That concludes today's panel event. Thanks for following our coverage.
For more information and analysis, check back in with http://www.adelaidenow.com.au.
Defending Australia live blog: What will changes to the frigate program mean for South Australia?
Struggling to understand the naval shipbuilding overhaul? You’re not alone, so The Advertiser assembled a top panel of defence experts to explain the deal in detail.
Australia must be “as capable as we can be” to maintain our way of life in a global setting of intense power competition, Defence Minister Richard Marles says.
Speaking at an Advertiser forum to discuss sweeping naval surface fleet changes unveiled on Tuesday, Mr Marles said Australia was facing a strategic challenge from China’s unprecedented military buildup and witnessing competition between great powers in our region.
“What we are trying to do is to make sure that we are as capable as we can be such that we are able to maintain our way of life no matter what the outcome of that contest is,” he told The Advertiser’s Defending Australia panel discussion hosted by editor Gemma Jones.
“We inherit what we get and we make the decision to build that future as quickly as we can, and I think we’re doing that.”
Welcoming the announcement, Premier Peter Malinauskas said he had argued the case for the Hunter class not just from the perspective of South Australia’s economic interests – but also the nation’s.
“Undoubtedly, the announcement dramatically increases the economic complexity of our state, it dramatically increases the depth of the opportunity before us,” he said.
“But it’s also true it is in the nation’s interests, and I think we do ourselves a disservice sometimes as state leaders when we only argue the parochial, state-based argument.”
BAE Systems Australia chief executive officer Ben Hudson told the panel the Hunter class was “the ultimate stealth ship”, and brings a valuable core capability mix.
“It is very hard to find,” he said.
“(The) Hunter (class) will bring our sailors back home alive where other ships may or may not.”
He said the Hunters’ highly-survivable hull is complemented by the best anti-submarine warfare combat system in the world.
“It is the most capable surface combat going into service anywhere in the world today, I can absolutely see why the government’s getting behind it,” he said.
Mr Hudson said Australia’s future navy would be “more powerful than any nation I can think of less than 30 million people”.
Defence Industry Minister Pat Conroy said the federal government would enter into a contract this year with BAE Systems to start construction on the frigates, beginning with a supply chain.
“We want BAE to be working with their supply chain really aggressively ... because we want the best possible price which means multi-ship orders,” he said.
Mr Conroy said there would be no work gap between the frigates and the Air Warfare Destroyer.
Flinders University Vice-Chancellor Colin Stirling said the scale of the skills gap was currently “somewhere between mammoth and gargantuan”, but Tuesday’s announcement would bring certainty to the sector.
“The fact that we now know that into the 2030s, 40s and beyond ... that there will be shipbuilding, very advanced manufacturing and shipbuilding here in South Australia makes it possible for educational institutions to plan, makes it possible for young people to aspire,” Mr Stirling said.
Asked about the readiness of the university sector to power up to train enough people in skills needed for the build, Mr Stirling said “the university sector is ready to go”.
“I think we’ve already started in many instances,” he added.
He said the sector has identified where shortfalls are and has been adding extra placements for enrolments.
Areas of priority that have been identified include engineering, project management, logistics and advanced manufacturing.
He said technical colleges, and the TAFE and VET sector, as well as universities needed to work closely with government and industry to ensure the right skills are being developed.
Nova Systems co-founder and deputy chair Jim Whalley, former SA chief entrepreneur, said he was concerned that the focus has been on workforce and skills instead of Australian organisations.
“Building skills is vitally important but building Australian organisations to bring those skills together to do things is as important in my view,” Mr Whalley said.
“And I think that’s one of the things that’s really missing.”
Mr Whalley said sovereign capability has been spoken about extensively over the past few years, but its definition was unclear.
“Sovereign capability, to me, is Australian owned, operated and controlled,” he said.
“That is the definition that most other nations use. The nations who are suppliers to us will look after their own interests first and foremost and unless we have the workforce and the organisations ... then we are going to be in real trouble and that’s the concern.”
Three of nine no longer built at Osborne
A next-generation air warfare destroyer will plug the continuous shipbuilding gap left by the decision to axe three of the nine Hunter class frigates.
Defence Minister Richard Marles revealed the replacement for the Hobart class air warfare destroyers will be built in Adelaide following a review of the navy’s surface fleet.
Three of the nine frigates will no longer be built at Osborne Naval Shipyard, as previously planned, because cost forecasts had soared from $45bn to almost $65bn – or about $7.2bn per ship.
However, continuous naval shipbuilding will be maintained at Osborne by following the six Hunter anti-submarine frigates with replacements for the three Hobart class air warfare destroyers.
