Press Conference, Sydney

SUBJECTS: Exercise Kakadu; Fleet Review; Middle East Conflict; Fuel Supply; AUKUS; Defence Spending. 

RICHARD MARLES, DEPUTY PRIME MINISTER: Well, welcome everyone. It is fantastic to be here aboard HMAS Canberra and to be here with Vice Admiral Mark Hammond, the Chief of Navy. Today we will be witnessing the biggest review in Sydney Harbour in more than a decade. In addition to Australia, there are 18 other partner nations who have vessels in Sydney Harbour today. And this is all part of Exercise Kakadu, a biennial exercise that is the major maritime exercise that the Royal Australian Navy does, but when it happens, it is the biggest maritime exercise in the southern hemisphere. This year’s edition of Exercise Kakadu will encompass everywhere from Jervis Bay right through to Darwin, so it is the largest geographic area over which this exercise will ever have occurred. There will be 6,000 serving men and women who will be participating in the exercise, so it is a major exercise which is occurring for the Royal Australian Navy and as I said, it is a fundamentally important event in terms of exercising our Navy, exercising our Defence Force and making sure that we are at the very peak of readiness. 

In terms of the countries who are here, we have all of our Five Eyes partners; the United States, the UK, Canada, New Zealand. Japan is here. In fact, I think over my right shoulder we have Mogami class vessel which is really exciting given that is the same class of vessel we will now be acquiring from Japan, from Mitsubishi Heavy Industries, to be our new General Purpose Frigate. We have India here, we have countries from Southeast Asia; Indonesia, Philippines, Singapore. For the first time, we have a ship from Vietnam. And this is also the biggest congregation of Guardian Class Patrol vessels, indeed any form of patrol vessels from the countries of the Pacific here in Sydney Harbour. And so we are very excited about that as well. As I said today, and this Fleet Review marks the 125th anniversary of naval service for Australia and we are very excited to be a part of that. 

Before finishing, can I just say one word in respect of Tropical Cyclone Narelle. Right now, it is in the Gulf of Carpentaria. Our thoughts are very much with the communities of Far North Queensland and the Northern Territory that are being impacted by the cyclone. I really want to thank all of the first responders in the work that they've done and that very much includes the serving men and women of the Australian Defence Force who have been very active in assisting in this event.

VICE ADMIRAL MARK HAMMOND, CHIEF OF NAVY: Good afternoon everyone. It is an honour and a privilege to be commemorating 125 years of naval service through the vehicle of Exercise Kakadu. This is the first time we've brought Kakadu participants here to Sydney Harbour and as you can see behind me, the entry this morning was pretty spectacular. But what the participants are particularly looking forward to is the opportunity to exercise everything from disaster relief and constabulary operations, right up to the higher end of warfighting skills that we need to practice with our allies and partners. 125 years of naval service commenced in March of 1901 with the establishment of the Commonwealth Naval Force and our brothers and sisters in the Army with the establishment of the Commonwealth Military Force. We've been through a few birthdays – 1911 we were conferred with the title Royal Australian Navy from His Majesty the King, and then in 1913 we witnessed the arrival of the first fleet unit here in Sydney Harbour. So, this is an ideal place to commemorate all of that service, all of the service men and women who have stood the watch before us, and to pay a nod to those who will serve in the future fleet in ships such as the Mogami class frigate behind us. Thank you.

JOURNALIST: Minister, we're told that this Fleet Review is a visual representation of Australia's friends, those who are here. What does it say that our largest trading partner, China, isn’t here?

MARLES: Firstly, the Fleet Review today reflects the participants of Exercise Kakadu and as I say, it is our largest maritime naval exercise. We've not exercised, in terms of Kakadu, with China and so those who are here present today are a reflection of those that are participating in the exercise. 

JOURNALIST: Was China invited?

MARLES: We do our exercises and they were not invited to that exercise. But those who are present today as part of this review are the countries that are participating in the exercise because it's being done in conjunction with Kakadu.

JOURNALIST: Donald Trump has somewhat dumped you in it by saying Australia was asked to participate in the current conflict in the Middle East and that we refused. What did the United States request and what did we deny?

