Thank you all for
being here this morning for the inaugural AUKUS National Supply Chain
Conference.
I particularly
want to thank the Australian Submarine Agency, BAE Systems and ASC for
partnering together to make today possible.
Before I begin, I
acknowledge the traditional custodians of the land on which we meet today, the
Kaurna people, and I pay my respects to their elders past and present. I extend
my respect to any First Nations people here with us today.
I also want to
acknowledge all current and former defence personnel here with us today. Thank
you for your service to our nation.
I look around the
room today and I see so many friends and familiar faces. It is an absolute
pleasure to be here.
You are part of
the industrial base that will shape Australia’s delivery of this huge
undertaking, AUKUS. For South Australia, that is not some distant proposition.
This state is not
being asked to watch AUKUS unfold as a passive observer. It is being asked to
carry the lion’s share of the work.
I am here today
wearing a few different hats. As the Federal Member for Spence, located in
Adelaide’s northern suburbs, home to RAAF Base Edinburgh, DST Group and the
Edinburgh Defence Precinct, and a community with proud roots and a strong
future in defence, defence industry and advanced manufacturing. As Co-Chair of
the Parliamentary Friends of AUKUS. And on behalf of the Albanese Government.
The Deputy Prime
Minister and Minister for Defence, Richard Marles, and the Minister for Defence
Industry, Pat Conroy, both send their apologies, as they were unable to be here
today.
But they asked me
to represent them and to pass on a very clear message.
The Albanese
Government is fully committed to delivering AUKUS and to building the
industrial base required to support it.
Just last month,
the Prime Minister announced a $3.9 billion down payment for the new Submarine
Construction Yard at Osborne.
The projected
investment to build that yard is around $30 billion over the coming decades,
and the scale of it is immense. The total floor area is expected to be ten
times larger than the existing Osborne South development. Construction is
expected to use 66 million work hours and 126,000 tonnes of structural steel.
For those among us
who are not especially fond of the metric system, I am reliably informed that
this is the equivalent of around 17 Eiffel Towers of structural steel. The
fabrication hall is expected to be about two and a half times the length of
Adelaide Oval.
Those figures tell
us something simple. We are past the point of talking about AUKUS in the
abstract. This is now about delivery.
And once you move
into that phase, the questions become much more concrete. Do we have the
industrial depth? Do we have the workforce? Do we have the supply chains, the
standards and the production discipline to deliver work of this scale and to
the level it demands?
That is the task.
There is a
strategic reason this matters so much. As the Deputy Prime Minister has said on
a number of occasions, Australia faces the most complex and challenging
strategic environment since the Second World War.
In response to
this, Australia now embarks on one of the most significant industrial
transformations in our history. And AUKUS is one of the clearest reasons why we
must rise to that challenge.
But in a room like
this, the practical side of that challenge carries real weight. Can Australia
achieve the industrial uplift that sits underneath our strategic ambition? Can
we build and sustain the capability needed for the decades ahead? Can we back it
with the workforce, the skills and the industrial capacity the job requires?
That is where
South Australia comes in.
This state
understands defence industry. It understands advanced manufacturing. It
understands the value of continuous work and long-term investment. And it
understands what it means when people can see a path into secure, skilled jobs
in sectors of vital importance to the nation.
Osborne already
matters to Collins Class sustainment. It already matters to continuous naval
shipbuilding. And under AUKUS, its importance only grows.
South Australia is
the home of submarine construction in this country. The work now under way will
shape not only the next phase of the submarine build, but a broader industrial
lift as well.
Australia needs
the capability and the capacity to maintain, sustain and upgrade its naval
vessels, including nuclear-powered submarines. Building here does not just
create activity in the moment. It builds the understanding, the workforce and
the industrial depth needed to support those capabilities over time.
That is what
sovereign capability looks like in practice.
None of us should
underestimate the standard involved. Where world-class is a passing grade.
Building a
submarine is unforgiving work. It demands precision manufacturing. It demands
systems integration, quality assurance, certification and accreditation.
This is unlike
anything Australia has built before. And delivering it will mean South
Australia growing both capacity and capability across its industrial base.
