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January/February 2012 SA <strong>Defence</strong> Business CONTENTS<br />

13<br />

6 CHAIRPERSON AND CEO INTRODUCTION<br />

10 INDUSTRY NEWS<br />

13 FEATURE<br />

A look at whether the AUS-US <strong>Defence</strong> Trade Cooperation<br />

Treaty will bring new opportunities for<br />

South Australia’s defence industry<br />

16 FEATURE<br />

The case for the home-grown future submarine<br />

18 PROFILE<br />

South Australian Minister for <strong>Defence</strong> Industries<br />

Jack Snelling gives his take on the future of South<br />

Australia’s defence industry<br />

21 PROJECT UPDATE<br />

The latest on South Australia’s Air Warfare<br />

Destroyer project<br />

DEFENCE TEAMING CENTRE INC.<br />

The <strong>Defence</strong> <strong>Teaming</strong> <strong>Centre</strong> is South Australia’s<br />

defence industry association.<br />

Innovation House West<br />

First Avenue<br />

Technology Park<br />

Mawson Lakes SA 5095<br />

08 8260 8159<br />

EDITOR<br />

Holly Caruso<br />

<strong>Defence</strong> <strong>Teaming</strong> <strong>Centre</strong><br />

EDITORIAL COMMITTEE<br />

Courtney McGrath BAE Systems Australia<br />

Steve Hickman Daronmont Technologies<br />

David Searles <strong>Defence</strong> Systems Innovation <strong>Centre</strong><br />

Stuart Hodge <strong>Defence</strong> <strong>Teaming</strong> <strong>Centre</strong><br />

Mark Williams Hughes PR<br />

Helen Rogers Solstice Media<br />

Paula Brinkworth Solstice Media<br />

Chris Field Wartsila<br />

SA <strong>Defence</strong> Business is published by<br />

Solstice Media<br />

4 Cinema Place<br />

(off Vaughan Place)<br />

Adelaide SA 5000<br />

08 8224 1600<br />

Circulation to 1400 nationally<br />

16 18 30 37 51<br />

22 INDUSTRY<br />

A guide to who defence industry should seek for<br />

support for business growth<br />

25 SPECIAL FEATURE<br />

Pacifi c 2012: who’s exhibiting at this year’s event in<br />

Sydney in January<br />

34 INDUSTRY<br />

Pricewaterhouse Coopers explain the benefi t of the<br />

new Research and Development Tax <strong>Inc</strong>entive<br />

37 YOUNG AMBASS<strong>AD</strong>OR<br />

An interview with Sumen Rai, <strong>Defence</strong> SA market<br />

analyst<br />

38 SKILLS<br />

<strong>Defence</strong> industry engineers of the future and<br />

emerging leaders<br />

PUBLISHER<br />

Paul Hamra<br />

PRODUCTION EDITOR<br />

Paula Brinkworth<br />

EDITORIAL<br />

Grant Smyth<br />

DESIGNER<br />

Raymond Capozzi<br />

PHOTOGRAPHER<br />

Nat Rogers<br />

PRINTING<br />

Lane Print and Post<br />

SUBSCRIPTION ENQUIRIES<br />

08 8224 1600<br />

<strong>AD</strong>VERTISING ENQUIRIES<br />

Helen Rogers<br />

advertising@solsticemedia.com.au<br />

08 8224 1611<br />

FREQUENCY<br />

Bi-monthly<br />

COVER<br />

Gordon Fawcett, Craig Gustard, Norman Docherty and<br />

Malcolm McMillan of ASC on the Collins class submarine<br />

at Techport Australia<br />

05<br />

41 A DAY IN THE LIFE OF<br />

ASC production technician Paul Minerds reveals what<br />

it’s like to work on a Collins class submarine<br />

44 MEMBER NEWS<br />

46 EVENTS<br />

49 MEMBER LISTING<br />

51 OUT OF HOURS<br />

Ingenia’s Business Development Manager Ian Biggs<br />

has a passion for Vespa scooters<br />

Editor’s Note<br />

It has been an absolute<br />

privilege working with<br />

Solstice Media and the<br />

team at the <strong>Defence</strong><br />

<strong>Teaming</strong> <strong>Centre</strong> (DTC)<br />

to develop the SA<br />

<strong>Defence</strong> Business<br />

publication from a<br />

concept to the highly<br />

regarded publication it<br />

has become over the<br />

last two and a half years. As I depart the DTC to<br />

a new role within the defence industry, I welcome<br />

the DTC’s Membership Development Manager<br />

Rita Emanuele to the helm as Editor of SA <strong>Defence</strong><br />

Business from issue 16. I am certain Rita will bring to<br />

the publication fresh ideas and continue to develop<br />

the value of the publication for defence industry.<br />

Holly Caruso<br />

Editor, SA <strong>Defence</strong> Business<br />

<strong>Defence</strong> <strong>Teaming</strong> <strong>Centre</strong><br />

DTC CHARITIES OF CHOICE


06 CHAIRPERSON & CEO INTRODUCTION<br />

January/February 2012 SA <strong>Defence</strong> Business<br />

Looking ahead Need for greater support<br />

A word from chairperson Jim Whalley<br />

Welcome to another issue of SA <strong>Defence</strong> Business. I write this as we are<br />

approaching the end of 2011 and I know you will all be reading it with Christmas<br />

and New Years behind you and hopefully you are re-energised for the year ahead.<br />

2011 has been a tough year for many in the defence industry and there have<br />

been some major disappointments in South Australia. In particular, these include<br />

the loss of Land 121 from the State and continued delays to the start of the future<br />

submarine project.<br />

The DTC is also facing some uncertainty over its future as the SA State<br />

Government funding arrangement concludes at the end of the current fi nancial<br />

year. The South Australian Government has been a great supporter of <strong>Defence</strong><br />

and defence industry over the last decade and I sincerely hope we are not seeing a<br />

change in that support. At risk is much of the work that has been done to make<br />

SA the “<strong>Defence</strong> State”.<br />

The DTC CEO Chris Burns and myself have recently met with Government<br />

and hope to again late in January. We are hopeful that the new Minister for<br />

<strong>Defence</strong> Industries, Jack Snelling, will continue to support the DTC and defence<br />

industry as a keystone to the State’s economic development and support of<br />

technology based industry in South Australia. I look forward to reporting a<br />

positive outcome in the next issue of the SA <strong>Defence</strong> Business magazine.<br />

"The South Australian Government has<br />

been a great supporter of <strong>Defence</strong> and<br />

defence industry over the last decade<br />

and I sincerely hope we are not seeing<br />

a change in that support"<br />

On a more positive note, our very successful SA <strong>Defence</strong> Industry Leadership<br />

Program (S<strong>AD</strong>ILP) will run again in 2012. I strongly encourage all members to<br />

consider participating or nominating a participant by the end of February 2012<br />

cut-off. Dependent on funding, we are also hoping to continue running our<br />

Women infl uencing <strong>Defence</strong> and Resources Industries (WiDRI) program.<br />

Please refer to the DTC website for more information.<br />

In the meantime I hope you have all had a good break and are looking<br />

forward to a more prosperous 2012.<br />

A word from CEO Chris Burns<br />

As we kick-off 2012, many members are feeling the impact of the decline<br />

in <strong>Defence</strong> investment in Australia’s defence industry. In our Annual Report<br />

I quoted Tennyson’s ‘Charge of the Light Brigade’ describing the trough in<br />

<strong>Defence</strong> expenditure as the ‘Valley of Death’. In particular, I noted the stanza<br />

“theirs not to make reply, theirs not to reason why, theirs but to do and<br />

die”. The Federal Government’s fi scal strategy of imposing saving regimes<br />

and reviews on <strong>Defence</strong> and delaying project approvals in order to achieve<br />

a surplus are having a signifi cant impact on our defence industry in terms of<br />

work fl ow, generation of revenue and retention of our skilled labour. Inevitably,<br />

this must impact on <strong>Defence</strong>’s capacity to generate the capabilities required by<br />

government to assure our nation’s security. Unfortunately, like Lord Cardigan’s<br />

cavalry at the Battle of Balaclava, our military cannot dare to reply and the<br />

defence industry is fearful of retribution if it questions why.<br />

Lost in the hyperbole surrounding all the <strong>Defence</strong> releases announced<br />

simultaneously with the Cabinet reshuffl e in mid-December 2011, was the<br />

release of the preliminary report by the Senate Inquiry into Procurement<br />

Procedures for <strong>Defence</strong> Capital Projects, the Inquiry representing industry’s<br />

opportunity to highlight its concerns with <strong>Defence</strong> procurement. The DTC made<br />

signifi cant written and verbal submissions to this Inquiry. Importantly, one of the<br />

major concerns identifi ed by the Inquiry is that within <strong>Defence</strong> there is “limited<br />

strategic consideration of Australia’s defence industry including the impact of<br />

off-the-shelf purchases, interconnection between industry viability and <strong>AD</strong>F<br />

capability, and relationship with <strong>Defence</strong> as sole customer”.<br />

In the same swath of announcements from the Government, our <strong>Defence</strong><br />

Ministers claimed a record for approvals of <strong>Defence</strong> capability projects in 2011. The<br />

fact is that the majority of the expenditure was for foreign off-the shelf equipment<br />

like C17s, Chinook helicopters and amphibious vessels; none of which will involve<br />

any signifi cant engagement or investment in Australia’s defence industry. Very few<br />

of these project approvals helped industry climb out of the ‘Valley of Death’.<br />

My great concern is that some in our defence industry may not survive<br />

the ride through the valley to be ready to reap the benefi t of the quantum of<br />

work fl owing from the forecast increase in <strong>Defence</strong> expenditure from 2014<br />

on. Inevitably this will force <strong>Defence</strong> to look offshore to replace the capabilities<br />

it has been denied. This will see Australian taxpayer’s dollars and jobs being<br />

exported to foreign defence industries. We will be even more benevolent on<br />

other nations to maintain our defence capabilities and we will further ‘dumbdown’<br />

our nation by denying its defence industry the opportunity to innovate<br />

and grow. This year we need the Government to support the Australian<br />

defence industry, to make decisions that benefi t our indigenous capability and<br />

provide a clear path out of the valley in which industry currently resides.<br />

A copy of the Preliminary Report of the Senate Inquiry into Procurement<br />

Procedures for <strong>Defence</strong> Capital Projects is available on the DTC website.<br />

The opportunity also exists for further submissions to the Inquiry. The DTC<br />

will happily accept members’ input and consolidate them into a DTC fi nal<br />

submission before mid-February 2012. Let’s hope the fi nal recommendations of<br />

the Senate Inquiry do not fall on deaf ears.


SOFTWARE SOLUTIONS UPCOMING COURSES<br />

The Software Engineering Institute is bringing 25 years of experience to Australia<br />

The Software Engineering Institute is bringing<br />

its quarter century of experience to Australia.<br />

The SEI is a global leader in research and<br />

development related to software, system design,<br />

software acquisition, cybersecurity, and risk<br />

management.<br />

With a 25-year history of working in close<br />

collaboration with the U.S. Department of<br />

Defense, government, industry, and academia,<br />

the SEI aims to continually improve softwareintensive<br />

systems through research, education,<br />

and consulting.<br />

In addition to the Department of Defense,<br />

the SEI’s global partners and clients include<br />

the U.S. Department of Homeland Security,<br />

civil government agencies, defence contractors,<br />

software development organisations, and<br />

financial services companies, among others.<br />

The SEI launched its Asia-Pacific operations<br />

at Carnegie Mellon University – Australia’s<br />

Adelaide campus in 2011.<br />

From this location the SEI will work with<br />

organisations throughout Australia and the<br />

broader Asia-Pacific community on software<br />

engineering, process improvement and network<br />

security.<br />

The SEI will also offer advanced courses and<br />

certifications, created and taught by recognised<br />

experts with practical experience in the field, to<br />

help you address today’s challenges.<br />

The courses feature hands-on tasks and<br />

real-world scenarios to help students learn<br />

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or improve the skills they need to create and<br />

maintain software, systems, and organisations<br />

that are efficient, secure and reliable.<br />

SEI Director and Chief Executive Officer,<br />

Dr Paul Nielsen, says the Institute is looking<br />

forward to working collaboratively with<br />

Australian partners and colleagues to address<br />

the challenges faced by the global software<br />

community.<br />

“Corporations and governments worldwide<br />

spend an estimated $1 trillion per year on<br />

IT projects, but because software design,<br />

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Dr Nielsen said.<br />

“The SEI works to build capabilities in<br />

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said.<br />

“The SEI also specialises in cybersecurity and<br />

risk—with federal government agencies in the<br />

United States reporting more than 5,600 cases<br />

of computer attacks, intrusions and plantings of<br />

malicious code against them every year, there is<br />

great demand for ways to assure system security,<br />

protect against internal and external threats,<br />

educate employees about security best practices<br />

and build software with fewer defects and<br />

vulnerabilities.”<br />

CERT Insider Threat Workshop<br />

17-18 April 2012<br />

The workshop consists of presentations<br />

and interactive exercises in which<br />

participants are led through portions<br />

of the CERT insider threat assessment<br />

instrument, which was developed to enable<br />

organisations to assess their insider threat<br />

risk. The assessment addresses technical,<br />

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threat in specific areas of concern. Our goal<br />

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actionable steps that they can take to better<br />

manage the risk of insider threat in their<br />

organisation.<br />

Introduction to CERT Resilience<br />

Management Model<br />

15-17 May 2012<br />

This course introduces a model-based<br />

process improvement approach to managing<br />

operational resilience using the CERT®<br />

Resilience Management Model (CERT-<br />

RMM) v1.1. The course is composed of<br />

lectures and class exercises with ample<br />

opportunity for participant questions<br />

and discussions. After attending the<br />

course, participants will understand the<br />

fundamental concepts of operational<br />

resilience and operational resilience<br />

management, have a working knowledge of<br />

CERT-RMM process areas, and be able to<br />

begin process improvement efforts in their<br />

organisation. Using CERT-RMM as a guide,<br />

participants will also be able to evaluate their<br />

current security, business continuity, and<br />

IT operations practices and make effective<br />

decisions about which practices are working<br />

and which need to be replaced.<br />

For more information or to<br />

register visit our website at<br />

www.cmu.edu.au/SEI<br />

or send us an email at<br />

admissions@cmu.edu.au


INDUSTRY NEWS<br />

08 January/February 2012 SA <strong>Defence</strong> Business<br />

Ministerial reshuffle affects <strong>Defence</strong><br />

THE recent cabinet reshuffl e by the Gillard<br />

Government has brought about a change in the<br />

<strong>Defence</strong> ministerial team.<br />

The previous Minister for <strong>Defence</strong> Materiel,<br />

the Hon. Jason Clare, has been moved to<br />

the ministry of Home Affairs and Justice. His<br />

replacement in the role will be Senator Kim Carr,<br />

who recently held the position of Minister of Industry,<br />

Innovation, Science and Research. His current role<br />

also includes the Manufacturing portfolio. Senator<br />

Carr will not form part of the cabinet.<br />

Another new appointment to the<br />

<strong>Defence</strong> ministerial team is Dr Mike Kelly MP as<br />

Parliamentary Secretary for <strong>Defence</strong>. Dr Kelly<br />

will be the second parliamentary secretary for<br />

<strong>Defence</strong>, alongside Senator David Feeney. Dr<br />

Kelly’s responsibilities will be to oversee the<br />

drawdown and eventual transition to local forces<br />

in Afghanistan.<br />

Following the reshuffl e, the current <strong>Defence</strong><br />

ministerial team consists of:<br />

The Hon. Stephen Smith MP - Minister for<br />

<strong>Defence</strong><br />

The Hon. Warren Snowdon MP - Minister for<br />

Veterans’ Affairs, Minister for <strong>Defence</strong><br />

Science and Personnel, Minister Assisting the<br />

Prime Minister on the Centenary of Anzac<br />

Senator the Hon. Kim Carr - Minister for<br />

<strong>Defence</strong> Materiel, Minister for Manufacturing<br />

The Hon. Dr Mike Kelly AM - Parliamentary<br />

Secretary for <strong>Defence</strong><br />

Senator the Hon. David Feeney -<br />

Parliamentary Secretary for <strong>Defence</strong><br />

State Opposition appoints new<br />

Shadow Cabinet<br />

The new Minister<br />

for <strong>Defence</strong><br />

Materiel, Senator<br />

Kim Carr<br />

THE State Opposition has reorganised its Shadow<br />

Cabinet, appointing a new Shadow Minister<br />

for <strong>Defence</strong> Industries, Steven Marshall. Mr<br />

Marshall is the Member for Norwood and has<br />

gained several portfolios including Small Business,<br />

Industry and Trade, Environment, Climate Change<br />

and Sustainability, <strong>Defence</strong> Industries and Science<br />

and Information Economy. Mr Marshall said that<br />

he was looking forward to his new roles.<br />

The previous Shadow Minister for <strong>Defence</strong><br />

Industries, Martin Hamilton-Smith, has been<br />

appointed as Shadow Minister for Health, Ageing,<br />

Mental Health and Substance Abuse.<br />

Land 121 phases approved<br />

THE Federal Government has approved several<br />

phases of the long-running Land 121 program.<br />

Rheinmetall MAN Military Vehicles<br />

Australia has been down-selected as preferred<br />

tenderer for Land 121 Phase 3B (Protected and<br />

Unprotected Medium and Heavy Vehicles). The<br />

initial negotiations will be for up to 2,700 vehicles,<br />

drawn from MAN’s HX series of vehicles. MAN had<br />

been in heavy competition with Mercedes Benz<br />

and Thales for the project.<br />

Land 121 Phase 3B has been a protracted<br />

process, initially being awarded in 2008 before<br />

negotiations broke down. The current award will<br />

bring the project off the projects of concern list.<br />

Local suppliers will construct the bodies and modules<br />

for the trucks; trailers for the vehicles will be<br />

manufactured by Haulmark Trailers in Brisbane.<br />

The Thales Hawkei, selected as the Made and Supported in Australia option for Land 121 Phase 4<br />

<strong>Defence</strong> Officers in Business group<br />

launched<br />

THE <strong>Defence</strong> Offi cers in Business Group was<br />

offi cially launched by General Peter Cosgrove in<br />

early November 2011, with more than 300 people<br />

attending the simultaneous launch in Brisbane,<br />

Sydney, Adelaide, Melbourne and Canberra.<br />

The organisation is intended to be a business<br />

community assisting organisations and people to<br />

leverage <strong>Defence</strong> expertise through networking,<br />

professional development and matching services<br />

aimed at ex-service personnel that have moved<br />

into commercial industry.<br />

The <strong>Defence</strong> Offi cers in Business network<br />

allows both individual memberships and corporate<br />

memberships, with over 1200 individual members<br />

already signed up. The group will be organising<br />

networking events and defence industry specifi c<br />

events in the major capital cities and will also be<br />

facilitating recruitment and targeted advertising<br />

through its online social network.<br />

For more information about the <strong>Defence</strong><br />

Offi cers in Business organisation, go to<br />

www.defence-offi cers-in-business.com/<br />

The project is expected to cost more than<br />

originally budgeted for in 2007, extra funds will<br />

come from surplus funds from previous project<br />

phases and the cancellation of the second stage of<br />

the ASLAV enhancement program.<br />

Land 121 Phase 4 (Protected Mobility<br />

Vehicle-Light) has also reached a decision, with<br />

the Bendigo-based Thales “Hawkei” vehicle being<br />

selected as the Made and Supported in Australia<br />

option for the project. The Thales vehicle had been<br />

in competition with the Force Protection “Ocelot”<br />

and General Dynamics Land Systems Australia<br />

“Eagle” for the contract.<br />

The Thales vehicle will be assessed against<br />

the outcome of the Joint Light Tactical Vehicle<br />

program and a possible ‘Market Available’ option,<br />

with a decision to be made in 2015.<br />

AIC Plans to be made public<br />

THE Federal Government has announced more<br />

changes to the way that Australian Industry Content<br />

Plans (AICPs) are governed for future projects.<br />

Starting from January 1, 2012 Australian<br />

Industry Content Plans for <strong>Defence</strong> Projects are<br />

now publicly released, ensuring that industry has<br />

the opportunity to see exactly where opportunities<br />

on major projects lie. This change is the latest<br />

reform in a series that were announced in 2011,<br />

which included lowering the threshold for<br />

mandatory AICPs to $20 million and introducing<br />

enforceable clauses on AICPs into the conditions<br />

of tender.<br />

Announcing the reforms, former Minister for<br />

<strong>Defence</strong> Materiel Jason Clare said that many SMEs<br />

and industry groups had asked for the reform.<br />

“This is the next step. It is a common-sense<br />

idea,” Mr Clare said.