MARLES: So as I’ve previously said, the United States has requested support from Australia in terms of providing defence to the states of the Gulf. Now, in response to a request from the United Arab Emirates, we currently have an E7 Wedgetail in the Gulf doing work and that very much supports the defensive efforts which the United States was seeking. We obviously are providing a number of AMRAAMs to the UAE as part of their request as well. So we are very much engaged in the effort of defending the states of the Gulf and that was the context in which there had been a request from other countries, including the United States–

JOURNALIST: Did they ask for a warship?

MARLES: In respect of the Straits of Hormuz, we do not have a request from the United States in respect of that. As you are aware, there is a British‑led statement which Australia has signed, and we are providing assistance in the form of the E7, and we will very much want to see the Straits of Hormuz opened and we will work with our friends and partners in accordance with that statement. We've not had a request from the United States in respect of the Straits of Hormuz. 

JOURNALIST: Is there an issue with our vessels in regards to attacks, if they were involved in Hormuz? Is that a problem? 

MARLES: Say that again. 

JOURNALIST: Are our vessels exposed to drone attacks? Is that an issue? 

MARLES: Well we don’t have vessels there. 

JOURNALIST: But if they were, Minister, is that an issue? 

MARLES: I mean, that’s not the issue in respect of how we’re responding to this. I mean, I reiterate the fact that we have an E7 Wedgetail in the Gulf right now. It is a very significant commitment and it is making a significant contribution in respect of the defence of the Gulf states. So we understand the circumstances that are prevailing here. As I say, we have signed on to this statement and we will work with our friends and allies in respect of it. 

JOURNALIST: Are you open to such a request if that was to come from the US?  

MARLES: Well, I mean I’m not going to speculate about what may or may not– I’ll start again– I’m going to speculate about what may or may not happen. We don’t have a request from the United States. What we do have is a UK-led statement in respect of the Strait of Hormuz, which we have signed.  

JOURNALIST: Does the Navy have capacity to help?  

MARLES: The Navy is highly capable. That’s not the issue. There is a UK-led statement which we have signed. We are providing significant assistance in the Gulf right now in the form of the E7, which is providing support for the defence of the Gulf states. 

JOURNALIST: We are seeing drones increasingly used in wars in Ukraine, now in Iran.  What defences do our naval ships have against drone attack?  

MARLES: Well it is right to say that drones and autonomous platforms are an increasing part of conflict and you’re right to point out that we’ve seen that in the war in Ukraine and also what’s played out in the Middle East. Firstly, we have invested heavily ourselves in automated systems and we are really, in the larger end of autonomous platforms, leading the world. Right here last year, we announced our expenditure on Ghost Shark for example and we’re working on Ghost Bat and both of those are autonomous systems at the larger end. And our– you know, in the defensive measures that platforms have we are very mindful of drones being an increasing threat.  

JOURNALIST: What do you think Donald Trump is upset about with Australia? Because he clearly thinks he’s asked for something and we haven’t delivered. He’s also clearly said, or referred to nations who haven’t participated or helped as cowards. So do you take that personally and what has he asked for that we haven’t delivered? 

MARLES: Well the last thing you’re going to get from me is a running commentary here on what– 

JOURNALIST: But that must sting, surely? 

MARLES: As I say, the last thing you’ll get from me is a running commentary on what the President has said. A number of countries including the United States requested our assistance in terms of defending the states of the Gulf. We are deeply engaged now in defending the states of the Gulf. We have done that in response to a specific request from the United Arab Emirates given our equities in respect of that country, particularly–

JOURNALIST: So your response is we’re not cowards?  

MARLES: Well, I mean, I’m not going to engage in all of that, obviously. What I will absolutely say is those men and women who are part of the contingent now serving on our E7 do so with the utmost bravery and they are making an enormous contribution to the defence of the Gulf states. That is very much in the interests of Australia given that the UAE specifically hosts one of our largest expat communities in the world and also hosts our operational headquarters at the Al Minhad Air Base. And as I say, the men and women who are participating in that deployment are enormously brave, as are the more than 100 other serving men and women who right now are in the region.  

JOURNALIST: Is there anything in the design of Kakadu, the exercise that we’re now embarking on, is there anything in the design of this one that reflects what’s happening around Iran? Has there been any adjustments to the exercise, is there anything we are doing in the exercise with one eye on what’s happening there?  

MARLES: I think it’s highly unlikely, but perhaps given the Chief of Navy is more expert in terms of the design of the exercise I might pass over to the Chief of Navy. 

