also a shared user facility with cadets and the ADF which is complete as well, which has got, you know, accommodation for cadets and the ADF as well as training facilities, which is fantastic. So that's a $250 million investment.
MCKILLOP: And how's it going, how's it going, the wharf, sorry?
KHALIL: The wharf's about 60 per cent complete, so there's a lot of progress there, and once it is complete it will allow, as I said, five of the patrol vessels to berth there, and other vessels, by the way, not just the Arafura‑class, there will be other vessels will be able to berth there as well as some of our partners' vessels from the Indo‑Pacific as well, important partnerships.
MCKILLOP: That's great, so can we just confirm then, does that mean that the new offshore patrol vessels are going to be based here in Cairns? That would be great news if you're going to announce that.
KHALIL: Well, there's a lot of review around the number of vessels that are going to be berthed here, and whether they're permanent and so on, but I'm just letting you know that the wharf itself…
MCKILLOP: We've got the capability.
KHALIL: Exactly, the new wharf has the capability, so that's good news, good progress. But just before I go to the CUF, as you call it, which is separate to Defence, it's in Infrastructure, as you know, this point that you made earlier about the investment in the north, in fact the Albanese Government has actually invested $2.8 billion in bases across Northern Australia, because we understand the strategic importance, the operational importance of our base infrastructure up north. $2.8 billion. We're going to be spending 14 to $18 billion over the next decade, largely in the north to strengthen our northern bases, or all in the north, that's the $18 billion in the north, and that is really critical for our operational strategic challenges that we face, but also good for the local economy. Like even on the wharf, the $250 million that we've invested in rebuilding a new wharf, or building a new wharf, some $68 million has gone to local subcontractors as well. So it's great for the Cairns economy. On the CUF, which is what you opened up, with, Charlie. So first of all, as the Deputy Prime Minister said, I think he was on your program a while back, we, the Federal Government, have made a commitment, we put on the table $180 million. The ball is in the court of the State Government. They've matched that commitment, it's time for them to move on that. We're ready to go, we've provided our commitment of $180 million, and I understand, you know, this is actually quite important, as you pointed out, this Common User Facility, because the port's going gang‑busters as people know. That lift capability that we're investing in, that we put 180 million to invest in that new lift capability that will allow ‑ I'm not a technical expert on this part of it, because it's an Infrastructure thing, this is not Defence spending, it's Infrastructure ‑ but it will allow the ability to lift much heavier containers, you won't have to ship things ‑ sorry, you won't have to drive things down the Bruce to get to Cairns, it will come straight through to the port instead of going to the other ports. So that's great for the Cairns economy and the Cairns community, and it's great for, you know, jobs as well.
MCKILLOP: And it's great that the Commonwealth has put up the $180 million, and I fully acknowledge that the ball is in the court of the Queensland Government to match that. But you are the Assistant Defence Minister. The Defence Department, your Australian Army, your Royal Australian Navy are potentially going to be ‑‑
KHALIL: Don't forget the RAAF.
MCKILLOP: Well, I don't think they're going to be landing at the Common User Facility.
PETER KHALIL: No, no, that's true.
MCKILLOP: But I was talking about the fact that your boats are going to potentially be the biggest user and beneficiary of that ship lift. The industry needs to hear that, it needs to hear from the Department of Defence about the fact that it is ready to base these boats that you've talked about being under review in Cairns; it needs to provide the impetus and basically the confidence in this project to get the Queensland Government moving first and foremost but also the private investment.
KHALIL: Let's not conflate the two different things, because the wharf is one thing, which is what we've committed $250 million, it's almost 60 per cent complete, that wharf is replacing the old wharf.
MCKILLOP: No, but I'm talking about the maintenance of those vessels that would happen at the Common User Facility.
KHALIL: Yep.
MCKILLOP: And they need the commitment about the offshore vessels, about the hydrographic ships. What are we going to do about the hydrographic ships, because we're decommissioning the Leeuwin, that's going to be gone next year, it's the second ship on top of a whole handful of smaller catamarans that are no longer on the job. Where will that capability come from in the future?
KHALIL: Look, with the entirety of the Cairns Marine Precinct, as I said, Charlie, the Commonwealth has made a commitment of $180 million, that's a significant commitment. That's coming out of Infrastructure, because we recognise the importance of the infrastructure development that you've just articulated there quite eloquently, and what it means for all of those efforts, if you like, those lines of effort around the ships, the berthing, the maintenance, and so on. So $180 million is no, you know, small drop in the bucket, it's a significant commitment that we've made. We are ready and waiting for the Queensland Government, which has also matched that commitment, to get moving on that, and my understanding is that they've got all the discussions they're having with Ports North to review and confirm their scope, and all of the work that they're doing, the economic modelling and the delivery timetable. We're waiting for the Queensland Government to get on with it, get on with the job. That money's on the table, it's ready to be invested, and we'll do the work that's necessary to go to what you were talking about, the improvements that are necessary.
