Doorstop, Adelaide

SUBJECTS: Deep Maintenance and Modification Facility; Federal Budget; Middle East conflict

MATT BURNELL MP, FEDERAL MEMBER FOR SPENCE: Well, it's great to be here in Edinburgh, the heart of the defence state in South Australia. Today is a great day for the northern suburbs, bringing together partnerships from the federal government and the state government, delivering in partnership with private enterprise. I'm really proud to be here with Deputy Prime Minister and Minister for Defence, Richard Marles, along with my good mate, the State Premier, Peter Malinauskas, as well as Chris Picton, our new State Defence Minister. Today's event marks a significant milestone on the delivery of enhanced capability here in the Edinburgh RAAF Base precinct. It also brings together significant opportunity for young people through a pathway from the new technical colleges to get their chance at building part of the national defence capability moving forward. So, to speak a little bit more about that, I'm going to hand over to the Deputy Prime Minister. Thank you.

RICHARD MARLES, DEPUTY PRIME MINISTER: Well, thanks, Matt, and it's fantastic to be here with Matt Burnell, who is a wonderful local member here in Spence, representing the northern suburbs of Adelaide and around this RAAF Base Edinburgh, which is a fantastic facility for this part of Adelaide, but it's a huge asset for the nation. It's also great to be here, Premier Peter Malinauskas, and the new Defence Industry Minister in South Australia, Chris Picton, to be here with the Managing Director of Boeing Defence Australia, Amy List, and Air Vice Marshal Gerry Van Leeuwen. We were here 12 months ago when this was in the middle of construction, and so it is wonderful to be here today for the opening of this deep maintenance facility. It is a $200 million project, and it's going to transform the way in which we maintain so many airframes within the Royal Australian Air Force. 

This will be the place that we do the deep maintenance and upgrades for the 737 derivatives within the Royal Australian Air Force — that is the P8 fleet, which is based here at RAAF Base Edinburgh, and in time, our E7 fleet, which is based at RAAF Base Williamtown in New South Wales. This will mean that we are able to do that maintenance here right now. The maintenance, of course, is happening in other parts, principally the United States. It means that modifications and upgrades are able to be done here. Last year, we signed a $291 million agreement with Boeing Australia to do upgrades of the P8. Most of the fleet will have that upgrade done here at this facility. So that's a great example of what can be done. Eighty jobs are ongoing, so that's fantastic in terms of high‑skilled, high‑wage jobs here in Adelaide’s north, but what this means in terms of the nation's capability is that we're not losing time with these planes having to go elsewhere in the world, and it very much increases availability. 

I think one of the stories about what we are doing today, though, is the partnerships that are involved. Firstly, there's a strong partnership with New Zealand. This will see the maintenance of the 737 fleet in New Zealand being done here. New Zealand operate four P8 aircraft, and so their deep maintenance will happen here. And we're very pleased to have representatives from the New Zealand Defence Force here today for this opening. There is a great partnership, which the Premier will talk more about, with the Heights Technical College, which is going to provide an opportunity for young people going through the Technical College — and there are a number who are here today — to get on‑the‑job experience at this facility, which will help in their learning and lead to ongoing employment for them as soon as they finish their learning. And most significantly, this is a tremendous partnership between the Commonwealth Government and the South Australian Government. It's a model which — we're on state land right now, but we're actually, to all intents and purposes, within the precinct of RAAF Edinburgh. This is actually a state facility which is being leased back to the Commonwealth, but this has been capitalised by the state government, delivered on time — ahead of time — and it is a fantastic example of the Commonwealth and the state working closely together to deliver an incredible capability for the nation and a wonderful opportunity for South Australia. So I'm very grateful to the Premier and to Minister Picton and all of the South Australian Government for the tremendous partnership that we've been able to join with them, and with that, I'll hand over.

