Transcript
Delivering Australia's Future Defence Capability
by Rear Admiral Kevin Scarce AO CSC RAN (Ret) Chairman SA Government Defence Industry Advisory Board and Chief Executive Defence Unit 7 March 2005
I DON'T NEED TO OUTLINE TO A GROUP SUCH AS THIS THAT WE FACE A MUCH MORE UNCERTAIN WORLD ENVIRONMENT. OUR REGION IS NOT IMMUNE FROM THESE WORLD TRENDS. AUSTRALIA WILL PLAY AN IMPORTANT ROLE IN OUR REGION AND MUST ENGAGE GLOBALLY. THE NATURE OF THE ROLE WILL CHANGE WITH THE CIRCUMSTANCES. OUR FORCE STRUCTURE MUST BE CAPABLE OF THIS FLEXIBLE TYPE OF EMPLOYMENT IF WE ARE TO PROTECT AND PROMOTE OUR NATIONAL INTERESTS.
TO MATCH OUR FIRST CLASS PEOPLE IN THE ADF OUR EQUIPMENT MUST BE FIRST CLASS, DELIVERED ON TIME ON BUDGET, MEETING THE CAPABILITIES SOUGHT. ADD TO THIS ALREADY SIGNIFICANT CHALLENGE, THE BREADTH OF EQUIPMENT NEEDED OVER THE NEXT DECADE.
IN THE NEXT DECADE THE AUSTRALIAN GOVERNMENT PLANS TO SPEND UP TO A$56B ON ENHANCING OUR DEFENCE CAPABILITY. THE GLOBAL DEFENCE MARKET WILL SPEND US$1 TRILLION THIS FINANCIAL YEAR, WITH EAST ASIA PURCHASES VALUED AT US$131B. FOR A STATE THAT HAS TRADITIONALLY WON A HIGH PROPORTION OF AUSTRALIAN DEFENCE CAPITAL EXPENDITURE, THIS IS A GREAT BUSINESS OPPORTUNITY THAT SOUTH AUSTRALIANS MUST NOT MISS.
COMPETITION FOR THIS WORK WILL BE FIERCE. A PROVEN TRACK RECORD, SKILLED WORKFORCE, INNOVATION AND QUALITY INFRASTRUCTURE WILL BE VITAL IF OUR COMPANIES ARE TO COMPETE AND WIN.
TODAY I WANT TO EXPLORE HOW THE SOUTH AUSTRALIAN GOVERNMENT INTENDS TO MARSHALL ITS RESOURCES TO HELP INDUSTRY WIN MORE THAN ITS FAIR SHARE OF FUTURE DEFENCE DOLLARS.
I WANT TO EXPLORE:
- OUR CURRENT PERFORMANCE
- FUTURE DRIVERS AND OPPORTUNITIES, AND
- FINALLY, TO OUTLINE OUR DEFENCE STRATEGY.
CURRENT PERFORMANCE
THE SOUTH AUSTRALIAN DEFENCE INDUSTRY CURRENTLY:
- CONTRIBUTES MORE THAN 2% OF GROSS STATE PRODUCT - A TOTAL OF $1.08 BILLION AND
- EMPLOYS AROUND 16,000 PEOPLE.
WHILST WE EARN AROUND 6% OF AUSTRALIA'S ANNUAL DEFENCE SPEND - A SHARE PROPORTIONAL TO THE STATE'S POPULATION SIZE, WE WIN ABOUT 30% OF ALL CAPITAL EQUIPMENT EXPENDITURE. CLEARLY, THIS IS A VERY GOOD ACHIEVEMENT BUT THIS PERFORMANCE IS UNDERPINNED BY THE COLLINS BUILD AND AS THAT PROGRAM HAS COMPLETED, OUR SHARE OF CAPITAL EXPENDITURE IS DROPPING, AND QUICKLY.
INDUSTRY CHARACTERISTICS AND STRENGTHS:
BEFORE I LOOK AT FUTURE OPPORTUNITIES, WE NEED TO APPRECIATE OUR STRENGTHS AND INDUSTRY CHARACTERISTICS THAT HAVE UNDERPINNED OUR GOOD PERFORMANCE TO DATE.
FIRSTLY, WE HAVE THE NATION'S PREMIER SHIPYARD AT OSBORNE. UNFETTERED BY URBAN ENCROACHMENT, IT IS ONE OF THE FEW ESTABLISHED SITES CAPABLE OF THE EXPANSION NECESSARY TO PRODUCE OUR FUTURE WARSHIPS.