MCKILLOP: That is essentially what the Defence Minister told me six months ago. I'm just wondering, are there any of your bureaucrats behind the scenes, you know, having some very frank conversations with their state counterparts to get that happening?
KHALIL: Yes. I think there's a lot of discussions happening at the officials level, there's been a lot of discussion ‑ I got briefed that there's some discussion happening obviously between the State Government and the Commonwealth on this, you know, to move this forward, but again, as we said, we've put the money down on the table.
MCKILLOP: Okay. You are hearing right now from the Assistant Defence Minister, and his name is Peter Khalil. Have I got that right, Khalil or Khalil?
KHALIL: Khalil is fine.
MCKILLOP: Khalil will do.
KHALIL: Yep.
MCKILLOP: Great. Thank you for that, before we go any further. Now we talked about the Common User Facility and the maintenance contracts that we hope that will come from that. Let's talk about border security, because that has been at the forefront of a conversation since the beginning of the year, our poorest borders which we know are and can be vulnerable, have shown to be so, and we were just hearing in our local news bulletin, we're now up to 15 illegal fishing boats that are taking advantage of what they obviously see as a weakness there. Border Force has been able to intercept these two boats on Friday, they've brought them back to Thursday Island. Look, I just wonder, you know, there are calls around the Torres Strait for the Federal Government to get serious about shutting off that pathway. Closing the door, to use a different analogy. Wouldn't a few big grey boats up there help bolster the ABF's efforts in this regard?
KHALIL: Completely agree with you. I think the importance of border security, as we know, as Queenslanders know ‑ certainly up in Far North Queensland, the integrity of our borders is critical, our sovereignty, our economy, making sure that there is real tight, you know, security around illegal fishing. Now my understanding is that Operation Broadstaff was launched earlier this year has already intercepted 10 illegal and seized and intercepted them just in January, 10 boats, and there's more ‑‑
MCKILLOP: Yep, we're now at 15.
KHALIL: …now at 15, you've updated, well done.
MCKILLOP: They've been kept busy.
KHALIL: Matt Smith, who's the local member for Leichhardt, was quite instrumental in this, he did a lot of work, he's very committed to this and got to give him credit. I should say that the Assistant Minister for Immigration and Border Security, I think, Home Affairs, Julian Hill, will be up here soon as well, I think on Friday, he might ‑ you might have to convince him to come and talk to you directly as well, Charlie, and he's going to be updating and meeting with stakeholders up north there, and Australian Border Force officials about the work that's being done and needs to be done with respect to progress around seizing ‑ intercepting and seizing these illegal vessels, so I don't want to pre‑empt his trip and what he's going to be doing. But I think the message remains clear, you know, if people hear, if they see anything suspicious, if they note it, let Border Force know, because that is also a part of the process, the helpful process for our Border Force officials and security officials to be able to do their job.
MCKILLOP: But isn't this the time for a whole‑of‑government response? Does it matter if it's ABF, AFMA, or the Australian Navy that comes calling and turns these boats around?
KHALIL: Yeah, look, all those operational details, Charlie, as you can imagine, you know, there's a lot of work being done, and I don't want to pre‑empt Minister Hill's announcements or what he's going to be updating the local community on with respect to Operation Broadstaff, but obviously there's lots of lines of effort that come from the different elements that you talk about, and in the past we have coordinated quite well, the ADF with Border Force, and so on, to do some of this work, and again, as I said, Minister Hill will update stakeholders on what the progress is and what's going to be happening going forward, but it's certainly a ‑ they're cognisant, and really clearly quite obvious the work that needs to be done, and that's why we're putting such a commitment to it.
MCKILLOP: So that's a no from the Assistant Defence Minister?
KHALIL: No, I didn't say that.
MCKILLOP: No for the Navy?
KHALIL: I didn't say that, I said that Minister Hill will be updating what the progress will be with respect to the lines of operation and how that works. Suffice to say, I think it's important to note that there is a real clear objective and understanding, and an objective to ensure that we maintain the integrity of the borders up north for our economic prosperity.
MCKILLOP: Assistant Defence Minister Peter Khalil, enjoy your day at Cairns, HMAS Cairns.
KHALIL: Thank you, I'm looking forward to it, very exciting.
MCKILLOP: I'm glad that you didn't bother wearing a tie.
KHALIL: No, Far North Queensland, no one wears a tie up here.
MCKILLOP: Absolutely correct, you've got the dress code just down pat. Thank you, Minister.
ENDS