Defence and Industry Strategy 2017 from the MINISTER
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New South Wales: Strong, smart and connected The NSW Government Defence and Industry Strategy 2017 FROM THE MINISTER Over the next ten years the federal NSW has been a strong supporter of national government has committed to a defence since before federation and is host $195 billion investment in Australian to important Defence bases and capabilities supported by a broad range of industries and Defence (Defence) with sustained major education and training establishments. investment earmarked for future The strategy focuses on this important sector generations. to ensure NSW is properly positioned to fully support Defence and grow jobs and industry Strong, smart and connected represents in the state. It also provides a robust platform the NSW Government’s vision for Defence for focusing on new opportunities in our and defence-related industries in the state. regional communities and boosting our local As Australia’s largest and most diverse economies into the future. economy, NSW is recognised as a leader in advanced manufacturing, systems NSW is home to over 80 Defence bases and attract an increased integration, cybersecurity, aerospace, facilities—more than any other state—and proportion of Defence information and communication technology, Defence invests $5.5 billion annually in its investment in the state and help business services and many other areas operational expenditure. Defence and the small and medium sized enterprises directly relevant to the needs of Defence. industry that supports it currently directly gain better access to local and global employ over 26,500 people in NSW. Defence supply chain opportunities. To achieve its dual objectives of supporting investment is already one of the key drivers of Defence and driving greater investment and employment and economic growth in many I thank everyone involved in the creation of this innovation in NSW, the NSW Government regional areas. strategy for their contribution and acknowledge will create a new organisation called Defence the expert stewardship and support provided by the NSW. This organisation will be responsible for The state has the highest number of workers NSW Defence Advocate, Air Marshal (Retd) John Harvey. coordinating all Defence and defence industry- with skills relevant to Defence and the defence related activities for the NSW Government. industry and these closely align with key areas I would also like to acknowledge the significant contribution made Defence NSW will also be charged with the of future Defence growth and investment. by my colleague, The Hon Anthony Roberts MP, in supporting stewardship and delivery of the NSW Defence NSW is also home to world-class universities the Defence sector while he was the Minister for Industry. and Industry Strategy across NSW using a and other research and development institutions. regional network. This will focus the state’s The Hon Niall Blair MLC support for Defence and industry and The major contractors that work with Defence Minister for Primary Industries provide whole-of-government leadership, already operate in NSW. The NSW Government Minister for Regional Water and advocacy and engagement with the sector. will work closely with the defence industry to Minister for Trade and Industry 2 Cover image © 2017 Lockheed Martin Corporation. NSW: STRONG, SMART AND CONNECTED 6 CONTENTS THE NATIONAL PICTURE 7 THE ECONOMIC OPPORTUNITY FOR NSW 8 ABOUT THE STRATEGY 11 OBJECTIVES OF THE STRATEGY 11 KEY STRATEGY AREAS 12 1: Foster stronger relationships with Defence and across the NSW defence industry at a state and regional level 12 2: Leverage NSW’s strengths in critical capability areas to grow existing work and create new Defence and defence industry activity 13 3: Provide Defence and defence industry with their future workforce 13 4: Sustain and grow existing and new Defence and defence industry activity across regional NSW 14 5: Increase opportunities for innovation, commercialisation and research within Defence and the defence industry 15 DEFENCE NSW: A NEW MODEL FOR DEFENCE AND DEFENCE INDUSTRY LEADERSHIP 16 OBJECTIVES AND FUNCTIONS 17 Commonwealth Government and Defence engagement 17 State engagement 17 Regional engagement 18 SUMMARY AND NEXT STEPS 19 APPENDIX 1: NSW’S DEFENCE INDUSTRY PROFILE 20 DEFENCE PERSONNEL 20 NSW DEFENCE BASES AND FACILITIES 21 SHARE OF DEFENCE BUDGET 21 APPENDIX 2: VALUE OF DEFENCE INVESTMENT TO NSW 22 JOBS AND ECONOMIC GROWTH IN NSW 22 DEFENCE AS A CATALYST OF FURTHER ECONOMIC DEVELOPMENT 26 Defence precincts and regional centres of excellence 26 Growing the education and training sector 26 Developing NSW as a centre for research and development excellence 26 APPENDIX 3: REGIONAL DEFENCE AND DEFENCE INDUSTRY