VICE ADMIRAL HAMMOND: Thank you DPM. Short answer, no. Exercise Kakadu has been occurring for decades. Each iteration is different from the previous one. We are at an inflection point here in terms of the Royal Australian Navy capability with respect to developing a hybrid force of crewed and uncrewed systems and I’m looking forward to seeing the integration of some of those uncrewed systems in to the exercise. But again, we are working with allies and partners here. We’re meeting their objectives as well as ours. There is absolutely no change to the scheme of manoeuvre based on current events.  

JOURNALIST: Admiral, were Australian submariners on the US vessel involved in the sinking the Iranian ship, were they ordered to their bunks? 

VICE ADMIRAL HAMMOND: No. 

JOURNALIST: We’ve seen a spectacular display here this morning. What message does that sends to the world about Australian naval power?  

VICE ADMIRAL HAMMOND: I think the message I take out of it is that there are a large array of nations that value working with the Royal Australian Navy and with the nation of Australia. To see a country like Vietnam send a Vietnam People’s Navy ship on the longest deployment they’ve ever conducted – 11,000 miles, 59 days – just to be here in Sydney with us is pretty special.  Same with the Philippines Navy, this is the first time there has been a Philippines Navy ship here in Sydney Harbour. And it’s more than 25 years since we’ve had a Fijian patrol boat. So I think generally the international community values and enjoys partnering with us particularly in the maritime domain. We have so many shared interests and shared goals and skin in the game when it comes to maritime security.  

JOURNALIST: For the Chief of Navy, how much more important have these exercises become given the change in the geopolitical landscape we’ve seen in the last decade?

VICE ADMIRAL HAMMOND: Well it’s certainly important to me. We’re a relatively small population by world standards, 27 million people, and our Defence Force is commensurately sized and appropriately.  When we sail in company with all of these other navies we are part of a much bigger maritime force and we’re all focused on the same thing which is peace and security as sea, because that is the fundamental enabler of our economic security as an island trading nation.  

JOURNALIST: Can I just get a clarification, Chief of Navy, you said before that our submariners weren’t ordered to their bunks when the US nuclear‑powered submarine opened fire on the Iranian vessel. Is what we’ve been told inaccurate? What do you know of that? Because there’s been conjecture about it being embarrassing for Australia. What role did we play is the question, and are you comfortable in the role that we played? 

VICE ADMIRAL HAMMOND: I’m comfortable that our sailors on board that submarine performed their duties in accordance with the agreement we have with the United States Navy. As the Prime Minister said, they were not engaged in offensive operations. 

MARLES: I mean, firstly, the Prime Minister has been very clear that none of our personnel were involved in this incident. When we have personnel that are embedded in other defence forces, including of course the United States defence force, of which we have many, they do so under well understood rules which ensure that their actions reflect the positions and postures of the Australian government.  Those rules were applying in relation to this incident and it meant that the three submariners on board did not participate in this incident. Having said that, what we have seen suggested is just not right and in fact it’s insulting. And those who are making those suggestions really should know better. 

JOURNALIST: So you obviously know what they did. So they weren’t ordered to their bunks but they were what– sent to the mess area, or what, they were just told not to participate?  

MARLES: And I’m not about to go in to detail of that and nor should I. Other than to say what I’ve already said which is that there are strict protocols in place. But the suggestion that has been made by others is not correct and it is insulting, and those who have made it really should know much better.  

JOURNALIST: Minister, this exercise clearly is being conducted with the back drop of the uncertainty internationally. There are a lot of families here, we’ve spoken to some of them, they are worried about our personnel being involved in this. What would you say to the folk that are out there right now proud but worried?  

MARLES: Well firstly, we live in unsettling times. That’s to state the obvious. And so I can very much understand the sentiment which is being felt by the Australian people and by mums and dads out there, and husbands and wives who may have loved ones in the Australian Defence Force. Firstly what they should know is that we do not take any decisions about the deployment of any our serving personnel lightly. And we do so carefully and prudently in accordance with Australia’s national interests. I actually think when you look at the decision making process around the deployment of the E7, you get a pretty good example of that. We made it clear that we are not part of the action that is being undertaken by the United States and by Israel. That said, we clearly have equities in the Gulf.  For starters, there’s a community of 24,000 Australians who are living in the United Arab Emirates.  We have an operational headquarters, in the Al Minhad Air Base. And we received a request from a close friend and partner in the United Arab Emirates for support and in that context, very carefully, we worked through the process of making a decision to deploy 85 personnel as part of this E7 contingent to provide for the defence of the Gulf countries including of course the UAE. That’s the sort of process that we will go through.  Now, I do not take that lightly in terms of the decisions that we’ve made in respect of those 85 personnel and as I’ve said earlier they are enormously brave in undertaking the work that they are under taking, and that platform is doing missions right now and has done fine work.  But none of these decisions we take lightly and we do so very cognisant of the weight that comes with deploying the men and women of the Australian Defence Force. 