PETER MALINAUSKAS, PREMIER OF SOUTH AUSTRALIA: Well, thanks so much, Deputy Prime Minister. It's great to have you here in South Australia, as always. It's good to be with Matt and Chris as well, and we're very grateful for our partnership with Boeing, so I thank Amy on top of that. This is a really special day. This is a project that has been years in the making, countless amount of out‑of‑hours putting effort into the construction of what is a truly international‑level facility. This facility here at Edinburgh will be the home of countless jobs into the future — over 80 at least — working to make sure we contribute to the nation's security by maintaining the amazing P8 aircraft, one of which you see behind us here today. This is a unique model, and it represents the very best of partnership between the state and the federal government, along with Boeing. 

This model has seen the South Australian Government, through Renewal SA, constructing this extraordinary facility ahead of schedule — ahead of schedule — in a way that represents good value of a commercial nature in the long term to the South Australian taxpayer. But more than that, it represents a capability for the federal government that we've been able to achieve ahead of schedule because of the partnership, and that is a partnership that we see growing and increasing in its size in the South Australian economy. Later this morning, I'll be down at Osborne, which represents yet another example of how the state and the federal government are partnering together to make sure that we make the most of all of the skills and the resources that we have in South Australia to contribute to the national defence effort, but at the same time delivering an economic dividend for better living standards for more South Australians into the future. 

And what fills me with the most pride here this morning isn't just the first‑class facility, but it's the fact that there are going to be young South Australians working in here for the rest of their lives, earning good incomes, providing for their families and getting all of the dignity and satisfaction associated with working in the defence industries. Young people who are at the Modbury Heights Technical College today, learning aero skills in conjunction with Boeing, will be working in this facility on some of the most sophisticated and cutting‑edge technology anywhere in the world. I have spoken — and I know members of the media must be tired of it — but I have spoken about the necessity, but also the virtue, of training young people to be able to work in the industries of tomorrow, and defence‑related industries represent a seismic opportunity to improve living standards in South Australia for more young people. Young people in the Modbury Heights Technical College today, in a few years' time, will come out with a guaranteed job at the end of it for Boeing, working at a facility like this one, deploying their skills firsthand. They are magnificent young South Australians — men and women who will complete school with their SACE certificate, but also a trade qualification in their other hip pocket to get to work straight away, working in our defence‑related industries — and partnerships like the one we've got with Boeing, but also BAE Systems, represent the very best of skills development that's in the nation's interests, but also in working families' interests here in South Australia, and we are only able to achieve that with collaboration — collaboration between the state and federal government, but also collaboration with the private sector as well. It's a model that we want to double down on, and we're very excited about it indeed. Can I congratulate everyone that's been associated with this project? It's been an extraordinary effort, and I think it's something that everyone should be very, very proud of.

CHRIS PICTON, MINISTER FOR DEFENCE AND SPACE INDUSTRIES OF SOUTH AUSTRALIA: Just very quickly to add to what the Premier said, this is a momentous day furthering our defence industry here in South Australia — a really strong partnership between the state government and the federal government that have delivered this world‑class facility here, and we thank our partnership with Boeing as well in doing that, and as a pathway not only to improve our capability for the Australian Government, to improve our capability in terms of the deep maintenance of the 737 derivative fleet, but also a pathway for our economy and young people here in South Australia. We see that partnership here with the Technical College students who are here, who are studying aviation. Aviation is the focus of their high school studies now — aviation not only in terms of their technical studies, but aviation focus of their English and their maths, etc., with a pathway towards employment here and other areas of our defence industries in the state. 

Earlier this week, we had the statistics coming out showing that here in South Australia that defence industries are now contributing $2 billion to our economy — more than any other state — has doubled in the course of the past five years, and that's before AUKUS. So there are huge opportunities ahead for us, and I think what we can see here in the delivery of this precinct is a blueprint for ongoing partnership between the state and the federal government to seize all those opportunities of the big investments that the federal government is making to uplift our capability across our Defence Force.

