Much-anticipated Defence white paper expected to benefit SA industry and jobs

BILLIONS of dollars and thousands of jobs will flow to SA through defence projects to be detailed in today’s much-anticipated Government White Paper.

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BILLIONS of dollars and thousands of jobs will flow to South Australia through defence projects to be detailed in the much-anticipated Federal Government White Paper released today.

The White Paper will flag an extra $30 billion in defence spending over the next 10 years, on projects including 12 submarines, nine frigates and 12 patrol boats.

It will detail spending on a “continuous build” of ships, the need for thousands more men and women in uniform, and the emerging threats in the region.

It will confirm for the first time the number of new frigates and patrol boats.

The whole ship and submarine building package was priced at a contested figure of $89 billion by former prime minister Tony Abbott.

The State Government is concerned that if SA does not win the contract to build the patrol boats, it could then miss out on both the frigates and the submarines. All three projects are still going through a competitive evaluation process and the State Government fears the contract will go to Western Australia.

It is understood the White Paper mentions shipyards in both states.

The number of submarines has been a hot issue after the Government backed away from its promise of building 12 in Adelaide. However, it is understood to have come back around to the number. Nine new frigates is approximately what was expected, while the 2009 Defence White Paper proposed 20 Offshore Patrol Vessels. Since then, Defence has realised it needs a more diverse range of smaller warships so will commit to 12 patrol boats, with mine hunters and hydrographic ships to come.

What it means for SA.

A senior minister told The Advertiser the crucial document has been “Turnbullised”, with the new leadership putting its own stamp on it and strengthening the emphasis on industry and innovation.

Prime Minister Malcolm Turnbull said the White Paper would be “another critical investment in innovation and the jobs of the future”.

“The Defence White Paper will provide incentives for Australian businesses to drive advances in innovation and technology, in many fields including cyber security and aeronautics,” he said.

“It will deliver jobs and investment in advanced, hi-tech manufacturing,” he said.

Mr Turnbull also confirmed yesterday that the Government would keep its promise of increasing defence spending to 2 per cent of GDP by 2023. They will achieve that with the $30 billion increase over 10 years. The current annual budget is about $30 billion.

Reports yesterday speculated that defence spending would hit $100 billion over a decade.

Labor leader Bill Shorten said the Opposition wanted to see if the Government had a “credible trajectory” for that spending.

And yesterday a senior Defence official told The Advertiser that while the Abbott Government claimed the White Paper was ready to print last year — before Mr Abbott was rolled by Mr Turnbull — it was in fact only in draft form and hadn’t gone to the National Security Committee.

Mr Turnbull and Defence Minister Senator Marise Payne still had to finalise some “key elements”, he said.

“If you’re going to finish the White Paper you take it to the NSC. They read it. They agree to it without change or they provide comment,” he said.

“We did not get to that stage under prime minister Tony Abbott.”

All of Australia’s allies — particularly the US and China — have been briefed on Australia’s strategic direction. It is understood the tone on China, which is becoming increasingly belligerent in the South China Sea, will not be inflammatory although there will be warnings about the situation.