January/February 2012 SA <strong>Defence</strong> Business INDUSTRY NEWS 09<br />

Army announces major restructure<br />

THE <strong>Defence</strong> Ministers and the Chief of Army<br />

offi cially announced the release of Plan BEERSHEBA,<br />

a major restructure of the Australian Army.<br />

The long-awaited plan, which had been<br />

previously discussed at the Land Environment<br />

Working Group, will see the amalgamation<br />

of forces in to several ‘Multi-role Manoeuvre’<br />

brigades, which will rotate through a 36-month<br />

force generation cycle. The Plan also calls for the<br />

dedication of the 2nd battalion (2RAR) to form the<br />

core of an amphibious force, designed to operate<br />

regionally in disaster relief and humanitarian<br />

operations. The new force structure is designed to<br />

increase inter-operability with the other services, in<br />

particular with the upcoming Landing Helicopter<br />

Dock ships.<br />

Chief of Army Lieutenant General Morrison<br />

said: “Our modern Army is moving into the future<br />

with a new perspective and a smarter way of<br />

doing business and delivering capability within the<br />

resources we have.”<br />

Plan BEERSHEBA will ensure that the Army<br />

can continue to contribute forces to operations,<br />

including Afghanistan, as well as successfully<br />

transition to a force that maintains high levels of<br />

readiness to respond to the range of Australia’s<br />

<strong>Defence</strong> needs in the future.”<br />

Cultana growing five times<br />

THE Parliamentary Secretary for <strong>Defence</strong>, Senator<br />

David Feeney, has met with pastoralists near Whyalla<br />

in advance of the compulsory acquisition of land<br />

for the Cultana base expansion. The base, located<br />

between Whyalla and Port Augusta in South<br />

Australia, will be expanded to fi ve times its size in<br />

the near future.<br />

Senator Feeney said the project was<br />

progressing well, with agreement being reached<br />

with a native title claimant. The Senator also said<br />

permission had been sought to begin the acquisition<br />

process from the relevant Federal Ministers.<br />

“The expansion of Cultana will bring<br />

more <strong>Defence</strong> jobs to South Australia,” Senator<br />

Feeney said.<br />

“Not only will it generate short-term<br />

employment during the construction phase, but<br />

increased use of the training area will have a positive<br />

economic impact on local communities.”<br />

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Projects no longer of concern<br />

THE Government has removed an additional three<br />

<strong>Defence</strong> projects from the projects of concern list in<br />

November/December 2011, cutting the list in half<br />

since the start of 2011.<br />

The three projects that were removed recently<br />

are Land 121 Phase 3B – Overlander replacement<br />

fi eld vehicles, trailers and modules (Medium Heavy<br />

class); AIR 5418 Phase 1 – Joint Air-to-Surface<br />

Standoff Missile (JASSM); and JOINT 129 Phase 2 –<br />

Tactical Unmanned Aerial Vehicles, all of which had<br />

been on the list for over 12 months. Three projects<br />

were removed from the list earlier in 2011.<br />

Six projects remain on the projects of concern<br />

list, including the Collins Class sustainment and the<br />

MRH-90 Helicopter project.<br />

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10 INDUSTRY NEWS<br />

January/February 2012 SA <strong>Defence</strong> Business<br />

A record year of <strong>Defence</strong> Approvals<br />

THE <strong>Defence</strong> Minister Stephen Smith and the former<br />

Minister for <strong>Defence</strong> Materiel Jason Clare announced<br />

in December 2011 that it had been a record year<br />

for <strong>Defence</strong> project approvals, with 46 projects<br />

undergoing fi rst or second pass approval, plus other<br />

approvals. While this is to be commended, 15 of these<br />

approvals were in the November-December 2011<br />

period. With this late rush it is understandable if some<br />

approvals were missed by industry, so it’s worth going<br />

through the fi nal approval list to see what exactly the<br />

Government has recently announced.<br />

Air projects<br />

The Government approved four major aerospace<br />

projects in November and December 2011. First<br />

pass approval was given to AIR 5431 (Air Traffi c<br />

Management) and AIR 5438 (Lead-in Fighter<br />

Bushmasters fitted with SPARK mine detectors are one of the many projects recently given approval<br />

Capability Assurance Program). Air 5431 will provide<br />

$6.9 million for development of a deployable air<br />

traffi c management system, including surveillance<br />

radars and air traffi c control. The second pass will<br />

occur in 2013/14 and be worth $300-500 million.<br />

Air 5438 will develop options and risk mitigation<br />

strategies for aircrew working on current and future<br />

aircraft, and will be worth $100-500 million at<br />

second pass in 2013-14.<br />

AIR 9000 Phase 5D, approved at second<br />

pass, will acquire two more CH-47D Chinooks as a<br />

replacement for one aircraft lost in Afghanistan. The<br />

purchase will be a direct purchase from the US. Air<br />

7000 Phase 2B received intermediate pass approval<br />

for continued development of the Maritime Patrol<br />

Aircraft Replacement, likely to be the US Navy’s P-8<br />

Orion project.<br />

Land Projects<br />

Four major projects in the land space were announced<br />

in November and December 2011. Of these four<br />

announcements, three were part of the Project<br />

Overlander/LAND 121 suite of announcements,<br />

including the purchase of Heavy Trucks, the selection<br />

of a Made and Supported in Australia option (the<br />

Thales Hawkei) for the Light Protected Mobility<br />

Vehicles and the bringing forward of the decision<br />

on the trailers for both vehicle classes. The other<br />

announcement was second pass approval for LAND<br />

17 Phase 1B, which will purchase approximately<br />

$90million worth of artillery Digital Terminal Control<br />

systems from Rockwell Collins.<br />

Sea Projects<br />

The major maritime announcement was the approval<br />

of SEA 1448, the ANZAC Anti-Ship Missile <strong>Defence</strong><br />

Project. Following successful tests on the HMAS Perth,<br />

Saab Systems and CEA Technologies will work with<br />

BAE Systems Australia to upgrade the remaining<br />

seven ships in the ANZAC class with SAAB’s latest 9LV<br />

combat management system. The new system will<br />

integrate with CEA’s Phased Array Radar.<br />

Joint Projects<br />

Several joint projects were also approved in the<br />

November/December 2011 period. First pass approval<br />

was given to Joint Project (JP) 3024, the upgrade of<br />

the Woomera Test Range. The upgrade will improve<br />

the range’s command, control, safety and data<br />

acquisition systems, and will undergo second pass<br />

approval in the next 12-24 months. JP 2072 Phase 2A,<br />

the purchase of 11,000 radios, was awarded to Harris<br />

Corporation in late November and will replace existing<br />

analogue equipment. JP 154, a Counter IED system,<br />

will be fi lled using a combination of HUSKY vehicles<br />

purchased from the US and Bushmasters fi tted with<br />

SPARK mine rollers, and will cost about $70 million.<br />

Finally, the Government has released around $70<br />

million to allow completion of JP 2070 Phase 2, the<br />

replacement of Lightweight Anti-Submarine Torpedoes.<br />

The project, which has been a project of concern since<br />

2008, will allow the completion of integration activities<br />

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January/February 2012 SA <strong>Defence</strong> Business FEATURE<br />

On the horizon...<br />

Will the AUS−US <strong>Defence</strong> Trade<br />

Cooperation Treaty bring new<br />

opportunities?<br />

As the long−awaited Australia−US Treaty comes closer to full<br />

implementation, reporter GRANT SMYTH looks at what it will mean for<br />

the local defence industry and the opportunities it may create.<br />

By GRANT SMYTH<br />

The Australia-US Treaty on <strong>Defence</strong> Trade Cooperation<br />

moved closer to full implementation in November<br />

2011with the ratifi cation of the <strong>Defence</strong> Trade<br />

Controls Bill in the House of Representatives.<br />

The Bill is the latest legislative step in an already<br />

more than four-year-long process that will lead to the<br />

creation of an “Approved Community” of Australian<br />

and US defence contractors able to transfer a range<br />

of <strong>Defence</strong> articles on the United States Munitions<br />

List (USML) without applying for licences from the US<br />

Department of State.<br />

Once the Bill is ratifi ed in the Australian Senate<br />

this year, a Pathfi nder program will test the Treaty’s<br />

provisions before the appointment of the Approved<br />

Community begins.<br />

The Australia-US Treaty on <strong>Defence</strong> Trade<br />

Cooperation was signed by George W Bush and John<br />

Howard in Sydney on September 5, 2007. The Treaty<br />

seeks to help US and Australian companies avoid<br />

the labyrinthine legal restrictions relating to the US’s<br />

International Traffi c in Arms Regulations (ITAR).<br />

ITAR controls the export and import of <strong>Defence</strong>related<br />

articles and services on the USML.<br />

The regulations have been criticised in the past<br />

by US defence contractors, who have blamed them<br />

for damaging their export businesses. They have also<br />

been criticised by defence companies in countries<br />

allied with the US who have found it diffi cult to<br />

develop and procure <strong>Defence</strong> articles because of the<br />

time consuming process of applying for licences and<br />

the fear of breaking US law.<br />

The penalties for transferring <strong>Defence</strong> related<br />

articles on the USML without a licence are severe and<br />

several major international contracts are believed to<br />

have been lost to the US, particularly in aerospace,<br />

because of fears over technology transfer barriers.<br />

In 2007 ITT Corporation was fi ned US$100<br />

million over the unauthorised retransfer of night vision<br />

technology equipment to China, Singapore and the<br />

UK. Other companies who have fallen foul of ITAR<br />

include Lockheed Martin, Motorola and Boeing.<br />

The <strong>Defence</strong> Trade Controls Bill contains the<br />

regulatory measures that must be put in place in order<br />

to implement the <strong>Defence</strong> Trade Cooperation Treaty.<br />

These include the creation of a Treaty<br />

Management Board, a system to admit companies<br />

13


14 FEATURE<br />

January/February 2012 SA <strong>Defence</strong> Business<br />

as members of the Approved Community and a new<br />

IT system to support the treaty and strengthen export<br />

controls.<br />

Under the current system, applications for ITAR<br />

related licences can take up to a year.<br />

ITAR has also been criticised because it has<br />

considered the accessing of <strong>Defence</strong> articles on the USML<br />

by any person of a different nationality to that which<br />

has been licensed (including those with dual nationality)<br />

to be an illegal retransfer, requiring a separate licence<br />

application. This would include, for example, a British or<br />

Asian employee of an Australian company.<br />

The <strong>Defence</strong> Trade Controls Bill was the result of<br />

a three-stage consultation process.<br />

Stage one was meetings with Australian<br />

defence companies in eight capital cities and regional<br />

centres last year.<br />

Stage two was the establishment of the <strong>Defence</strong><br />

Trade Cooperation Treaty Industry Advisory Panel in<br />

May, chaired by Mr Ken Peacock AM.<br />

The third stage was the release of the exposure<br />

draft of the Bill for broader industry and community<br />

feedback in July of this year.<br />

"The Treaty does<br />

have significant<br />

limitations and raises<br />

some important<br />

administrative issues<br />

that Governments<br />

need to address<br />

before SMEs can<br />

realise its benefits"<br />

Concerns that Small to Medium Sized<br />

Enterprises (SMEs) might face substantial new costs<br />

have been addressed by provisions including a<br />

guarantee that there will be no registration fee, as well<br />

as free security clearances and training.<br />

The former Minister for <strong>Defence</strong> Materiel, The<br />

Hon. Jason Clare, said last year that the Treaty would<br />

“save the Australian Government and Australian<br />

industry time”.<br />

The Government has also said that Australian<br />

companies could become natural partners in the US<br />

global supply chain in the Asia-Pacifi c region once the<br />

Approved Community is established.<br />

Fred Hull, Aerospace <strong>Defence</strong> Manager at<br />

Adelaide-based Diemould, said his company had good<br />

and bad experiences with ITAR and believes that the<br />

Treaty will improve its ability to bid for US contracts.<br />

Diemould is a South Australian-owned company<br />

specialising in the design and manufacture of high<br />

quality plastic injection moulds and special purpose<br />

equipment.<br />

“Our fi rst project involving ITAR was with a<br />

company in Utah,” Mr Hull said.<br />

“We set ourselves up well and got through it all<br />

without any problems.<br />

“The next time was with a large US prime but<br />

that didn’t work out and we think it was because of<br />

ITAR. We did a fair bit of groundwork and were in the<br />

US to try to be part of the bid process but we were<br />

unsuccessful.”<br />

Mr Hull said Diemould welcomed the<br />

opportunity to be able to bid for more work in the US<br />

and that his company was confi dent it could compete<br />

in the US market.<br />

However, Robert Wylie, a lecturer at the<br />

Australian <strong>Defence</strong> Force Academy at the University<br />

of New South Wales, who has studied the diffusion<br />

of military technology between the United States and<br />

Australia, said local companies should be cautious.<br />

Mr Wylie acknowledged that the Treaty would<br />

help local companies support US-origin equipment<br />

purchased under Government-to-Government<br />

agreements and/or used by the <strong>AD</strong>F in specifi ed joint<br />

operations with US forces. But he said the advantages<br />

should not be oversold.<br />

“The Treaty does have signifi cant limitations<br />

and raises some important administrative issues that<br />

Governments need to address before SMEs can realise<br />

its benefi ts,” Mr Wylie said.<br />

“It does not apply to specifi c technologies like<br />

stealth and satellites that the US considers critical to<br />

its military advantage. Nor does it include technologies<br />

critical to <strong>AD</strong>F conduct of network-enabled operations<br />

like sensor fusion, underwater acoustics or maritime<br />

target detection and classifi cation.”<br />

Mr Wylie said that the Treaty also excludes<br />

a range of enabling technologies that are vital to<br />

Australian industry’s ability to contribute to <strong>Defence</strong><br />

self-reliance.<br />

Such technologies include software source<br />

codes beyond those required for basic operations,<br />

maintenance and training as well as technology<br />

required to manufacture everything from electronic<br />

warfare equipment to submarines.<br />

He said there were also potential administrative<br />

problems stemming from important divergences<br />

between US and Australian concepts of race,<br />

citizenship and nationality.<br />

“In recent years this has led to companies<br />

in Victoria, Western Australia and the ACT having<br />

to incur the uncertainty, delay and costs associated<br />

with obtaining waivers of State and Territory antidiscrimination<br />

legislation,” Mr Wylie said.<br />

He said he felt the Federal Government had<br />

failed to suffi ciently address this issue in a Regulatory<br />

Impact Statement.<br />

“State, Territory and Commonwealth<br />

Governments need to work together to produce a<br />

legal framework that minimizes costs and uncertainty<br />

for local defence suppliers,” he said.<br />

Meanwhile, Darryl Mincham, of aviation<br />

components manufacturer and repairer Mincham<br />

Aviation, said that although he believed the aims of<br />

the Treaty were good in theory, many SMEs were<br />

suffering from “legislation exhaustion”. He said he felt<br />

this way in spite of Government assurances that the<br />

Treaty would cut down on how much administration<br />

his company would have to undertake.<br />

Mr Mincham said he was also concerned<br />

about potential costs, in spite of assurances of free<br />

registration, security clearances and training. He was<br />

worried that Australian SMEs might eventually be<br />

forced to participate in the Approved Community even<br />

Former <strong>Defence</strong> Materiel Minister Jason Clare<br />

if they would rather use the current system.<br />

“We would probably prefer to stick to the<br />

current system,” he said.<br />

“Where this might become a problem is<br />

if the Primes decide they want to fl ow down the<br />

requirements. Then we may have no choice.”<br />

Mr Mincham said that even if training was free,<br />

he would still incur the cost of sending members of<br />

staff to wherever the training courses were held and<br />

that complying with the new legislation would be<br />

“another” non-value added activity for his business.<br />

In response to questions from SA <strong>Defence</strong><br />

Business, a <strong>Defence</strong> spokesperson said that any<br />

decision to participate in trade under the treaty<br />

remains a commercial decision for Australian<br />

companies but pointed out that operating under ITAR<br />

also required some administrative overheads.<br />

Asked how the divergences between US and<br />

Australian concepts of race, citizenship and nationality<br />

would apply to ITAR application, the spokesperson<br />

said the US had amended ITAR last year to eliminate<br />

the need to obtain prior approval from the Directorate<br />

of <strong>Defence</strong> Trade Controls for transfers of unclassifi ed<br />

<strong>Defence</strong> articles to dual national or third country<br />

national employees. Guidance on the rule is available<br />

at http://www.defence.gov.au/strategy/deco/us.htm<br />

The spokesperson said that the Treaty would<br />

make eligibility to access items by individuals subject<br />

to an objective decision based on the assessed risk of<br />

diversion of technology.<br />

On the possibility that the Treaty might lead to<br />

more ‘off-the-shelf’ purchases of <strong>Defence</strong> materiel<br />

and about whether it might provide an advantage to<br />

US companies, the spokesperson said: “There is no<br />

change to Government policy that seeks to sustain<br />

FMS [Foreign Military Sales] equipment capabilities<br />

in Australia where this offers value for money for the<br />

Government or is of strategic importance. Where<br />

the preferred tenderer is a part of the Approved<br />

Community, the Treaty will make the process simpler<br />

to transition FMS items to Australian defence industry<br />

for sustainment. The purchase of ‘off-the-shelf’<br />

products will remain subject to current procurement<br />

guidelines and capability requirements.”


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FEATURE<br />

16 January/February 2012 SA <strong>Defence</strong> Business<br />

The case for the<br />

home−grown<br />

Future Submarine<br />

By STUART HODGE<br />

Australia has almost 100 years of service history with<br />

submarines. Over this time we have used a variety<br />

of designs from a number of countries, and have<br />

wavered between completely hands-off, second<br />

hand purchases to overseas designs built here in<br />

Australia. Now that the future submarine program is<br />

beginning in earnest, we need to decide how we will<br />

build our next generation of submarine.<br />

Recent debates on Australia’s future submarine<br />

have focused on the strategic need for submarines,<br />

and have debated the nuclear/non-nuclear question<br />

to death. Several commentators have advocated<br />

purchasing off-the-shelf submarines or designs from<br />

A timeline of Australian submarines<br />

1914 Australia’s fi rst submarines, the AE1 and AE2,<br />

are commissioned into service. Both would serve<br />

in World War 1, with the AE1 being lost (and still<br />

unrecovered) off the coast of New Guinea. The AE2<br />

served in the Dardanelles campaign, before taking<br />

an impact in 1915 and being scuttled.<br />

1919 Australia is gifted a fl otilla of J-class<br />

Australian E class submarine<br />

Australian submarine AE 1 lost on patrol<br />

submarines from the Royal Navy.<br />

The boats, all World War I surplus, were prone to<br />

breakdown and needed deep refi ts. The submarines<br />

participated in a series of local exercises, but in<br />

1922 the decision to pay the fl otilla off and put the<br />

submarines up for disposal was made.<br />

1928 Two Odin-Class submarines are commissioned<br />

France, Germany or Spain, with Australian industry<br />

having a limited role in production. The argument has<br />

some merit, largely cost-wise, but will it deliver the<br />

submarine capability we need?<br />

Several leading fi gures and institutions believe<br />

that the unique operational requirements for an<br />

Australian submarine mean that any design must<br />

be very heavily modifi ed or completely new. The<br />

2009 <strong>Defence</strong> White Paper calls for submarines with<br />

“greater range, longer endurance on patrol, and<br />

expanded capabilities compared to the current Collins<br />

class submarine”.<br />

According to the Submarine Institute of<br />

Australia (SIA), only a brand new design will deliver<br />

on these requirements. CEO and Managing Director<br />

of Australian submarine builder ASC Steve Ludlam<br />

agrees. In a speech at the recent SIA Submarine<br />

Science and Technology Conference, Mr Ludlam said<br />

that current off-the shelf designs won’t work for the<br />

Australian strategic environment.<br />

“The French, Spanish and German models<br />

all seem to be good submarines but all have a dive<br />

displacement of around 2,000 tonnes – less than two<br />

thirds of the Collins Class,” Mr Ludlam said.<br />

into the Australian Navy. The HMAS Otway and<br />

HMAS Oxley, each with a crew of 54, were exercised<br />

at sea, but due to the worsening economic<br />

conditions in 1929-1931 and a perceived greater<br />

need by the Empire, were transferred to the British<br />

Royal Navy as gifts.<br />

1939 Whilst having no serving submarines during<br />

World War II, Australian bases were occasionally used<br />

as bases for American, British and Dutch submarines,<br />

with a major build-up at Fremantle. During the war<br />

Australia would engage with several submarines,<br />

notably Japanese midget subs that harassed Sydney<br />

and Newcastle<br />

1944 The Australian Navy repurposes an older<br />

Dutch submarine, the K9, but issues with batteries<br />

cause it to be decommissioned in 1944<br />

1949 A British submarine unit, the RN 4th<br />

Submarine Squadron, is based out of Sydney. The<br />

British Squadron, which would be used for training<br />

RAN and RNZN personnel in Anti-submarine<br />

warfare, would remain in Sydney until the<br />

commissioning of the second Oberon class boats.<br />

1967 The fi rst Australian Oberon-class submarine,<br />

the HMAS Oxley II, is commissioned. Constructed in<br />

Scotland, the Australian Oberons differed from their<br />

British counterpart in the electronics systems and<br />

torpedo systems.<br />

1978 The fi nal Australian Oberon, the HMAS<br />

“All four submarine classes…are considered<br />

small coastal submarines that carry fewer weapons<br />

and have less growth potential than is ideal.”<br />

The Collins class have the capability to sail<br />

from the north coast of Australia to the South China<br />

Sea and back, staying on station for up to six weeks.<br />

Current off-the-shelf solutions don’t offer this capability.<br />

The Government, to its credit, has consistently<br />

stated that the next Australian submarine will be<br />

assembled in Australia. Mr Ludlam says that a<br />

submarine building program is a true nation building<br />

program, utilising expertise from across the country.<br />

“[The naval shipbuilding industry] employs many,<br />

many Australians in every State and Territory,” he said.<br />

‘… [it] delivers wealth from the Pilbara to Port<br />

Kembla, to yards around Australia and ultimately to<br />

Adelaide.”<br />

The benefi ts don’t just fl ow to Primes either-<br />

many Small to Medium Enterprises were initially, and<br />

to this day, involved in the Collins Class production<br />

and sustainment projects. Pacifi c Marine Batteries<br />

maintains and builds the Collins’ 440 tonne battery<br />

unit. Many engineering fi rms in Adelaide have<br />

machined components or cut segments for the<br />

Otama, is commissioned. The 6-Oberon class<br />

submarines would remain in service into the<br />

90s, with the Otama being retired in 1999. The<br />

Oberons are upgraded to increase their capabilities<br />

throughout the 70s and 80s.<br />

1982 Australia decides to build the next submarine<br />

Royal Australian Navy Oberon class submarine<br />

in Australia, based on a modifi ed overseas design.<br />

1987 The <strong>Defence</strong> Minister, Kim Beazley, announces<br />

that a Kockums design, modifi ed from the Swedish<br />

type 471 vessel, will be used for the new sub.<br />

Beazley also announces that the subs will be built<br />

at Port Adelaide by a new Australian Governmentowned<br />

Australian Submarine Corporation.<br />

1996 The HMAS Collins is commissioned. The 6


January/February 2012 SA <strong>Defence</strong> Business<br />

submarines, and innovative systems companies like Acacia Research have built<br />

tactical systems for Collins’ use. The expertise of these fi rms should be used<br />

on a future submarine utilising a strong industrial capability that will only grow<br />

stronger.<br />

The SIA agrees that the submarines should be built here, not just because<br />

of the industrial benefi ts but also as a strategic benefi t. The SIA argues that “a<br />

capacity to repair and replace submarines in operation reduces the impact of<br />

attrition and increases the effort required of an aggressor to guarantee that it<br />

