COMMENTARY
DEFENCE & INDIGENOUS ENGAGEMENT
BUILDING INDIGENOUS BUSINESS TO ENHANCE SOVEREIGN CAPABILITY By Adam Goodes, CEO, Indigenous Defence & Infrastructure Consortium
Much like the rest of the world, Australia faces uncertain times as we continue to be impacted by the COVID-19 pandemic, with fractured supply chains, international political uncertainty and strained trade relations. Despite all of this, a number of positives and opportunities have come out of the last 18 months in Australia. Many individuals are now spending more time with family and close loved ones, taking the opportunity to spend more time enjoying and exploring our beautiful country. From a business and political perspective though, lessening our reliance on international solutions and supply chains – building sovereign capability - is back on the agenda.
DISRUPTION & OPPORTUNITY Over the last 12 months there has been a number of announcements and policy initiatives that directly encourage Defence prime contractors to look locally and reach out to support Australian business develop capability within our shores. It demonstrates the Australian Government is keenly aware of the need for a defence force underpinned and supported by Australian sovereign capability. As we look to better cultivate the skills, build the capability and capacity in the Australian defence industry locally, I ask: what could be more sovereign than building the capability of Australia’s network of Indigenous businesses? Disruption will lead to opportunity. As our industry focuses on the future of defence, I see the opportunity and importance of Indigenous businesses playing a bigger role. But it will take partnership across the defence industry ecosystem. Without trusted relationships and real commitment at all levels of the supply chain, the Indigenous business sector will hover at a transactional service provider level, and not make the valuable inroads required to provide to a more meaningful contribution. We already understand the benefit of Australian industry capability. From a security perspective, Australian capability is critical to building a self-reliant defence industry that isn’t dependant on overseas supply chains. As the recession starts to bite, investing in defence capability is
not only a way to boost small business growth, but to keep Australian Government funding onshore.
ACTION, NOT TALK Engaging and helping build capability of Indigenous businesses is a winwin for the broader defence industry too. Most large companies have a Corporate Social Responsibility (CSR) policy, diversity and iDiC core team and directors. © iDiC. inclusion teams or even Reconciliation cost benefit analysis by Supply Nation The Action Plans. These Sleeping Giant report found that for every are all steps in the right direction, but dollar that was invested in an Indigenous the biggest way companies can make a business, an average of $4.41 was returned difference to the Indigenous community in economic and social value. You won’t isn’t talk – it’s action. find a better return on investment Typically, Defence contracts are a anywhere. The iDiC has now been trading long-running proposition. Acquisition in the defence sector since 2016 and in and sustainment programs can run for that short time we have, via our direct 20-30 years. For small businesses, this is supply chain, contributed over $110m in life changing. For Indigenous businesses, economic and social value to Indigenous it can reshape generational wealth. businesses, people and communities. Of the 100 Indigenous-owned and controlled businesses we work with at the Indigenous Defence & Infrastructure Consortium (iDiC), we estimate 63% of their staff are Indigenous too. Further, a
We are not about charity or a handout. In business, you’re only as good as your last project. With our Indigenous Consortium partners, we offer over 500
EDITION 4 • 2021-22
265
