Home' Asia Pacific Defence Reporter : APDR July-Aug 2017 Contents Asia Pacific Defence Reporter JULY/AUG 2017 13
We’ve made serious
inroads in the Defence
Industry portfolio in the
last 12 months; helping
grow Australia’s own
industry, creating jobs,
uncovering new ways
of doing things in
defence and ensuring
our men and women in
the Australian Defence
Force have the most
updated and lethal equipment on the market.
I’ve visited businesses of all sizes, announced
new contracts, opened offices, launched new
technologies and announced thousands upon
thousands of more jobs. Everywhere I go I’m
continually impressed by the depth and breadth of
the defence industry in Australia, and the energy of
those that contribute to this great national endeavour.
We’re working to boost the opportunity for more
businesses to be a part of the defence industry.
The 2016 Defence Industry Policy Statement, for
example, is underpinned by the Government’s
decision to formally recognise Australian industry
as a Fundamental Input to Capability. This is an
explicit recognition by the Government and Defence
of the huge contribution defence industry makes to
Defence capability. This is important as we plan
for the future of Defence capability by considering
Australian industry in the early stages of projects,
and as part of our defence posture, preparedness,
and support requirements.
Work is well under way to ensure that this concept
is embedded in Defence culture and business
processes across the capability life cycle and
broader defence policy and planning. This will help
realise earlier and enduring engagement with our
Australian industry partners.
The Government has strengthened the
requirements on tenderers as part of the Australian
Industry Capability Program to demonstrate how
they are providing opportunities to Australian
defence industry, including indigenous businesses;
how technology will be transferred and how
innovation and export opportunities will be created.
Already, the requirements of the strengthened
AIC Program have been applied to a number of
significant capability projects and the template is
now part of Defence’s tendering and contracting
suite. These requirements have been incorporated
into capability programs central to the continuous
naval shipbuilding program, and land and simulation
projects such as:
• SEA 1180 – Offshore Patrol Vessels
• SEA 1000 – Future Submarine Program
• JP2060 – Deployable Health Capability
• J P 9711 – Core Simulation Capability
• Land Systems Commodity Reform Program
• SEA 5000 – Future Frigates
(in preliminary stages)
The final measure of success will be the
measurement of industry performance and the
extent to which Australian industry has been
maximised and is positioned to deliver and sustain
our defence capabilities.
I also opened the Centre for industry, Defence
Capability (CDIC) and the Defence Innovation
Hub in December 2016 – both have seen an
overwhelming response to date. The CDIC is
working closely with companies to improve
Defence sector Small to Medium Enterprises
(SMEs) business capability, productivity and global
competitiveness, aligned with defence capability
priorities. I also launched the Next Generation
Technologies Fund in March 2017.
The CDIC is the front door for industry to
Defence and the complex defence marketplace.
Since the launch, the CDIC’s ser vices have
been in greater demand than we could have
expected. The CDIC is focused on industry
development, facilitating innovation and defence
business competitiveness and exports. The
CDIC provides advisory and facilitation services
to defence sector SMEs to improve business
management, skills development, innovation and
access to international and domestic supply
chains. The CDIC also provides grants to defence
sector SMEs to implement recommendations from
advisory and facilitation services.
There are many great examples of Defence
companies that have developed world-leading
products and have met Defence needs and have
gone on to achieve international success. These
companies are critical to delivering both our
Defence capability requirements and also creating
jobs and economic growth.
As Defence introduces larger and more complex
capabilities, the demand on our industry workforce
will increase. New technologies will require new
skills and will rely even more on the diverse range
of skills within Australian industry.
The Defence Industrial Capability Plan, to be
released this year, will outline the Government’s
plan for growing, developing and supporting our
defence industry to meet our Defence capability
requirements over the next decade and beyond.
The Plan will complement and reinforce the
Naval Shipbuilding Plan, which the Government
released on 16 May 2017. The Defence Industrial
Capability Plan will include the announcement of
the new sovereign industrial capability assessment
framework and identified sovereign industrial
capabilities, and will guide ongoing priority
activities of the CDIC.
The Government will also release a Defence
Export Strategy later this year providing a
systematic approach to developing and supporting
our defence exports as part of building a more
robust and sustainable sovereign defence industry
we need to support our forces.
Our primary focus is to deliver the best
possible capability for the men and women of
the ADF to achieve their mission. From the Naval
Shipbuilding Plan through to base maintenance,
Australian industry is critical to developing,
building and sustaining Defence’s enabling and
We are approaching the development of
capability with a much more strategic focus
and long-term perspective to ensure Australian
industry can position themselves accordingly to
meet our capability requirements. No longer is it a
matter of buyer and customer; it is a partnership.
We are engaging earlier and industry has greater
access to Defence to better understand our
processes and requirements.
This is truly a National Endeavour, and I look
for ward to providing the best kit for our fighting
men and women, creating more jobs for Australians
and ensuring this great nation has the sovereign
defence capability it deserves and needs.
– Minister Pyne
FOREWORD FROM DEFENCE INDUSTRY
MINISTER CHRISTOPER PYNE
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