Building Defence Capability

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25th June 2010, 01:11pm - Views: 720





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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






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