Press Conference, Avalon, Victoria

SUBJECTS: Hanwha Armoured Vehicle Centre of Excellence opening; Australia-Republic of Korea relationship; Infantry fighting vehicles; Australian Army capability;  Support for Ukraine; Australia’s contribution to maritime security in the Red Sea; Operation Sovereign Borders; Austal; Navy’s Surface Combatant Fleet.  

RICHARD MARLES, DEPUTY PRIME MINISTER: Well welcome everyone today. It's an honour to be here on what is a really huge occasion for Australian defence industry. It's a very big occasion for the people of Geelong. I'm joined by Minister Seok, the Minister for defence acquisition and program administration of the Republic of Korea, and it's a great pleasure to have him as a guest in our country today for the opening of this facility. I'm also joined by Lieutenant General Simon Stuart, Australia's Chief of Army, Mr Jae-Il Son, who is the President of Hanwha Aerospace, Mr Dean Michie, who is the acting General Manager of Hanwha Defence Australia, and I think we've got Ambassador Sim as well who's here with us. I'll say some words and invite General Stuart to make some comments as well, and then we'll open it up to questions. 

Today really is a very significant day for Australian defence industry in the opening of phase one of the Hanwha facility here at Avalon in Geelong. We have opened the facility which will build 28 self-propelled howitzers, the 28 Huntsmans, along with 14 support vehicles that will join the two self-propelled houses that are being built in Korea now and another support vehicle which will give the capability of 30 Huntsmans, 15 support vehicles, which will make up a really significant capability for our Army. Going forward, phase two of this facility will build the 129 infantry fighting vehicles, the Redbacks. We saw an example of one of them just before and that, again, is a critical capability for our Defence Force. The first of the Huntsmans will actually be acquired by, or come into service for the Army at the end of this year, the first of the Redbacks will come into service in 2027. That's years ahead of what was originally planned. This is the Albanese Government bringing forward capability to our Australian Defence Force so that we can build our capability as quickly as possible. But when it's all up and running, we will see this facility supporting 1,800 jobs. So this is a major contribution to the local economy here in Geelong, but it's a very significant contribution to the Victorian economy, to Australian defence industry. This is Australian workers contributing to Australian sovereign capability in a way which will keep Australian soldiers safe, and that is a wonderful thing. And here in Geelong, where we've had a proud history of manufacturing motor vehicles, we now move forward with a capacity to build military vehicles and Hanwha is already a really significant part of the local Geelong landscape. We very much look to Hanwha now as part of the Geelong community, and they're contributing enormously to our region. But obviously the workers here will be making an enormous contribution to Australian defence capability. With those words, I might pass over to General Stuart to add some comments.

LT GEN SIMON STUART, CHIEF OF ARMY: Thanks, Deputy Prime Minister. A great honour to be here today and this really, I think, exemplifies the Australian Army's transformation and the acceleration of that transformation as we meet the government's direction under the Defence Strategic Review. These two capabilities, the self-propelled howitzer and the infantry fighting vehicle are part of making our Army relevant and credible amongst the strategic challenges of the 21st century, and importantly, they will work alongside other capabilities that have been accelerated by the government, such as our army littoral manoeuvre watercraft projects, and our long-range fires capability. The Australian Army is an army for the nation and an army in the community. And we couldn't be prouder to be associated with the community here in Geelong, and also with our partners in the Republic of Korea Army. Thanks very much.

MARLES: Finally, I might just say that in Hanwha’s presence here in Geelong, but in Australia, we are seeing it make an enormous contribution to the relationship between our two countries. It really is an honour to have Minister Seok with us today, and it speaks to the significance that defence industry is playing, the Korean defence industry is playing in building the bilateral relationship between our two countries. I've been to Korea a number of times since becoming the Minister for Defence and not just through defence industry, but really through the geostrategic outlook of both of our nations, we are seeing us build a relationship which has never been closer, and today is a very important step forward in respect of that as well. So with that, I'll open questions up, firstly about the announcement that we've made today. I will take questions of the day beyond that, but we might put them to the end and we can let the others go when we get to those questions. But if there are any questions about today's announcement.