has removed all Australian submarines from its path”.<br />

This doesn’t mean there are not challenges before Australian industry,<br />

but by planning for them now we can overcome them. A recent review into<br />

Collins sustainment (The Coles review) has highlighted some key issues that<br />

should be addressed in any future program, and a report from the RAND<br />

Corporation commissioned by the Federal Government makes for thought<br />

provoking reading.<br />

We shouldn’t, however, think that these diffi culties put this program<br />

beyond us. We should design it here, we should build it here, and we should<br />

maintain it here.<br />

“It is a time to stand beside the key players in Australian defence<br />

industry and affi rm that Australians have the expertise, skill set, international<br />

relationships and capacity to build the next generation of submarines on their<br />

own soil,” Mr Ludlam said.<br />

Collins vessels are launched up until 2003. Despite some early negative<br />

press, the Collins is an extremely quiet, long-range submarine.<br />

2009 The Rudd Government’s <strong>Defence</strong> White Paper recommends the<br />

construction of 12 new submarines. The “Future Submarines” will be longrange<br />

vessels capable of meeting the challenges of both naval warfare/<br />

maritime disputes and also be capable of handling more exotic situations such<br />

as maritime terrorism and piracy.<br />

2012 The Future Submarine program is beginning to heat up, with the<br />

release of a RAND Corporation study into the program and the Australian<br />

Government consulting with submarine designers.<br />

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18 PROFILE<br />

January/February 2012 SA <strong>Defence</strong> Business<br />

Balancing Act<br />

From managing the State’s finances to spearheading the local defence<br />

industry, the Hon. Jack Snelling juggles key ministerial portfolios with busy<br />

family life.<br />

By GRANT SMYTH<br />

South Australian Treasurer Jack Snelling is reassuring -<br />

just as you would expect him to be.<br />

That is to say that he is relaxed and friendly,<br />

answers questions in a polite, succinct manner and<br />

seems genuinely comfortable in his own skin. He<br />

comes over as a man who says what he means and<br />

means what he says.<br />

The Member for Playford is a father of six<br />

young children, so perhaps that’s part of the reason<br />

for his relaxed but fi rmly on-the-ball demeanour. If you<br />

can successfully manage a gaggle of six boisterous<br />

youngsters, then it’s probably fair to say that you can<br />

handle just about anything.<br />

And with a ministerial portfolio encompassing<br />

Treasury, Workers’ Rehabilitation, <strong>Defence</strong> Industries and<br />

Veterans’ affairs, he has a lot more to handle than most.<br />

Like all good - and wise – husbands, he is quick<br />

to point out that his wife, Lucia, is the one who makes<br />

juggling a busy family life and career possible.<br />

She has clearly been doing a good job, because<br />

her husband’s resume makes for impressive reading.<br />

Mr Snelling became interested in politics while<br />

he was a schoolboy and his interest continued while<br />

he studied at the University of Adelaide. He worked at<br />

the shop assistants’ union and then for Martyn Evans,<br />

the former Member for Bonython, before successfully<br />

standing for the Playford constituency in 1997.<br />

Upon his election he became the youngest<br />

member of the House of Assembly and he went on to<br />

hold the roles of Deputy Speaker and Speaker.<br />

He was appointed as Treasurer in February 2011<br />

by the former Premier Mike Rann, and is also a member<br />

of the Government’s Executive Council.<br />

All this, and he has not yet seen in his 40th<br />

birthday – he will celebrate the “Big Four Oh” in<br />

November of this year.<br />

For defence contractors, it is in his role as<br />

Minister for <strong>Defence</strong> Industries, to which he was<br />

appointed in October 2011, that he will perhaps<br />

come under most scrutiny.<br />

It will be reassuring then for them that time<br />

and again he stresses his belief that the advanced<br />

manufacturing sector in which they operate is critical<br />

to South Australia’s economic future.<br />

Doubly reassuring is that he also believes the<br />

key to maintaining that sector is ensuring that South


January/February 2012 SA <strong>Defence</strong> Business PROFILE<br />

Jack Snelling the family man − at home with wife Lucia and his six children<br />

Australia continues to have a workforce with an<br />

advanced manufacturing skills set that is the envy of the<br />

rest of Australia.<br />

As a former Minister for Employment, Training and<br />

Further Education, he established a good relationship<br />

with the <strong>Defence</strong> <strong>Teaming</strong> <strong>Centre</strong> (DTC) before taking on<br />

the <strong>Defence</strong> Industries portfolio.<br />

And he knows the DTC’s members and their<br />

highly skilled employees are a big part of the reason why<br />

South Australia, with just eight per cent of the nation’s<br />

population, attracts 25 per cent of its <strong>Defence</strong> spend.<br />

Mr Snelling intends to make sure it stays that<br />

way and says he is looking forward to getting out of<br />

the offi ce and catching up with the State’s defence<br />

contractors face to face.<br />

"SA, which is<br />

already known as<br />

the <strong>Defence</strong> State,<br />

should aim to<br />

become the "Silicon<br />

Valley" of Australia’s<br />

defence industry"<br />

The SA Government has set a target for defence industry<br />

to be generating $2.5 billion per year and employing<br />

37,000 people by 2020.<br />

There is certainly no lack of ambition in those<br />

fi gures, but how will the Government deliver on them?<br />

“I think the fi rst factor in achieving these<br />

targets will be our ability to deliver on vocational<br />

training reform and the Science, Technology,<br />

Engineering and Mathematics (STEM) Skills Strategy<br />

in our schools,” said Mr Snelling.<br />

“Getting kids interested in science, technology<br />

and mathematics will be key. We need high skill levels<br />

and high levels of training. Our vocational training and<br />

education sector needs to be more responsive to the<br />

needs of industry.<br />

“Our relationship with the Federal Government<br />

is an area that is also obviously extremely important. We<br />

need to make sure South Australia is seen as an attractive<br />

place to invest and it is critical that we help the local<br />

defence industry when they are bidding for <strong>Defence</strong><br />

procurement contracts.<br />

“When you think of the Future Submarine Project,<br />

for example, you’re talking about a <strong>Defence</strong> project that<br />

will be as important to South Australia as the Olympic<br />

Dam project has been.”<br />

Mr Snelling believes that achieving a “critical<br />

mass” in the state’s ability to provide <strong>Defence</strong> capability<br />

will create a situation wherein exponential growth can be<br />

achieved.<br />

SA, which is already known as the <strong>Defence</strong> State,<br />

should aim to become the “Silicon Valley” of Australia’s<br />

defence industry, he says.<br />

But while he believes <strong>Defence</strong> can be an incredible<br />

economic dynamo, he is conscious of the cyclical<br />

nature of the industry and says it is essential for defence<br />

contractors to seek alternative income streams.<br />

“The biggest challenge defence contractors have<br />

is to diversify and fi nd civilian applications for what they<br />

are making,” he said.<br />

“<strong>Defence</strong> is terribly cyclical. Federal Government<br />

will go through stages of mass procurement and then<br />

when things turn bad, <strong>Defence</strong> is one of the fi rst things<br />

they look at cutting back.”<br />

19<br />

The minister becomes especially animated when he is<br />

speaking about education and skills generation. It’s no<br />

surprise then that he regards the Skills for All reforms,<br />

which have transformed vocational training in SA, as his<br />

greatest political achievement.<br />

Veterans’ Affairs is also an area that is particularly<br />

close to his heart. His father served in Vietnam with<br />

The First Battalion, The Royal Australian Regiment<br />

(1RAR), and he says he feels a particular affi nity with the<br />

veterans’ community.<br />

That commitment is such that he requested the<br />

ministry be returned to him in October 2011- he had<br />

previously held the portfolio from March 2010 until<br />

February 2011.<br />

So what lies ahead for the defence sector in SA?<br />

Mr Snelling says <strong>Defence</strong> will be a great generator<br />

of wealth and prosperity for the State. But, perhaps even<br />

more importantly, he says it can help stem the brain drain<br />

to other states, while also addressing some important<br />

social issues.<br />

“When I was at university a lot of my friends had<br />

to go interstate to further their careers. The development<br />

of the defence industry will allow more smart and<br />

talented young South Australians to pursue careers in<br />

their home state,” he said.<br />

“<strong>Defence</strong> can also create opportunities for<br />

employment and engagement with South Australians<br />

who have been economically and socially disadvantaged<br />

in the past. So the benefi ts are two-fold, both economic<br />

and social.”<br />

And if one of his children wanted to go into the<br />

defence business?<br />

“I would give them the same advice as I would<br />

give to any other defence contractor, which is to diversify.<br />

But I’d be delighted for them.”


20 INDUSTRY<br />

January/February 2012 SA <strong>Defence</strong> Business<br />

Who’s who for defence industry support?<br />

By HOLLY CARUSO<br />

With the recent change of DTED to DMITRE, DECS<br />

to DECD and the overuse of acronyms to describe<br />

Government departments and State associations, there<br />

is growing confusion in defence industry regarding<br />

who’s who and how can they help. The following is a<br />

guide on who defence industry should seek for support<br />

for business growth:<br />

<strong>Defence</strong> <strong>Teaming</strong> <strong>Centre</strong> <strong>Inc</strong> (DTC)<br />

The DTC is the defence industry association of South<br />

Australia, it is nationally and internationally recognised<br />

as being relevant, responsive and reliable to defence<br />

and security-related industries. The DTC assists defence<br />

industry to enhance their defence capability through<br />

the SME Capability Development Program, upskill their<br />

workforce through the Productivity Places Program,<br />

develop future leaders through the South Australian<br />

<strong>Defence</strong> Industry Leadership Program and create a<br />

diverse workforce with the introduction of the Women<br />

infl uencing <strong>Defence</strong> and Resources Industries program.<br />

Contact: P 08 8260 8256 E business@dtc.org.au<br />

W www.dtc.org.au<br />

<strong>Defence</strong> SA<br />

<strong>Defence</strong> SA is the nation’s only stand-alone state<br />

defence organisation and South Australia’s lead<br />

Government agency tasked with growing the state’s<br />

<strong>Defence</strong> presence and building a sustainable defence<br />

industry for South Australia. <strong>Defence</strong> SA works<br />

closely with <strong>Defence</strong> and industry, targeting defence<br />

investment and expansion opportunities and drives and<br />

supports the delivery of major <strong>Defence</strong> projects and<br />

facilities. <strong>Defence</strong> SA provides vital defence precincts<br />

including Techport, Technology Park and Edinburgh<br />

Parks to support the collaboration and development of<br />

defence industry.<br />

Contact: P 08 8463 7140 E enquiries@defencesa.com<br />

W www.defencesa.com<br />

<strong>Defence</strong> Materiel Organisation (DMO)<br />

The DMO is the nation’s largest project management<br />

organisation, its mission is to acquire and sustain<br />

equipment for the Australian <strong>Defence</strong> Force (<strong>AD</strong>F).<br />

To engage with industry, the DMO administer the<br />

<strong>Defence</strong> + Industry ePortal, a comprehensive defence<br />

industry capability database, the <strong>Defence</strong> Export Unit<br />

and Team Australia. Other key DMO initiatives include<br />

Skilling Australia’s <strong>Defence</strong> Industry (S<strong>AD</strong>I) program, the<br />

Australian Industry Capability (AIC) program, Priority<br />

Industry Capability Innovation Program, <strong>Defence</strong><br />

Engineering Internship Program and support of the<br />

Enterprise Connect and the <strong>Defence</strong> Industry Innovation<br />

<strong>Centre</strong>s. Most signifi cantly, DMO provide Business Access<br />

Offi ces in each state with the intention of building<br />

stronger relationships between <strong>Defence</strong> and industry.<br />

Contact: P 08 8305 6679<br />

W www.defence.gov.au/dmo/id/bao/<br />

Enterprise Connect (EC)<br />

EC are part of the Department of Innovation,<br />

Industry, Science and Research, their aim is to<br />

connect small businesses to the knowledge, tools<br />

and expertise necessary to improve productivity,<br />

increase competitiveness and fully capitalise on the<br />

growth potential of the business. EC provide Business<br />

Reviews for defence industry, a top-to-bottom analysis<br />

of a business, carried out on-site by highly skilled<br />

and experienced Business Advisers at no charge<br />

to a business. Business Advisers work with people<br />

throughout various operational levels of a business to<br />

develop a thorough view of the businesses strengths<br />

and weaknesses, strategic issues, potential areas for<br />

business improvement and potential areas for growth.<br />

Contact: P 08 8162 4705 E ECSA@innovation.gov.au<br />

W www.enterpriseconnect.gov.au<br />

<strong>Defence</strong> Industry Innovation <strong>Centre</strong> (DIIC)<br />

Working closely with EC, the DIIC delivers the Supplier<br />

Continuous Improvement Program (SCIP), a supply<br />

chain management initiative that is becoming widely<br />

adopted as the standard within the defence industry.<br />

SCIP offers a continuous improvement framework<br />

for supply chain performance. SCIP members work<br />

together to harmonise how supply chains are<br />

developed, how accreditation occurs, how performance<br />

is measured and how relationships are improved. There<br />

is no charge to sign up to SCIP and it is available to<br />

businesses of any size.<br />

Contact: P 03 9215 2652 E scip@innovation.gov.au.<br />

W www.enterpriseconnect.gov.au (<strong>Centre</strong>s -> defence<br />

industry)<br />

Innovate SA<br />

Innovate SA provide a range of high level services and<br />

programs to selected emerging and existing enterprises<br />

and industry sectors to develop internationally<br />

competitive businesses and support a diverse ‘highvalue’<br />

industry base within South Australia. Through<br />

State and Federal grants, Innovate SA assists industry<br />

to enter new markets, develop infrastructure,<br />

commercialise innovations and develop clean<br />

technology, in addition to other vital initiatives.<br />

Contact: P 08 8113 0700 W www.innovatesa.com.au<br />

Industry Capability Network (ICN)<br />

ICN support industry through profi ling their capabilities in<br />

a database that is utilised for supply chain opportunities<br />

for major projects. ICN performs a technical role<br />

providing purchasers with a free sourcing service to<br />

identify Australian suppliers capable of supplying those<br />

items that would otherwise be imported.<br />

Contact: P 1300 553 309 E info@icnsa.org.au<br />

W www.icnsa.org.au<br />

Department of Innovation, Industry, Science and<br />

Research (DIISR)<br />

The priority of DIISR, a Federal Government<br />

department, is to encourage the sustainable growth<br />

of Australian industries by developing a national<br />

innovation system that drives knowledge creation,<br />

cutting-edge science and research, international<br />

competitiveness and greater productivity. Most<br />

signifi cant for defence industry are the subsidiary<br />

organisations within DIISR, including AusIndustry, which<br />

provides a range of incentives to assist business growth<br />

coordinates programs such as Commercialisation<br />

Australia as well as import and export programs.<br />

Contact: P 13 28 46 E hotline@ausindustry.gov.au<br />

W www.ausindustry.gov.au<br />

Department of Further Education, Employment,<br />

Science and Technology (DFEEST)<br />

DFEEST is the State Government’s key workforce<br />

participation agency, providing services to build skills for<br />

South Australia through workforce planning and skills<br />

development programs; high quality public vocational<br />

education and training through TAFE SA and fostering<br />

innovation through science and information. DFEEST are<br />

responsible for supporting key skills enabling programs<br />

in the State such as the Productivity Places Program<br />

and implementing Skills for All, a strategic direction for<br />

vocational education and training in South Australia.<br />

Contact: P 08 8463 5552<br />

E dfeestworkforceinfoservice@sa.gov.au<br />

W www.dfeest.sa.gov.au<br />

Department for Manufacturing, Innovation, Trade,<br />

Resources and Energy (DMITRE)<br />

DMITRE is the South Australian Government’s key<br />

agency driving economic prosperity in the State.<br />

The new department brings together a trade and<br />

economic development role with minerals, energy,<br />

renewable energy and trade policy. Through an<br />

industry development role, the department aims to<br />

ensure South Australia continues to develop highvalue<br />

manufactured goods, technologies and services.<br />

<strong>Defence</strong> industry with a manufacturing focus benefi t<br />

from the DMITRE subsidiary Innovate SA and the<br />

DMITRE expertise in exporting and investing.<br />

Contact: P 08 8303 2400 E DTEDinfo@sa.gov.au<br />

W www.southaustralia.biz/About-DMITRE.aspx<br />

Department for Education and Child Development<br />

(DECD)<br />

DECD facilitates the Advanced Technology Industry<br />

School Pathways Program (ATISPP), a program that aims<br />

to provide students the opportunity to learn skills for<br />

careers in the growing defence and maritime industries.<br />

Nineteen schools participating in the Project are clustered<br />

together in the northern, western and southern<br />

metropolitan regions to develop pathway programs,<br />

share resources and services. The ATISPP works to<br />

develop active partnerships between employers and<br />

schools that lead to opportunities for students to engage<br />

in a range of learning experiences with industry.<br />

Contact: P 08 8226 5891 E Brenton.Schulze@sa.gov.au<br />

W www.tradeschoolsforthefuture.sa.edu.au<br />

Department of Immigration and Citizenship (DIAC)<br />

DIAC provide information to employers in the defence<br />

industry about migration options to address skills<br />

shortages. Industry can access DIAC services through<br />

the Outreach Offi cer at the DTC who is available to<br />

provide free visa/immigration information to employers<br />

who need to recruit skilled workers from overseas.<br />

Contact: P 08 8260 8256 E business@dtc.org.au<br />

W www.dtc.org.au/aspx/skilledMigration.aspx


January/February 2012 SA <strong>Defence</strong> Business<br />

CGI of HMAS Hobart, Australia’s new Air Warfare Destroyer<br />

Block 109, the first to arrive by barge at Osborne, South Australia Mark 25 typhoon guns to be mounted on the AWD<br />

AWD milestones<br />

In 2011, work on the Air Warfare Destroyer (AWD)<br />

project ramped up as the AWD Alliance worked<br />

through successes and challenges , including decisions<br />

made to benefi t the outcome of the project.<br />

The AWD Alliance, which consists of ASC,<br />

Raytheon and Commonwealth’s <strong>Defence</strong> Materiel<br />

Organisation, is working to deliver the three AWDs.<br />

Once complete, they will be one of the most capable<br />

warships of its size in the world.<br />

Throughout the year, the AWD Alliance achieved<br />

a number of important milestones.<br />

In shipbuilding, work has started on all blocks<br />

for HMAS Hobart with the exception of the mast.<br />

Fabrication of 11 blocks for the second ship, HMAS<br />

Brisbane, has also begun and work on HMAS Sydney<br />

will begin in 2012.<br />

In a major milestone of the project, the AWD<br />

Alliance took delivery of the fi rst three blocks from<br />

subcontractor BAE Systems in August and September.<br />

As the project heads towards consolidation of<br />

HMAS Hobart in 2012, the AWD Alliance will continue<br />

to take delivery of blocks from BAE Systems and second<br />

subcontractor, Forgacs.<br />

PROJECT UPDATE<br />

The AWD Alliance has also taken delivery of<br />

major pieces of combat systems including,<br />

Three shipsets of the Mark 45 gun mounts<br />

Six Mark 25 Typhoon guns – two for each ship<br />

The fi rst two shipsets of the Australian Tactical<br />

Interface.<br />

In May, the Commonwealth announced the<br />

reallocation of the construction of blocks to assist<br />

the project’s schedule. The AWD Alliance and their<br />

subcontractors have been working collaboratively to<br />

minimize the impact to the project’s schedule.<br />

This reallocation is expected to reduce delays to<br />

the project by up to 12 months.<br />

Currently there are 1000 production workers<br />

in the Australian shipyards, (ASC, Forgacs and BAE<br />

Systems) with more than 2100 people across Australia<br />

working on the project in total. In 2012, the AWD<br />

Alliance will reach peak production.<br />

At this stage the fi rst ship is expected to be<br />

delivered to the Royal Australian Navy in December<br />

2015.<br />

Compliance<br />

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Are your Injury Management Systems<br />

effi cient and effective and delivering services<br />

to your injured workers?<br />

These are important questions in a climate<br />

where business costs are escalating and<br />

stakeholders are eager for growth and good<br />

corporate governance can be addressed by<br />

systems auditing.<br />

The benefi ts of system auditing are:<br />

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• Maintain recognition or accreditation for<br />

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Lawsons Risk Management have skilled,<br />

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• Full legislative audit of your document<br />

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Telephone: (08) 8210 2800<br />