SECONDLY, WE HAVE ONE OF THE MOST SIGNIFICANT CONCENTRATIONS OF WORLD-CLASS HIGH TECHNOLOGY DEFENCE ELECTRONIC SECTOR CAPABILITIES ENCOMPASSING:
- COMMAND AND CONTROL
- ELECTRONIC WARFARE
- COMMUNICATIONS
- COMPUTING
- INTELLIGENCE; AND
- SURVEILLANCE & RECONNAISSANCE.
THIRDLY, AUSTRALIA'S CORE RESEARCH AND DEVELOPMENT INSTITUTIONS, DSTO, UNIVERSITIES AND COOPERATIVE RESEARCH CENTRES ARE ALL LOCATED IN CLOSE PROXIMITY TO OUR INDUSTRY BASE.
FINALLY, THE STATE HAS A HIGHLY EDUCATED AND SKILLED WORKFORCE, SUPPORTED BY A RESPONSIVE TERTIARY EDUCATION AND TAFE SECTOR.
IN SUMMARY, WE HAVE A SOLID CORE OF THE PHYSICAL INFRASTRUCTURE, INNOVATIVE INDUSTRY BASE AND SKILLED WORKFORCE TO BE COMPETITIVE FOR FUTURE DEFENCE WORK. THAT SAID, THIS SOLID CORE WILL NOT BE SUSTAINED IF LEFT UNTENDERED. WE NEED FOCUSSED, CLEARLY ARTICULATED POLICIES THAT KEEP PACE WITH THE CHANGING STRATEGIC AND BUSINESS ENVIRONMENT IF WE ARE TO DELIVER THE INDUSTRY GROWTH TARGETS SET BY THIS GOVERNMENT.
OPPORTUNITIES:
DEFENCE CAPABILITY PROGRAM WELL, WHAT ARE THOSE FUTURE DEFENCE PRODUCTS AND MARKETS. THE DEFENCE CAPABILITY PLAN, RELEASED EARLIER THIS YEAR, OUTLINES THE NEXT DECADE OF MAJOR DEFENCE PROCUREMENT PROJECTS.
IN BROAD TERMS, THE PLAN RECOGNISES CHANGES IN AUSTRALIA'S STRATEGIC ENVIRONMENT CAUSED BY GLOBAL TERRORISM. IMPORTANTLY FOR US, THE SURVEILLANCE, INTELLIGENCE, COMMUNICATION AND INTEGRATED COMMAND AND CONTROL SYSTEMS THAT NOW HAVE GREATER PROMINENCE IN THE PLAN, ARE ALL STRENGTHS OF THE STATE INDUSTRY BASE.
THE PROJECTS OF GREATEST INTEREST TO US INCLUDE:
- PLANS TO BUILD THREE NEW AIR WARFARE DESTROYERS, A$4.5B TO A$6.0B WITH DESIGN WORK COMMENCING LATER IN 2005 AND COMPLETING IN THE MIDDLE OF THE NEXT DECADE.
- REPLACEMENT OF OUR AMPHIBIOUS FORCE AT A COST OF OVER A$2B WITH DESIGN WORK AGAIN COMMENCING IN 2005.
- REPLACEMENT OF ARMY'S FLEET OF FIELD VEHICLES AND TRAILERS AND THEIR CONSEQUENT SUPPORT THROUGH LIFE AT A COST OF A$2.0B TO A$3.0B.
- REPLACEMENT OF ARMY'S BATTLEFIELD COMMAND SUPPORT SYSTEMS IN THE LATTER HALF OF THE DECADE AT A COST OF A$150M TO A$200M.
- AT THE END OF THIS DECADE, REPLACEMENT OF THE AP-3C ORION CAPABILITY, CURRENTLY STATIONED AT EDINBURGH, WITH A COMBINATION OF MANNED AND UNMANNED FLIGHTS. EXPENDITURE EXPECTED TO BE A$4.25B TO A$5.5B.
- FINALLY, THERE IS A MYRIAD OF ELECTRONIC SYSTEM PROJECTS WELL IN EXCESS OF A$10B FOR WHICH SA INDUSTRY SHOULD BE A LEAD CONTENDER.