AMY LIST, MANAGING DIRECTOR OF BOEING DEFENCE AUSTRALIA: Good morning. It is truly exciting to be here today with the Deputy Prime Minister and the Premier to open this incredible facility that is going to create the workforce and the capability of the future, not only for the P8 Posiden aircraft, but in the future, the E7 Wedgetail and other 737 derivative aircraft. Today, we're also joined by some of our apprentices and the students from the Heights Technical College, which are the people who will come and work here for decades to come, and bring the vision of this building to reality. I started my career as an engineer in an aircraft maintenance hangar, so for me to see the future in this sort of infrastructure is truly an exciting moment. I really do think it's game‑changing in terms of how our students of today will be able to create the capability and make sure that these aircraft are delivering on their critical sovereign mission. As was said earlier, some of the work that we're going to be doing right here in this building is currently done overseas. So the importance of realising the vision of bringing that work to Australia, having sovereign control, and being able to make sure that these aircraft are flying and are doing their missions when we need them to is truly important. I'm humbled and proud as the Managing Director of Boeing Defence Australia to be entrusted by the federal and state governments to be able to put our people in this building, for us to be able to employ and provide career pathways for decades to come, and most importantly to make sure that we're delivering for the Commonwealth of Australia, and making sure that this great investment is created, is developed, delivering the capability in the aircraft, but in our skills, in our workforce, and in the future. Thank you. I'd now like to invite some of our students to come up and you can hear from them directly on what they're going to be doing in the facility and some of the excitement that they've got ahead of them.

JOURNALIST: Run us through the sort of work that you’ve already completed here, or what you expect to do?

SAM, BOEING APPRENTICE: I'm a mechanical apprentice here. The work entails heavy maintenance checks, which is tearing down the aircraft, inspecting components, and then rebuilding it within accordance with a maintenance manual. So, facilities like this, looking towards the future, you're looking at modifications and upgrades on the airframe and future possibilities that might become.

JOURNALIST: On what does the opening of this facility mean to you?

SAM: I think the main thing it means is that my future is secure, and that future industry here is looking really good, not only for myself, but for a lot of students and young Australians.

JOURNALIST: That's pretty cool to be working on, you know, pretty high‑class aircraft that actually goes a long way in protecting our nation and carrying out pretty crucial military mission.

SAM: Yeah, yeah. It's really rewarding knowing that my work I do every day, and the effort I put in, is going towards making a brighter future across the whole world essentially. 

JOURNALIST: What do you do here?

LILIAN, BOEING APPRENTICE: I'm an app tech apprentice — so avionics.

JOURNALIST: What does a facility like this mean to you?

LILIAN: It means a lot more opportunities on 737 derivatives. Like, it's, I guess, exciting — overwhelming a little bit — knowing that we are locked in for our future like that. We're being taken care of not only by our workforce, but also by our state government. So, yeah, it's exciting.

JOURNALIST: How did you sort of get into this? Did you always know you wanted to get into aviation?

LILIAN: Um, aviation came later on. I knew I wanted to work in electrical systems. I started out doing, telecommunications and stuff like that. I was lucky enough to get exposed to, like, the private jet industry through other careers and stuff like that. I did a couple United States Air Force planes and all those kinds of things. And then I saw this job open up in South Australia, and it was — this is where I wanted to be. This was kind of like the nail in the coffin a little bit. Yeah.

JOURNALIST: So are you from South Australia originally?

LILIAN: No, I'm from Western Australia originally.

JOURNALIST: How are you finding it?

LILIAN: I am loving it. The winters, the wind — that's what gets me. But otherwise, it's gorgeous here. 

JOURNALIST: Do you think you'd stick around here?

LILIAN: I think I'll be here for the foreseeable future. Yeah.

JOURNALIST: Tell us your names and what you are studying?

HEIGHTS TECHNICAL COLLEGE STUDENTS: I am Darcy, I am Hannah and I am Jack. 

DARCY, HEIGHTS TECHNICAL COLLEGE STUDENT: We are studying Certificate II in Aeroskills at the Heights Technical College.

JOURNALIST: You see yourself working here and working on planes like this one?

DARCY: Absolutely. With our VET course, with close partnership with Flight One, they're definitely helping us with the mechanical, and it's definitely making us excited for what's ahead, especially coming here today, seeing the opportunities that Poseidon behind me — it's just getting us more excited for the future.

