Hon Melissa Price MP

Ms PRICE ( Durack ) ( 18:26 ): Our strategic environment today is the most dangerous it has been since World War II. We face a region where military expansion is accelerating, authoritarian regimes are testing the resolve of democracies and cyber and space are now as contested as land, sea and air. In that context, Australia's defence industry isn't just a source of jobs; it is indeed a cornerstone of our national security. A strong, sovereign industrial base is what allows us to sustain our forces in conflict, keep our supply chains open and ensure that we can deter threats without relying entirely on our allies and partners. But, despite the rhetoric, there is growing disillusionment across the defence industry. Small and medium enterprises that once saw opportunity in partnering with Defence now describe a system weighed down by uncertainty and delay. Projects are announced and then quietly pushed to the right. Procurement frameworks remain slow and risk-averse. Industry partners who invested in good faith under previous programs are left wondering whether the government is genuinely committed to growing sovereign capability or simply just managing the headlines. Take Henderson in Western Australia as an example. The government has promised a $12 billion redevelopment of the Henderson precinct, but the real cost, when all elements are counted, will be closer to $25 billion. Even then, planning for the expansion won't be complete until 2027. After their doing next to nothing for three years, we suddenly saw an announcement just before the Prime Minister's trip to the United States. Incredibly, the boundaries and definition of the precinct aren't even settled. Simply, they've done nothing in three years. So, while we welcome the renewed attention on the Western Australian shipbuilding capacity and the potential for high-skilled, well-paid jobs, the reality is that our very important defence industry needs certainty, not just spin. And it's not just about shipbuilding. Our defence industrial policy must stretch across every important domain. A key part of building sovereign capability is investing in emerging technologies that are reshaping modern warfare. Precision munitions, drones, unmanned vehicles and autonomous vessels are no longer experimental; they are redefining the character of warfare. If reports that the AUKUS agreement has survived the recent US review are true, we of course welcome that. However, AUKUS alone cannot carry our entire defence industrial strategy. The government wishes to obtain nuclear submarines but does not want to spend any more money to obtain them. Instead, they have sought to cannibalise funds from other aspects of Defence. This simply symbolises the government's wrong approach to Defence. Submarines, of course, are a critical pillar, but they are not a substitute for a balanced, broad based approach to national capability. Every dollar spent through AUKUS must be matched with a commitment to strengthen local industry, encourage innovation and develop skills across the supply chain. That brings us to workforce. It is not enough to build infrastructure if we don't have the people to operate it. We need a whole-of-nation effort, a long-term skills pipeline that connects our schools, TAFEs, universities and industry, because, without the workforce, the rest of the plan collapses. We knew this when we were in government, under the Morrison government. It was significant, a big focus of my own portfolio, because, at the time, I was the Minister for Defence Industry. Procurement remains difficult for primes and SMEs alike. They are still struggling to break through the layers of bureaucracy that stand between them and defence contracts. These are innovative Australian firms, many with world-leading technologies, that want to contribute to the national effort. They need fair access, clear pathways and timely decisions. If the government wants industry to invest, it must provide genuine partnership, not just procurement paperwork. Finally, a keen interest of mine is space. Space is no longer a distant ambition; it is a frontline of modern defence, which underpins much of what our Defence Force does. At the International Astronautical Congress last week, I was pleased to meet with some proud Australian companies, including HEO and the Space Machines Company, which are developing technologies that could fit into that framework. Yet space industry has been left adrift, with key programs such as JP 9102 cancelled by the Albanese government. Given there are so many capability gaps, I ask the minister: how can the Prime Minister continue to resist raising Defence spending to at least three per cent of GDP when he has said capability will always be supported? (Time expired)