Pyne urges firms to work hard for defence exports

| April 9, 2018

Defence Industry Minister Christopher Pyne has warned Australian defence firms that they will need to ‘put in the hard yards’ to win export orders abroad and join lucrative global supply chains.

Minister Pyne has the task of enhancing collaboration and connectivity between defence and industry and overseeing the delivery of capability acquisition and sustainment programs.  Appointed to his new post in 2016, he is tackling the defence industry agenda with characteristic enthusiasm.

With the government committed to more than $200 billion of additional capability acquisition and sustainment over the coming decade, the delivery of defence programmes is critical to the national agenda and ensuring Australia’s strategic interests in the decades ahead.  The development of a stronger domestic defence industry should also increase export opportunities for Australian firms.

Minister Pyne spoke to Phillip Tarrant, the host of the Defence Connect Podcast, and covered key issues including the recent LAND 400 Phase 2 announcement, how the competition for SEA 5000 is shaping up, the opportunity to enhance Australia as a defence exporter and how Aussie businesses can crack the global supply chain.

Minister Pyne said that winners would reap rich rewards and foreign orders were worth fighting for, but anyone who expected a quick decision and a quick win without putting in the necessary effort to distinguish themselves from competitors would be disappointed by the results.

“If you think you’re going to get into defence industry make a quick buck, try something else,” he said.

The government’s new defence exports policy has set the ambitious aim of raising Australia from the 19th largest defence exporter in the world into the top 10 over the next decade.  That would require a very substantial increase in sales of Australian defence and related equipment which some commentators have thought unlikely to materialise.

Minister Pyne outlined plans for government investment worth $80 million over the next four years for a range of initiatives to encourage exports and argued that Australian firms are already upping their game.

The latest Australian Military Sales Catalogue, released by the government in March, now runs to 94 pages compared with 14 last year, for example.

“Every state and territory is now working as part of that. We’ve expanded its remit dramatically. The companies have responded really well,” Minister Pyne said.  “And there were 20 companies that didn’t make it into the catalogue that wanted to be in it. We didn’t feel that they were ready. Next year, it’ll be bigger again.”

He said the goal of reaching the top 10 is a long term aim, rather than a target which can be achieved immediately.

“I believe that we will increase our exports quite quickly. We now have a defence industry minister who is focused on exports, who travels to the countries where we have prospects. Last year, I was in Riyadh and Warsaw and Paris and London, and after Malaysia, this month in Singapore. I’m going back to those places again and again … to chase prospective export opportunities,” Minister Pyne said.

“We’ve never done that before. We couldn’t do worse than we’ve done before, and I think we’ll move quite quickly along the road.”

Inaugural defence export advocate announced

In another measure to drive Australia’s defence export agenda, the government has announced that a former defence minister has been appointed as Australia’s first defence export advocate.

David Johnston has taken up the role, which was first flagged in the Defence Export Stategy released earlier this year.

Johnston held the role of Minister for Defence from September 2013 until late December 2014 and Minister Pyne is confident that Johnston’s experience in this role will be pivotal in his new job.

“This appointment will greatly expand the government’s reach in promoting Australia’s world class defence industry,” Minister Pyne said in a statement.

“As a former minister for defence, Mr Johnston brings a wealth of experience and knowledge of Australian defence industry to this significant role.”

Minister Pyne underlined that the appointment of a defence export advocate would build on his and the government’s advocacy efforts.

“I work tirelessly to advocate for Australian industries looking to sell their world class defence materiel to our friends and allies but I can’t be everywhere,” the minister said.

“Our defence export advocate will help connect Australian industry to overseas governments and defence forces, build relationships in our key markets and act as a focal point for long term campaigns.”

As the first Australian defence export advocate, Mr Johnston will also work closely with the Australian Defence Export Office to provide senior advocacy.

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