JOURNALIST: With a facility like this, have you seen anything like this before? You know, how does it make you feel stepping into something so big and, you know, Top Gun‑esque?

JACK, HEIGHTS TECHNICAL COLLEGE STUDENT: Yeah, it's crazy. It's crazy to see. We were fortunate enough to have another immersion day at Edinburgh, but this is just next level, it’s amazing. 

JOURNALIST: I might actually just quickly as well — Hannah, there are, you know, a lot of young men here as well. A lot of your young female friends — do you think they'll see things like this and go, yeah, this looks pretty cool, looks like it could be for me as well? Good opportunities?

HANNAH, HEIGHTS TECHNICAL COLLEGE STUDENT: Yeah, I'm in a very heavily male‑dominated side of this school. I'm one of the only females, so it's been a bit strange, but everyone's super welcoming. And I think in the coming future there should be a lot more females that enter this course because it's so interesting — opens different career paths. And I think overall it's just amazing.

JOURNALIST: What inspired you to essentially go ahead with this course?

HANNAH: I've always been interested in aviation, and I think finding this course just helped me kind of set my future in stone of what I want to be doing, as I've always looked up at the sky, looked at planes, just been interested in this whole industry. So I think that's my main inspiration to go here.

JOURNALIST: Would Defence recruits not have a better life if they had more cash in their pocket with indexed tax brackets?

MARLES: Well, since we've come to government, we have been completely focused on cost of living, and what that has seen is significant income tax cuts for every income earner in the country, and that includes in the budget that was handed down on Tuesday night, where, you know, there's another additional $250 working Australian tax offset. But if you combine that with the tax cuts that we've already put in place, with the $1,000 of tax deduction in 2028, that's like $2,800 — people are better off as a result of the tax cuts that Labor has put in place. So, I mean, our government has been very focused on dealing with income tax and reducing income tax for earners, and that will obviously apply to these people as well.

JOURNALIST: So what was your take, then, on last night's budget reply that called for index tax brackets?

MARLES: Well, I just think that what the Leader of the Opposition needs to make clear, what Angus Taylor needs to make clear, is how all of that is going to be paid for. And we know where the Liberals always go with this. And so when you're looking at pensions or payments in the welfare system, what is going to be cut in order to pay for that indexation? We have been meticulous in the way in which we have gone about the management of the budget to find the room to put in place income tax cuts. So we're an open book in terms of how we are funding it. The questions that happened last night are vast in terms of how this would be paid for, and what you will see from the Liberals, inevitably, is cutting services to Australians — be it welfare payments, be it Medicare — that is the only way you can ultimately pay for what the Leader of the Opposition announced last night.

JOURNALIST: Have you had any further discussions with international counterparts about the mission to reopen the Strait of Hormuz?

MARLES: We have made clear that Australia will be committing to the multinational military mission in respect of the Strait of Hormuz. What's important to understand is that that mission will occur when conditions allow. But when conditions allow, we and the 40 nations who participated in the meeting this week — we believe it's really important that a military mission underpin this. We've committed an E7 to it, but we'll also have further talks with France, the UK, and our other partners about how else we can contribute, and that will be a process which evolves over the coming weeks.

JOURNALIST: Are you concerned by Xi Jinping putting Donald Trump on notice that any missteps by the United States could push the two countries into conflict?

MARLES: Look, I think what we should take from what's occurred over the last couple of days is that it's a good thing that America and China are meeting — and meeting at the highest level, the presidents of both countries — and we very much welcome that meeting, as we welcome the ongoing dialogue between the United States and China. I mean, when that — when that dialogue is happening, the world feels like a safer place. And so it's, you know, that was an important meeting to have taken place. Obviously, the parties are going to have their positions, and our position in respect of that hasn't changed. We want to see the status quo in the Taiwan Strait maintained. But fundamentally, the significance of the last 48 hours is that we've seen this meeting occur.

ENDS