Standing Up for SA Shipbuilding Jobs

The AUKUS security pact between Australia, the United Kingdom and the United States is the centrepiece of our nation’s forward defence strategy and will play a vital role in sustaining peace and stability in the Indo-Pacific region.

I am immensely proud to have been part of the Coalition Government that conceived this partnership, which has provided Australia access to new technologies, in particular the acquisition of nuclear submarines. This is a quantum leap forward in capability for our Navy and a substantial boost to our national security.

As a South Australian MP, I am particularly focused on what this announcement means for us and how we maximise the economic opportunities of submarine construction for our state. We must ensure that the economic dividend is as significant as the national security one.

As with any trilateral collaboration, there is an inherent risk that the economic outcomes are not shared equally among the three countries. The expected completion of the first Australian-built SSN-AUKUS submarine is 2042 – assuming no complications or delays. During this time the US and the UK will continue building submarines at their shipyards, with the United Kingdom expecting to deliver their first SSN-AUKUS submarine by the late 2030s. This presents a significant advantage to the UK’s industrial base, which will have a five-year head start on Australian businesses in embedding themselves in the supply chain.

Furthermore, there has been no commitment to an Australian Industry Content requirement for the boats built in Australia, which is deeply concerning for local businesses hoping to contribute to the program.

It is vitally important to our economy that Australian businesses have an equal opportunity to participate in the supply chain and are not outmuscled by more established firms in the UK or US. To that end, it is imperative that we secure maximum local industry content requirements to enable Australian businesses, employing Australian workers, to share in the benefit of this investment.

An undertaking of this scale is an enormous economic opportunity, and I will continue to advocate for South Australia to be a major beneficiary.