Facsimile: (08) 8212 9680<br />

www.lawsonrisk.com.au


22 INDUSTRY<br />

January/February 2012 SA <strong>Defence</strong> Business<br />

Welcome to the bottom of the curve<br />

By STUART HODGE<br />

The defence industry in Australia is often viewed as a<br />

series of ‘peaks and troughs,’ as spending in particular<br />

<strong>Defence</strong> capability areas tend to get large injections of<br />

cash (peaks), bookended by fallow periods (troughs).<br />

However, the 2011-12 and 2012-13 period is the<br />

largest planned trough in the next 15 years, across all<br />

defence sectors. The size of this trough is exacerbated<br />

by the slow rate of project approvals, which could<br />

mean that projects scheduled to roll out in 2013-14<br />

could also be delayed. Recent reports also suggest<br />

that the Department of <strong>Defence</strong> will be handing back<br />

a large amount of unspent money to the Federal<br />

Government, similar to the $1.1 billion handed back in<br />

the May 2011 budget. We are truly at the bottom of<br />

the <strong>Defence</strong> spending curve. So what factors will affect<br />

defence companies in 2012?<br />

The Global <strong>Defence</strong> Market<br />

The world defence market is broadly in a downturn,<br />

as traditional big spenders in Europe and the US<br />

continue to delay or cut spending in response to<br />

fi nancial pressures. In the US alone, more than<br />

$US450 billion will be cut from the Pentagon’s<br />

budget over the next decade - and this fi gure will<br />

increase if the US Congress fails to make other cuts<br />

as part of expenditure reduction measures. European<br />

economies continue to be shaky, with Norway one<br />

of the only European forces to increase its <strong>Defence</strong><br />

acquisition budget. The reduction in foreign <strong>Defence</strong><br />

budget could encourage <strong>Defence</strong> Primes to seek<br />

opportunities in more stable markets like Australia,<br />

and could therefore drive an increase in competition<br />

and possibly increased ‘insourcing’ of existing work<br />

to maintain workforces or capabilities.<br />

This doesn’t mean that the global defence<br />

market is all bad news. Indonesia recently voted to<br />

increase their <strong>Defence</strong> budget by 35 per cent, a move<br />

that will see our close neighbour replace a large volume<br />

of outdated equipment. Several other South East Asian<br />

countries are also building or modernising their military<br />

capability, which could be an opportunity for export<br />

and collaboration. For more information on dealing<br />

with these countries, contact the DTC or Austrade.<br />

Policy<br />

On a domestic front, the defence market will be<br />

impacted by several policy changes from the Federal<br />

Government. The implementation of the US-Australia<br />

<strong>Defence</strong> Trade Controls Bill 2011 will hopefully reduce<br />

the burden of the US Export process. In the short term,<br />

this could help Australian companies work with the<br />

US technology here and will hopefully, in time, lead to<br />

success in Australian companies exporting to the US.<br />

The recently announced US Marine base in Darwin<br />

could also be an opportunity for industry, depending<br />

on the equipment to be placed in the country and its<br />

maintenance requirements.<br />

The recent changes to Australian Industry<br />

Content plans will see <strong>Defence</strong> Primes looking to<br />

partner more with local industry on any project over<br />

$20 million, with the<br />

8.00<br />

enforceability and relative<br />

7.00<br />

weighting of the plans<br />

6.00<br />

being increased in 2011.<br />

A recent announcement<br />

5.00<br />

that AIC plans will be<br />

4.00<br />

made public will give<br />

3.00<br />

subcontractors a better<br />

2.00<br />

guide as to where the<br />

1.00<br />

opportunities in particular<br />

projects lie, which will<br />

2011/12<br />

make it easier to see<br />

where your capabilities can be<br />

applied. As the AIC plans also apply to sustainment<br />

contracts, we could see several large wins for industry<br />

after the policy becomes enforceable in January 2012.<br />

In-country Acquisition<br />

Land Projects<br />

Late 2012 should see life returning to some projects,<br />

as projects such as LAND 121 and LAND 400 begin to<br />

show themselves again. Land 121 Phase 4 is currently<br />

complicated by the continued uncertainty over the Joint<br />

Light Tactical Vehicle program, which has wavered on<br />

and off the chopping block in the US. It is expected that<br />

Australia will make its position on remaining involved in<br />

the program known sometime in early 2012, although<br />

information in recent tender documents calling for<br />

right-hand drive vehicles and AIC plans suggest Australia<br />

remains in the program for now. If Australia pulls out of<br />

the program, the Department of <strong>Defence</strong> will fall back<br />

on the Made and Supported in Australia options and the<br />

‘Market Available’ options, which both represent broader<br />

opportunities for local industry. The recent Government<br />

decision to award the Made and Supported in Australia<br />

option to Thales means that opportunities for South<br />

Australia-based companies could be limited, as Thales<br />

has a strong Bendigo supplier base.<br />

Land 400 will continue to bubble away, with the<br />

project going for fi rst pass approval in early 2013. The<br />

Integrated Project Team may seek more information<br />

to inform the fi rst pass before that time, and it is also<br />

likely that a draft tender will be released at some point<br />

before the open Request for Tender in 2013-14. This<br />

year is the ideal time to begin building the network and<br />

making capabilities known to Primes.<br />

Maritime Projects<br />

The continued delay in projects may see some relief in<br />

the recent release of the RAND report on the future<br />

submarine project, which looks at the possibilities for<br />

local and Military Off The Shelf (MOTS) acquisition on<br />

the project. At this stage, all of the future submarine<br />

work is preliminary and design work, with larger parts<br />

of the project beginning to move.<br />

The continued AWD work will keep contractors<br />

tied to the program busy, but in the absence of<br />

more delays it is likely that new opportunities<br />

could be limited. ASC is currently developing its<br />

‘make/buy’ plan to explore giving more work<br />

to outside contractors, so there will possibly be<br />

$ Billion 2011/12 (Constant Dollars)<br />

In-country Sustainment Total In-country Procurement<br />

2012/13 2013/14 2014/15 2015/16 2016/17 2017/18 2018/19 2019/20 2020/21<br />

Total In Country <strong>Defence</strong> Acquisition and Sustainment Expenditure<br />

more opportunities for companies to tender to<br />

make components for the AWD and Collins Class<br />

sustainment programs.<br />

A major maritime project is the Team Romeo<br />

MH-60R helicopters that was announced in June<br />

2011. There will be ongoing discussion around the<br />

Australian defence industry opportunities on the<br />

program. Whilst still several years away, SEA 1180<br />

(Patrol boat/Mine Hunter/ Hydrographic Survey Vessel<br />

replacement) will be also a topic of discussion at<br />

Pacifi c 2012 and beyond.<br />

Aerospace Projects<br />

Aerospace contracts tend to have long lead times and<br />

require more specialised capabilities, meaning the<br />

opportunities for some companies may be limited.<br />

Early 2012 may see a decision on AIR 9000 Phase 7,<br />

the Helicopter Aircrew Training System. The tender for<br />

this project was released in August 2011. As the initial<br />

operating capability of the project is intended to be<br />

2014-17, it is expected that the decision process would<br />

be shorter. 2012 should also see the release of the AP-<br />

3C capability assurance program (AIR 5276 CAP 2) and<br />

also an upgrade program (AIR 5438 Phase 1) for the<br />

Hawk 127 Lead-in fi ghter trainer, but the preference<br />

for Government would be an off the shelf solution with<br />

minimal engineering opportunities.<br />

Tradeshows<br />

Finally, in 2012 there will be opportunities arising from<br />

tradeshows. Pacifi c 2012 is in Sydney this January and<br />

we will likely hear continued discussion around future<br />

submarines and the continued work on both the Air<br />

Warfare Destroyers and the Landing Helicopter Dock<br />

programs. The next major tradeshow is SimTecT, which<br />

covers the <strong>Defence</strong> simulation and serious games fi elds<br />

as well as other simulation related topics. SimTecT will<br />

be held in Adelaide in June and will attract attendees<br />

from <strong>Defence</strong> as well as attendees from across the<br />

Asia-Pacifi c. Finally, the Land Warfare Conference will<br />

be held again in November, this time in Melbourne.<br />

As well as the vehicle projects, Land Warfare will likely<br />

include a strong presence from Diggerworks as well as<br />

discussion or a decision on the Battlefi eld Command<br />

System (LAND 75) and Night Fighting Equipment<br />

Replacement (LAND 53) projects.


WHEN EVERY<br />

SECOND COUNTS<br />

Saab has extensive experience in supporting defence forces with solutions<br />

designed to meet the need for enhanced operational capabilities and a higher<br />

level of effectiveness.<br />

That’s why when the Australian <strong>Defence</strong> Force had an urgent requirement for a<br />

Counter Rocket, Artillery and Mortar warning system they turned to Saab.<br />

On budget and five months ahead of schedule we had a fully operational<br />

Giraffe Agile Multi-Beam radar system installed in the Australian base at<br />

Tarin Kot in Afghanistan, where it has been providing 360 degree continuous<br />

warnings of incoming insurgent rocket and mortar attacks.<br />

www.saabgroup.com<br />

ANTICIPATE TOMORROW<br />

For rapid surveillance of the entire airspace,<br />

Giraffe AMB is a powerful and cost-effective<br />

3D surveillance radar intended for short and<br />

medium-range air-defence. In addition it can<br />

also warn of incoming rocket, artillery and<br />

mortar rounds.


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SA defence industry sets sail for Pacific 2012<br />

In a collaboration between <strong>Defence</strong> SA and the <strong>Defence</strong><br />

<strong>Teaming</strong> <strong>Centre</strong>, the South Australian defence industry<br />

will be showcased at one of the Pacifi c 2012 major<br />

exhibition stands, “South Australia – The <strong>Defence</strong> State”,<br />

located at stand 5B12 at the Sydney Convention &<br />

Exhibition <strong>Centre</strong> on Darling Harbour.<br />

The “South Australia – The <strong>Defence</strong> State” stand<br />

will host key maritime defence industry companies to<br />

represent the depth of capability in South Australia.<br />

Companies exhibiting on the stand include:<br />

Airspeed<br />

A dynamic Australian company specialising in the<br />

application of composite materials for aerospace,<br />

military and energy-related projects.<br />

Century Engineering<br />

A South Australian company with a reputation for<br />

providing innovative and cost effective engineering<br />

and manufacturing solutions.<br />

Form Cut<br />

A company with proven innovative skills in the design<br />

and manufacture of custom foam inserts, scratch free<br />

dividers and collapsible inserts to suit requirements for<br />

protection, display, export and re-use.<br />

Hill <strong>Defence</strong> Products<br />

A division of Hill Equipment, Hill <strong>Defence</strong> Products focus<br />

on the commercial refrigeration, catering equipment and<br />

Australian <strong>Defence</strong> Credit Union<br />

.<br />

specialised air conditioning needs of the defence industry.<br />

Industry Capability Network (ICN-SA)<br />

ICN promotes South Australian, Australian and New<br />

Zealand industry through import replacement and<br />

opportunities for participation in major projects. It<br />

performs a technical role providing purchasers with a free<br />

sourcing service to identify Australian suppliers capable<br />

of supplying items that would otherwise be imported.<br />

J & H Williams Holdings Pty Ltd<br />

The parent company of Williams Laser Cutting and<br />

Fabrication, Williams is an ISO 9001:2008 certifi ed,<br />

pre-eminent partner for the design, manufacturing<br />

and installation of a wide variety of metal fabrication<br />

solutions spanning many industries.<br />

Morgan Thermal Ceramics<br />

A manufacturer and installer of a wide variety<br />

of engineering solutions using world-renowned<br />

insulation products. These solutions are used by<br />

clients to dramatically reduce energy consumption in<br />

their processes and, in many applications, to reduce<br />

damaging emissions to the environment.<br />

Nova Systems<br />

Nova <strong>Defence</strong> was formed in 2000 with the aim of<br />

providing the Australian <strong>Defence</strong> Force and other<br />

Government agencies with independent and professional<br />

test and evaluation and systems engineering services.<br />

Pacific 2012<br />

25<br />

PMB <strong>Defence</strong><br />

A leading manufacturer of high quality Submarine<br />

Battery Systems. Its state-of-the-art production facility,<br />

coupled with its own chemical lab and research-anddevelopment<br />

facility, makes it one of the most modern<br />

battery production lines of its type in the world.<br />

Prism <strong>Defence</strong><br />

A world-leader in ship helicopter integration.<br />

Helicopters operate to ships in the most demanding of<br />

environmental conditions. Whether it is a small or large<br />

ship helicopter interface trial, consultancy, or full program<br />

management, Prism <strong>Defence</strong> has the skills to safely and<br />

accurately defi ne the limits.<br />

Mincham Aviation<br />

The company caters for the aircraft and defence<br />

engineering industries, specialising in the manufacture<br />

and repair of advanced composite and sheet metal;<br />

welding, machining and heat treatment; cylinder<br />

grinding; painting; and project management.<br />

Other DTC members and SA defence industry exhibiting<br />

at Pacifi c 2012 include:<br />

APC Technology (6G11), ASC (5B9), Babcock<br />

(4W18), BAE Systems Australia (5B2), Daronmont<br />

Technologies (6D11), Kinetic Recruitment (6G9),<br />

Lockheed Martin (4P2), Raytheon (5B17), Saab<br />

Systems (4P18), Wartsila (5M12).<br />

Australian ia iaa n <strong>Defence</strong> Credit Union<br />

.


26 SPECIAL FEATURE PACIFIC 2012 advertorial<br />

Hill <strong>Defence</strong> Products to upgrade Minehunter Galleys<br />

Hill <strong>Defence</strong> Products is proud to announce that it has<br />

commenced work on the upgrading of the Huon Class<br />

Minehunter Galleys for Thales Australia Naval.<br />

Thales Australia has commissioned Hill <strong>Defence</strong><br />

Products to redesign and manufacture an upgraded Galley<br />

layout for the RAN, HUON Class Minehunter ships. The ships,<br />

having been built in the mid 90s with what was considered<br />

at the time as top of the range conventional ovens, are now<br />

to be replaced by Combi Steam ovens which allow a greater<br />

variation of cooking methods. The redesign will also allow<br />

the cooks to free up a little more space in the galley for<br />

storage of utensils.<br />

The loss of the hot plates and griddle from the<br />

current oven will be overcome by the design having made<br />

space for both a new griddle and a custom made hot<br />

plate hob. The biggest challenge is to provide up to date<br />

equipment while staying within the current footprint and<br />

as with many of the RAN ships the equipment has to run on<br />

115v & 440 volt 60 Hz,<br />

Hill <strong>Defence</strong> intent is to modify Commercial off−<br />

the−shelf equipment from 240v 50Hz to 440v 60Hz and<br />

115v 60Hz where required.<br />

Along with modification to the electrical requirements,<br />

Hill will also be modifying the structural components to<br />

ensure they can withstand the stringent requirements<br />

necessary to be deployed on board the minehunter ships.<br />

The first galley upgrade will be available in the first<br />

half of 2012 with installation into the ships as they are made<br />

available at the Navy’s discretion.<br />

Hill <strong>Defence</strong> Products has been supplying the <strong>AD</strong>F<br />

with refrigeration, air conditioning, catering and galley<br />

solutions for over 25 years. Its equipment has been deployed<br />

on the Collins Class submarines, FFG frigates, ANZAC<br />

frigates, Huon Mine Hunters as well as many items on board<br />

the various supply ships. In recent years Hill <strong>Defence</strong> has<br />

successfully designed, manufactured and supplied over<br />

200 military air−conditioning units for both fixed site and<br />

mobile deployment. Hill <strong>Defence</strong> has also designed and<br />

WE TAKE THE HEAT AND STAY<br />

COOL UNDER PRESSURE<br />

• Refrigeration & Air Conditioning heat<br />

transfer systems<br />

• Food & beverage storage, preparation<br />

and presentation equipment<br />

Supplying defence is about performance and for more than<br />

25 years we’ve demonstrated our capability. We designed<br />

and supplied custom defence catering equipment and<br />

purpose built heating and cooling systems.<br />

Whatever defence requirements are in thermodynamic<br />

engineering, food and beverage, or equipment servicing –<br />

Hill <strong>Defence</strong> Products will make the impossible happen.<br />

For further detail please contact Nick Porter on<br />

08 8368 2300 or defence@hill.com.au<br />

Quality<br />

ISO 9001<br />

manufactured a Surgical HEPA filters system for use in soft<br />

shelters, this system believed to be the first of its type in the<br />

world is currently in use by the Army in the Weatherhaven<br />

deployable surgical soft shelters and has been used<br />

successfully in the current conflict zones and disaster relief.<br />

Parent company Hill Equipment is a proud privately<br />

owned Australian company who have been serving both<br />

the Commercial & Military refrigeration and catering<br />

industries since 1977.<br />

Hill <strong>Defence</strong> Products’ new cooking hob design<br />

26 Cavan Road Dry Creek South Australia 5094 • Sales 08 8368 2300 • defence@hill.com.au • www.hill.com.au


Pacific January/February 2012 SA <strong>Defence</strong> Business<br />

advertorial<br />

Williams expands its operations in Australia’s defence industry<br />

J&H Williams P/L ( Williams ) is a third generation family<br />

business in Port Adelaide having a long history spanning<br />

seven decades. From humble beginnings, the company<br />

has evolved into a leading, dynamic engineering firm that<br />

utilizes state of the art equipment and practices to offer a<br />

variety of light engineering services to numerous industries<br />

locally, nationally and internationally.<br />

At its core, the company remains focused on<br />

its primary purpose: to serve people. According to the<br />

company’s Operations Manager, Mark Koennecke, "everything<br />

we do at Williams is about serving people−to improve their<br />

lives and to help them thrive. And we mean everyone whose<br />

lives we affect; our staff, our suppliers, our customers, and<br />

our local, national and international communities. At the end<br />

of the day, people are the core reason we do what we do."<br />

In recent times, the company has focused on serving<br />

the defence and maritime sectors, where it has seen rapid<br />

growth. Among the varied defence and maritime work<br />

it performs, Williams has seen particular growth in its<br />

Advanced Metal Fabrication &<br />

HVAC Solutions for <strong>Defence</strong>,<br />

Shipbuilding & Ship Repair<br />

Since 1946, Williams have been passionate about<br />

working with others to achieve challenging goals. We<br />

love creativity, innovation, technology & problem<br />

solving.<br />

We constantly question the status quo, and we seek out<br />

innovative, elegant and perfect-fit solutions. We adhere<br />

to the world’s best practices in our systems, methods<br />

and industry.<br />

We just happen to design, manufacture and install<br />

lightweight metal components & HVAC systems for<br />

Australia’s <strong>Defence</strong>, Shipbuilding & Ship Repair<br />

Industries.<br />

design and manufacturing of heating, ventilation and air−<br />

conditioning (HVAC) systems.<br />

Williams has been selected, for example, as a<br />

partner in the Sea 4000 Air Warfare Destroyer build<br />

program to supply and manufacture HVAC items for all ASC<br />

manufactured blocks. To date, the company has supplied in<br />

excess of 6,000 items, ranging from structural and acoustic<br />

components to water−tight and non−water−tight ducts, to<br />

spool penetrations, terminals, screens, and plenums and<br />

supports in a myriad of shapes and sizes.<br />

Craig Williams, the company’s third generation<br />

Managing Director, states that "the entire Williams team<br />

is proud of our participation in, and contribution to, the Air<br />

Warfare Destroyer program, and particularly of our proven<br />

ability to provide a product of outstanding quality, whilst<br />

providing cost efficiency and on−time delivery. We sustain<br />

consistent, high−volume production through our innovative<br />

management processes, our people and capabilities. Our<br />

management structure and processes are never static and<br />

2012<br />

XXX 27<br />

continually evolve to suit the needs of our customers, and<br />

always at a minimum standard of ISO 9001:2008. We expect<br />

to see continued, rapid growth in the defence sector in 2012<br />

as a result of the efforts and relationships we’ve built in<br />

recent years."<br />

Williams also credits its success to its commitment<br />

to fostering leadership among its staff and management,<br />

and to its strong relationships, effective partnerships and<br />

alliances in the industry. The company has avidly supported<br />

the <strong>Defence</strong> <strong>Teaming</strong> <strong>Centre</strong>, the <strong>Defence</strong> Reserves Support,<br />

and the community at large through its many activities.<br />

More information about Williams can<br />

be found at jandhwilliams.com or by calling<br />

+61 8 8447 1044.


Lou<br />

Surace<br />

<strong>Defence</strong> Coating<br />

Systems


January/February 2012 SA <strong>Defence</strong> Business BUSINESS PROFILE 29<br />

"We work on projects<br />

coating components<br />

for the ASLAV and<br />

M1113 vehicles, as<br />

well as the Collins<br />

Class submarines<br />

and Air Warfare<br />

Destroyer Program"<br />

Niche market in defence paints a<br />

bright future<br />

Two local manufacturers took a business risk more than 15 years ago when<br />

they started <strong>Defence</strong> Coating Systems.<br />

By GRANT SMYTH<br />

Lou Surace is a man with a good sense of humour,<br />

a matter of fact conversational style and extremely<br />

sharp business acumen.<br />

Along with his business partner, Andrew Inglis,<br />

he put that business sense to good use when they<br />

spotted a niche in the protective coating systems<br />

market more than 15 years ago.<br />

At the time, both men were working for<br />

Unistrut Australia, manufacturing a wide range of<br />

metal framing. After becoming dissatisfi ed with the<br />

standard of service available for their work, they<br />

decided they could do the job better themselves –<br />

and so they did.<br />

The result was <strong>Defence</strong> Coating Systems,<br />

which provides services including protective coating,<br />

powder coating, abrasive blasting and sub assembly<br />

work to various industries.<br />

The majority of their work is in <strong>Defence</strong>, but<br />

they have signifi cant involvement in other sectors,<br />

including mining, electronic, medical and OEM.<br />

“We had both been working at Unistrut<br />

Australia for nine years and were having a few<br />

problems with protective coating. So we did 12<br />

months of research and decided to give it a go<br />

ourselves,” Mr Surace said.<br />

“We developed a business plan and<br />

approached the bank. Thankfully they supported us.<br />

I thought they were taking a risk, but 15 years later<br />

we’re still here and going strong.”<br />

The company is doing so well in fact that their<br />

original 710 square metre site has grown to 2,700<br />

square metres and they now employ 25 people.<br />

<strong>Defence</strong> Coating Systems undertakes projects with a<br />

value ranging anywhere from $10,000 to $1million.<br />

“Business is very good,” said Mr Surace. “We<br />

work on projects coating components for the ASLAV<br />

and M1113 vehicles, as well as the Collins Class<br />

submarines and Air Warfare Destroyer Program.<br />

“Through Life Support for the Collins Class and<br />

ASLAV projects give us some security for the future.”<br />

<strong>Defence</strong> Coating Systems’ site at Francis<br />

Road, Wingfi eld, is equipped with eight wet spray<br />

paint booths, two blasting systems, chemical pretreatment,<br />

conveyorised powder coating system<br />

with automatic guns and an online iron phosphate<br />

pre-treatment.<br />

“We’ve recently upgraded our capability to<br />

include our own abrasive blasting,” said Mr Surace.<br />

“We’ve also introduced state of the art paint<br />

and spray gun systems. This has increased our<br />

capability considerably.”<br />

The work is highly skilled, as everything must<br />

be completed to the extremely precise specifi cations<br />

required by their clients so that they exactly match<br />

the vehicles they will be incorporated into.<br />

And while <strong>Defence</strong> Coating Systems don’t<br />

usually coat the actual vehicles, some of the<br />

parts they work on can be several metres long,<br />

for example the periscopes for the Collins Class<br />

submarine.<br />

In the past, <strong>Defence</strong> Coating Systems has<br />

worked on everything from Shorland armoured<br />

vehicles, to Bushrangers, Black Hawk Helicopters, to<br />

the Tactical Air <strong>Defence</strong> Radar System.<br />

Given also their continuing work on the ASLAV,<br />

M1113, Collins Class and AWD projects, <strong>Defence</strong><br />

Coating Systems has an impressive track record.<br />

But what about the future?<br />

“We’d love to win part of the Through Life<br />

Support contract for the Air Warfare Destroyers and<br />

be involved with the Land 121 and future Submarine<br />

and Mining projects,” said Mr Surace.<br />

“Our business has been growing steadily for the<br />

past 15 years but we always need to think ahead.”<br />

And is working in the defence industry a good<br />

place to be?<br />

“Yes, I think so,” said Mr Surace. “As long<br />

as <strong>Defence</strong> can keep a good fl ow of work coming<br />

down the pipeline. That’s going to be crucial for all<br />

SMEs and to maintaining the skills of the Australian<br />

defence community.”


