Press Conference, RAAF Base Edinburgh

SUBJECTS: New $200 million hangar to maintain RAAF aircraft in north Adelaide, building Australia’s sovereign defence industrial base, ADF Workforce, P-8 Poseidon Aircraft.

MINISTER FOR DEFENCE INDUSTRY PAT CONROY: .... and Defence and Space Industries Stephen Mullighan and representatives from BESIX Watpac and Boeing Defence Australia at the sod turning, which is all about making South Australia, the Defence State, even greater. This is all about sovereignty and independence for the people of Australia and the Albanese Labor Government's commitment to investing in the Australian Defence Force. Through a genuine partnership with the South Australian Government we are able to bring home deep level maintenance and modification of critical RAAF capability.  The P-8 Poseidon aircraft and the Wedgetail aircraft are critical to the defence of the nation, but until this facility is complete we need to send these aircraft to the United States for deep level maintenance modification.  By making this co-investment with the South Australian Government we will create 450 jobs in construction, 50 ongoing high‑skilled, well paid jobs in aviation technician work, but even more importantly we will be getting these aircraft maintained and upgraded cheaper and faster.  So that's a win-win for the taxpayer of Australia and the Australian Defence Force. By doing this work in Australia the work will be done faster, it will be done cheaper, and we will get more sovereignty and independence for Australia because we won't have to send the work overseas.  This is one part of the Albanese Labor Government's commitment to defending our nation and keeping Australians safe.  This is one part of our $330 billion investment in equipping the Australian Defence Force with the most advanced capabilities we can get them to defend Australia.  I will invite Stephen to say a few words and then we will answer questions.  

STEPHEN MULLIGHAN,  SOUTH AUSTRALIAN TREASURER AND MINISTER FOR DEFENCE AND SPACE INDUSTRIES: Thanks so much, Minister.  It is a great pleasure to welcome Federal Defence Industries Minister Pat Conroy to South Australia for this really important announcement for the State's defence industries.  $250 million being invested on this site to make sure that not only can we enable the RAAF and Boeing Australia to maintain their fleet domestically here in our own country rather than send them off to the US and keep them in service for longer periods of time with less down time, but once again we are attracting further expansion of the State's defence industries. That's really positive for our economy. Defence industries are so important for our Government's efforts to reposition our economy to a more complex economy with higher skills, higher paid jobs.  And having this facility here not only helps us do that, but it sends a clear message - once again - to the Commonwealth Government that they will always have a willing partner with South Australia to support their efforts in locating as much of this work in Australia as possible and to do as much of it as we can here in South Australia and also sends a really good message to young South Australian school kids that they can have life‑long productive, well-paid careers in our defence industries with our defence forces right here in South Australia.  

Happy to take questions.  

JOURNALIST: Treasurer, we are just hearing that ASC workers are going to walk off the job today.  They are saying they are not getting - not being respected enough when it comes to pay.  So is the government doing enough when it comes to ‑ 

MINISTER MULLIGHAN: That might be a matter that the federal minister can take.  Do you want me to answer ‑  

JOURNALIST: Yes, you can.  Is the State Government doing enough when it comes to supporting high level jobs here for our defence force?

MINISTER MULLIGHAN: Absolutely.  I mean, whether it starts in our school system, we are building new technical colleges to give our school kids from year 10 onwards the technical skills they need to walk straight into jobs in our defence industries.  Our first technical college is already up and running in Findon and those kids that complete year 12 at Findon Technical College have got a guaranteed job with BAE Systems Australia.  

JOURNALIST: What's your reaction to the ASC workers walking off the job today?  

MINISTER MULLIGHAN: We hope that we can make sure that we keep industry disputation to a minimum.  South Australia has got a great reputation around the country for having relatively lower rates of industrial disputation.  We are doing everything we can as a government to massively grow the workforce which is represented by the trade unions at Osborne let alone elsewhere around the state.  So they have got life‑long, well-paid jobs to look forward to.  We hope we can get past this period of industrial disputation quickly.  

JOURNALIST: Is it already to ask Minister Conroy about ‑ what's your reaction to ASC workers going on strike?