JOURNALIST: Minister, do Australians need to change their behaviour now to minimize [inaudible] fuel supplies as recommended by the IEA?   

MARLES: Look, I’m aware of what has been put forward by the agency. Firstly, it’s not a decision, it’s not a directive. These are options. I think from the Australian government’s point of view what I really want to say is that our focus is in respect of supply and getting fuel supplies to where it is needed most and that is very much in the regions. What happens as we go forward, depending on how long this conflict ensues, may have implications. We will obviously make decisions as we go down that path. But right now our message to the Australian people is to continue business as usual; to get on with people’s lives but to continue business as usual. And we as a government are very much focused on the supply side here and making sure that we are getting fuel where it’s needed most and that’s the regions. 

JOURNALIST: Just on fuel supply, we understand that there is a delivery of fuel off Sydney Harbour today waiting to come in. Do you know anything about that, can you tell us any details; how much, when?  

MARLES: Look I’m not aware of the specifics of that but obviously all of that has been managed and we are focused on the supply side, and as I say it’s really an aggregate about getting fuel to where it’s needed most and that’s in the regions. And as we have released some of the nation’s stockpile, it has very much been about targeting the regions in terms of getting it there. 

JOURNALIST: The ACCC’s activation of powers for the distribution of fuel, will that help immediately? 

MARLES: Look, the ACCC has a really important role to play and we’ve engaged the ACCC specifically in this moment to make sure that as this plays out there’s no one in the supply chain who is engaging in price gouging behaviour. I mean this is a moment where it’s really important that people are meeting the national need. And we are seeing, obviously, disruptions to the global supply chain of fuel. This is not a time to be making a quick profit, this is a time to be acting in the country’s interest and we’re making sure that the ACCC is very much on this job.

JOURNALIST: Minister in the regions, the south coast, there’s still a lot of discussion over a nuclear-powered submarine base there. What’s your stance on it, do you have any additional comments there?  

MARLES: Well, we’ve made this point a fair bit. In the Defence Strategic Review, which is going back to 2023, there was a reference to the need, in time, to have an east coast base and in time we agree with that. But it’s important to understand the time frames here. The timeframe for making a decision about where is not until the 2030s. So that’s a long way down the track and there is a lot of options as well. So right now we are focused on moving down the pathway of acquiring a nuclear‑powered submarine capability step by step. That question is quite a lot of steps down the path. We are focused on getting HMAS Stirling, south of Perth, ready to host the Submarine Rotational Force‑West next year. That’s all on target. You know, we’re very much focused on the Henderson Defence Precinct, on the Osborne Naval Shipyard, I mean these are the issues which are presenting to us right now and that’s our focus. 

JOURNALIST: Quick one on the budget if you don’t mind. You’re obviously a supporter with respect to increased defence spending being spent appropriately but increased. With the way warfare is changing rapidly, with what we’re seeing currently in the Gulf, is the wind at your back when it comes to arguing for more defence spending, and are you pushing for that inside Cabinet knowing the budget is coming up very swiftly?  

MARLES: Well look, I mean the last thing I’m going to do is speculate about the processes of the development of the budget. You’ll see all of that on budget night which is not so far off in to the future. And yes I’m the Minister for Defence, with everything that implies. I’m also a member of the Expenditure Review Committee, with everything that implies as well. I mean look I would simply just, in answering that question, point to what we’ve done. I mean, we are now up to an additional $70 billion in defence spending over the decade. We’ve done seven times as much in terms of increasing defence spending in the last three and a half years as what the Coalition did in their more than nine years in government. What that represents is the biggest peacetime increase in defence spending that our nation has seen.  So we stand by that record. The government will obviously consider the total circumstances not just in terms of our strategic landscape but obviously all the fiscal parameters of what’s going on in the economy as we frame the budget and you’ll see all of that come the handing down of the budget in May. 

ENDS