Shane<br />

Fiedler<br />

Maritime<br />

Constructions


January/February 2012 SA <strong>Defence</strong> Business BUSINESS PROFILE<br />

An ocean of opportunities<br />

Good family succession planning has allowed Maritime Constructions to<br />

experience continued growth and make a name for itself in the marine<br />

construction industry.<br />

By GRANT SMYTH<br />

A young, dynamic CEO leads South Australian<br />

company into exciting new era.<br />

It sounds like a cliché, but it’s exactly what is<br />

happening at Maritime Constructions in Adelaide.<br />

The CEO in question is Shane Fiedler, who took over<br />

the reins of the company under the watchful eye of<br />

his father, Garry, in 2009.<br />

But at 28 years of age, you would be mistaken<br />

in thinking that Mr Fiedler is anything but highly<br />

experienced.<br />

In fact, he has been heavily involved in<br />

maritime construction for more than a decade,<br />

working closely with Maritime Constructions’ highly<br />

skilled frontline workforce in every area from boiler<br />

making to dredging.<br />

That hands-on experience, combined with the<br />

tutelage of senior management, has created a chief<br />

executive with the know-how and nous to successfully<br />

lead this proudly South Australian company.<br />

Established in 1996 to meet local demand for<br />

specialist marine services, Maritime Constructions<br />

regularly conducts major projects nationally and<br />

has also established a permanent presence in<br />

Western Australia.<br />

It has come quite a way from the days when it<br />

was known as A&G Marine and operated out of Port<br />

Adelaide. Established in 1990, A&G quickly earned<br />

a reputation as local fabricators who would provide<br />

their customers with exactly what they required.<br />

In 2007, due to the redevelopment of the<br />

inner port, Maritime Constructions relocated to<br />

Techport, the SA Government’s Naval Industry Hub.<br />

They might not have kept the A&G name, or the<br />

location, but they kept a reputation that has allowed<br />

them to grow to the point where the company now<br />

employs 100 people.<br />

This includes a highly skilled ‘front line’<br />

workforce of boiler maker welders, fi tters, carpenters,<br />

crane drivers, riggers, mechanical tradespeople and<br />

many with a slew of marine qualifi cations.<br />

Mr Fiedler sees Maritime Constructions’<br />

consistent growth of its project management and<br />

"Our current focus is<br />

on ensuring we have<br />

the best systems,<br />

engineering and<br />

project management<br />

functions to support<br />

the first class skills<br />

of our front line<br />

workforce"<br />

engineering capacity as crucial to the business’s future.<br />

“Our current focus is on ensuring we have the<br />

best systems, engineering and project management<br />

functions to support the fi rst class skills of our front<br />

line workforce,” he said.<br />

So far, <strong>Defence</strong> has been a relatively small part<br />

of Maritime Constructions’ business. Asked if it is a<br />

good sector to be involved in, Mr Fiedler’s response<br />

is emphatic.<br />

“Absolutely. Most organisations within the<br />

defence industry represent signifi cant repositories<br />

of knowledge and expertise,” he said. “We’ve had<br />

great experiences working with highly qualifi ed<br />

individuals willing to adopt a partnering attitude to<br />

achieve the best possible results.”<br />

Although on major projects the company has<br />

historically worked mostly under the umbrella of<br />

a larger head contractor, Mr Fiedler says Maritime<br />

Constructions wants to assume that leading role<br />

more often in the future.<br />

“The role of head contractor is a space<br />

Maritime Constructions is increasingly able to occupy<br />

itself,” he said.<br />

31<br />

“This is evidenced by the recent completion<br />

of a technically challenging design and construct<br />

project in remote Wyndham, Western Australia. The<br />

construction of the 108 metre Anthon’s Landing Jetty<br />

was a $6 million project.”<br />

That’s an achievement that is well deserved<br />

for a company that has diversifi ed into a full service<br />

marine infrastructure, fabrications and project<br />

management fi rm.<br />

While <strong>Defence</strong> might not yet make up a large<br />

part of Maritime Constructions’ work, the company<br />

has a long history of involvement in the industry.<br />

“We recently undertook the latest round of<br />

dredging works for the ASC North ship lift,” Mr<br />

Fiedler said.<br />

“We’ve performed the task a number of times,<br />

as well as dredging at the Common User Facility<br />

site. Without these essential dredging works it is<br />

impossible for a submarine to dock or undock.”<br />

Even as the organisation was in its infancy it<br />

was engaged by ASC to provide tug and work boat<br />

services during submarine dockings and undockings.<br />

It was also contracted to provide and install shock<br />

trial and trim dive moorings in support of the RAN’s<br />

Collins Class Submarine capability.<br />

But what is the best thing about leading<br />

Maritime Constructions?<br />

“I’ve always been obsessed with the ocean,”<br />

said Mr Fiedler. “I love to fi sh, swim and dive, so to<br />

be able to work in that environment and provide<br />

access for others to do the same is very special.”<br />

And is that a bit of a paradox, to love the<br />

ocean but also to be leading a company that is<br />

involved in substantial marine construction?<br />

“I’d say the opposite actually,” said Mr Fielder.<br />

“I think that’s the reason why we’re exactly the kind<br />

of company who should be entrusted to work that in<br />

that environment.”


32 XXX<br />

<strong>AD</strong> <strong>AD</strong><br />

Phil<br />

Cornell<br />

Cornell Design<br />

January/February 2012 SA <strong>Defence</strong> Business


January/February 2012 SA <strong>Defence</strong> Business BUSINESS PROFILE<br />

Most people at the <strong>Defence</strong> <strong>Teaming</strong> <strong>Centre</strong> (DTC)<br />

know Phil Cornell as the man from SAGE Automation.<br />

Which would be great, except that since<br />

August 2011 he has turned his focus to working<br />

full time as Managing Director of his own company,<br />

Cornell Design.<br />

Based at Melrose Park, Cornell Design provides<br />

professional, sub-contract mechanical designers and<br />

design solutions for companies who do not have, or<br />

want extra capability, in that area.<br />

Its fi fteen designers, all from trade<br />

backgrounds, can provide this capability either on<br />

site or from their offi ces just off Daws Road.<br />

The team has grown from fi ve to sixteen<br />

(including Mr Cornell) since he bought the rights to<br />

SAGE Automation’s mechanical design arm, SAGE<br />

Design, in April 2010.<br />

Assisting with fi nding a buyer for SAGE Design<br />

while still at SAGE, Mr Cornell knew a good thing<br />

when he saw it and bought the business himself.<br />

Despite having worked indirectly on <strong>Defence</strong><br />

projects including the Air Warfare Destroyer<br />

programme and Collins Class submarines, Mr<br />

Cornell doesn’t categorise his company as <strong>Defence</strong><br />

specialists.<br />

“Our expertise lies in design for manufacture<br />

and that skill set brings as much value to the defence<br />

industry as it does to all of the industry sectors we<br />

service,” Mr Cornell said. “<strong>Defence</strong> counts for about<br />

30 per cent of our business, which we think is the<br />

right level of exposure.”<br />

So, what makes Cornell Design’s service so<br />

special?<br />

“What we provide is a professional,<br />

mechanical design capability to our clients that is<br />

specifi c to their needs at the time when they need it.<br />

Designing for success<br />

Phil Cornell saw a good thing when he decided to buy the mechanical<br />

design arm of his former employer, SAGE Automation, and he hasn’t looked<br />

back since.<br />

By GRANT SMYTH<br />

"I was with SAGE for six years, so a lot of<br />

people still associate me with the company<br />

and the great outcomes we achieved on<br />

<strong>Defence</strong> projects"<br />

Many companies have had to let this capability go as<br />

it expensive to maintain,” Mr Cornell said.<br />

“For many small and medium enterprises<br />

(SMEs) it just isn’t affordable to have a fulltime,<br />

permanent designer, let alone the additional cost of<br />

design software, maintenance and training.<br />

“We can provide design services from our own<br />

offi ces, or more often than not we’ll send a designer<br />

to them for the duration of the design phase of<br />

their project.”<br />

But it isn’t just SMEs who can benefi t from<br />

Cornell Design’s services.<br />

“We also get work from bigger companies<br />

who have a design capability of their own but need<br />

additional capacity during peak loading times, large<br />

projects or even covering leave,” he said.<br />

Mr Cornell believes his business model also<br />

provides sustainability in the design services sector.<br />

“Because we can provide a continuous variety<br />

of interesting and demanding design projects, we<br />

are providing fulltime, permanent work for people<br />

whose skills may well have been lost altogether. I<br />

think that’s critical in ensuring that Australia remains<br />

strong in this skills area.”<br />

And speaking of changing jobs, how does he<br />

cope with still being known as the man from SAGE?<br />

“It’s been really interesting and fun to be renetworking<br />

at the DTC in my own right.<br />

“I was with SAGE for six years, so a lot of<br />

people still associate me with the company and the<br />

great outcomes we achieved on <strong>Defence</strong> projects<br />

including winning the building of the control panels<br />

for the Integrated Platform Management System<br />

(IPMS) with Navantia for the AWD’s.<br />

“I do enjoy networking though, and have the<br />

“Cornell Curry Club”, a regular networking curry<br />

33<br />

lunch to help with that process, so it’s not as painful<br />

as it might be.”<br />

Mr Cornell is a gregarious and approachable<br />

character and he admits that he looks for a similar<br />

personality type in his designers.<br />

“The typical designer is often seen as a bit<br />

introverted, but that isn’t always good when you’re<br />

working on a job with people you don’t know and<br />

really need to be getting involved and asking questions.<br />

“My team is made up of experienced designers<br />

who don’t have any problems doing that. We’ve<br />

just put one of our designers, Gary Hunt, through<br />

the South Australian <strong>Defence</strong> Industry Leadership<br />

Programme (S<strong>AD</strong>ILP) with Gordon Edwards at the<br />

DTC. We will be sending candidates on the course<br />

every year from now on.”<br />

And if there are quiet times at Cornell Design<br />

due to the ebbing and fl owing nature of business?<br />

“If we do have any unutilised time, then we<br />

donate that time to charity by carrying out design<br />

projects for Orana, the organisation that helps South<br />

Australians with intellectual diffi culties,” Mr Cornell<br />

said. “It’s a really worthwhile cause and we love<br />

being able to help them out.”<br />

Not that there are so many quiet times these<br />

days. In fact, it’s busy enough that Mr Cornell has<br />

just appointed his fi rst Chief Financial Offi cer.<br />

“This is initially a part time role, but as the<br />

business grows we anticipate that it will become full<br />

time,” he said.<br />

“I think it’s a measure of our success.”


34 INDUSTRY<br />

New R&D tax <strong>Inc</strong>entive brings greater benefits<br />

By PRICEWATERHOUSE COOPERS<br />

Federal Government support for private sector<br />

innovation in Australia has undergone significant<br />

change in recent months following years of debate.<br />

South Australian defence companies have a long history of innovation with many<br />

companies well placed to access the increased tax incentives available under the<br />

new R&D Tax <strong>Inc</strong>entive. The R&D Tax <strong>Inc</strong>entive is a broad-based, market driven<br />

program accessible to all industry sectors and is designed to encourage more<br />

companies to engage in R&D and thereby boost competitiveness and improve<br />

productivity across the Australian economy.<br />

The new R&D tax incentive has a retrospective start date of July 1, 2011, giving<br />

rise to immediate opportunities for defence companies conducting R&D, including:<br />

potential cash savings of up to 15c for every $1 spent on eligible R&D<br />

activities<br />

refundable benefi t up to 45c for every $1 if in tax losses and less than<br />

$20m turnover<br />

relaxation of the IP rules which provides a greater opportunity to claim<br />

where undertaking R&D on behalf of a foreign related entity, a situation<br />

that is quite common in the defence industry<br />

an increased ability to claim R&D conducted overseas, and<br />

the opportunity to apply for advanced approval of R&D activities.<br />

St John<br />

do a<br />

weld of<br />

good<br />

Show your<br />

support through<br />

our innovative<br />

new program<br />

COMMUNITY SUPPORT PARTNER<br />

First Aid training and products<br />

St John is self funded. Find out how your corporate<br />

involvement can asist. Call us on 1300 360 455<br />

www.stjohnsa.com.au<br />

January/February 2012 SA <strong>Defence</strong> Business<br />

Key changes of the new program centre on the type of activities that now<br />

qualify as R&D, in particular the defi nition of ‘core’ R&D activities. Other changes<br />

include the defi nition of ‘supporting’ activities - specifi cally, those activities<br />

relating to the production of goods and services will only be claimable if they are<br />

undertaken for the ‘dominant purpose’ of supporting ‘core’ R&D activities.<br />

PwC National R&D Partner Sandra Mason says: “The new R&D <strong>Inc</strong>entive<br />

will play an important role in ensuring the South Australian defence industry<br />

remains competitive on the global stage.”<br />

“All new R&D claims need to be considered in ‘real time’ to avoid evaluation<br />

of an R&D claim post year-end. This ensures that claimants don’t miss out on the<br />

more generous benefi ts provided by the new program,” Ms Mason said.<br />

Further information on the new R&D Tax <strong>Inc</strong>entives will be available at a<br />

briefi ng session PwC is hosting for <strong>Defence</strong> <strong>Teaming</strong> <strong>Centre</strong> members in February.<br />

Breaking down bullying in<br />

the workplace<br />

By PIPER ALDERMAN LAWYERS<br />

For the past few years, there has been a big focus on the risks of bullying in the<br />

workplace. Studies have found that workplace bullying costs the economy $13<br />

billion a year due to decreased productivity, increased absenteeism and staff<br />

turnover.<br />

According to the US Workplace Bullying Institute, Australia falls in<br />

line with other Western countries, with nearly one in six people bullied at<br />

their place of employment. In professions where hierarchical structures lend<br />

themselves to bullying - like the military, police forces and fi re brigades - the<br />

rate is even higher.<br />

Since “Brodie’s” case in 2010, health and safety regulators have<br />

devoted signifi cant attention and resources to warning employers about<br />

the risks of bullying in the workplace. It is also an area of concern for other<br />

regulators, employers and insurers alike.<br />

Safe Work Australia (SWA) has released a draft code that provides<br />

useful guidance on what bullying is, how to prevent it becoming a health<br />

and safety risk and a recommended course of action if a complaint is made.<br />

It is a timely reminder for employers, who should consider their current<br />

processes in light of the draft code.<br />

Broadly speaking the Code is divided into the following parts:<br />

1. Who has duties in relation to workplace bullying?<br />

2. What is workplace bullying?<br />

3. How to prevent workplace bullying<br />

Controlling the risk of workplace bullying requires that an appropriate<br />

workplace bullying policy is in place, effective complaints procedures are<br />

developed, staff are provided information and trained to raise awareness of<br />

bullying and its impact, and are encouraged to report bullying as early as possible.<br />

Piper Alderman has recently assisted many clients with training and<br />

advice on their systems to ensure that they are legally compliant with the<br />

new harmonised health and safety laws, including workplace bullying.<br />

Please contact one of the Piper Alderman team on 08 8205 3315 for<br />

assistance.<br />

For further information on the SafeWork SA Codes of Practice for<br />

bullying in the workplace, visit www.safework.sa.gov.au


AIM SA Graduate School of Business<br />

We congratulate our 2011<br />

Graduates and welcome others<br />

to the AIM SA MBA, designed by<br />

management practitioners for<br />

practical managers.<br />

Julie Bignell<br />

Chief Executive Offi cer<br />

Life’s for Living <strong>Inc</strong><br />

Trudy Boyce<br />

Mayne Proprietary Product Manager<br />

Pharma International<br />

Stuart Cavill<br />

Hydraulics Manager<br />

Cavill Power Products<br />

Jason Holding<br />

EMS Specialist<br />

Cavpower<br />

Lyn Hynd<br />

Business Manager<br />

The Hills Christian Community<br />

Denise Johns<br />

Farm Manager/Owner<br />

Russell Jones<br />

Workshop Manager<br />

Normet Asia Pacifi c<br />

Alan Kennedy<br />

Technical Offi cer - Assets Group<br />

United Water International<br />

Nigel Langford<br />

Operational and Engineering Manager<br />

General Dynamics Land Systems Aus.<br />

Robert Magee<br />

Senior Project Manager<br />

Climat Commercial<br />

Gavin McNeill<br />

Supplier Continuity Representative<br />

GM Holden Ltd<br />

Andrea Mead<br />

Managing Director<br />

Heatile Engineering<br />

Sam Merchant<br />

Australian Human Resources &<br />

Finance Offi cer<br />

Grain Technologies<br />

Jodie Murphy<br />

Human Resource Manager<br />

Next Generation Clubs Australia<br />

Sharyn Simes<br />

Sales Manager<br />

Corporate Express Australia<br />

Chris Stubbs<br />

Director of Finance<br />

Adelaide Convention <strong>Centre</strong><br />

More and more South<br />

Australian professionals are<br />

choosing our Graduate School<br />

to undertake their MBA and<br />

Executive Education.<br />

Find out why at one of<br />

our Information Sessions<br />

Dates<br />

January 10 or March 27<br />

Time<br />

5.30pm–6.30pm<br />

Venue<br />

<strong>Centre</strong> for Management Development<br />

180 Port Road, Hindmarsh<br />

Bookings<br />

Phone (08) 8241 8000<br />

or visit www.aimsa.com.au<br />

aimsa.com.au SOUTH AUSTRALIA


www.prospectroad.com.au<br />

come see the new Prospect Road Village Heart<br />

www.prospect.sa.gov.au


January/February 2012 SA <strong>Defence</strong> Business<br />

Leading young<br />

defence industry<br />

careers<br />

Sumen Rai, Market Analyst at<br />

<strong>Defence</strong> SA, is passionate about the<br />

SA defence industry and developing<br />

our future skills requirements.<br />

A keen astronomer and graduate<br />

of the South Australian Leadership<br />

Program, Sumen knows the value of<br />

networking and provides advice for<br />

building a defence industry career.<br />

What is your current role in the defence industry?<br />

I am a Market Analyst at <strong>Defence</strong> SA, which is the<br />

South Australian Government department charged<br />

with promoting the growth of defence industry in<br />

South Australia. My role sits within the Business<br />

Development team, where I conduct research and<br />

analysis on defence-related market segments and<br />

companies across the land, maritime and aerospace<br />

domains. The aim of my research is to understand<br />

the markets we’re working in so we can promote<br />

South Australia to the Department of <strong>Defence</strong>,<br />

<strong>Defence</strong> Materiel Organisation and <strong>Defence</strong> Primes<br />

as the ideal location for <strong>Defence</strong> projects and<br />

personnel; and to identify capability gaps where we<br />

might be able to attract new companies to the state.<br />

Underpinning all of this, I monitor political, economic<br />

and commercial developments in Australia and<br />

overseas that might affect defence projects and the<br />

defence industry in South Australia.<br />

What is the most enjoyable aspect of your role?<br />

Knowing that my work is contributing to the<br />

development and economic strength of South<br />

Australia is extremely gratifying for me. However, this<br />

is a ‘big picture’ view that I don’t necessarily think<br />

about every day! On a more ‘operational’ level, I love<br />

the interaction with the very smart people that work<br />

in defence companies, both local and international,<br />

and what I learn from them. I’ve been working in the<br />

defence industry for a year, and I’ve learned so much.<br />

What are your career goals?<br />

While I very much enjoy the research and analysis<br />

role, the next step for me is to move into a position<br />

that is more directly responsible for investment<br />

attraction and economic development. Ideally, I<br />

would like to combine my growing knowledge about<br />

the defence industry’s requirements with my former<br />

qualifi cations in education to work on developing<br />

the STEM workforce. The demand for appropriately<br />

qualifi ed people to undertake high-tech work, now<br />

and in the future, is a challenge for many countries<br />

and underpins the sustainability of our industries<br />

Sumen Rai, Market Analyst at <strong>Defence</strong> SA<br />

and economies. It’s a tricky problem, but something I<br />

would relish the opportunity to tackle.<br />

What do you enjoy most about working in<br />

defence industry?<br />

I love the hi-tech nature of the defence industry,<br />

and the exacting standards that have to be met. My<br />

job is not to build and maintain equipment, but I<br />

try to incorporate the defence industry’s (admirable)<br />

expectations of precision into the research and<br />

analysis that I do.<br />

What has been your biggest achievement in the<br />

defence industry?<br />

I’ve only been in the defence industry a short time,<br />

but the achievement I’m most proud of thus far is<br />

completing the South Australian <strong>Defence</strong> Industry<br />

Leadership Program (S<strong>AD</strong>ILP). It’s not just that I<br />

completed the requirements of the program to<br />

graduate, but there’s a real feeling of having ‘arrived’<br />

in the South Australian defence industry with<br />

the professional relationships and friendships I’ve<br />

developed with my fellow S<strong>AD</strong>ILPers.<br />

What are your hobbies outside of work?<br />

Reading, and more reading. I’ll read pretty much<br />

anything! I also have a passion for live music, and<br />

for astronomy. I’ve made several attempts at running<br />

regularly, but I’d rather not talk about that.<br />

YOUNG AMBASS<strong>AD</strong>OR 37<br />

What is your advice for young people looking<br />

to progress into your fi eld of work?<br />

Being successful in an investment attraction/<br />

economic development role is dependent on the<br />

quality of your relationships with relevant people<br />

and the information you have access to.<br />

First, build your networks. At fi rst, this<br />

means meeting people through your co-workers<br />

or managers, and also attending industry events.<br />

Don’t feel shy about asking people questions,<br />

even if you think you sound stupid – it’s better to<br />

get a good understanding of the subject matter<br />

than to make incorrect assumptions and come to<br />

incorrect conclusions. Second, fi nd a mentor who<br />

is experienced in the investment attraction role<br />

and at navigating government procedures, and<br />

try to ‘shadow’ them at meetings to see how they<br />

do business. This will also allow your managers to<br />

feel more comfortable about delegating meetings<br />

with potential investors to you. Third, keep your<br />

knowledge and skills up-to-date. Be familiar with<br />

technological developments (not just in your<br />

industry, because cross-overs happen often), political<br />

developments both locally and internationally,<br />

and take advantage of professional development<br />

opportunities to broaden your knowledge and skills.


