Defence Business_Issue 41 (Nov 17 – Jan 18)_DTC_Web

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TEAM AUSTRALIA 10 November/December 2017/January 2018 Defence Business The strategic partnership approach can also be seen in the way the Government is taking an enterprise approach to the procurement of combat systems for naval ships. “We will mandate that the Saab combat management system will be used on every ship in the fleet, except the Air Warfare Destroyer and the Future Frigates,” it was announced. “The AWD and the Frigate will have an Aegis Combat Management System with a Saab Australia developed interface to manage the non-Aegis systems like the Australian developed Nulka rocket and the CEA radar. “We estimate that this decision will create hundreds of jobs across Saab Australia, CEA and Lockheed Martin.” In another example, ASC, Saab and Raytheon have been chosen as the prime partners for the remediation control and communications system enhancements in the Collins fleet. The announcement said the Government continues to “demonstrate the worldclass expertise that Australian industry can provide to our economy and defence of our nation”. When the approved two major upgrades valued at $540million which include the submarine’s ship control system and the communications capability. The suite of satellite communications upgrades include the Super High Frequency and Advanced Extremely High Frequency communications platforms. There is considerable Australian industry involvement in this program. The Government is not shying away from the fact that a significant proportion of acquisition spending is on equipment from the United States: “… we will continue to source advanced technology and military equipment from here and invest in capabilities that strengthen our alliance by enhancing our interoperability.” Minister Pyne is unequivocal in his support for this approach and how it fits in with sovereign capability. “The ability to transfer technology and industrial capability to Australia in order to grow the ability of our defence industry to meet our sovereign capability needs will be an important part of our acquisitions from the United States. A stronger, more resilient and capable sovereign Australian defence industry will be better equipped to deliver solutions that meet our unique needs and requirements, including the sovereign sustainability of our defence capabilities.” WORKFORCE Global strategic partnerships encompass more than just industry. The network extends across state and overseas governments, commercial partners, academia, science, technology and research. The 2016 Defence White Paper and the 2017 Naval Shipbuilding Plan depicted an Australian naval shipbuilding and sustainment capability as a strategic asset. Specifically, it articulates a vision of a naval shipbuilding enterprise with Australian workers, in Australian shipyards, supplied by Australian resources. That requires an appropriately qualified workforce, something that cannot be successfully achieved by any one State or any one institution. That’s why the Defence Industry Education and Skills Consortium (DIESC) includes five universities, two TAFEs, and bodies such as the Indigenous Defence Consortium and Defence Teaming Centre. The Government’s initial investment of $25 million in a Naval Shipbuilding College at Osborne from 2018 is central to this. The College will operate on a hub and spoke model, extending opportunities to education and training providers across the country. The College will attract, train and re-train more than 1,500 students across Australia in its first few years. Another project that lives up to the Team Australia ethos is Lockheed Martin, which has been chosen as the preferred tenderer as the Combat System Integrator. Lockheed Martin has had a Submarine Combat System Laboratory in South Australia since 2016 to pursue opportunities in relation to the Future Submarine Program. Saab Australia and Thales Australia are working with Lockheed Martin Australia on this initiative. At the same time Lockheed Martin is also investing an initial $13 million over three years to the Science, Technology and Engineering Leadership and Research Laboratory – the STELaR Lab – in Melbourne. It is Lockheed Martin’s first research and development facility outside the United States.
November/December 2017/January 2018 Defence Business TEAM AUSTRALIA 11 “I am enthusiastic about the opportunities the STELaR Lab will deliver for Australian industry, universities and other research institutions and organisations – particularly in providing opportunities in advancing cutting edge technologies,” says Minster Pyne. The facility will assess and test exciting new technologies crucial to gaining superiority in the strategic environment of the future – technologies such as hypersonics, autonomy, robotics and command, control, computing, communications, intelligence, surveillance and reconnaissance. The Defence Innovation Hub, launched in December 2016 enables industry and Defence to collaborate on innovative activities throughout the capability life cycle. This initiative is backed by an investment of 640 million dollars over the decade and money has already started to follow to businesses. The Next Generation Technologies Fund, backed by an investment of 730 million dollars over the decade, encourages innovative small to medium enterprises and universities to collaborate and develop game-changing military capabilities. I have already announced several initiatives of the Fund including the Defence Cooperative Research Centres, and 5.7 million dollars in project funding to 22 Australian universities. With this approach in place, Australian industry can build on its successes in current projects and nurture small to medium enterprises that may not have ever considered contributing to the naval shipbuilding enterprise. How does that actually work? Discussing the Naval Shipbuilding Plan, Minister Pyne sets out a vision where “skills, technology and intellectual property are transferred from experienced international ship designers and builders to Australian companies, as part of the package. That is how a truly sovereign Australian shipbuilding industry will be created. “A shipbuilding and sustainment industry that can deliver on our soil will be an enduring strategic asset for this nation. “Over time, we will see Australian industry take over the roles of those international partners to the greatest extent possible. “This will range from design to complex project management, construction and sustainment. It will enhance domestic supply chains and in the long run, drive our export potential. “The Government will continue to advance the future of Australian shipbuilding enterprise – in the short, medium and long term.” Defence exports will promote international engagement, capability building and greater interoperability with our allies and strategic partners. And defence exports will benefit Australians by creating jobs here at home – and a strong economy is a key factor in strong national defence and a firm ability to maintain a rules-based international order, in our own region and, when needed, further afield. The Government acknowledges that not everything can be done in Australia. The argument is that modern supply chains and manufacturing processes make it extremely difficult for Australia to achieve complete self-sufficiency. This is accepted as a given by most. The Minster says even locally produced capabilities are almost all reliant on some components imported from foreign supply chains. “At the same time we also have finite resources. “This means we must carefully consider which industries we invest in and single out as key sovereign industrial capabilities.” It’s reminiscent of a former government’s decision to focus sporting funds on a handful of sports that Australia felt it could win at Olympic level.
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Defence Business_Issue 41 (Nov 17 – Jan 18)_DTC_Web

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