Speeches
Tuesday, 16 July 2024
Australian British Defence Catalyst 2024: The Strategic Context
I am pleased to be here today as part of South Australia’s ongoing engagement with the United Kingdom, particularly in the context of the AUKUS partnership between our two nations and the United States.
AUKUS requires of us an unprecedented level of cooperation and partnership.
For Australia, this is arguably the most complex and significant national enterprise we have ever undertaken. It will require an unprecedented level of cooperation and partnership between our three nations, and it will require sub-national entities, states in Australia’s case, to contribute wholeheartedly and single-mindedly to the achievement of national objectives.
As Governor of South Australia, I know the seriousness of purpose and pride with which my State is approaching this undertaking.
Shortly after the announcement of the AUKUS Pillar 1 Optimal Pathway in March last year, the Premier of South Australia, the Honourable Peter Malinauskas, visited the United Kingdom.
It was recognised at the time that this demonstrated an appreciation of the significance of being on the ground as quickly as possible, and to be and seen to be working closely with our international partners.
I am pleased to continue, in ways appropriate for a Governor, South Australia’s deep engagement with the United Kingdom as we partner on AUKUS, and on South Australia’s contribution to the broader Australia-UK bilateral agenda.
While strong government-to-government ties will always be significant to delivering our shared goals, the links our industries forge and strengthen are perhaps of greater significance to this international endeavour.
Much of this will flow from the Australian Government’s appointment of BAE Systems and the ASC - Australian Submarine Corporation - as Australia’s Sovereign Submarine Build Partners earlier this year.
ASC has been at the centre of Australia’s sovereign submarine program for decades as Australia’s prime sovereign submarine sustainment partner, and the builder at Osborne in South Australia of our Collins class submarines.
BAE System’s involvement ensures an integral connection between the SSN-AUKUS design led by BAE Systems in the UK, where Australian experts are already working alongside their peers, and the SSN-AUKUS build strategy in Australia.
Australians are also seeing, first-hand, as I did in Barrow-in-Furness last week, BAE System’s impressive Submarines Academy for Skills and Knowledge and the new Portland Walk experiential opportunity coming to life.
As Australia’s Defence State, South Australia is aware of the profound responsibility with which we have been entrusted.
In the 12 months since the announcement of the Optimal Pathway, South Australia has moved at pace to do what needs to be done.
Last month, the Commonwealth and South Australian Governments completed settlement on a strategic exchange of land.
This included the Commonwealth taking ownership of key land parcels in Osborne to enable development of the new Submarine Construction Yard and a Skills and Training Academy Campus.
Environmental and planning assessments for the new submarine construction yard are underway.
The Australian Government has estimated that up to 4,000 workers will be employed to design and build the infrastructure for the Submarine Construction Yard in Osborne.
In addition to this, a further 4,000 to 5,500 direct jobs are expected to be created to build the nuclear-powered submarines in South Australia when the program reaches its peak in 20-30 years’ time.
We know it is essential that we grow and develop a skilled and experienced workforce in Australia to deliver on this program long term.
Crucial to this is the Skills and Training Academy, which will provide tailored education, training, and skilling for the submarine and naval shipbuilding workforce to deliver a sufficient supply of suitably qualified and experienced personnel.
The South Australian Government, Australian Submarine Agency and industry are working in partnership to develop priority trades programs as pilots, available from next year.
Additionally, the international embedment programs with the United Kingdom and United States will help us build knowledge and hands-on experience for the Australian workforce.
These are part of a broader suite of initiatives to grow the pipeline of qualified, experienced, and skilled workers required to support South Australia’s growing defence industry.
In November last year, the Commonwealth and South Australian Governments released the South Australian Defence Industry Workforce and Skills Report and Action Plan.
This is a comprehensive plan addressing the entire spectrum from primary and secondary school, VET, and higher education, including a strong focus on the retention and upskilling of existing workers in the defence industry.
This action plan was the outcome of a collaborative process between the South Australian and Commonwealth Governments, in partnership with industry, unions and our academic institutions.
The Action Plan outlines 22 initiatives to support the growth of South Australia’s defence industry over the coming years, including the creation of more than 1,100 new trade apprenticeships, degree apprenticeships, entry-level traineeships, and early careers programs.
Among the 22 initiatives are programs designed to bolster the diversity of the defence industry and broader STEM workforce, supporting an inclusive workforce with more women and First Nations people.
Collectively, the initiatives are being supported by a co-investment of AUD58 million (~£31 million) over three years.
This is in addition to AUD$208 million South Australian Government commitment to build five new technical colleges; AUD$68 million for the Skills and Training Academy pilot initiatives; and AUD$129 million for 4,000 additional Commonwealth Supported Places nationally.
While this investment is an important step towards supporting the future needs of our defence industry, we know that more is required.
In recent remarks to the Defence Australia Forum, Premier Malinauskas highlighted the necessity for Australia to approach this work as a truly national endeavour.
Key to the successful submarine programs in the United Kingdom and United States is that they are seen as a true national enterprise.
That’s been abundantly clear from my visit to Barrow and discussions here in London, not just in relation to skills, but also supply chains and social licence.
It is important we foster this same mindset in Australians.
This is the mindset we are taking in South Australia. We are proud of the opportunity to contribute to this transformative and strategically significant national and international undertaking.
We know we must add true value to the AUKUS partnership: uplifting our industrial base, building our skilled workforce and strengthening our supply chains.
As reflected by the trilateral agreement, we must avoid poaching and competing with our partners as we build our enterprise. Instead, we must focus on bolstering and strengthening one another.
Beyond building nuclear-powered submarines, the AUKUS security agreement presents value chain opportunities under Pillar 2, the joint development of Advanced Capabilities.
South Australia has strong foundations on which to support the development of these advanced capabilities and position the state as a lead technology partner for AUKUS Pillar two.
South Australian universities and innovation precincts are actively engaged in world-leading research into high-tech, advanced cyber, AI and machine learning, and other critical technologies.
In partnership with the Commonwealth Government, the South Australian Government is investing AUD$60 million to establish the Australian Defence Technologies Academy at our CBD-based innovation district, known as Lot Fourteen.
The academy will drive sovereign research and development of defence capabilities in partnership with the new Adelaide University and strengthen our skills and talent pool by leveraging collaboration across industry and academia.
Flinders University has entered a series of partnerships with UK academic institutions to offer nuclear and shipbuilding programs and research collaborations.
These include the establishment of the UK’s Nuclear Technology Education Consortium with the University of Manchester and the Advanced Manufacturing Research Exchange with the University of Strathclyde and BAE Systems.
Our strategic context obliges us to grasp the AUKUS opportunity with both hands. Today, in fora, such as this, and every day. You can be confident that South Australia will be doing just that.