SKILLS<br />

38 January/February 2012 SA <strong>Defence</strong> Business<br />

Working with the mechanics of the future<br />

School students and their teachers involved in the<br />

Advanced Technology Industry School Pathways<br />

Program (ATISPP) – funded by the <strong>Defence</strong> Materiel<br />

Organisation (DMO) – had the chance to experience<br />

mechanical engineering studies fi rst hand when they<br />

attended the recent MechExpo 2011.<br />

Held at the Royal Adelaide Showgrounds,<br />

the University of Adelaide’s annual MechExpo is an<br />

exhibition of projects by fourth year students from the<br />

University’s School of Mechanical Engineering. This<br />

year’s event showcased a variety of projects ranging<br />

from a Catapult-Launched Maritime UAV Robot to<br />

an Oceanic Robot-Glider and included displays from<br />

mechanical, aerospace, sustainable energy, mechatronic<br />

and sports engineering.<br />

The 80 Year 10 and 11 students from<br />

secondary schools involved in the Pathways Program<br />

had a unique opportunity to encounter engineering<br />

in practice, to learn what it really means to be an<br />

engineer and to engage with fi nal year engineering<br />

students as they share their experiences. Each exhibit<br />

represented a culmination of a full year’s work and<br />

refl ected the diversity and opportunities available<br />

within the fi eld of engineering.<br />

Gleeson college students interviewing honours students<br />

Unley High School students talking robotic gliders with University<br />

of Adelaide<br />

“Students who attended the expo increased their<br />

knowledge of technology and engineering applications,<br />

concepts and career pathways that will foster their<br />

engagement and achievement in maths and science,”<br />

said ATISPP industry broker Brenton Schulze.<br />

Mr Schulze said that by engaging with the<br />

MechExpo project teams, the secondary students<br />

gained an appreciation of the personal and<br />

professional skills required to be an engineer, including<br />

project management, time management, fi nancial<br />

management, team work and communication skills.<br />

Project topics ranged from system analysis and<br />

design to experimental investigations of fundamental<br />

research problems. Mr Schulze said that some past<br />

student solutions had even led to patentable systems.<br />

The school students also were involved in<br />

recording interviews with the project teams, including<br />

17 university honours students, and producing a series<br />

of short videos using the Apple iPad 2 with a focus on<br />

career pathways.<br />

“Real-world, active learning experiences help<br />

secondary school students to develop an understanding<br />

of engineering. Students are able to interact with<br />

Hamilton students blown away<br />

Year 9 students from Hamilton Secondary College<br />

who designed, manufactured and tested their<br />

own wind turbines have become the fi rst group<br />

of secondary students to display a project at the<br />

University of Adelaide’s 2011 Mechanical Engineering<br />

Expo (MechExpo) for mechanical engineering<br />

honours students.<br />

“Students were set the task to design and<br />

build a model of a wind turbine to be highly effi cient<br />

and produce the highest power output,” said Karen<br />

Palumbo, key teacher of the Advanced Technology<br />

Project at Hamilton Secondary College.<br />

“They worked in small groups to build their<br />

wind turbine in design and technology class, test their<br />

turbines in science and then statistically analyse their<br />

results in maths with the aim of constructing the most<br />

effi cient turbine.<br />

“Students researched horizontal and vertical<br />

axis wind turbine designs and experimented with<br />

two and three-blade models. They produced a series<br />

of annotated sketches to develop their design ideas.<br />

“The key difference between the student turbines was<br />

in the blade design. Students designed an airfoil using<br />

an industry-standard computer-aided design program<br />

and then manufactured their designs with a laser<br />

cutter,” Ms Palumbo said.<br />

The students then tested their wind turbines<br />

in University of Adelaide’s wind tunnel facilities in the<br />

School of Mechanical Engineering.<br />

Sophia Li won the best turbine design,<br />

awarded by the <strong>Centre</strong> for Energy Technology and<br />

the School of Mechanical Engineering. Sophia was<br />

presented with her award at an awards ceremony at<br />

MechExpo in October 2011.<br />

Hamilton is one of 19 schools participating in<br />

the South Australian Advanced Technology Industry<br />

School Pathways program. The project is aimed at<br />

increasing student interest in study and employment<br />

opportunities from science, technology, engineering<br />

and maths at school.<br />

“At the MechExpo, students were asked<br />

questions by many academics, the general public and<br />

other school students – all of which were impressed by<br />

engineers of the future and increase their awareness of<br />

the role of engineers in society,” Mr Schulze said.<br />

“In order to address long-term shortages in the<br />

engineering industry, including the defence industry<br />

in South Australia, we must attract quality students to<br />

engineering disciplines.”<br />

“The Mech Eng Expo allowed me to experience<br />

engineering in a ‘hands on” way. I was inspired by the<br />

projects I saw and now feel really passionate about<br />

mechanical engineering.”<br />

Victoria Langton, Year 10 student,<br />

Henley High School.<br />

“Today’s Mech Eng Expo has added a new<br />

dimension to the career opportunities Henley High<br />

Students may have in the future. It has stressed the<br />

importance of the science/mathematics subjects whilst<br />

still at school.”<br />

Jamal Nordin, teacher.<br />

“The benefi t of today was that it boosted the<br />

idea of becoming an engineer. It’s shown what I could<br />

become in later life.”<br />

Jacob Kostoglou, Year 10 student,<br />

Hamilton Secondary College.<br />

The $5.7 million Commonwealth funded South<br />

Australian Advanced Technology Industry School<br />

Pathways Program aims to boost pathways into<br />

defence industry related jobs. For more information,<br />

please contact Brenton Schulze, industry broker at<br />

brenton.schulze@sa.gov.au or mobile 0448 852 706.<br />

Hamilton Secondary College with the winning<br />

wind turbine design<br />

the students explanations as well as the project itself,”<br />

Ms Palumbo said.<br />

“I believe the project was a huge success and<br />

look forward to involving more students from Hamilton<br />

in the Renewable Energy cross-curricular project in years<br />

to come. The integrated Renewable Energy Project<br />

draws upon the overlying social issue of climate change<br />

and encourages students to look at ways to build a<br />

more sustainable future.”


January/February 2012 SA <strong>Defence</strong> Business SKILLS<br />

Leading from within: personal growth through<br />

S<strong>AD</strong>ILP 2011<br />

S<strong>AD</strong>ILP 2011 graduates Mark Koennecke, of J&H Williams Holdings, and Rebecca Baylis,<br />

of Aeronautical Engineers Australia, examine the relevance of the program from their<br />

own perspective.<br />

In January 2000, best-selling author Jim Collins<br />

assembled a team of analysts to produce an empirical<br />

study of businesses and determine what characteristics<br />

cause a company to go from good to great. The study<br />

focussed not on companies that achieve outstanding<br />

results, but rather those that achieve sustained<br />

remarkable results for extended periods.<br />

Their most unexpected fi nding was that all the<br />

businesses in the case study shared a distinct leadership<br />

style: Level 5 Leadership. A Level 5 leader is an<br />

enigmatic and contradictory blend of personal humility<br />

and professional will, ambitious not for themselves<br />

but for the company. It was these leaders that were<br />

the most important difference between a mediocre<br />

company and one that had achieved greatness.<br />

By its own defi nition, Good To Great, the book<br />

on the fi ndings of Jim Collins in his study, identifi es<br />

that Level 5 is infrequent. However, it also notes that<br />

potential Level 5 leaders exist all around us and we just<br />

need to know what to look for…<br />

So how do we identify and develop Level 5 leaders? In<br />

the defence industry, we look to the South Australian<br />

<strong>Defence</strong> Industry Leadership Program (S<strong>AD</strong>ILP). The<br />

program was developed to provide a succession plan<br />

for current leaders to capture and pass on the extensive<br />

knowledge held within the industry.<br />

As participants of the 2011 program, at<br />

our fi rst session we discussed our expectations of<br />

the program. Many fellow participants similarly<br />

commented: “I’m not sure why I’m here - my boss<br />

thought it was a good idea”!<br />

Over the next nine months, however, it became<br />

very clear that each individual, carefully chosen by the<br />

selection panel from across industry, had been targeted<br />

for their different strengths and weaknesses. Participants<br />

were faced with lively discussions on leadership, the<br />

challenges facing the defence industry, and the future of<br />

South Australia as the “<strong>Defence</strong> State”.<br />

At the monthly Wednesday sessions in the<br />

Naval, Military and Air Force Club of South Australia,<br />

the group discussions were often controversial and<br />

personally confronting for many participants, but it<br />

was here that the group really began to understand<br />

the meaning of leadership in the context of the<br />

defence industry.<br />

Fortunately, the program facilitator Gordon<br />

Edwards from HeavyPoint was at hand to challenge<br />

participants’ thinking and keep the sometimes<br />

wandering discussions on topic - at least, until the<br />

breaks when there were free-for-all discussions!<br />

With an intimate knowledge of <strong>Defence</strong> and the<br />

defence industry, Gordon’s guidance during the<br />

sessions, on the fi eld trips, and also in the invaluable<br />

Gordon Edwards, S<strong>AD</strong>ILP facilitator,<br />

with participant Rebecca Bayliss<br />

"The perspective that young diggers<br />

have on the defence industry, who<br />

are not long out of their teens and<br />

ready to be deployed in the not−too−<br />

distant future, was quite simply<br />

overwhelming and powerful"<br />

one-on-one meetings made the program focused and<br />

targeted, forcing everyone to really consider, “What do<br />

YOU think?”<br />

Most importantly, the 2011 program put<br />

participants in direct contact with the end user,<br />

the Australian <strong>Defence</strong> Force, to gain a greater<br />

understanding of how <strong>Defence</strong> operates. The 2011<br />

program included two overnight fi eld trips; the fi rst to<br />

the 16th Air <strong>Defence</strong> Regiment at Woodside and the<br />

second to 7th Royal Australian Regiment at Edinburgh.<br />

These visits pushed the participants both physically<br />

and mentally. At Woodside we sampled the delights of<br />

ration packs and navigated with a compass (no iPhones<br />

allowed!), and at Edinburgh, observation and memory<br />

recall skills were tested.<br />

The latter visit had soldiers showing much<br />

patience and openness to the endless questions from<br />

us “corporate types”. The perspective that young<br />

diggers have on the defence industry, who are not<br />

long out of their teens and ready to be deployed<br />

in the not-too-distant future, was quite simply,<br />

overwhelming and powerful.<br />

Under a Chatham House Rule Charter,<br />

participants were given unprecedented access to the<br />

insight and advice of guest speakers, senior <strong>Defence</strong><br />

and industry leaders. Some memorable speakers<br />

for 2011 included the S<strong>AD</strong>ILP Patron, His Excellency<br />

Rear Admiral Kevin Scarce AC CSC RANR, Governor<br />

39<br />

of South Australia; Stephen Quinn CSC (Chief, Land<br />

Operations Division, <strong>Defence</strong> Science and Technology<br />

Organisation); Martin Hamilton-Smith MP; Chris Burns<br />

CSC (DTC CEO) and Mark Reynolds (Head, Commercial<br />

Industry Programs, DMO). It was the words of wisdom<br />

from these leaders that not only provoked much<br />

thought and discussion but also gave participants a<br />

perspective of <strong>Defence</strong> and defence industry that they<br />

may have never considered before.<br />

Early in the year, participants were placed in<br />

groups to research, discuss and prepare a concept<br />

paper and presentation. The topics initially seemed<br />

varied and rather vague until teams began research<br />

and the concepts became focused. The end results<br />

were thought provoking concept papers with several<br />

common themes, pitched at a panel of defence<br />

industry representatives in November 2011. Comments<br />

from the panel included the professionalism of the<br />

presenters, and the unique ideas for solutions to issues<br />

facing <strong>Defence</strong> and industry The exercise validated the<br />

development and insight of the participants and also<br />

their ability to infl uence a team of colleagues to work<br />

together effectively towards a specifi c outcome.<br />

At the conclusion of the 2012 program, S<strong>AD</strong>ILP<br />

will have an alumni association of approximately 70<br />

graduates, all with a greater awareness of Australian<br />

<strong>Defence</strong> Operations, the defence industry and their<br />

roles as leaders. Importantly, while solid business<br />

relationships are forged through S<strong>AD</strong>ILP, the program<br />

is not a networking program, nor is it a management<br />

program. S<strong>AD</strong>ILP is a philosophical journey into the<br />

personal essentials of great leadership and, as the<br />

challenges of Force 2030 unfold, it will be our industry’s<br />

future leaders that infl uence not only South Australia’s<br />

economic progress, but also the delivery and support of<br />

our Nation’s military capability.<br />

These emerging leaders need to be Level 5<br />

Leaders; able to not only achieve results but be able<br />

to sustain our industry at levels of greatness. The<br />

signifi cance and validity of S<strong>AD</strong>ILP is refl ected through<br />

the election of Darryl Holt of Raytheon and Craig<br />

Williams of J&H Williams Holdings, both 2011 S<strong>AD</strong>ILP<br />

graduates, to the DTC Board of Directors.<br />

We highly recommend the S<strong>AD</strong>ILP to business<br />

leaders and owners, CEOs and executive level staff within<br />

the defence industry, as well as those dynamic, emerging<br />

leaders who, when brought together for this program,<br />

will have a vibrant, crucial and unforgettable experience.<br />

So if you think you are up for the challenge, we<br />

encourage you to contact Kerryn Smith at the <strong>Defence</strong><br />

<strong>Teaming</strong> <strong>Centre</strong> on 08 8260 8907 for full details on the<br />

2012 S<strong>AD</strong>ILP intake and application criteria.


40 SKILLS<br />

January/February 2012 SA <strong>Defence</strong> Business<br />

Men are from Mars, Women are from WiDRI<br />

By HOLLY CARUSO<br />

At a recent AMCHAM lunch in Adelaide, a panel of four<br />

industry leaders (three male) from Santos, BAE Systems<br />

Australia, Deloitte and GHD discussed gender equity<br />

in the workplace. The discussion was hard hitting and<br />

addressed the key benefi ts of increasing the amount of<br />

women in their industries: bottom line results.<br />

The Co-Chair of the Premier’s Council for Women,<br />

Kate Gould, provided the introductory address for the<br />

event and stated clear indicative facts, the latest research<br />

shows that companies employing a diverse workforce<br />

retain employees longer, have better bottom line results<br />

and increased shareholder satisfaction.<br />

In addition, research commissioned by the<br />

Council in 2009 showed that although women in<br />

South Australia are among the best educated in the<br />

world, more than 108,000 women in SA want to<br />

work or work more.<br />

We are a State with an overwhelming workforce<br />

of intelligent women yet in the defence industry, only<br />

21.9 per cent of the workforce are women. While there<br />

are no statistics on women in leadership positions in<br />

defence industry, experience tells us that percentage<br />

would be much smaller. We are under utilising a highly<br />

available and capable workforce that can readily assist in<br />

fulfi lling projected skills shortages in the future.<br />

Throughout 2011, the <strong>Defence</strong> <strong>Teaming</strong> <strong>Centre</strong><br />

and the Resources and Engineering Skills Alliance<br />

coordinated the Women infl uencing <strong>Defence</strong> and<br />

Resources Industries (WiDRI) program. The resources<br />

and mining industry has an even more unbalanced<br />

gender distribution, with just 8.3 per cent of the<br />

workforce female.<br />

The intention of WiDRI was to support the roles<br />

and responsibilities of women as directors and managers,<br />

coaches and mentors and industry advocates. While this<br />

objective was well and truly achieved through training,<br />

inspirational speakers and the development of Thought<br />

Leadership groups, the outcome not required but<br />

accomplished, was the development of a network of<br />

truly passionate, intelligent and outstanding women who<br />

have the drive and motivation to make a difference in<br />

the defence and resources industries.<br />

While there was discussion about the factors and<br />

reasons why women generally aren’t achieving the top<br />

leadership positions in organisations, the atmosphere<br />

wasn’t one of complaint, but rather action and<br />

anticipation of a future where women can contribute<br />

their intelligence and valued perspectives to the benefi t<br />

of their organisations and ultimately the industries.<br />

The women on WiDRI are an engaged group,<br />

looking to make a difference in 2012. However, a<br />

key change to the WiDRI program in the second<br />

year of the program will be the engagement of men.<br />

As stated succinctly by Ms Gould, “If Australia is<br />

to position itself as a global leader in business, we<br />

need to start having frank and fearless discussions<br />

about gender and the workforce,” she said. “Men in<br />

leadership positions need to take action.”<br />

A key requirement of WiDRI in 2012 will be the<br />

engagement of men on the program to understand<br />

the issues of gender equity in the workplace and to<br />

action a workforce diversity policy in their organisation<br />

that targets gender equity with numerous benefi cial<br />

outcomes, including a better bottom line. In 2012, both<br />

men and women will be from WiDRI.<br />

How hard is it to train your staff?<br />

Finding employees that are a good match for your<br />

team can be a hard process, especially when you<br />

have a specifi c skill set in mind for them. It can be<br />

easier to up skill your existing team members to meet<br />

your requirements - after all, you already know these<br />

staff and their capabilities and you know that they<br />

understand you needs and they have staying power.<br />

But training staff is an expensive exercise, what<br />

with the cost of training and the time required off<br />

job to complete the training. And where can you fi nd<br />

a reliable company to supply the training?<br />

Many employers aren’t aware that there is a<br />

Federal Government program in place that provides<br />

funding to employers that will cover the costs of<br />

training. Yes – your business can receive up to $4000<br />

of Federal funding for each eligible employee that<br />

you place under a contract of training.<br />

Not wanting to miss the bandwagon, the<br />

State Government will also allow your business to<br />

be exempt from payroll tax and Work Cover levy for<br />

each member of staff for the entire length of the<br />

contract.<br />

With more than 500 qualifi cations on scope<br />

here in South Australia, you could up skill your staff<br />

in leadership, management, engineering and much<br />

more. The State Government has announced that<br />

they have now extended funding from Certifi cate<br />

II and III to now include all qualifi cations up to the<br />

Advanced Diploma level. There has never been such<br />

a great time to up skill your staff.<br />

With this latest announcement from the<br />

Government, the amount of companies putting staff<br />

through contracts of training is going to increase<br />

greatly. So why not jump on board and get your<br />

team trained up to increase the effectiveness of your<br />

business.<br />

Interested in knowing more?<br />

Mission Australia Apprenticeship Solutions can advise<br />

you on the needs and requirements for your business<br />

and administer all the required paperwork to help<br />

the process progress as smoothly as possible. They<br />

can also advise of Registered Training Organisations<br />

available to deliver the training to your staff and<br />

will help you to claim all of the incentives that you<br />

are eligible for. This service is offered to you free of<br />

charge. To contact Mission Australia, phone Melanie<br />

Richards on 0448 653 913 or email her at<br />

richardsm@missionaustralia.com.au.<br />

Emerging Leaders<br />

provide defence<br />

industry a new<br />

perspective<br />

As part of the South Australian <strong>Defence</strong> Industry<br />

Leadership Program (S<strong>AD</strong>ILP), participants are<br />

grouped to work together on concept papers that<br />

provide research and analysis on issues pertinent to<br />

the defence industry. SA <strong>Defence</strong> Business will be<br />

providing executive summaries of the 2011 concept<br />

papers, full versions of the concept papers are on the<br />

DTC website www.dtc.org.au/aspx/sadilp.aspx<br />

<strong>Defence</strong> Industry Sustainability –<br />

Implications to SA <strong>Defence</strong> Industry in Relation<br />

to Commercial Off the Shelf (COTS), Military off<br />

the Shelf (MOTS) and Indigenous Development<br />

P. Bates (<strong>Defence</strong> SA), G. Doyle (Kadego),<br />

R. Emanuele (DTC), M. McLaren (Babcock),<br />

R. Proctor (Australian Aerospace), A. Young<br />

(Lockheed Martin).<br />

Over the next two decades a signifi cant<br />

proportion of the specialist platforms and systems<br />

operated by the Australian <strong>Defence</strong> Force (<strong>AD</strong>F) will<br />

be replaced or modernised in pursuit of the capability<br />

objectives outlined in the 2009 <strong>Defence</strong> White Paper.<br />

Over the next 10 years alone, the <strong>Defence</strong> Capability<br />

Plan outlines requirements for 140 projects with<br />

associated Government expenditure of approximately<br />

$153 billion in 2010 prices. With this increased<br />

expenditure, there is a heightened need to ensure<br />

that procurement risks are minimised.<br />

Based largely on the recommendations of<br />

the Kinnaird Review in 2003 and, more recently,<br />

the Mortimer Review in 2008, Government<br />

has subsequently implemented a program of<br />

procurement reforms aimed at ensuring the<br />

cost effective delivery of future <strong>AD</strong>F capability<br />

requirements. Moreover, the 2009 <strong>Defence</strong> White<br />

Paper has highlighted how the Government will<br />

use Military Off The Shelf (MOTS) and Commercial<br />

Off The Shelf (COTS) products and procurements<br />

as benchmarks for future acquisitions. Whilst<br />

COTS and MOTS purchases seemingly provide Risk<br />

reduced Value for Money procurements - there<br />

are impacts to Australian Indigenous <strong>Defence</strong><br />

Capability and Sustainability which must be<br />

examined and considered as part of the overall<br />

Value for Money Proposition.<br />

This concept paper highlights the impact<br />

to the sustainability of the Australian and South<br />

Australian defence industry as a result of pervasive<br />

<strong>Defence</strong> Off The Shelf (OTS) procurement as opposed<br />

to indigenous development.<br />

The following areas are examined to<br />

determine the impact to defence industry<br />

sustainability:<br />

What determines Australian <strong>Defence</strong> capability,<br />

The South Australian defence industry model,<br />

A Study of industry impacts from pervasive OTS<br />

procurement, and<br />

A case study – Land 121 Phase 4


January/February 2012 SA <strong>Defence</strong> Business A DAY IN THE LIFE OF...<br />

