Pat Conroy delivered an address to stakeholders at a recent industry forum in his first official engagement since being reappointed as Minister for Defence Industry and Capability Delivery. In his inaugural address, the Minister emphasised the centrality of continuity, cultural reform, and industry partnerships to Australia’s evolving defence posture.
Speaking to defence industry professionals, Conroy noted the significance of returning to the portfolio, stating that his desire to remain in this capacity was driven by a recognition that sustained political leadership would be a critical component of delivering structural reform in Defence.
“Continuity at an administrative level is incredibly important,” he said, highlighting the frustrations shared by industry over the pace of change and the complexity of bureaucratic red tape.
One of the central themes of Conroy’s remarks was the Commonwealth’s ongoing commitment to growth within the defence industry, particularly through mechanisms such as the Advanced Strategic Capabilities Accelerator (ASCA).
In response to industry feedback, ASCA has been reshaped to sit closer to operational needs and adopt a more agile acquisition model. Conroy credited this reconfiguration to active consultation and engagement with industry, signalling that such collaboration would remain foundational to developments in defence capability, moving forward.
Whilst acknowledging past disruptions, particularly during the Defence Strategic Review (DSR) process, the Minister pointed to positive growth indicators: a 14.5 per cent increase in direct employment across the sector compared to 2022 and a 30 per cent rise in the value of domestic contracts awarded.
“This is genuine economic activity occurring in Australia,” he said, dismissing claims that headline figures were inflated.
Conroy also announced over $16 million in new defence industry grants awarded to more than 50 businesses nationwide, bringing total investment since the current Albanese administration took office to $60 million. He noted that further reforms are under consideration to allow companies to commence eligible spending prior to grant approval, subject to navigating existing regulations.
Further, procurement efficiency remained a key focus. Conroy argued that it is not the Commonwealth Procurement Rules (CPRs) that limit Defence’s responsiveness but rather the internal risk posture and culture.
“The CPRs do have enough flexibility,” Conroy stated, encouraging Defence to adopt a more commercially minded approach and to leverage existing mechanisms in order to support faster delivery.
Industry capability uplift and sovereign supply chain development also featured prominently. The Minister cited the Kongsberg StrikeMaster facility contract as a model, with 15 per cent of the contract value earmarked for domestic supply chain expansion.
The broader investment in the Guided Weapons and Explosive Ordinance (GWEO) enterprise—totalling $500 million—is intended to catalyse the development of a local missile manufacturing base, capable of contributing to joint programs with allies and potentially supporting indigenous hypersonic systems in the future.
In parallel, the Australian Defence Strategic Sales Office will partner directly with industry to support overseas exports of Australian-made defence technologies. According to Conroy, this marks a departure from previous hands-off approaches, positioning Defence as a proactive enabler of global competitiveness.
When asked about expected cultural shifts in the coming years, Conroy underscored the importance of professionalising the acquisition workforce and empowering delivery managers. He also pointed to structural shortcomings in early-stage capability development processes as a source of downstream inefficiencies—citing the Hunter-class program as a cautionary example.
On Cybersecurity, resilience across the Small and Medium Enterprise (SME) base was flagged as a critical area for uplift, both for commercial competitiveness and national security. The Minister reiterated that grant funding streams remain available to co-finance security improvements.
Looking ahead, the updated Defence Industry Development Strategy, the next Integrated Investment Program (IIP), and the revised National Defence Strategy are all due in 2026. Conroy signalled that while the forthcoming IIP may be more evolutionary than revolutionary, it will reflect shifting strategic priorities and a projected $57 billion increase in defence spending over the next decade—including $10.7 billion within the next four years.
Pat Conroy delivered his speech at the Australian Industry & Defence Network National Convention.