EXCLUSIVE INTERVIEW

On 14 May 2021 Minister Papalia addressed a VIP gathering at the handover ceremony held at Austal for two newly made Cape-class patrol boats that were sold to the Trinidad and Tobago Coast Guard. © WA DEFENCE REVIEW. Photographer: Serge DeSilva-Ranasinghe.

By Thomas Hage,

Defence Writer, WA DEFENCE REVIEW &

Managing Editor, WA DEFENCE REVIEW

The successful Western Australian response to the COVID-19 pandemic has seen the state strengthening its status as the engine room of the national economy. Similarly, the growing awareness of WA’s key geo-strategic role in the Indo-Pacific now places it at the forefront of Defence considerations, which augurs well for the future of the defence industry in the west. WA DEFENCE REVIEW recently spoke with the Hon Paul Papalia CSC MLA - in his capacity as the WA government’s Minister for Defence Industry and Veterans’ Issues - to obtain an update on the government’s activities and policies towards enhancing the state’s defence sector.

Launching the Western Australia Defence and Defence Industries Strategic Plan in 2018 represented a clear line in the sand with regard to fostering a stronger and more capable defence industry for WA. It was also the first time the WA government committed to a strategic plan dedicated to Defence and defence industry.

To implement the strategic plan and support the then Defence Issues ministerial portfolio, the state government bolstered the specialised Defence West team. Defence West was supported by WA’s first Defence Advocate, RADM Raydon Gates AO CSM (Rtd), who provided guidance to the newly formed team. It also led to the creation of important industry engagement mechanisms for the local industry, including the Defence Advisory Forum, WA Defence Industry Workforce Office and the WA Defence Industry Capability Directory, originally in hard copy in 2018 and then moving online in 2020.

Defence West was able to advocate on behalf of WA’s defence industry by attending major national defence conferences, including Pacific International Maritime Exposition in 2017 and 2019, Avalon Airshow in 2019, and Land Forces in 2018. We co-hosted scores of SMEs on the WA stand, providing an opportunity for them to be up close to Defence and defence industry decision makers.

Another major achievement during the first four years was delivering on our commitment to host a defence conference in Perth. In 2018 and 2019, the WA government held the WA Indo-Pacific Defence Conference in partnership with the Perth USAsia Centre, which attracted senior national and international Defence and defence industry decision makers to the state. The conference showcased WA’s capabilities and enabled dialogue on WA’s place in the Indo- Pacific. Unfortunately, due to the COVID-19 pandemic the 2020 and 2021 WA Indo-Pacific Defence Conferences were postponed. However, we do intend to hold a bigger and better conference in 2022.

Last year, the WA government released the Australian Marine Complex (AMC) Strategic Infrastructure and Land Use Plan (SILUP) and AMC Infrastructure Strategy to guide significant

Western Australia’s long history with the development of cyber and autonomous systems in the mining sector is beginning to see a shift towards defence, as capabilities increase, and the appetite for these systems from a Defence perspective continues to grow. This is set to become a significant export opportunity for WA in the future as the technology continues to develop.

infrastructure investments. These documents provide a blueprint for the short, medium and long-term infrastructure upgrades required to guide the AMC’s ongoing development as a nationally significant industrial area for the defence, marine and resources industries. The plan and strategy demonstrate the WA government’s commitment to support the development of infrastructure in the national interest, and help attract more Defence work to WA.

Following the plan’s implementation, a total of $89.3m has been committed by the WA government to accelerate selected infrastructure developments at AMC, including a Vessel Transfer Path, wharf extensions, shipbuilding facility and road intersection upgrades. These fast-tracked infrastructure projects are well underway. The WA government has also invested more than $18m to ensure the state’s workforce can meet the current and future needs of Defence.

The launch of WA’s first Veterans and Families Strategy in 2019 was also a significant milestone. Incorporating the five themes of recognition, understanding, support, participation and commemoration, the strategy guides the development and implementation of policies and initiatives to promote the wellbeing of WA’s veterans. Since the launch of the strategy, the WA government has invested over $2m to ensure WA is the best place in the country for former ADF personnel to transition back to civilian life through training and upskilling, the creation of an assistance dogs program and infrastructure upgrades to ex-service organisations.

In 2019, the WA government also launched the Defence Science Centre (DSC) and Cyber Security Cooperative Research Centre (CSCRC) to build Australia’s cyber security capacity and address a range of critical technology and policy issues. The DSC has been a collaboration between the state and Commonwealth governments and WA’s four public universities. The centre is a matchmaker between universities, government and industry to support security and technology development and capability requirements, with a particular focus on WA’s defence industry. Since its inception, the DSC has funded 24 research projects, investing $3.6m into projects valued at $11.4m, creating nine new jobs and supporting 12 post graduate students undertaking defence relevant research within universities and industry.

