The government has released its long-awaited defence industry strategy, with a series of initiatives aimed at simplifying and accelerating procurement processes and boosting industry capabilities in priority areas.
Though many such strategies have gone before, Defence Industry Minister Pat Conroy said industry would judge this one on its implementation.
Mr Conroy told reporters at the CEA Technologies facility in Canberra it was essential for the government to update its defence industry policies to develop the sovereign defence industry base needed for national defence.
He said significant reform was needed in Defence to enable closer collaboration with industry and turn Defence into a smart and agile customer.
This new strategy was a blueprint for an industry that was focused on the most important priorities, supported by a defence enterprise that was a better customer, a better communicator and better at backing Aussie innovation, he said.
“Crucially this strategy I release today also represents a major shift in industry policy in Australia, articulating for the first time the defence industrial base the nation needs in the face of the strategic circumstances outlined in the DSR,” he said.
“It is a plan to address the critical issues facing defence industry, from upskilling and growing the workforce, to uplifting security to strengthening resilience n our supply chains. It details the actions the government will take to grow the industrial base which employs more than 100,000 Australians.”
Key initiatives are:
• Seven focused sovereign defence industrial priorities will signal what Defence needs, giving industry time to prepare and confidence to invest. Previously there were 14 industrial priorities. The government will intervene in the Integrated Investment Program to sustain these priorities.
• The procurement framework will become easier faster and more cost effective for industry to work with defence. There will be no compromise on governance but proposed reforms will speed up the process of contracting and project approval. Defence contracting will be reformed to simplify and reduce paperwork. The Minister said this work starts immediately with tangible outcomes by the end of the year.
• Defence will take on a more tailored approach to acquisition based on urgency and risk profile of the project.
• Defence will take on more long term strategic industry partnerships with the potential to deliver better capabilities by supporting industry on the journey from innovation and adaption to evolution of capabilities.
• Industry has long complained about the confusion of Defence’s grant arrangement, which will now be consolidated into a single defence industry development program with four streams – growth of industrial capacity in priority areas, export opportunities, workforce upskilling and establishing and maintaining security accreditation.
• The Australian Industry Capability program will continue and defence contracts will continue to require contractually enforceable AIC plans, regarded as essential to growing and supporting local industry and jobs.
• The strategy aims to boost defence exports by increasing opportunities with trusted international partners.
• Government-to-government defence exports will be facilitated, allowing Australian advanced technology to be backed by the reputation of the Australian government.