APART FROM DEFENCE, HOMELAND SECURITY IS REGRETTABLY EMERGING AS A MARKET ON INTEREST FOR THE FUTURE. $3.1 B IS PLEDGED TO BE SPENT OVER THE NEXT FIVE YEARS AND THIS FIGURE CAN ONLY INCREASE.
OUR DEFENCE STRATEGY
STRATEGIC FRAMEWORK:
TO EXPLOIT THESE OPPORTUNITIES, THE SOUTH AUSTRALIAN GOVERNMENT HAS, AND WILL CONTINUE TO, INVEST IN A FRAMEWORK TO DRIVE POLICY DEVELOPMENT AND IMPLEMENTATION. THIS FRAMEWORK COMPRISES THREE KEY ELEMENTS, THE DEFENCE INDUSTRY ADVISORY BOARD, THE DEFENCE UNIT AND THE DEFENCE TEAMING CENTRE.
THE DEFENCE INDUSTRY ADVISORY BOARD IS REPONSIBLE FOR PROVIDING ADVICE ON THE STATE'S DEFENCE STRATEGIES AND LIAISES WITH HIGH LEVEL DEFENCE AND GOVERNMENT PERSONNEL TO ENSURE THAT SOUTH AUSTRALIA BECOMES THE DOMINANT LOCATION FOR DEFENCE INDUSTRIES. MEMBERSHIP DETAILS……..
TO DRIVE AND IMPLEMENT THE DEFENCE STRATEGY WE HAVE A TEAM OF EIGHT, LARGELY CONTRACTORS, FORMED AS THE STATE DEFENCE UNIT. ONE OF THE FIRST PRIORITIES FOR THE TEAM IS THE DEVELOPMENT OF SECTOR PLANS THAT COVER ALL DEFENCE BUSINESS - MORE ON THESE PLANS LATER.
THE FINAL, YET CRUCIAL, ELEMENT OF THE FRAMEWORK IS A PROGRESSIVE INDUSTRY-LED BODY THAT HELPS ITS MEMBERS TO IDENTIFY, QUALIFY AND COLLABORATE TO WIN MORE BUSINESS NATIONALLY AND INTERNATIONALLY.
THIS INDUSTRY BODY, THE DEFENCE TEAMING CENTRE, PROVIDES A COLLECTIVE VOICE FOR THE DEFENCE INDUSTRY AND ASSISTS ITS MEMBERS TO IDENTIFY AND EXPLOIT BUSINESS OPPORTIUNITIES, TO IDENTIFY FUTURE SKILL NEEDS AND TO COLLABORATE BETWEEN MEMBERS AND MARKETS.
SECTOR PLANS
HAVING OUTLINED THE FRAMEWORK THAT THE GOVERNMENT HAS INVESTED IN TO DRIVE DEFENCE INDUSTRY POLICY, I WANT TO MOVE TO OUR PLANS. TO EXPLOIT SYSTEMATICALLY THE AVAILABLE OPPORTUNITIES, WE HAVE DEVELOPED FOUR SECTOR PLANS THAT ARTICULATE HOW STATE SUPPORT WILL BE PROVIDED TO AID IN THE GROWTH OF DEFENCE BUSINESS. THERE ARE FOUR PLANS COVERING THE NAVAL, AIR, LAND AND ELECTRONIC SECTORS. THE PREMIER WILL RELEASE THE PLANS SHORTLY.
THERE IS A LOT OF NECESSARY DETAIL IN THE PLANS BUT PERHAPS THE MOST TOPICAL AT THE MOMENT IS THE NAVAL PLAN WHICH EMBRACES OUR AIR WARFARE DESTROYER ASPIRATIONS.
IN THAT PLAN, SOUTH AUSTRALIA IS VIGOROUSLY PURSUING A GOAL TO ESTABLISH A NATIONAL LEADERSHIP POSITION IN SHIPBUILDING CONSOLIDATION.
FOR THOSE WHO ARE NOT AWARE, THE SHIP WE ARE LOOKING AT IS ABOUT 150 METRES LONG, WITH A CREW OF 250 AND DISPLACEMENT OF AROUND 8000 TONS. WE ARE LOOKING AT THREE TYPES:
- A US ARLEIGH BURKE
- A GERMAN SACHSEN CLASS BUILT BY BLOHM & VOSS
- A SPANISH BAZEN CLASS BUILT BY IZAR.
