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Adelaide named as HQ of defence capability

Tuesday, 8 Mar 2016 03:09:41 | Stephanie Anderson

The new centre will offer a range of advisory services including defence market access and export facilitation. (Supplied: ADF)

Adelaide will be home to the new multi-million-dollar headquarters for Australia's defence capability, creating jobs and growth in the industry, the Federal Government says.

Key points:

  • New defence hub in Adelaide to get $230m over the next decade
  • It will create about 36 jobs
  • Government says centre to include range of advisory services

The Centre for Defence Industry Capability is due to start operations in the second half of the year as part of the 2016 Defence White Paper, which was unveiled last month.

It will receive $230 million in funding from the Federal Government — allocated from existing programs — over the next decade.

The Government said the centre would work with small to medium enterprises across Australia to "promote defence industry competitiveness and guide the priorities across defence industry".

It said the centre would also offer a range of advisory services including mentoring, defence market access, export facilitation and global supply chain development.

Prime Minister Malcolm Turnbull made the announcement in Adelaide with Defence Minister Marise Payne and Industry Minister Christopher Pyne.

Mr Turnbull said although the Government was yet to decide where offshore patrol vessels would be built and settle on its preferred submarine builder, it wanted to spend money at home.

"This is a matter of profound national importance, that as far as possible, we use our defence dollars to drive Australian industry, Australian innovation, because the benefits go well beyond the defence budget," he said.

Mr Pyne said about 36 people would be working in the South Australian defence centre.

"About three dozen workers will be working in it, but it will actually have a much greater impact across the economy as it maximises the jobs and growth in the defence procurement dollar," Mr Pyne said.

"It's also recognition that Adelaide has been doing a good job in defence industry for decades."

SA never guaranteed offshore patrol vessels: Pyne

Mr Pyne rejected claims the defence hub was a consolation prize for South Australia but said the offshore patrol vessels were never guaranteed to be built in the state.

"The offshore patrol vessels were never promised to South Australia, so pretending our whole future rests on a $5 billion ship build rather than nine future frigates, 12 submarines and the air warfare destroyers, is really missing the facts."

Ship building forms a significant part of the White Paper, which promises 12 submarines to be built at a cost of more than $50 billion between 2018 and 2057.

However, maintenance costs will push that $50 billion budget much higher.

Navy will scoop a quarter of all new spending on capability, with nine new anti-submarine warfare frigates and 12 offshore patrol vessels.

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