JOURNALIST: I'll preface mine by saying I know of your genuine enthusiasm for Korea, that obviously comes from the heart. But on April 17 at the National Press Club, when you were explaining the reduction in numbers of Redbacks – 450 to 129 – you referenced the Defence Strategic Review and the inability of Australia to move sufficient of these overseas, each LHD only being able to carry 60, ruling out the possibility of ships going backwards and forwards. I was wondering, what does that say to the advice that you have to rely on? 

MARLES: Well, the Defence Strategic Review sought to really have, for the first time in pretty well 35 years, a foundational reassessment of our strategic landscape, given the world in which we are now living, and then really having a look at the kind of strategic problem that we need to solve in terms of our national security and what sort of a defence force we need to have in order to solve that. At the heart of that is projection, as I've said on many occasions. And when we talk about that in the context of Army, what that means is having a much more manoeuvrable army. We need to be focused on capability which we can move beyond our continent. Facing a land war on the Australian continent is not the strategic challenge that we face going forward. Being able to project and make our contribution to the collective security of the region is the strategic problem that we need to address. It's in that context that we did reduce the numbers of Redbacks that we were, or of infantry fighting vehicles that we were seeking to purchase based on what we thought was practical in terms of being able to move beyond our shores. And that's why we've settled on the manufacture of 129. But that is going to be an incredible capability going forward. From there, we've obviously selected Hanwha as the builder of that and the Redback vehicle, and we could not be more excited about the acquisition of that. I want to make one other point, though, in doing that strategic reassessment in respect of this specific capability, part of that was to bring the acquisition of the capability forward. So, in acquiring the 129 we are acquiring them much quicker. We will see the first of the Redbacks in service in 2027 as General Stuart said, and that's a really important immediate term capability acquisition and decision that we've taken. 

JOURNALIST: Defence Minister, something that hasn't been mentioned at all today is that the equipment behind you contains Israeli technology, which is part of a very cont– well, something critics, including supporters of the Labor Party, are very critical of. Is there any contingency planning being done if for some reason that technology has to be replaced by another supplier, given the events in Gaza?

MARLES: Look, I mean, it's not a secret that Elbit Systems is making a contribution to the Redback in terms of the turret. Obviously, the Government is aware of that. But in saying that, we are not a direct contractor with Elbit. I mean, that is part of the capability that has been put to put together by Hanwha. Hanwha is the prime contractor here. They are the company with whom we have contracted to provide the capability of the infantry fighting vehicle and ultimately, the supply chain that it engages to build its vehicle is a matter for them. 

JOURNALIST: Are you comfortable with it? 

MARLES: I am. 

JOURNALIST: Minister, you’re obviously supportive, as Kym said of the relationship with South Korea. What's the next step in Australia's relationship with South Korea, beyond this facility? 

MARLES: Well, that's a really good question. I mean, firstly, this facility is a very important step forward and the work that Hanwha is doing in Australia is really significant. It's significant from the perspective of Hanwha. I mean, this is the largest facility that Hanwha has now outside of the Korean Peninsula, and so that is a very significant step forward from their perspective. And I think you will see defence industry play a growing part in the bilateral relationship between our two countries. But it's not just defence industry, to go to your question, it's also the strategic outlook that both of our countries have. When you look at the national defence strategy of Korea that was released at the end of 2022 and you marry it up with what we released in the Defence Strategic Review in April of 2023, it's remarkable how similar those documents are in terms of the perspective that both of our countries have about the world, but importantly, the region in which we both live. And what both of us have indicated is a desire to, at an operational and strategic level, to bring our countries closer together. We saw in Singapore in June, the first trilateral defence ministers’ meeting between ourselves, Korea and Japan. That's a really big step forward. Obviously, the door to that has been opened by the remarkable relationship which is growing between Japan and Korea, and we look forward to a deeper strategic relationship. We have discussions on foot about how we can build the architecture of that, I’m not in a position to speak more about it now, but we are excited about what's in prospect there. We look forward to doing more exercises, and of course, we have a long standing presence on the Korean Peninsula in terms of Australian personnel in the UN mission. All of it speaks to a bilateral relationship, which has never been closer than it is today, and we're really excited about where it's going. 

