Doorstop, Hobart

SUBJECTS: 2026 National Defence Strategy; 2026 Integrated Investment Program; Defence Industry in Tasmania; Hunter Class Frigates; Middle East Conflict; Spirit of Tasmania

JULIE COLLINS, MINISTER FOR AGRICULTURE AND MEMBER FOR FRANKLIN: It’s terrific to be here at Liferaft Systems and it's terrific to have Senator Richard Dowling and, importantly, our Deputy Prime Minister here with us. I want to thank Mike Granger from Liferaft Systems for having us here on the site. It’s terrific, Mike. Liferaft Systems, of course, a Tasmanian institution and a terrific contributor to the Tasmanian economy, and particularly our defence industries, and  the Defence Minister and Deputy Prime Minister will talk more about that in a moment, but it is really important that we acknowledge that this comes at a time we’ve also had Assistant Minister Khalil here in Tasmania to talk about some of the changes, particularly around the defence estate, but also the investments that are coming from defence here in Tasmania. As we indicated earlier, over $400 million of defence industries broadly is invested here in Tasmania, and this is an important part of the Tasmanian economy. What we see here at Liferaft Systems is that manufacturing capability and jobs for Tasmanians, but also these are well‑paying, really complex systems that we are world‑leading on here in Tasmania. It’s terrific to have everybody here today, and I’ll hand over to the Deputy Prime Minister.

RICHARD MARLES, DEPUTY PRIME MINISTER: Thank you. It’s great to be here at Liferaft Systems Australia. It’s really good to be here with Julie and Richard and Mike. Thank you so much for hosting us here at Liferaft Systems Australia. Last week, we announced the National Defence Strategy, in which we committed an additional $14 billion over the next four years, over the forward estimate of $53 billion over the decade. In total, it means that since coming to government, the Albanese Government is investing an additional $30 billion over the next four years, and $117 billion over the decade, and that represents the biggest peacetime increase in Australia’s defence spending in our nation’s history. Now, a critical component of that is in respect of defence industry. Eighty per cent of the defence spend is spent here in Australia, and since coming to government, the Australian defence industry has grown by 14.5 per cent. Sometimes there is a tendency to think about this in the context of where major ships are being built in Western Australia or South Australia, but $400 million is being spent in Tasmanian defence industry, and here at Liferaft Systems Australia you get a really good example of it. What we have behind us is a system that has now been contracted through BAE and is part of the Hunter‑class frigates that we are building in Adelaide,  but this is a really important component of that. There are 90 people who work here at Liferaft Systems Australia. About 40 per cent of the business here is based on defence, and that’s not just Australia — that’s defence around the world, and that’s an important point to make as well. What we have here is an export business supplying to the Royal Navy in the UK and other navies around the world. It really builds Australia’s credibility as a nation that does defence industry, and provides the opportunity for a world‑class system being built here to then play its part on Australian platforms. So, this is a perfect example of how the Albanese Government is investing in defence industry around the country, but right here in Tasmania and right here in Hobart.

MIKE GRAINGER, LIFERAFT SYSTEMS AUSTRALIA MANAGING DIRECTOR: It’s really great to have the Deputy Prime Minister and Minister for Defence here at Liferaft Systems Australia, along with Senator Dowling and Minister Collins. They’re all very, very busy people, and we’re a long way away away from the action down here in Hobart, so I really appreciate the fact that they have visited us this morning. We’re a very proud Tasmanian company employing Tasmanians, and as the Minister for Defence said, about 40 per cent of our business is defence export. We’ve been in business for 33 years. We have an order book that stretches out to 2032, and we’re going very, very well in terms of business continuity. We don’t put our hand out to ask for anything. We just get on with a job and try to stay under the radar. Thank you all for coming out. I really appreciate that you’re taking the time to visit us, and if you’d like to have a look around, you’re very welcome. Thank you. 

JOURNALIST: Questions about the deal. How many liferafts are being made for the frigates?