In a special Defending Australia event hosted by The Advertiser, Mr Marles joined Premier Peter Malinauskas, Defence Industry Minister Pat Conroy, Chief of Navy Vice Admiral Mark Hammond, BAE Systems chief executive Ben Hudson, Babcock Australasia chief executive Andrew Cridland, KBR Government Solutions vice president Nic Maan, British High Commissioner to Australia Vicki Treadell, Nova Systems co-founder and deputy chair Jim Whalley and Flinders University Vice-Chancellor Colin Stirling for a panel discussion about the announcement.
If you missed it, you can re-read the key points from the informative session below.
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That's it!
Marles: "there is certainty going forward"
The panel is wrapping up, and Mr Marles is asked for his final reflections.
He says today's announcement really does underpin continuous naval shipbuilding here in Adelaide and in Perth as well.
When this announcement is combined with last year's nuclear submarines announcement, the decisions are "significant" and "long-term"
"There is certainty going forward," he says.
Can the industry now invest with confidence?
Mr Conroy takes a question from the audience: Given the current situation, industry has been waiting for advice and guidance on what's going on with the frigate program.
Can the industry now invest with confidence, and what is the commitment?
He responds that he commitment is that the government has made a formal commitment and is backing it up with funding.
"We will enter a contract this year with BAE and they will start construction with a supply chain this year," he says.
"We want BAE to be working with their supply chain really aggressively because we want the best possible price."
Mr Conroy says, importantly, there will be no work gap moving onto the air warfare destroyer.
Jim Whalley raises concerns about sovereign capability
Nova Systems co-founder and deputy chair Jim Whalley is asked for his reflections on the surface fleet review.
He says it's great news for naval shipbuilding, Australia and the ADF.
"I'm passionate about sovereign capability," he says.
But he does have some concerns.
"One of the things that worries me is we're doing a lot for skills but not a lot for Australian organisation.
"That's one of the things that is really missing."
The definition of sovereign capability, to him, is Australian owned, operated and controlled.
Marles says we need to be able to protect our way of life
Ms Jones asks Mr Marles about China, which has said it will take back Taiwan. Does he worry about the timeline of that versus when our navy will be transformed?
Mr Marles says he doesn't see it in those terms.
"It isn't right to be thinking about building a navy … for any specific contingency," he says.
He adds that he is reluctant to go down a path of hypotheticals.
"What we're trying to do is make sure we are as capable as we can be, such that we are able to maintain our way of life no matter what."
No country can defend itself alone
A question for British High Commissioner to Australia Vicki Treadell: Does the announcement speak to the fact that no one country can defend itself on its own?
Ms Treadell said it does.
"No single country can be the solution for political stability and peace," she says.
"We have to work together and that's why we have been wholly supportive of the Hunter-class program."
BAE Systems says Hunter "the ultimate stealth ship"
BAE Systems chief executive Ben Hudson is asked about the Hunter class, which will be built by BAE: Why is it the right vessel at the right time?
Mr Hudson says what's more important is to talk about national security and what's right for the nation.
Where Hunter comes in is the significant need for a capability mix.
"It's the ultimate stealth ship," he says.
The Hunter is very hard to find and forecast to be the quietest ship to ever go into service.
"Hunter will bring our sailors back home alive where other ships may or may not," he says.
Mr Hudson says we also get two ships for one because Hunter has the best anti-submarine warfare combat system in the world.
"What we've grown in Fyshwick in Canberra is a world-class capability," he says.
What's the driving force?
A question for Defence Industry Minister Pat Conroy: From his perspective, what is the driving force with universities?
Mr Conroy says the driving force is to provide capability that is viable so the Royal Australian Navy and the entire ADF can do their job.
"Without a defence industry we don't have an ADF," he says.
"Today's announcement is about giving certainty to that industry … that they invest in the future."
What about navy recruitment?
Chief of Navy Vice Admiral Mark Hammond is asked what are the difficulties with recruitment, and whether the fact that younger generations have never faced conflict has something to do with it?
Vice Admiral Hammond doesn't think it's that.
He says the challenge is multi-faceted, and post pandemic the competing in a tight market for talent.
"We've got to sharpen our appeal and my brief to my comms team is to put the navy in front of the nation every single day," he says.
He says the navy does offer an extraordinary employment opportunity – a sense of purpose, an opportunity to see the world, and the underwriting of employees' cost of living.
"We just need to sharpen the message," he says.
University sector is "ready to go"
Flinders University Vice-Chancellor Colin Stirling is asked about skills: How ready and equipped is the university sector to power up and train enough people?
Mr Stirling says the university sector is "ready to go" and "we've already started in many instances".
He says Flinders has been looking at where the skills shortfalls will be, and have already begun to increase enrolments in those courses.
However, he acknowledges the skills gap is "somewhere between mammoth and gargantuan".
Today's announcement gives certainty, and makes it possible for educational institutions to plan and young people to aspire.
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