JOURNALIST: Another defence project that Hanwha is involved – the future frigate. The Government of Korea, through DARPA, has guaranteed that if a Korean design is selected, they can deliver the first ship in 2029. Is that something that's going to figure out in the decision making? 

MARLES: Well, there are actually two bids coming forward from Korea and we're in the process of assessing the five bids that are present now in relation to the general purpose frigate, and speed into service is a critical part of how that is being assessed. We have made clear we want the first of the general purpose frigates to be in operation in this decade, by 2029 and so timing is absolutely essential. I mean, we're going through that process now. I wouldn't really want to comment specifically about any of the bids other than to say that, you know, in the coming months, we'll be in the process of taking the next step forward in relation to the assessment of these.

JOURNALIST: When can we expect a decision on the frigates? 

MARLES: Well, there will be a decision in respect to the frigates soon. I know that's a very unsatisfactory answer to your question, but I mean the point really is, speed is of the essence. The critical date here is we want the first of the frigates in service by 2029 and that necessarily demands that we are making a decision very quickly. 

JOURNALIST: Can I ask the Chief of Army a question? This is on the Redbacks and also the acquisition of additional M1A2S. Because of the weight of those, how is that compatible with a more maneuverable, easily deployable force?

CHIEF OF ARMY: I think if you look at the force in total and the transformation of our army at record speed, really, as we've been directed to do by the Government in the DSR, is to deliver our littoral maneuver capability. That's a significant fleet of 26 ships, medium and heavy landing craft that provide a really significant augmentation to Australia's amphibious system. And remembering, of course, that we work very closely with allies and partners. And for example, over the last three years, we worked with the composite watercraft company out of the United States Army in the Pacific and for example, one of their larger ships, of our heavy watercraft, can move from 26 M1 tanks. Now we're not replacing like for like. So this system that we're building, which will have the infantry fighting vehicle, the combat reconnaissance vehicle, the M1A2 tank, the Apache attack aviation platform, for the first time in our Army's history, under armour, breach of bridging for our engineers, for our sappers, and of course, the self-propelled Howitzer, that system is vastly more capable than we've ever had in our history. And so we're able to use smaller packets, smaller groups, smaller teams to create larger effects. So really, these really are game changing capabilities, and we are transforming our Army very, very quickly, the acceleration of these capabilities, our watercraft and our long-range fires, to be able to put that sort of team on the field in the next five years I think is quite remarkable. 

JOURNALIST: General, speaking of vehicles are you happy to see the performance of Australian Bushmasters in the operation in Kursk? 

CHIEF OF ARMY: I think the Bushmaster has been a fantastic story of Australian industry innovation and the partnership between soldiers and industry to solve the operational problems of the day. I'm unsurprised that they're popular with others and certainly wish the Ukrainians our very best with that capability. 

JOURNALIST: We’re about to replace our tank fleet, will we send our old tanks to Ukraine?  

CHIEF OF ARMY: That's a question best answered by others,

[Questions to Minister Seok in Korean] 

MARLES: We might thank everyone for joining us, and I'll deal with the questions of the day. Well, look, as I've said on numerous occasions, we work closely with the Government of Ukraine about how we can best support them in their conflict. We've made clear that we’ll be standing with Ukraine for as long as it takes for Ukraine to resolve this conflict on its terms. I'm not going to comment specifically on capabilities. There are a range of capabilities that we are talking about with the Government of Ukraine, but I would point out that just a few weeks ago in Washington at the NATO Summit, we announced the $250 million package, which is in addition to the $100 million that I announced in Ukraine itself back in April. That most recent announcement was the largest announcement that we've made so far in support of Ukraine, and we'll continue to be there, and we're looking at every way in which we can support Ukraine. 

JOURNALIST: Minister. Is there a reason why we still can't send a warship to the Red Sea despite taking command of CTF 153? 

