Defence Industry minister Pat Conroy does not believe that Australian ownership – and the control that ownership infers – is the most important ingredient for building a sovereign industrial base.
But he goes on to argue that the federal government has significantly bolstered efforts to build more Australian defence ‘primes’. In Defence parlance, these are the companies that can design, build and service complete systems – like Boeing delivering a complete airplane, rather than a supplier building one of its parts.
At the National Press Club on Wednesday, Minister Conroy delivered a spirited defence of why Australia ownership is only one determinant of what makes up a “sovereign” industry.
In this episode of NewsWrap, InnovationAus.com editor Justin Hendry takes a deep dive into the just-released Defence Industry Development Strategy (DIDS).
Defence is a strange organisation, and rightfully so. It has a singularly unusual purpose, so it would follow that it would do things differently.
But the idea that you can make an argument about the importance of building the nation’s sovereign industrial base while simultaneously downplaying the importance of Australian ownership does not make sense. Literally.
The DIDS has much to say about procurement reform and streamlining through things like ‘minimum viable contracts’ to speed up capability acquisition.
But if Defence procurement reform does not make specific reference and commitments to Australian ownership, then opportunities are being lost. Procurement can’t do all the heavy lifting, but right now it is not carrying enough weight.
The government’s Advanced Capabilities Investment Fund – a $500 million defence-focused venture fund aimed at crowding in private capital – will have a better chance of successfully building companies if there is a pathway to procurement.
Other stories we have watched this week included government doubling-down on penalties attached to the social media age ban, the 20th anniversary of the National Collaborative Research Infrastructure Strategy (NCRIS), and another overhaul of the Export Market Development Grant.
Useful links:
‘Industry policy is security policy’: Conroy’s defence industry plan
Ghost Shark added to defence export priority list
Platforms face doubled $99m fine for social media ban breaches
‘We would not exist’: The startups NCRIS built say they owe it everything
Review urges merit-based overhaul for export grant program
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