MINISTER CONROY: On both your questions, the first one about defence industry in South Australia.  I have to laud the vision of the South Australian Labor Governments, whether it was Premier Mike Rann and his investment in Tech Port which led to the delivery of continuous naval shipbuilding in South Australia, or the current South Australian Labor Government's co-investment here.  This state punches well above its weight, it puts its money where its mouth is, and as a result of it South Australia truly is the defence industry state. There are thousands of secure, high‑paid well skilled jobs helping defend our nation by supporting the ADF and it's a tribute to the workers of this state, it's a tribute to the businesses of this state. It is also a tribute to the South Australian Government and their vision.  On the ASC matter, obviously this is a matter between ASC and their workforce.  They are working through those issues now. The Federal Government is committed to continuous naval shipbuilding in South Australia and WA.  That means workers in the maritime industry know they can work in this industry for decades to come. I had the privilege of going to the technical high school with the South Australian Premier to meet some of these young apprentices, and they are going to do brilliant work for our nation and have a future where they can buy a house, pay off a mortgage, raise a family, working to defend our nation.  ASC and their workforce are working through those issues and I'm confident that they will find it an equitable resolution. 

JOURNALIST: They are saying they are getting paid 18 per cent less than their WA counterparts. Is that an issue?  

MINISTER CONROY: Look, I'm not going to get into the nitty-gritty of the negotiations.  We are not a party to the agreement, it's an agreement between ASC and their workforce, and like all industrial relations, particularly where there is negotiations, it's up to them to resolve it and I'm confident they will. 

JOURNALIST: Do you agree that they should get paid the same amount as their counterparts?  

MINISTER CONROY: Look, again, as a federal minister I'm not in the habit of publicly commenting on individual enterprise agreement negotiations. They can - they will resolve it through the normal industrial processes.  

JOURNALIST: They say for over 12 years they have been undervalued and disrespected in SA.  Do you - would you agree with that?

MINISTER CONROY: Well, certainly not from the Federal Labor Government.  Those workers do a brilliant job maintaining the Collins Class submarines, which the most advanced diesel electric submarine in the world, and we are relying on those workers to be part of the 20,000 jobs that have been created to build the SSN AUKUS which will be the most advanced nuclear powered but conventionally armed submarine in the world.  They have done brilliant work in the past, they are doing great work now and we are relying on them to do great work in the future. 

JOURNALIST: It is fair to say Boeing hasn't had a great 12 months when it comes to safety issues.  Have you backed the right horse here in switching to Boeing for the aircraft?

MINISTER CONROY: Again, I will let Boeing make a comment on that particular question. But we’ve got confidence in Boeing Defence Australia, they are a critical defence industry partner for Australia and they are doing great work.  I will give you an example that is slightly older.  We flew the Classic Hornet for much longer than any other nation in the world.  I'm happy to be corrected if there is one that has outlasted us, but we flew them for at least triple the length of the US Navy who were pushing them off the back of aircraft carriers.  How is that able to happen?  Because of the great work of the Defence Science and Technology Organisation and Boeing Defence Australia to work on extending the life of the classic Hornet which meant we got greater use out of them which saved taxpayers money.  So this is a very experienced company with a very skilled workforce and I have got confidence in them. I'm not sure, Amy, if you want to add anything there?  

AMY LIST, MANAGING DIRECTOR OF BOEING AUSTRALIA: Thank you. Boeing Defence Australia is really proud of our safety record in maintaining and operating the ADF assets that we have here.  The P-8 Poseidon aircraft is an incredibly important part of our arsenal and our workers hold safety as a key value in everything that they do and I'm confident that we will continue to keep the Australian Defence Force safe.  

JOURNALIST: Is it better to have the maintenance close by to where the guys are working day in and day out?  Will this help, having the facility here?  

AMY LIST: Having the facility right near the operational part of the Royal Australian Air Force is really important because it means that if there are any maintenance issues with the aircraft we can talk directly to the operators.  It really improves the speed that we can do the work and make sure that we are doing it safely as well.  Thank you.  

