A plan for how to grow the nation’s defence industrial base to be released soon

A plan for how to grow the nation’s defence industry and the related workforce as we embark on an unprecedented naval ship build will be released soon.

The Australia defence sector is awaiting the imminent release of a number of “epoch defining” new policies, one of which - the Defence Industry Development Strategy - will not only articulate the strategic rationale for a sovereign industry, but also an implementation plan to ensure the goal is achieved.

Jim McDowell, deputy secretary naval shipbuilding and sustainment group for the Department of Defence, told a CEDA lunch in Adelaide on Thursday that there were a series of policies being finalised, which would shape the defence industry’s capability and development over the next decade.

These included a new national defence strategy, the surface fleet review which is expected to be released as early as next week, the naval shipbuilding and sustainment plan, and the Defence Industry Development Strategy, or DIDS.

The Hunter class frigate which will be built in Adelaide.

“The DIDS will establish the framework and principles for the direction of defence industry policy, for what will be an important decade in Australia’s national security,’’ Mr McDowell said.

“In order to build the industry base needed to support defence requirements in response to the Defence Strategic Review (released in April last year) the DIDS will set out in early 2024 - which is where we are at the moment - the strategic rationale for a sovereign defence industrial base.

“A plan to grow industry’s workforce to deliver a viable industrial base and increase Australia’s defence exports, reforms to defence procurement to support the development of defence industry, especially Australian entities, mechanisms to improve security within defence businesses.

“And an implementation plan which is unusual for a policy document.’’

With Australia poised to embark on a massive shipbuilding endeavour, adding in the AUKUS

nuclear submarine build and sustainment program on top of the Hunter Frigate build in SA and possible changes to the surface fleet make up to be announced as soon as next week, finding and training up skilled workers, and involving local business in the supply chain, looms as a major challenge for the nation.

Jim McDowell, deputy secretary naval shipbuilding and sustainment group for the Department of Defence.

Mr McDowell said a strong defence industry was “a part of our national power (and) contributes to regional stability’’.

He said making it easier for small to medium sized businesses to work with defence was crucial.

The review into the navy’s surface fleet is expected to be released next week, with speculation that anything from six to 16 Hunter class frigates could be built in Adelaide.

More than 1800 BAE Systems Australia workers are involved with the Hunter project, centred on the Osborne Naval Shipyard, which presently involves building nine ships.

There are fears that if the number of frigates to be built comes in at the lower end, it will not provide enough work for a continuous build program, with suggestions from industry that another program - such as a corvette or alternate frigate program - will need to be announced to fill the gap out to the AUKUS submarine build.

Originally published as A plan for how to grow the nation’s defence industrial base to be released soon