AUSTRALIAN+NEW ZEALAND DEFENCE DIRECTORY 2025 www.defence.directory THE NATION BUILD 22 AUSTRALIA’S URGENT NEED FOR A STRONG SOVEREIGN INDUSTRIAL BASE It is obvious to all that our geopolitical circumstances have entered a phase that we have not seen for several decades. The ongoing illegal invasion of Ukraine, the worsening situation in both Gaza and elsewhere in the middle east combined with an ever-increasing forceful presence of China and the everpresent issues surrounding North Korea and negative influence of Iran all combine to place us in a precarious position. As the Western nations and allies work together to try and resolve these issues in a peaceful manner, the simple reality remains that the need for a strong, vibrant and sovereign industrial base is simply not something that can be ignored. Our global supply chains are heavily stressed, in some cases whilst not at a breaking point, they are struggling to maintain the demand. If our strategic circumstances were to further diminish or worse still, the world was to enter a more encompassing conflict there would be the real possibility that the global supply chains may not cope. The Australian Government has undertaken a significant pivot of what the ADF will be doing into the future. Nuclear Submarines whilst the largest single investment Australia will make are not the only aspect of what Government is striving to achieve. The AUKUS arrangement will define Australia and Australia’s direction in a way not seen before. Whist the development of this concept is of huge significance, it is vital that Australia’s indigenous defence industrial base is nurtured and invested in. Australia must be a contributor to the world’s global supply chain, Australia as a country cannot simply be a drain or be seen as an export opportunity for multinational companies. Without strong oversight and investment by the Australian Government we run the risk that we miss the opportunity to this net contributor. There are many arguments as to why the effort must be made to develop our indigenous sovereign capability. Clearly there is an economic benefit to Australia, there is of course the return on investment argument for the Australian taxpayer, however, the need for national resilience and the ability to resupply and provide maintenance for the ADF must now be considered strategic requirements. If Australian Industry is not incorporated into the planning for all Defence activities, we will simply place the fortunes of Australia into the hands of foreign governments and foreign multinational companies. Australia is a first world country a country with cutting edge technology and industry, and yet Australia is the only first world country without an Australian owned Prime Contractor in the Defence space. Our other industrial sectors do have such companies, the question must be asked why not in the Defence sector? This is not to say that the foreign owned multinational companies do not have a significant role to play in the defence of Australia, they are an important component of the defence ecosystem. What they shouldn’t be is the driving force in that ecosystem. For Australia to simply hand over the responsibility of the defence industrial base to overseas countries and therefore overseas governments is a position that we as a nation should reject. The need for a sovereign industrial base is a fundamental pillar for the defence, security and therefore safety of the nation. The simple solution is to state that the foreign owned companies are Australian because they employ Australians and have a presence incountry. This is a naive approach – the need for Australian owned or controlled companies, must be the standard we demand for our security. . Brent Clark CEO AIDN
RkJQdWJsaXNoZXIy NDg0NzE=