Australian Polity, Volume 9 Number 3 - Digital Version

capabilities is not only an investment in our national
defence. It is an investment in the security of the region,
and that of our friends and neighbours. Investing in
deterrence is an important way to ensure countries in
our region choose diplomacy and negotiation to advance
their strategic goals, rather than coercion or conflict.
Australia is fortunate to be included in the US National
Technology and Industrial Base. My message to industry
and business is simple: for Australia and the United States
to achieve our force posture and defence capability
objectives, we need to work even more closely together.
That must include giving greater practical effect to
Australia’s inclusion in the US National Technology and
Industrial Base. It means both our governments and
defence industry sectors working to reduce barriers to
collaboration and integration.
The Role of Industry
Our respective national industries and small businesses
have unique skills. They are at the forefront of innovation in
certain fields, and they lead technological developments
in distinct areas. Through cooperation, we can surge
ahead, creating a whole that is far greater than the sum
of our parts. We can share ideas and resources, reduce
risks, and accelerate outcomes.
Australian industry has a lot to offer in support of US
supply chain diversification and resilience. As part of
the Australian Government’s Modern Manufacturing
Strategy, around $1.5 billion dollars is being invested to
scale up our manufacturing – to make it more competitive
and resilient.
Greater bilateral industrial cooperation will have mutual
economic and security benefits. It will see new jobs
created for both our nations across an array of sectors
and importantly it will encourage more small businesses
to enter the defence marketplace, affording opportunities
to work with prime companies on high-value and hightech
defence projects.
There is a real opportunity to build on existing success
in several areas. For example, more than 50 Australian
companies are contributing to the global F-35 Joint Strike
40 Australian Polity
Fighter program, supporting US assets. These companies
have shared in more than $2.7 billion dollars’ worth
in contracts associated with the fighter’s production
and sustainment. Through joint capability projects, the
economic benefits can swing both ways.
We are also strengthening defence infrastructure
collaboration. We are advancing plans from last year’s
Australia-US Ministerial Consultations to establish a US
funded and commercially operated strategic military fuel
reserve in Darwin. We are buttressing mutual supply chain
security, for example in critical minerals and rare earths,
which have become a staple of sophisticated military
platforms. We know that supply chains for a number
of critical minerals are limited. Indeed, downstream
processing is concentrated almost entirely in China.
We are making good progress with an outcome from
AUSMIN – a plan of action to improve the security of
critical minerals.
Australia and the United States are undertaking
research and development of new capabilities in mutual
priority areas – like space, cyber, artificial intelligence,
hypersonics and directed energy weapons. Australia has
more than 100 science and technology arrangements
in place with the United States, and 50 currently being
negotiated. There are many opportunities to bolster our
collaboration. But let me conclude by highlighting one in
particular: Australia’s $1 billion investment into Sovereign
Guided Weapons and Explosive Ordnance Enterprise.
This initiative will do several things: it improves our
self-reliance, it develops our sovereign capacity to
manufacture, to test, and maintain sovereign guided
weapons; it will assure our stocks of critical precision
guided munitions and components; it will bolster
global supply chain resilience; it will further establish
interoperability with our Alliance partner; and it will
allow the Australian Defence Force to act with greater
independence.
Importantly, bilateral industry support for the enterprise
will be a practical demonstration of the strength of our
inclusion in the US National Technology and Industrial
Base.
The Hon Peter Dutton MP is the Australian Minister for Defence.
This is an edited extract of a speech to the American Chamber of
Commerce in Australia, September 8, 2021