Defence strategic review – SMEs call for sector industry policy






The Australian Industry & Defence Network (AIDN) has welcomed the principle espoused in the government’s Defence Strategic Review for a more self-reliant and a sovereign industrial base.

However the organisation representing the $10.6 billion sector said there was a need for a comprehensive policy and procurement framework to be put in place to achieve this intent.

AIDN said: “The DSR does not affirm this position.

“The references to defence Industry appear cursory at best. Of concern is the statement that Australian industry content and domestic production should be balanced against timely capability acquisition.”

AIDN said the federal government needed to clearly articulate what ‘timely’ acquisition is, and articulate what the industrial plan for Australian industry is to be.

“AIDN can accept that the requirement for a capability may mean that Defence proceeds offshore to
purchase that capability.

“However, there must be a plan to ensure that the ability to produce that capability locally is developed at the same time and it must be mandatory.

“Without the proper guidance from government, Defence will be able to use the argument of speed to capability to avoid the use of Australian industry.”

AIDN, representing a sector employing 61,000, said the need for a defence industry policy was not novel – most nations have exacting requirements for the inclusion of local defence industry into their programmes.

It said a policy, rather than a simple strategic review, would provide a framework where industry’s role in delivering capability requirements was clear, and establish the procurement process that was efficient and accessible to local industry and importantly, SMEs.

“Allowing Internationally owned large defence contractors the ability to provide advice to Defence on
‘speed to capability’ without due regard or requirement for work to be transferred to Australian industry, means that these overseas companies will simply use the ‘speed to capability’ mantra to
employ their existing overseas supply chain.

“And there will be no development, enhancement or creation of an Australian Indigenous sovereign industrial capability, a capability our nation requires in order to achieve national strategic resilience.

“The recent pandemic demonstrated how vulnerable Australia is to the nuisances of overseas supply
chains.

“Without Government clearly articulating the requirement to create an Australian supply chain,
this simply will not happen and Australia will be at the behest of supply from foreign governments,
with their own needs being prioritised ahead of Australia, we will simply be in the queue to be
supplied.”

AIDN said that if Australia is to achieve a truly sovereign industrial base, then the Australian Defence industry must be designed into every aspect of these programmes.

“If the intent is simply to acquire capability from foreign owned overseas industries, then our nation will have fallen short of what we need to create with our Industry.

“Australian Industry is simply too important to be left to the whims of foreign owned multinational
companies, AIDN would argue that now is the time for our government to mandate requirements into
all of these programmes so that foreign entities understand what they must do in order to secure these
opportunities.”

Further reading:
DEFENCE REVIEW SLASHES INDUSTRY PROGRAMMES, REFOCUSES PROCUREMENT
THE NAVY IS THE FUTURE OF DEFENCE, BUT ROUGH SEAS PREDICTED

Picture: Defence Strategic Review



Topics
Defence  
Share this Story




Stay Informed


Go to Top