Tag Archive for: Defence Industry

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Tag Archive for: Defence Industry

Shortcomings of the next defence white paper (part 1)

white paperThe title of this post sounds outrageous. How can there be any shortcomings of the next Defence White Paper (DWP) when it’s yet to be written? But the next DWP won’t emerge from thin air—it’ll be built upon earlier ones. These collectively form a most helpful model upon which to build, while effectively setting the mental boundaries within which the next DWP will be developed. (For readers keen to remind themselves of the contents of previous efforts, Defence has very usefully collected five earlier WPs together and the 2013 variant is still available.)

Moreover, time is running short. Defence Minister Johnston has recently expressed a preference for a mid-to-late 2014 release date—only 6-12 months from now. As this timeline further includes an industry policy paper and a new Defence Capability Plan (DCP), there are busy times ahead at Russell Offices.

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Misperceiving Australia: the CSBA report

Australian and American Flags, Australian EmbassyIt isn’t often that US think tanks put pen to paper about Australian strategic and defence policy. All the more reason, then, for us to look closely at those reports that are published, just to see how our American friends interpret the diverse range of signals that emit from both official and non-official sources here. A recent report by the US Center for Strategic and Budgetary Assessments (CSBA) is noteworthy in this respect. The report bears the bold title, ‘Gateway to the Indo-Pacific: Australian Defense Strategy and the Future of the Australia-U.S. Alliance’, and two of its three authors (Jim Thomas and Zack Cooper) have previous government experience. So readers might reasonably expect to find here a carefully nuanced assessment of the many tangled threads of Australian strategic thinking, especially those that apply to the future of the ANZUS alliance. But I must say I was disappointed in my expectations. Much of the report is narrow and operational in its focus, and Australian strategic policy appears as a caricature of itself.

I think the report places too much emphasis, right at the start, on a judgment that shifts in geopolitics have moved Australia from ‘down under’ to ‘top-centre’ in terms of geopolitical importance. This thesis has previously been associated with the work of Iskander Rehman, the CSBA report’s third author. (His report for the Transatlantic Academy in May 2011 (PDF) has the same central themes.) The thesis wasn’t true when it was first advanced and hasn’t become more so with the passage of time. Australia doesn’t become ‘top-centre’ under the likely shifts in geopolitical power, even allowing for a south-westerly drift of the regional balance point in Asia—strategic weight will remain concentrated in the northern hemisphere. Read more

Dollars for Defence, or defence for dollars?

twilight on a gas fieldIn one of his first comments as the Defence Minister in Tony Abbott’s new government, David Johnston said that the ADF needs to be equipped to help safeguard regional sealanes. It’s easy to see this as a quaint notion which brings to mind the convoying of shipping to elude and deter U-Boat attacks in the Atlantic. But it’s probably a good idea to take the comment seriously as one sign of the new government’s philosophy.

The idea that the ADF needs to prioritise the maritime supply routes by which Australian gas and coal reach major East Asian markets (such as China, Korea and Japan) says something important about the Abbott era priorities. As I’ve argued over at The Interpreter, there’s a strong commercial dimension to the external policy of the new government. Almost all parts of the government machinery, including defence, will find themselves justifying their existence in terms of what they mean for the creation and protection of Australia’s capacity to generate wealth. Read more

Australian shipbuilding—Pretty Woman III?

High heel keel

The 1990 classic film Pretty Woman with Richard Gere and Julia Roberts was full of great lines, but the best belonged to veteran actor Ralph Bellamy near the end of the film. Bellamy plays the role of James Morse, an aging naval shipbuilder under threat from ruthless corporate raider Edward Lewis (played by Richard Gere). After falling for the charm of Vivian Ward (played memorably by Julia Roberts) he relents and, rather than strip the assets from Morse’s firm, he goes into business with him. Morse strides out of the meeting with Lewis to announce:

Mr Lewis and I are going to build ships together, great big ships.

The point about Pretty Woman is that it’s Gere’s character who receives redemption not Julia Roberts’, and this is the moment in the film when we know that he has. It’s a feel-good moment. Director Garry Marshall’s choice of naval shipbuilding was no accident. Gere’s character could not have been made good by going halves in a napalm plant or land mine factory. Of all the areas of defence production, naval shipbuilding is probably the most wholesome and surely the most iconic.

As an unavoidably labour-intensive activity, shipbuilding also captures the imagination of politicians eager to ‘create’ jobs. It also turns regular defence bureaucrats into central planners worthy of the Soviet Union. In a little over a decade, there’ve been two attempts by Defence to put out a long-term plan for naval shipbuilding in Australia. Read more

What’s an Australian defence industry for? Part I

Oberon class HMAS Oxley sits in Fitzroy Dock at Cockatoo Island dockyard, in an Intermediate docking, 1970.The Queensland government has recently appointed a defence envoy to bolster defence industries in the state. In this it joins other states and the federal government in actively adopting defence industry sector strategies. But for strategies to be effective, they must be built on a clear understanding of the objectives sought. There are several different objectives that a defence industry strategy could be potentially optimised for. At the fundamental level this raises the question of what an Australian defence industry is for.

Where you stand on this issue may depend greatly on where you sit. In this post we’ll look at the federal level, leaving the state and company levels for later. The federal level comprises both the government as a political entity and below this the departmental levels, particularly Defence, Finance and Treasury.

At the political level there’s currently a focus on defence industry providing jobs—but not just any jobs, or indeed simply more jobs. Instead, the focus is on creating meaningful, well-skilled jobs in the manufacturing industry, as the current interest in naval shipbuilding attests to. This is by no means an unworthy objective; philosophically, contemporary liberal thinking stresses improving the life of individuals—what else does a society exist for? Read more

It was the best of times, it was the worst of times

I gave a talk today on the subject of ‘the defence maritime budget and industry opportunities and impacts’ at the Maritime Environment Working Group here in Canberra. In this case, it was hard to know what to say. On paper, the prospects for maritime industry in Australia are very bright. The Defence Capability Plan contains tens of billions of dollars’ worth of shipbuilding projects, including:

  • twelve future submarines, at an “acquisition cost of > $10 billion”(in reality the cost will likely be at least twice that), with a decision to be made somewhere between 2016 and 2018
  • eight future frigates, at over $10 billion (2021–2024)
  • ‘around 20 offshore combatant vessels’ at over $5 billion (2017–2020).

As well, studies are underway for a possible life of type extension for the Collins class submarines to bridge the gap before a replacement is likely to be available—in all likelihood it will be another multi-billion dollar program. And the current fleet of Armidale class patrol boats is being worked very hard—possibly harder than they are able to sustain—which could see their replacement moved forward, perhaps by the offshore combatants or, more likely, by a less costly interim fix.  Read more

Tag Archive for: Defence Industry

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