2016 DEFENCE WHITE PAPER

Industry, innovation, research and development 109
4.100 The Government recognises that Australian defence industry has faced
major challenges as a result of underinvestment in Defence, and the
accompanying volatility in Defence funding. This Defence White Paper,
the Defence Industry Policy Statement and the Integrated Investment
Program provide Australian defence industry with a comprehensive
policy framework to inform the contribution industry will need to
make to Australia’s long-term security, including the development of
capability, infrastructure and skills for the future.
4.101 The Government will better link our capability needs with Australian
defence industry’s capacity to deliver and we will ensure that the
decisions we make about defence capability take proper account of
Australian defence industry. For the first time, the Government will
recognise the vital role of an internationally competitive Australian
defence industry as a Fundamental Input to Capability. The Fundamental
Inputs to Capability are those essential inputs which together combine
to achieve capability – reflecting that it requires more than simply
purchasing equipment to achieve capability.
4.102 Recognising that an internationally competitive Australian defence
industry is a Fundamental Input to Capability means that it will be
mandatory to consider Australian defence industry in the formal
capability development process, helping to better match the
development of new capabilities with Australian defence industry’s
ability to deliver them. Australian defence industry will be given the
same consideration as the existing Fundamental Inputs to Capability:
Personnel; Organisation; Collective Training; Major Systems; Supplies;
Facilities and Training Areas; Support; and Command and Management.
SECTION TWO CAPABILITY
4.103 The Government requires Defence to be a smart buyer to maximise
Defence capability and value for money for the Australian taxpayer.
Defence’s ability to be a smart buyer relies on a stronger relationship
with Australian defence industry to provide expertise in managing
projects. The Government has strengthened Defence’s relationship
2016 DEFENCE WHITE PAPER