The opportunity
across the entire supply chain is real.
This work will
rely on primes, SMEs, universities, TAFEs, technology partners and governments
moving together in lockstep. It will rely on shared standards and qualification
pathways that are clear enough to navigate. And it will rely on Australian
defence industry being able to plug into a broader industrial effort across all
three AUKUS partner nations.
There are
practical pathways already being built to help Australian defence industry
qualify into US and UK submarine supply chains, including in areas like valves
and pipe fittings.
That is important
because Australian defence industry requires more than broad encouragement. It
needs line of sight, and enough confidence in the signals coming from
Government, Defence and primes to make real decisions about workforce, systems,
equipment and growth.
That is especially
true for SMEs.
Many of whom I
have had the pleasure of seeing first-hand already possess the instincts you
want for this space. They are specialised. They are agile. They solve problems.
The opportunity now is to turn that capability into a stronger and deeper
Australian presence across the supply chain.
The other major
piece of this is workforce. And here again, South Australia is not waiting
around for the future to arrive.
Serious work is
already under way.
The South
Australian defence industry workforce is projected to grow from around 3,500
direct jobs to more than 8,500 direct jobs in the 2040s, with naval
shipbuilding and sustainment as major drivers.
Building
nuclear-powered submarines is forecast to create 4,000 to 5,500 direct jobs in
South Australia at peak, with up to 4,000 workers employed to design and build
infrastructure for the Submarine Construction Yard at Osborne. The broader
AUKUS pathway is also expected to support around 20,000 direct jobs across
Australia over the next 30 years.
Cultivating the
critical skills required by our defence industry presents both a challenge and
an opportunity, particularly here in South Australia.
The pathway
towards seizing that opportunity is laid out in the South Australian Defence
Industry Workforce and Skills Report.
Produced by a task
force established after the Jobs and Skills Summit, it shows what can be
achieved when industry stakeholders, unions, academia, vocational education
providers and all levels of government work together on practical solutions.
And the more
recent South Australian workforce planning goes further again. More than 11,000
workers will be needed across all naval shipbuilding and sustainment activities
in South Australia by 2040.
Vocational
enrolments are rising. Degree apprentices are entering South Australian
industry. And the Skills and Training Academy at Osborne is being built to
support up to 800 to 1,000 learners each year once operational, backed by a
further $480 million investment from the Albanese Government.
That is what a
serious workforce pipeline looks like.
But it will take
sustained work across the whole pipeline to ensure success. Schools, TAFEs,
universities, apprenticeships, degree apprenticeships, traineeships, early
career programs and mid-career transitions all have their part to play.
For South
Australia, the opportunity here is not only to be the place where this work
happens. It is to deepen the industrial base, strengthen the skills pipeline
and build the capability that will sustain this work for the long haul.
That is important
in Adelaide’s North, around Osborne, and right across this state.
When people in
South Australia hear about defence industry growth, they hear skilled jobs.
They hear apprenticeships. They hear the chance for young people to stay here
and build a career here. They hear the chance for people already in the
workforce to move into more specialised roles and keep building their own
skills base.
As a South
Australian, that matters deeply to me. I want this state to seize what is in
front of it. I want South Australia to remain the home of submarine
construction in this country.
And I want our
defence industry to know that the Albanese Government understands what is at
stake here, not just strategically, but industrially as well.
Because in the
end, AUKUS will be judged by what Australia can build and sustain. It will be
judged by whether we grow the industrial capability, the workforce depth, and
the sovereign sustainment base needed to turn our ambitions for AUKUS into
something durable and real.
That is the task
in front of us. It is national in scale, and South Australia will carry a big
share of it. And it is up to the task.
The Albanese
Government understands that all too well. That is why we are backing continuous
naval shipbuilding and advanced manufacturing. It is why we are backing the
submarine build at Osborne. It is why we are investing in workforce
development, qualification pathways, and the industrial base behind AUKUS.
And it is why we
will continue backing workers, businesses and institutions, because together
you are who make this project a reality.
Thank you again.