A day on the job of a nation building project<br />

ASC Production Technician Paul Minerds has an enviable job working on the Collins Class<br />

submarine, and soon, the Air Warfare Destroyer.<br />

By HOLLY CARUSO<br />

ASC Production Technician Paul Minerds<br />

The traffi c on Victoria Road leading to the Techport<br />

defence precinct is a lot busier these days for ASC<br />

Production Technician Paul Minerds.<br />

Born and bred in the area, Mr Minerds has<br />

experienced the growth of defence industry in South<br />

Australia’s maritime precinct and can now claim to<br />

work on one of the nation’s biggest <strong>Defence</strong> projects,<br />

the Collins Class submarines through-life support.<br />

Recruited during ASC’s “100 workers in 100<br />

days” campaign in mid-2011, Mr Minerds is one of<br />

the current 255 production workers at ASC assigned<br />

to the Air Warfare Destroyer (AWD) program.<br />

Currently seconded to the Collins Class<br />

program, Mr Minerds is one of the lucky few who<br />

will have experience working on both submarines<br />

and destroyers, a skill set not many in the country<br />

can claim.<br />

Mr Minerds describes his current role as “an<br />

opportunity like no other”.<br />

“South Australia is the only place you can do this<br />

work and come mid-2012, I’ll be working with over<br />

150 other electricians on AWD, nothing compares!”<br />

As an electrician, Mr Minerds’ career has taken<br />

him all over the country. After completing a four<br />

year apprenticeship at a local sparky company in<br />

Ethelton, Mr Minerds travelled far and wide, working<br />

for One Steel in Whyalla and on water purifi cation<br />

plants in Brisbane and Fremantle.<br />

The pull of working on a Nation building<br />

<strong>Defence</strong> project eventually saw Mr Minerds back in<br />

South Australia and applying to ASC for a position<br />

on AWD.<br />

While awaiting his cycle of work on the AWD,<br />

Mr Minerds is part of a team of 15 electricians<br />

working on the refurbishment and commissioning of<br />

the diesel generators on HMAS Sheean, the Collins<br />

Class submarine nearing completion of its Full Cycle<br />

Docking (FCD).<br />

“Completing an FCD for a submarine is<br />

around two years of hard work, seeing Sheean in the<br />

water for testing has been a big accomplishment,<br />

very satisfying,” he said.<br />

It seems the only unsatisfying part of Mr<br />

Minerds’ job is working in the bilge, the area at the<br />

very bottom of the submarine.<br />

“It’s pretty crammed in there,” says Mr<br />

Minerds, understandable given that he stands<br />

around six foot tall.<br />

For all work outside the bilge, Mr Minerds has<br />

a very positive outlook on his job. Starting each day<br />

41<br />

at 7am as part of the morning shift, the manager<br />

outlines the day’s tasks for the team and they “set to<br />

work” on the submarine, completing their tasks.<br />

“The difference between this job and my other<br />

jobs as an electrician is the high standard of quality<br />

controls and documentation required,” Mr Minerds said.<br />

“The work we do can affect people’s lives – at<br />

ASC, safety and quality is our priority for all of the<br />

work we do.”<br />

Building and maintaining a submarine has<br />

a complexity similar to that of a space shuttle.<br />

In comparison to a Boeing 777, a Collins Class<br />

submarine has 68 more systems, 1,100 more<br />

suppliers and a whopping 400,000 more parts to<br />

assemble – not to mention a price tag almost three<br />

times as much as the Boeing aircraft.<br />

Maintaining a Collins Class submarine is a role<br />

for the best of the best, exactly the type of worker<br />

ASC recruit.<br />

“Working on a submarine, you spend more<br />

time doing a good job, you do your best,” Mr<br />

Minerds said.<br />

And what makes his job so exciting? Simply, “I<br />

work on Collins Class submarines!”


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January/February 2012 SA <strong>Defence</strong> Business CONTRACT NEWS 43<br />

Codan wins Cambodian<br />

counter−mine contract<br />

<strong>AD</strong>ELAIDE electronics group Codan Limited is supplying<br />

405 landmine and unexploded ordnance detectors<br />

donated by the Japanese Government to help ongoing<br />

land clearance operations in Cambodia.<br />

The fi rst shipment of the latest model F3 detectors<br />

left Adelaide in November 2011 for Cambodia, with<br />

a second shipment, including spare parts for older<br />

detectors, sent in December 2011.<br />

The General Manager of Codan subsidiary<br />

Minelab, Hugh Graham, said Minelab has been<br />

providing countermine detectors to military,<br />

commercial and humanitarian aid organisations<br />

around the world since 1998.<br />

“Cambodia has an estimated four to six<br />

million mines and unexploded ordnances scattered<br />

around the country that are remnants from wars<br />

from the 1960s to the mid 1990s,” Mr Graham said.<br />

“Every year hundreds of people are killed by<br />

these devices, while many more are maimed. In fact,<br />

Cambodia has one of the highest rates of amputees in<br />

the world per head of population.<br />

“However, casualty rates have been steadily<br />

falling as a result of clearance efforts over the years.<br />

“Since 1998 our detectors have helped to identify<br />

and remove about half a million mines, making large<br />

areas of the country safe.”<br />

Minelab’s countermine detectors are<br />

manufactured in Adelaide and exported to more than 55<br />

countries around the world where mines are a problem.<br />

These include Angola, Sri Lanka, Vietnam, Mozambique,<br />

Bosnia and Afghanistan.<br />

Codan Limited was also recognised at the 49th<br />

Annual Australian Export Awards in early December<br />

2011, winning the export awards in the Information and<br />

Communication Technology Category. The prestigious<br />

awards recognise companies that have performed<br />

strongly in the global market.<br />

SAGE Didactic wins AWD and<br />

LHD Contracts<br />

SAGE Automation’s business focus in defence<br />

continues to pay off, with the award of two recent<br />

contracts to SAGE’s training arm, SAGE Didactic.<br />

SAGE Didactic is a national leader in the training<br />

of people working with industrial control and<br />

automation technology across all sectors of industry.<br />

SAGE will design and supply complete PLC<br />

training rigs for the Air Warfare Destroyer. The rigs,<br />

using COTS equipment used on the actual ships, will<br />

be used by both industry and the Navy to train workers<br />

in the Programmable Logic Controllers and Human<br />

Machine Interface technology. The training rigs will be<br />

located at the Maritime Skills <strong>Centre</strong> at Techport.<br />

The second contract will involve the supply<br />

of a complete training solution to BAE Systems for<br />

the Landing Helicopter Dock program. The contract<br />

includes supply of a training aid as well as a purpose<br />

written training system, providing a totally integrated<br />

learning system.<br />

Saab Systems on deck with LHD and ANZACs<br />

Saab to provide training for the Canberra class Landing Helicopter Docks<br />

SAAB will provide training systems for Australia’s<br />

largest ships under a new contract signed with<br />

BAE Systems Australia. Under a change in Saab’s<br />

development contract for the project, Saab will<br />

provide operator and maintainer training systems for<br />

the Canberra class Landing Helicopter Docks (LHDs).<br />

The systems, a derivative of the trainer used for<br />

the ANZAC Class ships, will be supported using the<br />

9LV combat management system. The 11 systems<br />

will be fi tted into a shore-based training facility that<br />

will be operated by BAE systems Australia.<br />

“Training is part of our comprehensive support<br />

and sustainment services for our customers,” said<br />

Saab Systems Managing Director Richard Price.<br />

“Saab’s extensive experience in training which<br />

extends to both Army and Naval domains makes<br />

us the most suitable provider of these training<br />

capabilities.”<br />

Work has already commenced on this twoyear<br />

stage of the project, with a follow-on contract<br />

for the delivery of training expected to be negotiated<br />

this year.<br />

On top of Saab’s success with the LHDs, the<br />

Government approved an upgrade of all ANZAC<br />

Class frigates to the full Anti-ship missile <strong>Defence</strong><br />

Jumbo Vision supply ETSA with control<br />

MAWSON Lakes based Jumbo Vision International has<br />

been awarded a contract to supply and install control<br />

room furniture for SA Electricity Provider ETSA Utilities.<br />

The three stage project will commence mid 2012 and<br />

will take approximate two months to complete.<br />

Jumbo Vision manufacture full scale models of<br />

console designs, giving ETSA the opportunity to view<br />

and manipulate consoles to try different layout options.<br />

The General Manager of Jumbo Vision<br />

International, Lena Kimenkowski, said that the contract<br />

win was exciting for the company.<br />

“We see ourselves as part of the development<br />

process so it’s an endorsement for our methodology, as<br />

well as our products,” Ms Kimenkowski said.<br />

standard. Saab will work with BAE Systems Australia<br />

and CEA Technologies on the upgrade.<br />

The Royal Australian Navy will receive a full<br />

suite of upgrades, including an enhanced 9LV<br />

combat management system, phased array radar<br />

and other sensors. The system was tested earlier in<br />

the year on the HMAS Perth, where it performed<br />

excellently in several trials. The same system will now<br />

be applied to the rest of the ANZAC fl eet.<br />

Australian Chief of Navy, Vice Admiral Ray<br />

Griggs said the tests proved that the new system<br />

could defend the ship from modern cruise<br />

missile attack.<br />

Chairman of Saab Technologies Australia<br />

Gunilla Fransson said, “The modernisation of the<br />

entire ANZAC class is testimony to the future-proof<br />

9LV combat management system and Saab’s combat<br />

system engineering capability in Australia.<br />

”This fully integrated combat system is now<br />

one of the most modern CMS in the world. It gives<br />

the ANZAC ships a fully fl exible capability to utilise<br />

all its weapons, sensors and countermeasures<br />

simultaneously.”<br />

“Jumbo Vision is the best company for this<br />

project as we have the experience to design, deliver<br />

and support these kinds of complex ventures. We<br />

understand the issues facing big organizations these<br />

days and know that the ‘hot buttons’ can vary between<br />

stakeholders within a project group.<br />

“We are also 100 per cent Australian so we<br />

understand the positives as well as the limitations of<br />

undertaking big projects in Australia – from working<br />

in the different time zones, to the logistics of getting<br />

technical components to Australia from anywhere in<br />

the world,” she said.


44 MEMBER NEWS<br />

January/February 2012 SA <strong>Defence</strong> Business<br />

NDY staffer nation’s first female with SCEC endorsement<br />

Roshan John of NDY<br />

ENGINEERING consultancy Norman Disney & Young<br />

(NDY)has added a new fi rst, having the fi rst female<br />

consultant in Australia to achieve Security Construction<br />

Equipment Committee (SCEC) endorsement.<br />

Melbourne-based Security Services Consultant<br />

Roshan John recently achieved this high level security<br />

clearance – an endorsement requiring stringent criteria<br />

are met – unaware of her unique status.<br />

“It wasn’t until I recently attended a SCEC<br />

function that I was informed of my status as the fi rst<br />

woman in Australia to be awarded SCEC endorsement,”<br />

Ms John said.<br />

“It is a signifi cant honour for me personally and an<br />

important coup for NDY as an organisation, particularly<br />

Smart Fab sees the light with Pelican<br />

Pelican RALS 9430 lighting the way for Smart Fabrication<br />

AN innovative new lighting system developed by<br />

Adelaide’s Pelican Products is now helping Port<br />

Adelaide-based Smart Fabrication to see clearly and<br />

work more effi ciently on site.<br />

Smart Fabrication now relies on the Pelican<br />

RALS 9430 light, a self-contained, portable,<br />

given our ever increasing specialised <strong>Defence</strong> and<br />

Government work.”<br />

SCEC is the interdepartmental committee<br />

responsible for the evaluation of security equipment<br />

for use by Australian Government departments and<br />

agencies. SCEC reports to the Attorney General’s<br />

Protective Security Policy Committee which was<br />

established by the Australian Government to develop<br />

and establish guidelines for protection of Australian<br />

Government resources. Satisfying the requirement for<br />

practical on-site experience and consultancy expertise<br />

was an important component of Ms John achieving<br />

SCEC endorsement. The endorsement allows her to<br />

work on high-level security <strong>Defence</strong> and government<br />

infrastructure jobs, such as ATO projects.<br />

“Being a SCEC endorsed consultant allows you to<br />

take a much more holistic view of a facility. You really drill<br />

the architecture and services on all the design elements<br />

and materials used and not just electronic security but<br />

also physical structure security considerations, right down<br />

to the fi ner details such as glass, wall fi nishes and even<br />

blinds,” she said.<br />

With a team of highly specialised SCEC<br />

consultants, NDY has been busy with a number of<br />

<strong>Defence</strong> tenders. In a highly competitive market, SCEC<br />

endorsement will provide a major fi llip for future high<br />

security work, and Ms John looks forward to these<br />

opportunities.<br />

“Ensuring that all elements have been done to<br />

perfection and satisfying client expectations is important<br />

to me personally and an engrained aspect of the NDY<br />

culture. I‘m one of those lucky people that relish and<br />

enjoy every aspect of their work life.”<br />

maintenance free, silent-running and recyclable<br />

lighting solution.<br />

Site work is a large part of the Smart<br />

Fabrication business – on a recent project<br />

welding large diameter pipes 36ft inside and 15ft<br />

underground, it required a product that was not<br />

Plasteel SA continues to excel<br />

DTC member Plasteel SA were announced as the<br />

winner of an SAI Global Systems Excellence Award<br />

at a ceremony in November 2011. The award, in<br />

the category Quality Management Systems – Small<br />

Business, recognises Plasteel as having an exemplary<br />

commitment to not only sustaining bottom line results<br />

but to superiority of service, commitment to customers,<br />

ethical behaviour and environmental sustainability.<br />

Plasteel SA Managing Director Darryl<br />

O’Shaughnessy said that the award recognised the<br />

outstanding contribution of his staff.<br />

“I wish to send my thanks to all my staff for<br />

the tremendous effort that they put in on a daily<br />

basis, particularly to Suzy Hall for her incredible<br />

efforts not only over the last six years with us, but<br />

more importantly over the last 12 months to help us<br />

in gaining the ISO9100 Aerospace Accreditation on<br />

its fi rst attempt, something that has not been done<br />

before,” Mr O’Shaughnessy said.<br />

“We are extremely proud and honoured to<br />

accept this award.”<br />

Suzy Hall from Plasteel SA accepting the Business Excellence<br />

award at the SAI Global gala dinner<br />

only durable and reliable but could last for a solid 10<br />

hours a day.<br />

Pelican’s LED-based light met the needs of<br />

Smart Fabrication, contributing to the extremely high<br />

pass rate on all welds done. As the RALS are designed<br />

without glass, there is no chance of breakage, and<br />

being self-contained units, there is also no need for<br />

workers to carry or assemble a jumble of kit on site - a<br />

major draw card for Smart Fabrication to the Pelican<br />

Products unit.<br />

“The advantage of the rotating head and<br />

adjustable stand allows us to view every detail<br />

of each weld while still working. The extra-long<br />

battery life means we can keep going all day to help<br />

our customers meet their deadlines,” says Smart<br />

Fabrications Managing Director Simon Kennedy.<br />

“Smart Fabrications have really put these lights<br />

to the test with the long hours and tough conditions –<br />

we’ve even had one run over by a customer’s bobcat.<br />

“The proven strength, reliability and durability<br />

of the Pelican has kept us coming back.”<br />

Mr Kennedy said the new lighting solution also<br />

eliminated the need for electrical cables, as well as<br />

noise, hazardous fuels, fumes and heat issues.


January/February 2012 SA <strong>Defence</strong> Business MEMBER NEWS 45<br />

Prism wins Export Award<br />

PRISM <strong>Defence</strong> was awarded the National Small to Medium Services Export Award<br />

2011 by Austrade and the Australian Chamber of Commerce and Industry. The<br />

judges of the awards were impressed by Prism’s strong export focus, their sound and<br />

targeted export growth strategy, and the company’s innovative use of technology in<br />

meeting customers’ needs. Prism <strong>Defence</strong> was also awarded the Business SA Twenty<br />

Eleven Export Awards: Small to Medium Services for the second consecutive year.<br />

The company had an eventful 2010-11, increasing their export earnings by 36<br />

per cent to more than $3 million and conducting night vision goggle fl ight testing<br />

with the Swedish Navy. The company has also moved to a new offi ce in Melbourne<br />

Street, North Adelaide. Prism CEO Greg Ward said that the move would support the<br />

company’s increased sales and staff growth.<br />

“This move has greatly improved our infrastructure, working environment<br />

and productivity,” said Mr Ward. The company has also recently opened an offi ce in<br />

Scandinavia, to better serve European customers.<br />

Prism also recently signed a contract with the New Zealand Navy to conduct<br />

trials aboard the HMNZS Otago and the HMNZS Canterbury in 2012-13, using the<br />

NZ Super Sea Sprite Helicopters. During the trials, Prism will develop Ship Helicopter<br />

Operating Limits, which defi ne relative wind speed, ship motion and aircraft weight<br />

limitations for safe operation of the choppers aboard ships.<br />

IMPORTING<br />

OR EXPORTING?<br />

Custom Agency Services.<br />

A SOUTH AUSTRALIAN BUSINESS WITH UNIQUE LOCAL<br />

KNOWLEDGE OF THE SA DEFENCE INDUSTRY.<br />

Customs Agency Services (CAS) have worked closely with the South Australian <strong>Defence</strong><br />

and Aerospace industries since 1976.<br />

Since then we have successfully imported and exported billions of dollars worth of<br />

<strong>Defence</strong> and Aerospace products, on time and on budget.<br />

As South Australia’s leading International Freight Forwarder and Customs Broker, not only<br />

are we proud of the past and current success of the South Australian <strong>Defence</strong> Industry,<br />

but are excited about the future opportunities the <strong>Defence</strong> sector offers our state.<br />

CAS would like to thank all of our <strong>Defence</strong> and Aerospace customers for their past<br />

support and look forward to our continued growth and partnerships.<br />

Capable. Competitive. Committed.<br />

Call us today. Phone: 08 8354 2221<br />

Email: cassales@caspl.com.au<br />

ESTABLISHED 1976<br />

Prism <strong>Defence</strong>’s<br />

award winning<br />

work in action<br />

NewSat satellite transformation<br />

NewSat’s Jabiru-1 Satellite will provide Ka-band coverage to the military and<br />

enterprise across the Middle East and Asia.<br />

NEWSAT is Australia’s largest specialist satellite communications company, delivering<br />

Internet, voice, data and video communications via satellite. In the past 12 months,<br />

NewSat has continued its success from the Teleport business and extended its growth<br />

into the satellite arena, achieving major milestones with the Jabiru Satellite Program.<br />

NewSat has acquired seven premium orbital slots from KyproSat, which have received<br />

Cypriot regulatory approval and signed US$279 million in binding pre-launch<br />

contracts on the Jabiru-1 satellite with TrustComm, 3A Technology and Quicklink<br />

Communications. More recently, NewSat has announced Lockheed Martin as Jabiru-<br />

1’s manufacturer and is scheduled to launch with Arianespace. NewSat is on target to<br />

launch Australia’s fi rst independently owned commercial satellite, Jabiru-1 in 2014.<br />

NewSat’s core Teleport business has continued its success, signing 175 highgrade<br />

enterprise and government contracts across the oil, gas, mining, construction,<br />

government and military sectors. As NewSat prepares to enter a new phase of<br />

growth, the company has added two experienced satellite executives to an already<br />

cohesive management team. David Ball was appointed Chief Technology Offi cer and<br />

Michael Hewins joined NewSat as Chief Operating Offi cer.