GRAINGER: For the hunter-class frigates, we've got four marine evacuation systems per ship, and there are three ships. That is for batch one. We understand there will be batch two. For the type 26 frigates, which are the same as the hunter-class for all intents and purposes, we have the contracts for eight of those, and we're going to visit BAE in the UK very soon to discuss batch three, which will be for the Norwegian government.

JOURNALIST: How long does it take to churn one out? 

GRAINGER: We're doing around one and a half to 100 person Liferaft a week. So we're putting out between four and six units a month. Everything's manufactured here, designed and manufactured under this roof. Our operational packing is done in a facility next door, but everything is done out of Hobart.

JOURNALIST: Do you know what the financial value is of the deal that you've got with the federal government for the hunter-class frigates?

GRAINGER: Yes, I do.

JOURNALIST: You can’t tell me?

GRAINGER: Correct.

JOURNALIST: That’s alright, I might ask some questions for the Deputy Prime Minister now.

MARLES: I have to say, obviously it’s a very clever to be on our hunter class frigates. But last year, the largest navy ship to visit Australia was HMS Price of Wales, which is the aircraft carrier in the Royal Navy. And this system is aboard that, and so it's a matter of enormous pride to Australia that this system is finding its way onto warships of that size. But what that means in terms of the development of capability here in Australia, here in Hobart, for Australia's use is really what's so important here and is a fantastic example of Australian (inaudible).

JOURNALIST: And are you highlighting defence contracts at this time because of the Middle East conflict, or is it just about the contract?

MARLES:  I know well, it's really more about the launch of the National Defence Strategy last week, in which we have significantly increased defence spending, but a critical part of that goes to Australian defence industry. We see that sovereign capability is profoundly important in terms of being able to maintain the resilience and the preparedness of our own defence. force. It's really a clear message on the strategic landscape that we see in the world today, and what's playing out in the Middle East is a very good example of that, but this highlights how important it is to have capability here in Australia. This is a perfect example. And as I say, it's not just it – tends to be this sense of it's all about what's being built at Osborne in Adelaide or Henderson in Perth, but actually there are supply chains which go into that which spread right around the country. And there's a benefit in terms of building industrial capability right around Australia.

JOURNALIST: Where are things at with the building of the frigate? Sorry, I am not particularly across that.

MARLES: Well, they are going along well. I mean, in terms of the timeline that was rebased when we came to office, it is being built in accordance with that timeframe. So, it is a major capability. This will be the most exquisite anti-submarine warfare frigate in the world. And as Mike said, it's based on the type 26 frigates that have been built in Glasgow right now for the Royal Navy.

JOURNALIST: Where should a new oil refinery be built if the government’s seriously considering doing it?

MARLES: I think what we've seen with the conflict in the Middle East, is just how important supply chains are in Australia. We got a bit of a taste of this with the pandemic as well. And when coming into office, we've been really focused on rebuilding Australian industry, Australian resilience and Australian supply chains. The economic resilience program looks to ensure that the National Reconstruction Fund is very much focused on this now. The production of liquid fuels is really what's being put into sharp focus right now in terms of, excuse me, what's playing out in the Middle East. We will look at how best we can build resilience in terms of the supply of liquid fuels to our country going forward. But what's really clear is that the two refineries that we have in Australia today are fundamental to Australia's fuel resilience.

JOURNALIST: So on the Strait of Hormuz, who will represent Australia at the military talks on the Strait of Hormuz in London, and what do you expect will be discussed?

MARLES: Yes, so some of those talks have happened and are continuing to happen. We are being represented at them through the defence force, by defence planners, so at the appropriate level. I mean, all of those conversations right now are about the various scenarios, which might exist going forward in terms of seeking to have the Strait of Hormuz open. But what is important to understand about all of that is that this is when circumstances allow, and right now we don't know what those circumstances will be. No one knows. So we continue to be part of those planning meetings. We work with our friends and partners in respect of that, and that includes the United States as well, but very much with the UK and France. We have consistently said that sovereign capability is profoundly important in terms of being able to maintain a very much with the UK and France. We've consistently said that the Strait of Hormuz is fundamentally important for Australia, and that it be open is fundamentally important to Australia, and we will be there to help.