MARLES: Well, firstly, we are very proud of the fact that an Australian will be taking command of the combined task force 153, this is a very significant step, and Australian will now be in charge of CTF 153 in securing shipping through the Red Sea. It speaks to the fact that we have been a part of the Combined Maritime Force for a long time now, and we have been part of this specific task force from the moment that it has been stood up. I mean in terms of the deployment of specific assets we've not had a ship in the Red Sea for many years now. It was the former Coalition Government, which brought the last of the frigates that we had operating in the Red Sea back to Australia, we need to be focused on our region. I mean that is in terms of the assets that we deploy. If there is a message that comes out of the Defence Strategic Review and now the National Defence Strategy, it is that we must be focused on the region in which we are engaged, and what is demanded of our Navy in respect of that region is obviously very significant and it represents the vast bulk of what our Navy does.

JOURNALIST: (inaudible) 

MARLES: There's a macro and a micro question in that. At a macro level, I'm not concerned about Navy's readiness. There is always work that needs to be done to make sure that we are getting the sea days that we need from our Navy. But that is happening, and to a sense, in reference to the previous question, we are seeing our Navy do incredible work in our region at a very significant tempo. And there are very huge demands on our Navy but we are meeting those demands. In terms of the micro I mean obviously we are concerned about what's happened with our supply ships specifically, we've spoken about this before. We are looking at how we can have interim capabilities in place and we're obviously speaking with the Navy about how we can get those supply ships back into action as soon as possible.

JOURNALIST: Minister, three people have been arrested in Sydney by the Federal Police for their involvement in a people smuggling operation. Are you concerned that that trade is returning? 

MARLES: I think it's an example of the fact that our systems are working. I mean, we have strong borders. We are maintaining all the measures on our borders which have now been in place for many, many years. The truth is there has been consistent policy across Governments of both persuasions in Australia and that has seen us be able to maintain strong borders. But in addition to that we had Minister Prabowo, the Defence Minister and President-elect of Indonesia in Australia this week, we have never seen the level of co-operation that we have today between Australia and Indonesia in respect of unauthorised maritime movements and that is greatly adding to the security of our borders. So our borders are secure, the system is working and the arrest that we've seen today is in fact evidence of that. 

JOURNALIST: (Inaudible)

MARLES: Well, again, a good question. Ultimately this is a commercial matter for Austal, and we've made that clear. I mean, in whatever happens there, we have made clear that we've made the decision for Austal to be our strategic partner in the West, in terms of, and we've seen them pilot that arrangement with the making of the Army watercraft medium. Ensuring that Austal is in a position to meet what comes from being a strategic partner in respect of any of the future shipbuilding in Western Australia, and that would include the general purpose frigate is obviously essential here. But with that proviso, this is fundamentally a commercial matter for Austal. 

JOURNALIST: On the same theme with the delivery of general purpose frigates, does that mean they will come with a Korean combat system or a Japanese combat system and do we have enough time? 

MARLES: Well again, speed to service is the fundamental proposition that we want to see met here. At the heart of, when we announced the reshaping of our Navy with the general purpose frigate in it, a key component of that was to bring forward Navy's acquisition of its next surface combatant into this decade. I mean, when we came to office, we were not going to see a new surface combatant enter our Navy until 2034 we're bringing that forward by half a decade, which is a really important step. Now in doing that, what we have sought is to have a frigate which is in service now, the first of which will be built overseas, so that we are able to bring it into service quickly. And that is about, I guess, integral to that, is ensuring that there is minimal change in terms of what is operating from whatever shipbuilder we're talking about in the world today.

JOURNALIST: (inaudible)

MARLES: It is minimal change, because we need to be, you know, the terms on which we have done this, is about asking for a frigate which is currently in service and having it built overseas so that we can have it in service in our Navy as quickly as possible. And inherent in all of that is the idea of minimal change.

JOURNALIST: Will we see a down select on the frigates down to two bidders or will the Government make a decision (inaudible)

MARLES: Look, a good question. We not made that decision yet. We will, in terms of exactly what the down selection will look like, all of that is being assessed as we speak. I mean, the process is going forward at a pace in considering the five bidders right now, there will be a down selection of some sort soon, exactly the form of that is still to be determined. Thanks everyone.

ENDS