Since the creation of Defence West, we have seen the progression of outcomes for industry across all domains, and hundreds of jobs created for West Australians. Two key examples of this are Civmec and Austal.

In April 2018, Civmec was awarded the contract to build 10 Arafura-class Offshore Patrol Vessels for the Royal Australian Navy as part of the SEA 1180 program. As such, the program involves around 400 local jobs and another 600 across the supply chain, with the vessels being built in Civmec’s world-famous shed – the largest in the southern hemisphere.

Similarly, Austal was awarded an expanded contract in 2018 to deliver 21 Guardian-class vessels to 12 Pacific Island nations and Timor-Leste from 2018 to 2023 under the SEA 3036 Pacific Patrol Boat Replacement project. This project also involves another 400 local direct and indirect jobs, and has seen Austal shortlisted for the 2021 Essington Lewis Award for excellence in collaboration between Defence and defence industry.

The change in portfolio name from ‘Defence Issues’ to ‘Defence Industry’ provides a clear indication of the WA government’s policy priorities for this second term. The WA government and Defence West are committed to supporting the state’s defence industry through the implementation of the Western Australian Defence and Defence Industries Strategic Plan. As set out in the plan, we aim to double Defence’s economic contribution to the state to $6bn by 2030.

I will continue to advocate to the federal government to provide certainty to WA’s shipbuilding and sustainment industry and commit to continuous shipbuilding in WA. In the 2017 Naval Shipbuilding Plan, WA was identified as the shipbuilding hub for any vessels up to 100m. The Prime Minister has noted on a number of occasions that the mine countermeasure and hydrographic vessels will be built in WA, but we have not seen any progress on this announcement. WA’s defence industry requires certainty.

Obviously the recent announcement by the Prime Minister that the Collinsclass full cycle docking work will remain in South Australia is disappointing. The McGowan government has already committed significant resources towards infrastructure and workforce to support the work. This decision extends the uncertainty for WA defence industry and increases the need for an updated Naval Shipbuilding Plan, which remains long overdue.

I will also advocate for greater Defence presence in our North West. The North West is home to significant critical infrastructure as well being a big economic driver for the nation. This needs to protected. There is opportunity for Defence to undertake exercises in the region and explore areas for testing. The resources industry has extensive experience in the regions which I believe Defence could learn from.

Acquiring the Veterans Issues portfolio is also significant. Our veterans deserve our gratitude and support for the service they have given Australia. The WA government values our veterans and their service. Our goal is for WA to become the best place in the nation for veterans to transition back into civilian life. A key tool in supporting this goal was the McGowan government’s commitment to increase the ANZAC Day Trust funds from $300,000 to $1.3m annually. The focus of the trust will be to support programs which provide assistance to veterans transitioning from the ADF to civilian life.

In July 2020 HMASs Perth and Arunta were undergoing the Anzac Midlife Capability Assurance Program (AMCAP) upgrade at the BAE Systems shipyard in Henderson. © WA DEFENCE REVIEW. Photographer: David Nicolson.

Every industry in Australia has seen challenges arise since March 2020 due to the spread of COVID-19 across the globe. While the WA government’s world-leading response to the pandemic has protected our state’s economy, the constraints caused by the virus on the defence industry are similar to those felt in other sectors of the economy.

One of the key pandemic-related challenges facing defence is the issue of labour mobility constraints. This problem is not unique to WA, or to defence industry, however given the need for highly skilled, experienced and specialised personnel across the defence industry workforce, these constraints can become problematic. The WA government is fully aware of the situation, and will be supporting the state’s advanced manufacturing capabilities, skilled workforce pipeline and infrastructure to alleviate constraints and create more local jobs. The WA government has also committed $18.34m to build the capability of WA’s defence manufacturing industry through affordable TAFE courses and targeted incentives for apprenticeships and training.

Assisting WA businesses to break through the east coast centric mindset has also been an ongoing challenge for WA’s defence industry. This includes facilitating strategic partnerships between industry and Defence to expand WA’s role within highly specialised defence supply chains. To address this, the WA government will continue to provide SMEs with the opportunities to attend local and national information forums and conferences. A major barrier for SMEs is the lack of certainty of ongoing work. It is difficult for SMEs to invest in infrastructure or workforce without the confidence that work will continue. This is why I will continue to advocate for a continuous shipbuilding program in WA.

The WA government, in consultation with industry, has identified a number of opportunities for the state which will help diversify the economy, develop critical capability and create more jobs for West Australians. Importantly, the opportunities identified for WA align with the Australian government’s recently released Sovereign Industrial Capability Priorities to help Australia meet the evolving demands of our current Defence environment.

The 2020 Defence Strategy Update identified priorities where WA’s industry already has natural strengths and competitive advantages, including robotics, autonomous systems, and artificial intelligence, space and information warfare and cyber capabilities.