THE AWD HAS ADVANCED RADARS AND SENSORS WHICH SCAN HUNDREDS OF KILOMETRES FOR POTENTIAL THREATS. ITS ADVANCED COMBAT SYSTEM, WHICH CONTROLS ALL WEAPONS AND SENSORS, CAN ENGAGE MULTIPLE TARGETS SIMULTANEOUSLY. THESE SHIPS ARE REQUIRED TO COUNTER THE INCREASED LETHALITY OF MODERN ANTI-SHIP MISSILES AND TO ENSURE THAT WE ARE CAPABLE OF SAFELY DEPLOYING OUR FORCES IN THE IMMEDIATE REGION AND BEYOND.
AWD SENSORS/WEAPONS :
- AEGIS COMBAT SYSTEM
- SM2, GSSM WITH 64 VLS CELLS
- COUNTER SURVEILLANCE ELECTRONIC ATTACK
- ;NULKA
- IRST
- VSRAD
- HARPOON
- MK45 5" GUN
- FULL SUITE ASW SENSORS
- SEAHAWK HELICOPTER.
RETURNING TO THE PLAN, THE KEY INITIATIVE IS THE DEVELOPMENT OF THE OSBORNE MARITIME PRECINCT TO BECOME THE PREMIER LOCATION FOR THE CONSOLIDATION OF THE RANs FUTURE WARSHIPS. THE STATE GOVERNMENT IS LOOKING TO TRANSFORM OSBORNE INTO A TRULY FORMIDABLE SHIPBUILDING CAPABILITY THAT WILL INCLUDE UP TO 90 HECTARES OF LAND DEDICATED TO NAVAL SHIPBUILDING, A NEW SHIPLIFT, TRANSFER SYSTEM AND WHARF OPERATED AS A MULTI USER FACILITY. WE WILL ALSO BE LOOKING TO PROVIDE A COMPREHENSIVE SUITE OF THE TRADE AND TECHNICAL SKILLS NECESSARY TO ESTABLISH A VIBRANT, INNOVATIVE SHIPBUILDING INDUSTRY.
CLEARLY, THERE IS A LOT MORE TO A WARSHIP THAN STEEL CONSOLIDATION. THE STRENGTH OF OUR STATE NAVAL INDUSTRIAL BASE LIES IN ITS ABILITY TO DEVELOP AND INTEGRATE THE ELECTRONIC SYSTEMS THAT FORM THE BACKBONE OF A MODERN WARSHIP. THESE SYSTEMS WILL ONLY GROW IN COMPLEXITY AS CONCEPTS SUCH AS NETWORK CENTRIC WARFARE SYSTEMS ARE OVERLAID ON INDIVIDUAL PLATFORMS AND JOINT FORCE GROUPS.
WE ALSO HAVE ASPIRATIONS IN THE LAND AND ELECTRONICS PLANS. I WOULD BE HAPPY TO DISCUSS THESE PLANS IN QUESTIONS.
CONCLUSION
AS A SMALL STATE, SOUTH AUSTRALIA PUNCHES WELL ABOVE ITS WEIGHT IN TERMS OF PROVIDING QUALITY EQUIPMENT TO THE AUSTRALIAN DEFENCE FORCE. OUR STRENGTH IS IN THE TALENTED AND SKILLED WORKFORCE WHICH COMPETES AT HIGHLY COMPETITIVE PRICES. SOUTH AUSTRALIA MAINTAINS AN OUTSTANDING INDUSTRIAL HARMONY RECORD WITH AROUND A THIRD OF THE NATIONAL AVERAGE OF DAYS LOST DUE TO INDUSTRIAL DISPUTES.
BUT WE DO NOT PRETEND TO BE THE ONLY ONES IN AUSTRALIA OF THIS QUALITY. WE WILL DIFFERENTIATE OUR STATE BY PROVIDING POLICIES THAT EMBRACE ALL THE FACTORS NECESSARY TO DELIVER FUTURE MILITARY CAPABILITY. RECOGNISING THE CHALLENGE OF BUILDING THE NEXT GENERATION OF DEFENCE EQUIPMENT, WE WILL FURTHER ENHANCE INFRASTRUCTURE, DELIVER QUALITY WORKFORCE SKILLS, DRIVE INDUSTRY COLLABORATION AND MAKE THE BEST USE OF THE CONSIDERABLE RESEARCH AND DEVELOPMENT CONDUCTED IN SOUTH AUSTRALIA.