46 MEMBER NEWS<br />

IN BRIEF<br />

A new Force for General Dynamics<br />

GENERAL Dynamics announced in early November 2011 that it would acquire<br />

Force Protection for $US360 million. Force Protection will become part of General<br />

Dynamics Land Systems.<br />

Chairman and CEO of Force Protection Michael Moody, said: “After<br />

careful consideration of the strategic direction of Force Protection, our board<br />

decided that a sale to General Dynamics would maximise value for our<br />

stockholders. With their armoured vehicle business, General Dynamics will be<br />

able to pursue opportunities that we could not have pursued as a stand-alone<br />

company.”<br />

The proposed acquisition has been approved by the board of directors of<br />

each company. Under the terms of the merger agreement, General Dynamics will<br />

commence a tender offer for all of the outstanding shares of common stock of<br />

Force Protection.<br />

Alfon’s CEO is still going strong at 88<br />

ALFON Engineering CEO Fred Moore has a long history with defence - and still turns<br />

up to work today at the age of 88 with his passion and drive as strong as ever.<br />

Mr Moore served in the Royal Merchant Navy in World War II, before immigrating<br />

to Australia and founding the company in 1964. Originally in the automotive<br />

sector, Alfon has expanded its scope to the mining and defence industries,<br />

working with BAE Systems on the M113AS Armoured Personnel Carrier upgrade.<br />

Alfon has also recently upgraded its quality systems to ISO 9001: 2008.<br />

“The quality of local manufacturing is second to none,” says Mr Moore.<br />

“[Local industry] is more than capable of supporting big defence and<br />

mining projects.”<br />

APC committed to quality<br />

APC Technology has been recognised for its ongoing commitment to maintaining<br />

a high standard of quality. The company was recently presented with a certifi cate<br />

from quality system provider SAI Global for 15 years of certifi cation within the SAI<br />

Global ISO 9001 quality system. APC has now held the ISO9001 standard since<br />

August 1995.<br />

The quality system underpins all of APC’s business processes, including<br />

sales, document and data control, manufacturing, training and design review. The<br />

process also includes a continuous review cycle and processes for redressing noncompliant<br />

areas.<br />

Steamatic cleaning up SA defence industry<br />

STEAMATIC Adelaide has introduced two unique cleaning services to the<br />

defence industry.<br />

Steamatic’s dry-ice blasting is suited to a number of applications, including<br />

the cleaning of electronic equipment and corroded or contaminated surfaces.<br />

The non-invasive technique removes surface contaminants leaving the underlying<br />

surface undamaged. The non-toxic technique is safe to use in confi ned areas, as<br />

well as needing minimal cleanup and causing limited downtime.<br />

Steamatic has also launched the BioSweep decontamination system,<br />

which kills over 99 per cent of pathogens and eliminates odours within a<br />

few hours. Requiring no chemicals, scrubbing or cleanup, BioSweep renders<br />

contaminated areas ready to use in no time. As a new DTC member, Steamatic<br />

is making its mark, then cleaning it, in the defence industry.<br />

St John SA celebrates the contribution of volunteers<br />

MORE than 100 St John members were recognised for their contribution to the<br />

South Australian community at the annual St John’s Awards Day ceremony at<br />

Government House in October.<br />

In 2010/11, St John fi rst aid volunteers attended 4,627 events and treated<br />

9,632 people at community events. Community Care volunteers provided<br />

community support and friendship to 579 seniors and young people with a<br />

disability. In total, 2068 volunteers gave 132,935 hours of their time to the<br />

community – which equates to 15 years of volunteering in one year.<br />

January/February 2012 SA <strong>Defence</strong> Business<br />

Max Crane and Equipment caps off a busy year<br />

MAX Crane and Equipment Hire had a busy 2011, which has placed the company<br />

stronger than ever at the start of 2012. The company, based in Port Augusta, has<br />

expanded its workforce to over 50 employees, refl ecting a steady growth and<br />

equipping Max Crane and Equipment Hire for the challenges of the future.<br />

The company took delivery of four new cranes, including a 400 tonne<br />

all-terrain Leibherr model, the largest SA owned crane of its type. The Leibherr is<br />

equipped with a 60m main boom and an 84m luffi ng fl y, allowing a 100m maximum<br />

radius.<br />

Max Cranes achievements were recognised during the year, winning two<br />

awards at the Port Augusta Outstanding Business Awards. As well as winning the<br />

Trades and Industry category, Max Cranes won the overall Most Outstanding Business<br />

award, recognising its hardworking, dedicated team and strong business planning.<br />

New faces at DSIC<br />

Max Crane’s<br />

newest purchase<br />

is the largest<br />

crane of its type<br />

in South Australia<br />

THE <strong>Defence</strong> Systems Innovation <strong>Centre</strong> (DSIC) has recently gone through further<br />

transformation with the appointment a new Operations Manager out of Canberra,<br />

Mr Niall Fay, a new Business Development Manager, Mr David Searles and a new<br />

Project Manager, Mr Gary Lyons, who is new to Australia having recently emigrated<br />

from the UK.<br />

DSIC CEO Sanjay Mazumdar said the appointments will help DSIC move into<br />

the future<br />

“The team I have put together is passionate, proactive and dedicated to ensuring<br />

DSIC focuses on the strategy and I am confi dent we will take DSIC to the next level in<br />

order to support <strong>Defence</strong> and most importantly the warfi ghter,” he said.<br />

In other major organisational changes, DSIC has also recently acquired the<br />

NICTA suite of defence short courses and has appointed Ms Lynne McKeown, fresh<br />

from NICTA, as the Training Coordinator.<br />

DSIC was established as a national centre to help <strong>Defence</strong> and industry<br />

to address some of the modern <strong>Defence</strong> force’s challenges by drawing upon the<br />

advanced research capability in systems engineering, network communications and<br />

information management in the University of South Australia, University of Adelaide,<br />

University of NSW and the Queensland University of Technology.<br />

The new team at DSIC with Minister Jason Clare


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ANZAC Keyboard and<br />

trackball<br />

Rackmount UPS<br />

APC<br />

Technology


48 EVENTS<br />

January/February 2012 SA <strong>Defence</strong> Business<br />

S<strong>AD</strong>ILP Class of 2011<br />

The SA <strong>Defence</strong> Industry Leadership Program<br />

(S<strong>AD</strong>ILP) graduates of 2011 concluded the year with<br />

a well-deserved networking event and graduation<br />

ceremony at the Naval, Military & Air Force Club on<br />

November 9, 2011.<br />

Selection of participants for this year’s<br />

program will be fi nalised by March, with S<strong>AD</strong>ILP<br />

2012 commencing in April. Anyone interested in<br />

taking part in the program should nominate with the<br />

<strong>Defence</strong> <strong>Teaming</strong> <strong>Centre</strong> to secure a place on this<br />

very popular program.<br />

For nominations, please contact Kerryn Smith<br />

on (08) 8260 8907.<br />

DTC Monthly Networking Events<br />

The November 2011 DTC Monthly Networking<br />

Event at the Naval, Military & Air Force Club was<br />

sponsored by Gordon Edwards, of Heavypoint,<br />

and included an inspirational briefi ng on how<br />

successful companies have signifi cantly and<br />

sustainably increased their value by transforming<br />

leadership thinking and behaviours.<br />

At the same venue in December, the End<br />

of Year networking event, sponsored by J&H<br />

Williams, saw a record-breaking attendance<br />

of over 160 people. Gary Bettcher from<br />

Leadership Management Australia and Sumen<br />

Rai from <strong>Defence</strong> SA got into the Christmas<br />

spirit, taking out the ‘best tie’ and ‘best<br />

dressed’ awards respectively.<br />

1: Kerryn Smith of the DTC addressing the<br />

S<strong>AD</strong>ILP graduates<br />

2: The S<strong>AD</strong>ILP class of 2011<br />

3: S<strong>AD</strong>ILP participants in action on the 2011<br />

fi eld trip to RAAF Base Edinburgh<br />

4: Participants relaxing in the Offi cers Mess<br />

after a hard day on the fi eld trip<br />

1 2<br />

3<br />

The DTC holds its networking event on<br />

the third Thursday of each month, with an<br />

average 80 members from the defence industry.<br />

To sponsor an event, please contact<br />

Tracy Pierce on 08 8260 8189.<br />

1: Trevor Duell, DTC; Sarah Thomas, Paxus and<br />

Natalie Inglis, Paxus.<br />

2: Andrew Baker, IOCANE and Gail Jackman,<br />

University of South Australia.<br />

3: Wendy Matthews, Priority Management and<br />

Wendy Perry, Workforce BluePrint.<br />

4: Craig Williams and the team from J&H<br />

Williams Holdings, sponsor of the December<br />

networking event.<br />

1 2<br />

3 4<br />

4<br />

Upcoming events<br />

DTC Business Development Breakfasts<br />

February 7, March 6<br />

7.30am – 8.30am<br />

Café Palazzo, 89a The Parade, Norwood<br />

DTC Members only<br />

The DTC hosts a breakfast on the fi rst Tuesday of each month to<br />

offer members an informal setting for the discussion of current<br />

defence industry business development news and networking<br />

opportunities. For more details, or to sponsor a breakfast, contact<br />

Tracy Pierce on 08 8260 8907.<br />

DTC Monthly Networking Events<br />

January 19<br />

5pm – 6.30pm<br />

Mawson Lakes Hotel, 10 Main Street, Mawson Lakes<br />

Register at www.mybookingmanager.com/jan2012<br />

Cost: $22 (inc GST) DTC Members, $33 (inc GST) Non-Members<br />

The DTC monthly event provides the defence industry with an<br />

opportunity to meet other DTC members, share experiences and<br />

identify opportunities.<br />

Proudly sponsored by <strong>Defence</strong> Health.<br />

February 16<br />

5pm – 6.30pm<br />

Naval, Military & Air Force Club<br />

111 Hutt Street, Adelaide<br />

Register at www.mybookingmanager.com/feb2012<br />

Cost: $22 (inc GST) DTC Members, $33 (inc GST) Non-Members<br />

Proudly sponsored by J&H Williams<br />

March 15<br />

5pm – 6.30pm<br />

Innovation House<br />

Technology Park Conference <strong>Centre</strong>, Mawson Lakes<br />

Register at www.mybookingmanager.com/mar2012<br />

Cost: $22 (inc GST) DTC Members, $33 (inc GST) Non-Members<br />

Proudly sponsored by Ingenia.<br />

DTC Annual <strong>Defence</strong> Industry Dinner & Awards Ceremony<br />

Thursday May 31<br />

7pm – 11.30pm<br />

Adelaide Entertainment <strong>Centre</strong>, Port Road, Hindmarsh<br />

Register at www.mybookingmanager.com/dtcdinner2012<br />

Cost $165 DTC members, $200 Non Members. Tables of 10 can<br />

also be purchased.<br />

Proudly brought to you by J&H Williams, this is a prestigious<br />

event for the SA defence industry. With over 400 attendees from<br />

defence industry SME’s and Primes, Department of <strong>Defence</strong>,<br />

DMO and State and Federal Government, the event is a key<br />

occasion for industry networking.<br />

Foundation Daw Park Annual Ball<br />

Saturday April 21<br />

7pm – 11.30pm<br />

Adelaide Festival <strong>Centre</strong>, King William St, Adelaide<br />

Tickets at www.foundationdawpark.org.au or phone 8275 1039<br />

Cost $150 per person including three-course meal, fi ne<br />

wines and entertainment.<br />

2012 is the 70th anniversary of South Australia’s iconic Repatriation<br />

General Hospital. To celebrate this milestone, the ball will be themed<br />

“Celebrating 70 years at the Repat”. Join in a night of ceremony,<br />

entertainment and fi ne dining. All proceeds help Foundation<br />

Daw Park to support medical research into conditions that affect<br />

Veterans, as well as providing support to the Repat Hospital.


................................................<br />

<strong>Defence</strong> <strong>Teaming</strong> <strong>Centre</strong><br />

Member list<br />

ICT/electronics<br />

Access Datacom<br />

Aerostrip Australia<br />

AFC Group<br />

APC Technology<br />

Associated Electronic Services<br />

Aviation Management<br />

Avinet<br />

CISCO<br />

Codan Limited<br />

Codarra Advanced Systems<br />

Computer Sciences Corporation (CSC)<br />

Control Devices Australia<br />

Dataline Visual Link (DVL)<br />

Deadline<br />

Dedicated Systems Australia<br />

DESA Australia<br />

Dimension Data<br />

Fibre Composites<br />

Gryphon Technologies International<br />

IMAGINiT Technologies<br />

IMP Printed Circuits Pty Ltd<br />

Ingenia Pty Ltd<br />

Intec Consulting Group<br />

Integrity ICT<br />

Iocane<br />

IQMS Distribution<br />

Jumbo Vision International<br />

Legend <strong>Defence</strong> Industries<br />

Lencom Antennas<br />

Logi−tech Pty Ltd<br />

Multifid Technology Australia<br />

National Instruments<br />

NewSat<br />

Nextgen Networks<br />

Nilsen (SA) Pty Ltd<br />

Project<strong>Centre</strong>.net<br />

Rafael Advanced <strong>Defence</strong> Systems Ltd.<br />

Rutledge Engineering<br />

Shark Shield Pty Ltd<br />

SMR Technologies<br />

SMS Management & Technology<br />

Supplied Solutions<br />

Sydac Pty Ltd<br />

Systech Consultants<br />

Ultra Electronics Australia<br />

Vipac Engineers & Scientists Ltd<br />

Creating exceptional results through your people.<br />

infrastructure<br />

API Security<br />

Badge Constructions<br />

Bardavcol<br />

Baulderstone<br />

Candetti Constructions<br />

CTG Security Matrix<br />

GBA Projects<br />

Hardy Milazzo Architecture & Interior Design<br />

<strong>Inc</strong>onmat Australia<br />

John Holland Pty Ltd<br />

Maritime Constructions<br />

Samaras Group<br />

Templeton Constructions<br />

logistics − transport<br />

AirRoad<br />

Customs Agency Services<br />

DHL Global Forwarding<br />

Diamond Bros<br />

MTU Detroit Diesel Australia<br />

NOW Global Logistics<br />

Port of Melbourne Corporation<br />

UTI<br />

Proud member of DTC<br />

Gary Bettcher<br />

0409 694 036<br />

www.LMA.biz/DTC<br />

manufacturing manufacturing (continued)<br />

Adelaide Inspection Services<br />

AFE Slipway<br />

AFL Services<br />

Agars Industrial<br />

Airspeed<br />

AJ Distributors<br />

Alfon Industries Pty Ltd<br />

All Welding & General Engineering<br />

Aluminium Dynamics<br />

ArmourWorks International Ltd<br />

ASC<br />

B L Shipway & Co<br />

Bluebird Rail Operations Pty Ltd (BRO)<br />

Brice Metals<br />

Brister & Co<br />

Broens Industries<br />

Byron Aviation<br />

Calbic<br />

Century Engineering<br />

Civil & Mechanical Services<br />

Crane Services<br />

Crisp−Air<br />

De Bruin Group ( De Bruin Engineering)<br />

<strong>Defence</strong> Coating Systems<br />

Dematec Group<br />

Diemould Tooling Services<br />

Dunlop Foams<br />

Embedded Logic Solutions<br />

Engraving Services Co<br />

Ferrocut<br />

Fire System Services<br />

Form Cut Pty Ltd<br />

General Dynamics Land Systems − Australia<br />

(GDLS)<br />

Glassbead Technology Pty Ltd<br />

Heavy Automatics Pty Ltd<br />

Hill <strong>Defence</strong> Products<br />

Holbri Engineering<br />

Horwood Bagshaw<br />

Hypac Pty Ltd<br />

Industrial Gaskets<br />

Integra Packaging<br />

J&H Williams Holdings P/L<br />

Krueger Engineering<br />

Levett Engineering Pty Ltd<br />

Lincoln Plastics<br />

MacTaggart Scott Australia<br />

Max Crane & Equipment Hire<br />

Mincham Aviation<br />

Morgan Thermal Ceramics<br />

Pacific Marine Batteries<br />

Pelican Products Pty Ltd<br />

Performance Metals Australia<br />

Peterson Industries Pty Ltd<br />

Pirtek (Adelaide) Pty Ltd<br />

Plasteel S.A.<br />

Priority Engineering Services<br />

Process Rubber and Plastics<br />

Sage Automation<br />

SCF Group<br />

SKF Australia<br />

SMART Fabrication Pty Ltd<br />

Snap−on Industrial Tools Australia<br />

Static Engineering Pty Ltd<br />

Steamatic Adelaide<br />

Stramech Engineering<br />

Technoweld<br />

T−Mag<br />

Toolcraft Pty Ltd<br />

Torque Industries<br />

Tyco Flow Control<br />

United Fasteners SA Pty Ltd<br />

Wartsila Australia Pty Ltd<br />

ZF Lemforder Australia Pty Ltd<br />

Zip Industries


................................................<br />

<strong>Defence</strong> <strong>Teaming</strong> <strong>Centre</strong><br />

Member list continued...<br />

Advantage SA<br />

Australia−Israel Chamber of Commerce<br />

Australian Organisation for Quality (SA) <strong>Inc</strong>.<br />

Beca Consultants<br />

British High Commission<br />

BurnGlint<br />

CatOps<br />

CGD Enterprises<br />

City of Tea Tree Gully<br />

Commonwealth Bank<br />

Crawford Legal<br />

<strong>Defence</strong> Health<br />

<strong>Defence</strong> Reserves Support SA<br />

<strong>Defence</strong> SA<br />

Deloitte<br />

Department of Education and Children’s<br />

Development<br />

DHC Group Accounting and Migration<br />

Drake International<br />

Enterprise Connect<br />

Equity and Advisory<br />

Ernst & Young Transaction Advisory Services<br />

Ferguson Project Management Services (FPMS)<br />

Finite IT Recruitment<br />

Finlaysons<br />

Hawker Britton Group<br />

Hays Recruitment<br />

Heavypoint Pty Ltd<br />

Hughes Public Relations and Communication<br />

Counsel<br />

Human Interest Partners Pty Ltd<br />

Icon Recruitment<br />

Innovate SA<br />

Integrated Financial<br />

Interwork Limited<br />

Inventure Partners<br />

Kinetic Recruitment<br />

Lawson Risk Management<br />

Madderns Patent & Trade Mark Attorneys<br />

Manpower Services<br />

MBA Financial Strategists<br />

Migration Solutions<br />

Minter Ellison<br />

Mission Australia Apprenticeship Solutions<br />

MPS People Solutions<br />

National Australia Bank SA − Business Division<br />

Creating exceptional results through your people.<br />

professional services professional services (continued)<br />

Norman Disney and Young<br />

Norman Waterhouse Lawyers<br />

Paxus<br />

Peter Kittle Motor Company<br />

Peter Page Holden<br />

Piper Alderman Lawyers<br />

PricewaterhouseCoopers<br />

Priority Management South Australia<br />

RedBikini<br />

St John Ambulance Australia<br />

Talent International<br />

Technology Industry Association (TIA)<br />

Terra Firma Pty Ltd<br />

The PAC Group<br />

Thinc Projects<br />

Westpac Banking Corporation<br />

Willis Australia<br />

Workforce Blueprint (Wendy Perry and<br />

Associates)<br />

registered training organisations<br />

ACG Global<br />

Action Workforce − Ashley Institute of Training<br />

Adelaide Training & Employment <strong>Centre</strong> (ATEC)<br />

Australian Driver Trainers Association<br />

Australian Institute of Business<br />

Australian Institute of Management (AIM)<br />

Capability Resources<br />

Carnegie Mellon University<br />

CITC<br />

<strong>Defence</strong> Systems Innovation <strong>Centre</strong> (DSIC)<br />

Flinders University<br />

Insight International Consultancy<br />

KneeDeep Project Management<br />

Leadership Management Australia Bettcher<br />

Norgrove Training<br />

Professional Driver Trainers Association<br />

Specialist Training Australia<br />

St Patrick’s Technical College Northern Adelaide<br />

TAFE SA− Adelaide North<br />

University of Adelaide<br />

University of South Australia− <strong>Defence</strong> and<br />

Systems Institute<br />

Acacia Research<br />

Aeronautical Engineers Australia<br />

Aurecon Australia<br />

Australian Aerospace<br />

Babcock Pty Ltd<br />

BAE Systems Australia<br />

Cadgile<br />

CEA Technologies Pty Ltd<br />

Cobham Aviation Services Australia<br />

Cornell Design<br />

Daronmont Technologies<br />

Department of <strong>Defence</strong>− <strong>Defence</strong> Science and<br />

Technology Organisation (DSTO)<br />

Eptec<br />

Frazer− Nash Consultancy<br />

GHD Pty Ltd<br />

Intercad<br />

Jenkins Engineering <strong>Defence</strong> Systems<br />

Kadego<br />

Kilic Engineering<br />

Leed Engineering & Construction Pty Ltd<br />

Lockheed Martin Australia Electronic Systems<br />

Pty Ltd<br />

Nova Systems<br />

Prism <strong>Defence</strong><br />

Raytheon Australia Pty Ltd<br />

Rylac<br />

Saab Technologies Australia Pty Ltd<br />

Waterfall Solutions<br />

Proud member of DTC<br />

Gary Bettcher<br />

0409 694 036<br />

www.LMA.biz/DTC<br />

systems engineering DTC new members: Nov/Dec 2011<br />

Access Datacom Pty Ltd<br />

Bluebird Rail Operations (BRO)<br />

Brice Metals NewSat<br />

DHL Global Forwarding<br />

Hardy Milazzo Architecture & Interior Design<br />

NewSat<br />

Returned and Services League of Australia (SA)<br />

Steamatic Adelaide<br />

DTC charities of choice<br />

Foundation Daw Park<br />

Legacy Club of Adelaide<br />

Returned and Services League of Australia (SA)


January/February 2012 SA <strong>Defence</strong> Business<br />

OUT OF HOURS 51<br />

Ian’s dream ride<br />

He may not have Italian heritage, but Ingenia’s<br />

Business Development Manager, Ian Biggs, is<br />

passionate about the iconic Italian Vespa scooter.<br />

Ian has owned four Vespas over the past<br />

decade and his latest pride and joy, a geared red<br />

Vespa 150 Super is a mean little machine which<br />

travels “like a dream” on the open road, even as<br />

far as Mt Gambier, 500km away.<br />

In fact, his scooter gained recognition at this<br />

year’s National Scooter Rally in Perth as winner of<br />

the ‘Best Vespa’ award for pre-1970 models.<br />

Most weekends, Ian and his fellow Vespa<br />

Club members escape hectic city life on their<br />

classic scooters and hit the highway.<br />

“We do say we’re a bit like the modern<br />

‘Mod’ scene,” jokes Ian.<br />

“I think everyone can relate somewhere in<br />

life to owning a Vespa,” Ian says. “You do have<br />

to laugh at yourself.”<br />

A boiler maker by trade, Ian worked at the<br />

Australian Submarine Corporation until 15 years<br />

ago. Ian spends much of his spare time at home<br />

bringing vintage scooters back to life in his<br />

converted back shed, dubbed his “man cave”.<br />

His latest work in progress is a complete re-build<br />

from spare parts of a 1969 model Lambretta.<br />

His love affair with scooters has also<br />

become a family affair – wife Donna also rides<br />

a Vespa and Ian already takes fi ve-year-old<br />

daughter, Jaime-Lee, for spin in the backyard.<br />

“Once you’ve got the disease, it’s hard to<br />

get rid of it.”


<strong>AD</strong><br />

Ashley Hayes<br />

Modra Hayes Pty Ltd<br />

1 Independent Survey, Newfocus , November 2010<br />

www.innovatesa.com.au<br />

“Innovate SA is a<br />

South Australian<br />

business builder.”<br />

Innovate SA helps businesses like Modra Hayes,<br />

based on Yorke Peninsula, to achieve sustainable<br />

growth in national and export markets.<br />

In fact, in a recent survey 74% of company CEOs<br />

attributed ‘very positive/positive impact on<br />

business growth’ to working with Innovate SA.<br />

In Modra Hayes experience, Innovate SA has<br />

given them the tools and knowledge required<br />

to attract investors and has helped them to<br />

understand and apply for grants that they have<br />

successfully been awarded – having a huge<br />

impact on their business.<br />

“The Business Advisors at Innovate SA have been<br />

a great source of advice and knowledge and<br />

have been an invaluable resource.”<br />

Ashley Hayes & Simon Modra,<br />

Joint Managing Directors – Modra Hayes<br />

If you’re interested in sustainable businesses<br />

growth, call 8113 0700 or visit our website.<br />

very positive / positive impact<br />

on ‘business growth’ 1<br />

74%<br />

86%<br />

87%<br />

98%<br />

very positive / positive<br />

impact on ‘growth strategy’ 1<br />

positive impact on<br />

‘business practices’ 1<br />

highly satisfied with<br />

‘business advisory assistance’ 1

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