Australia Reviews Defense Industry Policy (May 18)
I held a productive meeting with defence industry representatives, parliamentary colleagues, defence researchers and senior government officials today.
The Government has clearly signalled its long term commitment to Defence and Australian defence industry by continuing to increase defence spending by 3% per annum in real terms through to 2015-2016. This caps an unprecedented fifteen year period of strong Budget support for the defence sector.
It has been some five years since the previous comprehensive review, and in that time there have been changes in our strategic circumstances, changes in the structure of defence industry and our Defence Forces have gained much more operational experience.
It is therefore timely to revisit our defence industry policy.
This is a complex task given the national security issues and the very considerable Government Outlays concerned, the significance of Defence expenditure to the wellbeing of many companies, large and small and their employees, particularly in regional areas, and the often high technologies involved.
Today's discussions primarily allowed us to capture industry's views. They will inform a Discussion Paper to be released later in June 2006. Further consultations undertaken by my colleague the Hon Bruce Billson MP, the Minister Assisting the Minister for Defence, assisted by Mr Kerry Clarke, Dr Henry Ergas and Dr Mark Thomson will take place around Australia. These will inform the key issues, including sustaining key strategic industry capabilities in Australia needed to supply and support the Australian Defence Force.
Dr Henry Ergas (Asia Pacific Regional Head and Vice President CRA) is a respected economist who has done work for DMO. He was part of a team with Max Moore-Wilton and Brian Fisher who reported on infrastructure issues last year.
Dr Mark Thomson is Program Director at the Australian Strategic Policy Institute (ASPI).
Mr Kerry Clarke AO is a former deputy to LTGEN David Hurley and was a leading candidate for the position of head of DMO's industry division.
Following these consultations, the Government will determine the need for a new Statement on Defence Industry Policy. (ends)
Statement on Defence Industry Roundtable
