Tasmania's Jeremy Rockcliff, State Minister for Advanced Manufacturing and Defence Industries, has undertaken a trade mission to the United States to seek opportunities for the island's defence industry.
He was joined by the Tasmanian defence advocate RADM (Rtd.) Steve Gilmore and eight local businesses. The group attended the Sea Air Space exposition in Washington DC, which brings together US primes and military chiefs.
The visit also included several meetings with senior US Navy officers, including the Undersecretary of the Navy, and defence industry leaders.
The trade mission is a follow up to Tasmania’s first defence strategy, Our Fair Share of Defence, which was launched in 2016. It aimed to open up opportunities for Tasmanian businesses and highlight the state's manufacturing capabilities, skills and products, as well as encourage networking and potential future opportunities for local industry.
Tasmania is home to around thirty defence companies and institutions, including the University of Tasmania's Australian Maritime College (AMC), Elphinstone, CBG Systems, PFG AquaTruck, and Penguin Composites, which together generate $340 million a year through contracts with ADF, as well as the armed forces of New Zealand, Singapore, the US, and Israel.
The state, however, has struggled to gain a significant share of the federal government's defence spending in recent years.
The TasPac consortium failed to secure a $600 million contract to build patrol boats in 2015, and the state's Team Sentinel Land 400 bid lost out the following year. The island is estimated to receive less than .03% of federal defence spending despite being home to 2.2% of Australia's population.
Reports last year also suggested that AMC feared it would be undercut by the new Naval Shipbuilding College in Adelaide, although it has recently been announced as a key strategic partner.
However, Minister Rockliff told ADM that heading directly to Washington was not intended to send a message to the Australian government regarding Tasmania's comparative lack of defence investment, but instead aimed to raise Tasmania's international profile.
"This mission recognises that the potential market for Tasmania is global when it comes to defence and maritime products and services. Clearly we have set the objective to increase Tasmania’s share of Australian Government defence spending, but we also want to make sure we capitalise on the significant international opportunities available."
One of the ways that the state intends to increase its maritime appeal is to leverage its proximity to Antarctica and the Southern Ocean.
This will heighten competition with Christchurch, New Zealand, which is where US support operations for the country's Antarctic program are based. It is unclear whether the Tasmanian trade mission will be able to lure American Antarctic operations from NZ.
There is also the question of whether the US Navy has sufficient strategic interest in using Tasmania to increase its presence in the Southern Ocean, given that the area is largely demilitarized under the Antarctic Treaty System.
RAN operations south of Tasmania predominantly focus on collecting nautical navigation data and supporting scientific research, and RAAF operations are limited to logistical support using C-17 heavy lift aircraft. Army has occasionally deployed geospatial teams to support the Australian Antarctic Division, but activity remains limited.
Nevertheless, the island intends to market its maritime expertise to the world’s largest navy.
Minister Rockliff was particularly optimistic about the potential for the US Navy to invest in Tasmania.
“I think that there are a few key areas where Tasmanian has a competitive edge. First and most obviously is our maritime expertise, particularly in small support craft such as high speed vessels and landing craft. We are also home to the AMC and have considerable expertise in research and training. Lastly, there is growing capability in Tasmania in terms of ‘smart systems’ such as UAV propulsion, vessel fitouts and safety systems.”
"I formally invited US Navy ships to visit Tasmania, and in particular, the port at Burnie, to take advantage of our excellent facilities and our hospitality."
"The opportunities for Tasmanian businesses are virtually limitless, especially when it comes to the US Navy."