STRATEGIES 28 APPENDIX 3.1 NSW STATE INITIATIVES 29 APPENDIX 3.2 SYDNEY REGION 30 APPENDIX 3.3 HUNTER REGION 34 APPENDIX 3.4 SHOALHAVEN REGION 38 APPENDIX 3.5 ILLAWARRA REGION 42 APPENDIX 3.6 MURRAY–RIVERINA REGION 46 APPENDIX 3.7 CAPITAL REGION 52 APPENDIX 3.8 NORTHERN NSW REGION 58 GLOSSARY 62 4 NEW SOUTH WALES: STRONG, SMART AND CONNECTED DEFENCE IS IMPORTANT TO NSW. NSW IS IMPORTANT TO DEFENCE. Defence investment is already one of the drivers of skilled workers out of Defence and of employment and economic growth in many defence industries into local education and regional centres. For example, in the Hunter and technology-dependent sectors. Shoalhaven, the economic activity attributable to NSW is also critical to Defence. It has the Defence is estimated to be between 8% and industrial base, transport and communications 12% of Gross Regional Product. The defence NSW is committed to supporting infrastructure, workforce and world-class industry is a major employer and attractor of Defence* to achieve its aim of research and development establishments skilled workers in these regions and the local to support Defence, now and into the future. defending Australia and its interests. economy also benefits from the movement NSW: Strong, smart and connected is the NSW Government’s strategy for providing that support. THE NATIONAL PICTURE There are significant opportunities for Defence and NSW to support each other in the coming decades. The 2016 Australian Defence White Paper capability and of the relationship between detailed a plan for investing $195 billion in Defence’s procurement decisions and processes NSW is home to the largest number of Defence Defence capability over the next decade. and the health of the defence industry. bases and capabilities of any state or territory Investment in the following decade to 2036 and is home to nearly 30% of Australia’s military The creation of the Centre for Defence Industry is expected to be similar. and Defence civilian personnel. Capability (CDIC) will formalise a closer Along with the Defence White Paper, the relationship between Defence and defence Defence makes a substantial contribution to the release of the Defence Industry Policy industry, and the CDIC’s investment in innovation NSW economy and is critical in supporting the Statement (DIPS) and the Integrated will provide increased opportunities for industry delivery of the Premier’s priorities in areas such Investment Program (IIP) and the appointment to develop globally competitive products. as jobs growth, regional activation and industry of a Commonwealth Minister for Defence investment. In 2014–15 Defence contributed Industry in NSW has a unique opportunity Industry represent a fundamental shift just over 20,000 jobs to the NSW economy to assist Defence realise its ambitious in the relationship between Defence and with a direct spend of approximately $7.9 billion, investment agenda. To do so, it must defence industry. including $5.5 billion in operations and demonstrate that it is globally competitive, $2.4 billion in capital expenditure. In addition Central to this change is recognition of innovative, diversified and export-orientated. there are around 6,500 defence industry the defence industry as a fundamental A significant increase in local participation jobs and a further 29,500 from supporting input to capability. It signals a growing will strengthen and grow jobs in the NSW industries whose activities make a major acknowledgement by Defence of the defence industry. contribution to the wider NSW economy. importance of strong indigenous industrial *Department of Defence and Australian Defence Force 6 7 NSW is committed to significantly growing the state’s industry to support Defence and to generate THE ECONOMIC OPPORTUNITY FOR NSW jobs and economic growth in NSW. To achieve this, the NSW Government is committed to: working with other states and territories leveraging Defence expenditure to NSW has received a significant proportion to respond to capability and capacity to ensure a national approach to helping support innovation and commercialisation Defence of national Defence funding, with requirements, either within NSW or in developing a diverse and internationally Defence-related operations in NSW partnership with other states and territories. a whole-of-government approach to competitive industrial capability, both in generating in excess of $5.4 billion annually. A strategic and coordinated approach to supporting and developing the state’s metropolitan Sydney and in regional NSW The NSW Government recognises the developing NSW industry has potential to defence industry where Defence spend is more critical to significant contributions made by Defence substantially increase direct Defence expenditure local economies. ensuring NSW industry has the required