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Australia Releases Draft Defence Industry Policy

On 7 December, the Minister for Defence authorized the release of the Defence and Industry Policy Draft Statement for public comment.

Over the past eight years, there have been a number of developments which affected Australian defence industry and its role in our defence. These have included an increase in ADF operational tempo, an increase in the Government’s investment in defence, reform to Defence procurement processes, and a reshaping of defence industry world-wide in response to new technologies and the effects of globalization. The impact of these changes makes it necessary to review defence industry policy.

The Minister for Defence established a small team under the guidance of the Hon Bruce Billson MP, Minister Assisting the Minister for Defence, to conduct a broad consultation with a large number of stakeholders. The ideas and views on defence industry policy and how it should be implemented were heard from meetings held around Australia with large and small defence companies, federal, state and territory government representatives, and industry associations. In addition, written submissions were received from almost 60 organisations and individuals.

The draft statement released today is the product of the advice provided by the stakeholders who contributed to the review process and the intellectual horsepower of the review team. The framework outlined is an evolution that builds on the success of existing Government defence industry policy – success that is evident in the diverse and vibrant defence industry sector Australia enjoys today.

This draft sets out the Government’s intended response to the challenge of ensuring the cost-effective delivery of equipment and support to the ADF in line with Australia’s strategic circumstances. This will be achieved through nine strategies:

- A strategic approach to equipping and sustaining the ADF
- Maintaining priority local industry capabilities
- Securing value for money through best-practice procurement
- Creating opportunities for Australian firms
- Encouraging small and medium enterprises
- Supporting the development of skills in defence industry
- Facilitating defence exports
- Driving innovation in defence technology
- Defence and industry working together

All involved with the defence industry sector are invited to read the Defence and Industry Draft Policy Statement, as it will directly and indirectly affect the way that we do business in the future. Comments on the draft statement can be provided up to 21 December 2006.

The draft statement is available on the review website at:

www.defenceindustrypolicyreview.com.au Formal consideration by Government of this policy will occur early next year.

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Release of Draft Defence Industry Policy