JOURNALIST:  What's your reaction to the US Navy Secretary stepping down? What does it mean for the future of AUKUS?

MARLES: Well, I mean, obviously this is a matter for the United States. I wouldn’t comment on that. I mean, AUKUS is going ahead, on time, on schedule, at a pace, and that's because there is a fundamental commitment across three governments – United States, United Kingdom and Australia. AUKUS is a multi-decade program. There will be people that will come and go along the journey, but it is bigger than all of us. But the reason I have such confidence about the future of AUKUS, and why AUKUS has remained on track to this day is because it is fundamental in the strategic interests of Australia, the United States and the United Kingdom. There have been changes in governments in all three countries from the time the AUKUS was announced, so none of that will have an impact on AUKUS, and obviously specific questions are a matter for the US.

JOURNALIST: Indonesia's finance minister has suggested that Indonesia, Singapore and Malaysia should work on imposing a levy on shipping through the Malacca Strait, similar to the charges which Iran is trying to impose on shipping through the Strait of Hormuz. Does Australia have any concerns about this proposal, and have we conveyed them to Indonesia? 

MARLES: Look, I wouldn't comment on the specific proposal, but let me say more generally, we are completely committed to the UN Convention on the Law of the Sea and freedom of navigation and the border rules based order. But you know, for Australia, which has a growing proportion of our national income derived from trade, the physical manifestation of that, that is our sea lines of communication, that is our sea lanes, is profoundly important for us. Our freedom of navigation on the high seas is a fundamental principle contained in the UN Convention on the Law of the Sea, and Australia very much stands for that.

JOURNALIST: And you spoke last week about how critical international rules remain. Are you concerned that proposals like this, where states try to leverage their geography and ignore international laws, are gaining more momentum in the wake of US strikes on Iran?

MARLES: I wouldn't go to that level of specificity. I mean, I think more generally, it’s the observation I made last week that the global rules based order is under extreme pressure, and it's been that way for a number of years now. But the important point to make here is that the global rules based order is in the interests of Australia. It gives a country of our size agency, which a world based purely on might and power would not. And so it's really critical that we are speaking up for the global rules based order, standing for it. We do, and that very much includes the UN Convention of the Law of the Sea.

JOURNALIST: Tasmania's government announced a strategic fuel reserve to ensure that we've got some extra storage space for fuel on our island. Is that something that the federal government thinks we should still be proceeding with?

MARLES: Well, look, I mean in terms of the fuel reserves and distribution around the country, that's something that we are working with each of the state governments in respect of in this moment. Obviously our focus is very much about getting more fuel to the country. And we've just seen an additional 300 million litres of diesel being secured through the efforts of the Prime Minister and the other ministers from Brunei, Malaysia, Korea coming to Australia. So we’re actually, at this moment, we’ve done a pretty good job in terms of getting additional sources of fuel to Australia, and we will continue to do that as best as we can. We will work with the state governments about how best that is then distributed, and states manage their own supply.

JOURNALIST: At a press conference yesterday, Tim Ayres announced a $3 million support package from the Liberty Bell Bay workers. Less than 12 hours after that announcement, administrators have made an application to the federal court to stand down the workforce. The workers were lied to by the previous owner, and now clearly they can't trust the federal government. Why has it been allowed to get to this stage?

MARLES: Well, I might hand over to one of my colleagues.

JOURNALIST: Sorry, I have one last question. Last week's National Defence Strategy flags new investment in medium range, ground based air defence. Can you give us any more detail on what that will look like and the scale of the investment there?

MARLES: Well, we have what was contained in the Integrated Investment Program in respect of that. I mean it is an important capability, particularly as we develop our northern bases. I think, to kind of take a bit of a step back, what we are fundamentally trying to do with our defence force is to build a defence force that can project. When we think about sea lines of communication, what's really clear is the geography of our national security lies well beyond our coastline, even our immediate waters. We need a defence force that can get out there, northern bases as a platform to project our Air Force further is a critical component of that. And as we invest more in the capabilities of our northern bases, it's really important that we are thinking about integrated air and missile defence, which goes to your question, to protect those bases. We continue to move forward on that and it very much is a priority which fits into the scheme of what we're seeking to do.

