THE HON. GREG COMBET AM MP
Minister for Defence Materiel and Science
Friday, 25 June 2010
075/2010
Building Defence Capability: A policy for a smarter and more
agile defence industry base
Greg Combet, Minister for Defence Materiel and Science today launched the
Government’s new Defence Industry Policy Statement - Building Defence Capability:
A Policy For a Smarter and More Agile Defence Industry Base.
“The Government needs a strong, successful and skilled defence industry if it is to
deliver the ADF that Australia needs for the future, which is why we have outlined this
comprehensive suite of programs for the Australian defence industry,” said Mr
Combet.
“The Government is committed to increasing the opportunities for Australian defence
industry to identify and make the most of business opportunities within Australia and
overseas.”
Building Defence Capability is closely aligned to the Government’s White paper and
Strategic Reform Program.
“The policy outlines over $445 million of Government programs that industry can
access to improve their competitiveness, their capacity for innovation, their ability to
enter export markets, their opportunity to win work locally and the skills of their
workforce.”
The policy is based on four key principles:
•
Setting clear investment priorities: Defence industry investment priorities must
be driven by clear guidance on the Government’s endorsed strategic tasks for
Defence and the military capability needs that derive from these tasks. The
Statement provides a much clearer outline for the first time of information that
will help local firms plan their investment priorities.
•
Establishing a stronger Defence – industry relationship: The Statement
advances a considerably more flexible approach to defence procurement and
contracting, where varying kinds and levels of risk are managed through the
appropriate procurement and contractual vehicles.
•
Seeking opportunities for growth: The Government will seek to encourage a
competitive industry base that has opportunities to grow and is supported by
forward-looking and flexible Government policies. This will increase the
opportunities for Australian defence industry to identify and make the most of
business opportunities within Australia and overseas.
•
Building skills, innovation and productivity: The Government will ensure that
Australian defence firms have every opportunity to enhance their capacity for
innovation, skilling and productivity. This is important for Australia’s defence
and will help to sustain viable defence industry enterprises into the future.
“These principles have dictated the Government’s strong and comprehensive suite of
policies designed to build and improve the Australian defence industry.”
“These policies have increased innovation and skills formation within the industry,
improved productivity and supported local small to medium sized enterprises
(SMEs).”
Building Defence Capability In addition to explaining and improving these policies
also outlines a number of new policies and programs.
“The new $44.9 million Priority Industry Capability (PIC) Innovation Program will
provide funding to companies to encourage innovation in the area of PICs. Under this
Program companies will be encouraged to submit innovation proposals relating to
PICs to attract funding.”
“The Defence Industry Innovation Board will better coordinate the innovation
programs that are available to industry. This board will feature representatives from
both Defence and Industry and will oversee the PIC Innovation Program.”
“The $59.9 million Global Supply Chain (GSC) Program will facilitate opportunities for
Australia defence industry to compete in the defence primes global supply chains.
The Government is strongly committed to helping Australian companies win work
around the world.”
“The Australian Industry Capability (AIC) Implementation Unit will improve
implementation of AIC policy within Defence and audit System Project Offices to
ensure AIC plans in contracts are delivered.”
“The Government will continue to work closely with defence industry to provide the
support they need to deliver the equipment and capabilities that our ADF need to get
the job done.”
“The Government needs a strong, successful and skilled defence industry if it is to
deliver the ADF that Australia needs for the future.”
“Building Defence Capability provides the framework to ensure that Australia has the
defence industry it needs to deliver and support the future ADF.”
A full list of the $445 million of Government’s policies and programs can be found on
Page 3 of the Executive Summary and in Annexes B-E of the policy statement.
Media contacts:
Rod Hilton (Greg Combet):
02 6277 7620 or 0458 276 619
Defence Media Liaison:
02 6127 1999 or 0408 498 664
NEWS 
