Patrick Durrant | Canberra
At the annual ADM Congress held yesterday in Canberra, the Minister for Defence Senator Marise Payne went to some length to reassure the industry representatives in the audience nervously anticipating the Defence White Paper in coming weeks.
Minister Payne acknowledged the relationship between Defence and industry "had not always been as it should" but said she was committed to addressing this "and that the Turnbull Government is determined to reset the relationship between industry and Defence".
Minister Payne said the forthcoming Defence Industry policy statement "would not be a document that sits on the shelf gathering dust" but will be a "clear statement of intent, where the government will clearly set out our expectations of both Defence and industry".
The Minister also spoke about the security threat posed by Daesh and the international coalition efforts to counter it, citing the need for more international partners to join the fight to help maintain the momentum of recent gains in Iraq.
But for the audience which was made up predominately by industry representatives, the main concern was of course the Minister's plans concerning the forthcoming White Paper. An excerpt of her speech pertaining to this follows:
“2016 will be a busy year for us, ahead of us we have the Defence Industry Policy Statement, the White Paper, a small number of major acquisition decisions to be made and of course our ongoing operations in the middle east and elsewhere.
"The White Paper I can assure you is a comprehensive and carefully constructed plan for our nation's security and defence capability. The White Paper will be released as I said in November, in the first quarter of this year.
"In considering our needs over the next 20 years we have undertaken a thorough review of the strategic environment, we've then considered our priorities and objectives for the ADF over this period, both in our region and globally. Following these strategic considerations, Government has looked at the capabilities we would need and developed an integrated investment program to achieve these priorities.
"Identifying the breadth and complexity of the challenges we are likely to face in the coming decades will require Australia to develop more innovative solutions across industry, government and with international partners and a more capable agile and responsive ADF.
"The relationship between Defence and industry hasn't worked as well as it should for too long. We should be respectful and open and transparent. It should be accountable."
"Our nation's geography and population mean that the ADF will always be a relatively small force that relies on technology, on advanced military capabilities and most importantly on the quality of its people to defend Australia and our national interests.
"The White Paper will set out plans for a more potent and agile ADF, with enhanced capability and technological sophistication. To deliver the cutting edge technology we need for the future defence force, we will need to work closely with an Australian defence industry that is innovative and collaborative, and as I’m sure you’re aware, innovation is in the DNA of the Turnbull Government.
"As I'm sure everyone in the room knows, Defence and government don't have all the answers. We need industry. We need industry to help provide us with the solutions we need to maintain our technological edge. We need industry to help us keep the members of the ADF safe. We need industry to help drive innovation as well as efficiency through our capability development and acquisition process.
"Let me be very clear, as Minister for Defence I have your message and I am committed to addressing it. The Turnbull Government is determined to reset the relationship between industry and Defence."
"I would observe though that the relationship between Defence and industry hasn't worked as well as it should for too long. We should be respectful and open and transparent. It should be accountable. That has not always been the case. Not only does that hurt industry, it is ultimately to the detriment of defence capability and the taxpayer. I have heard this message more than once.
"Since becoming Defence Minister I have met many representatives of defence industry from around the country, from large primes to growing enterprises. I have also met many industry groups who are advocating for you, outstanding advocates for you in fact.
"Let me be very clear, as Minister for Defence I have your message and I am committed to addressing it. The Turnbull Government is determined to reset the relationship between industry and Defence.
"Soon we will be releasing our Defence Industry Policy Statement which is a piece of work to which I know a number of you in this room have contributed, and I am very grateful for your input. This statement will not just be one that sits on a shelf gathering dust, it will be my clear statement of intent, where the government will clearly set out our expectations of both Defence and industry.
"In return I expect industry to behave maturely and act responsibly as well in acknowledgement of the important part they play in delivering capability."
"It is a statement I will use to work with and drive Defence to work with you in a constructive and positive way. It will emphasise the importance of harnessing innovation to deliver better capability outcomes for Defence. It will set our plan to build a closer, more strategic relationship with industry. Ultimately, industry is and must be seen as a fundamental input to capability. I welcome Defence embracing that. In return I expect industry to behave maturely and act responsibly as well in acknowledgement of the important part they play in delivering capability.
"We will also be releasing the Defence Integrated Investment Program, which for the first time will bring together all defence capability-related investment over the next decade, in major equipment, infrastructure, in information communication and technology and in personnel.
"National defence is increasingly a national enterprise and not just the responsibility of the defence organisation."
"I hope that this will provide greater certainty for industry to be able to plan and invest so that you're in a stronger position to deliver the capability requirements for Australia's future defence force. This approach will underpin a deeper conversation, a partnership with Australia's industry on our capability requirements.
"The Government has already taken the first steps to provide industry with greater certainty by announcing and beginning the implementation of a continuous build of the RAN's surface warships here in Australia. This will bring an end to the boom/bust cycle of Australia's shipbuilding industry.
"A sustainable and cutting edge shipbuilding industry will also foster a similarly advanced national ship refit and sustainment industry and generate significant benefits for the wider Australian economy, including through knowledge transfer and innovation. As the case of shipbuilding makes clear, national defence is increasingly a national enterprise and not just the responsibility of the defence organisation.
"Defence should, and must, leverage both the industry and educational investments made across Australia. What we we do need is flexibility, agility, and a workforce with highly specialised skills to deliver the capabilities that will deliver our defence requirements in the 21st century. Underpinning our very strong plans is the implementation of the Government's First Principles Review in Defence which is changing the way Defence operates as an organisation.
"The new processes being implemented will ensure that Defence is a smart buyer and that other inputs to capability are better integrated into the overall capability development process. The result I am confident will be a more efficient capability development process, that through the integrated investment program, developed in conjunction with the White Paper, will allow improved overall management of defence capability and enhanced defence industry engagement.
It's one that I hope sets the foundations for strong working relationships between Defence and industry so that we can deliver the future force that our nation requires".
ADM will be reporting further on the outcomes of Congress 2016 in the Defence Premium newsletter due out this Thursday.