JOURNALIST: So can you provide any more detail of the scale of investment there?

MARLES: Well, I mean, again, I refer people to the Integrated Investment Program, which contains all of that.

JOURNALIST: And just one more, sorry. The NDS flags that defence must keep pace with advancements in AI and autonomous systems. What guardrails are in place within defence around the use of lethal autonomous systems?

MARLES: Good question. So, we are seeing, obviously, a massive growth in the use of autonomous systems. The war in Ukraine, since it began, has changed dramatically in that respect, but we're obviously seeing it play out in the Middle East as well, literally over the last month, and AI have a significant part in how autonomous systems operate. It is a really important discussion globally. From the point of view of Australia, we are very committed to having humans on the loop in respect of how this works. That is, we see a fundamental guardrail in (inaudible).

JOURNALIST: At a press conference yesterday, Tim has announced a $3 million support package to Libertyville Bay workers. Less than 12 hours after that announcement, administrators have made an application to the federal court to stand on the workforce. The workers were lied to by the previous owner, and now clearly they can't trust the federal government. Why is it being allowed to get to this stage?

COLLINS: Can I say our first thought, of course, is with the workers, their families and the local community out there. We know that this has been a tough month for them in relation the future of Libertyville Bay. The latest advice that I have this morning is that no workers will be stood down this week, while we continue to work with the administrator EY in relation to the future of the site.

JOURNALIST: The Federal Minister refused to apologise to workers. Given the latest development and the increased uncertainty, will you apologise?

COLLINS: What I'll say is, as I said earlier, we are really concerned about workers, their families and local community, and they have been our primary and our first focus in terms of making sure that workers are supported for what has been an incredibly difficult time.

JOURNALIST: Is the federal government sitting on their hands, and why were efforts to make an offer on the smelter only made last Tuesday, when it’s been months?

COLLINS: We have been working for months with the Tasmanian state government and the administrator in relation to the site at Liberty Bell Bay. Our first and primary concern has always been for the workers and their families and the local community. 

JOURNALIST: Is it your understanding that high court case is now being withdrawn by the administrators?

COLLINS: My understanding is that as we continue to work with the administrators and that no work will be stood down – (inaudible) while we look through the detail of (inaudible) state, federal government and the administrator.

JOURNALIST: And beyond that?

COLLINS: Well, we will continue to have those discussions with the administrator. 

COLLINS: To be absolutely clear, that $3 million package is taking effect now?

COLLINS: We're working through that with the administrators.

JOURNALIST: I've just got a question on fertiliser. Why is the Australian Government underwriting two shipments of fertiliser? Why is the Australian Government underwriting two shipments of fertiliser? Well, we have working with the fertiliser companies through a fertilizer working group for some weeks now. We have Export Finance Australia reach commercial agreement just yesterday with the largest two fertiliser companies to underwrite fertiliser shipments if required. There are obviously commercial arrangements to get fertiliser into the country, and we will continue to work with them if it is required for underwriting. But can I say there is enough fertiliser in Australia now or on the water for the initial planting season. This is about supplies going forward. The announcement we made last week in relation to the 250,000 tons of additional urea coming from Indonesia is about 20% of the current shortfall for the planting year, but that is from here through to October. 

JOURNALIST: One of the new Spirit vessel is finally in Australian waters. Well, the Spirit IV is already in Geelong, got the other one in Australian waters now. Given you had some hand in the project, is that good to hear?

GRAINGER: Absolutely, it's good to hear. They're two of the finest ships in the world in terms of RoPax vessels, and it's great to see them both in the country, and they'll be in service before we know.

JOURNAIST: Do you know if these Liferaft systems go on those spirits?

GRAINGER: That's a confidential question, but the answer is yes.

ENDS