The state’s internationally recognised WA AustCyber Innovation Hub at Edith Cowan University is helping to grow local cyber security capabilities, establish a new skilled workforce to develop our cybersecurity export potential, and is key to enabling the continued participation of local companies in defence supply chains.

Another significant opportunity to support Australia’s sovereign capability is through rare-earth minerals, future batteries and advanced manufacturing. WA has large reserves of minerals used in the manufacture of rechargeable

Submarines are integral to the defence of Australia’s Indian Ocean Territories and remote mainland North West region. Seen here, the navy’s Collins-class submarine HMAS Sheean passes Christmas Island on its way to Singapore for the multinational Exercise Bersama Shield. © Department of Defence.

batteries, including large quantities of lithium, nickel, cobalt, manganese, and alumina. The state also produces nonbattery minerals used in the manufacture of electric vehicles and energy storage systems, including rare earth elements that are necessary for the production of electric motors. These technologies will have a direct impact on Defence, as the world transitions towards alternative fuels for energy.

Land Forces 2021 saw our largest contingent of WA organisations to ever attend, and they were able to showcase their unique capabilities to a very large audience – over 12,700 attendees. The WA government’s participation at Land Forces is vitally important for the local industry, and provides many local SMEs with invaluable exposure to key government and army decision makers. This year, the WA government stand hosted 19 companies plus the Defence Science Centre and Henderson Alliance, supported by a dedicated team from Defence West. This ‘Team WA’ collaborative approach demonstrated the state’s capabilities and united approach.

In 2021 we were able to facilitate meetings between WA companies and defence primes including BAE Systems, Rheinmetall, Hanwha, Lockheed Martin, Northrop Grumman, Leidos and Navantia Australia. WA companies were also able to network and build important relationships with CEOs and senior decision makers. A highlight for many companies involved in the Defence West stand was the opportunity to meet the Chief of Army, LTGEN Richard Burr AO DSC MVO.

Our companies were also able to communicate directly with the Australian Army to better understand the needs and challenges of the end user and discuss the innovation and technology being developed in WA. Critical to our participation was the opportunity to build profile, develop leads and enhance partnerships with specific Defence programs. Feedback from the WA exhibitors indicates positive outcomes for increased engagement, company visibility and business leads, with almost half of respondents expecting new sales within the next 12 months alone.

The WA government is continuing to focus efforts on identifying trade and investment opportunities aligned to WA’s comparative advantages in the global defence value chain. Promoting these advantages and investment opportunities in key markets is crucial for the state.

WA’s long history with the development of cyber and autonomous systems in the mining sector is beginning to see a shift towards defence, as capabilities increase, and the appetite for these systems from a Defence perspective grows. This is set to become a significant export opportunity for WA in the future as the technology continues to develop.

The state’s geo-strategic location as Australia’s Indian Ocean capital and western gateway is an important factor in considering future export potential. WA is an ideal location for primes to set up manufacturing hubs to service the Southeast Asian market, while enjoying the stability the Australian market can offer.

In 2020, the WA government held the Western Australian Defence and Defence Industry Strategy to bring together WA’s strategic leaders and explore opportunities for WA’s defence industry to leverage capabilities across a range of sectors. A key recommendation from those series include facilitating resource sector cross-pollination.

The autonomous, uncrewed and undersea technologies employed in WA’s mining and oil and gas sectors are nationally unique, and often considered more advanced than their defence sector equivalents. WA’s resource industry players are world leaders in the integration and operation of autonomous systems and we continue to promote these cross-sector capabilities

at trade shows and conferences such as the Resources and Technologies Showcase, AOG and the Skills West Expo.

The Defence Advisory Forum also continues to ensure effective communication occurs between industry and the state government, resulting in the development of effective policies and opportunities for cross-promotion.

WA’s strong economy is the envy of the nation, and was even recently deemed the best in the world by Standard & Poors. Our considered and responsible approach to the COVID-19 threat ensures we continue to be Australia’s economic engine room.

More West Australians are employed than ever before, and our labour force participation remains the highest of the states at 68.5%. Our youth unemployment is the lowest of all the states. We will continue to manage responsibly and invest in our future, to diversify our economy and create jobs.

We have directed tens of millions of dollars towards nationally important infrastructure upgrades at the Australian Marine Complex, and in 2021 committed to an Advanced Manufacturing Industrial Hub. These are strong commitments and signals from the government to provide security for WA’s defence industry.

We have also committed to supporting our veterans. We have delivered on our promise to increase funding to veterans organisations – including a four-fold increase in funding for the Veterans Issues portfolio. We will continue to support our veterans and endeavour to provide the most attractive location for transition out of service.

Vital to the West Australian economy, the AMC CUF boasts the world’s most technologically advanced floating dry dock; a 100m long by 53m wide structure capable of providing the land transfer of vessels up to 3500t and able to lift 12000t vessels out of the water for service and maintenance work. © WA DEFENCE REVIEW. Photographer: David Nicolson.

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