JOURNALIST: Can you go into a bit more detail about the actual work that's going to happen with these aircraft, what the day-to-day looks like?  

AMY LIST: Certainly.  So day-to-day in this facility there will be two main aspects of the work.  One is deeper maintenance, and that's looking at the aircraft in detail making sure that structurally and each of the components has been maintained and continues to be safe and sound to keep going.  So an hourly maintenance activity which we do on all of our aircraft fleets. The upgrades is really important.  The upgrade that we are doing here is what - where we take a lot of the mission systems out of the aircraft, we put new upgraded mission systems in to make sure that the capabilities that the P-8 offer remain contemporary and at the cutting edge of what we need for the Australian Defence Force.  

JOURNALIST: How beneficial is it to have these hangars so close to the actual runway, where I'm assuming there is going to be a taxiway system to park these aircraft?  

AMY LIST: So having this facility so close to where the aircraft operate is critical for what you said, that moving them right in, our keeping the - speeding up what we can do to make sure the aircraft are operational for as long as possible.  It also makes sure that the operators are right there for us to be able to test if we need to and talk to them about how they use the aircraft.  

JOURNALIST: Treasurer, could I ask you a couple of questions about Medicare.  

MINISTER MULLIGHAN: (Indistinct).  

JOURNALIST: Is the Government aware of medical centres providing bulk‑billed services while also charging patients additional fees such as a membership fee?   

MINISTER MULLIGHAN: I have heard those reports and I have asked Revenue SA to have a look into those.  Bulk‑billed patients shouldn't be paying anything.  That is the definition of a bulk‑billed service.  So if there are any instances of GPs claiming a bulk‑billed service from Medicare, particularly claiming a bulk‑billing incentive, which of course the Federal Albanese Government tripled in November in order to better work (indistinct) GPs, then that is something that we want to (indistinct) 

JOURNALIST: Is it legal to charge additional fees to patients so they can access bulk‑billed services?  

MINISTER MULLIGHAN: Well, that's what I have asked Revenue SA to have a look at.  

JOURNALIST: Has the Government taken any action against the centres they might come across in the last 12 months?  

MINISTER MULLIGHAN: Well, I guess, Harvey, that's why I have asked Revenue SA to look into this.  Firstly to establish what the practice is, the veracity of the courts and also what it means for them.  I mean, I'm not responsible, of course, for how the Medicare system operates and the remuneration of GPs.  What we have done here in South Australia is give our GPs the most generous arrangements in the country, bringing them into compliance with their long‑standing payroll tax obligations.  We were the first state to grant GPs an amnesty from past liabilities.  We also gave them a further full financial year of not having to pay payroll tax, and we have also come up with the most generous scheme out of Victoria, New South Wales, the ACT and the other jurisdictions to make sure that our payroll tax regime is more competitive than what we see around the nation. So we are doing everything we can to support GPs in playing their critical role in healthcare delivery here in South Australia, but I have heard those reports and that's why we have asked (indistinct) 

JOURNALIST: Do you think the GP payroll tax might end up pushing more clinics to perhaps putting a fee like this, a membership fee in place?

MINISTER MULLIGHAN: Look, there are GP clinics which provide bulk‑billed services which do not require a fee from patients and there are GP clinics which charge a gap fee and have long done so for many years.  And of course most of those GP clinics charging those gap fees increase those fees on 1 July each year; I'm sure that practice hasn't changed and won't change for many of those practices.  But the more alarmist calls from some GPs, who, like any small business operator, will of course make calls to reduce taxes on them, I'm sure they will continue to campaign.  But I'm very proud here that in South Australia we have been the first to listen, the first to act and to make sure that we have got the most generous arrangement here in South Australia anywhere in the country.  

JOURNALIST: South Australia's economy really bucked the trend in the last quarter, but do you fear or do you have empathy, I guess, for what South Australians are going through when it comes to the cost of living at the moment?  

MINISTER MULLIGHAN: Absolutely.  I mean, things are very difficult for South Australian households as they are across the nation.  And that's why we have seen both the Federal Government but also the State Government deploy so much cost of living support to South Australian households and businesses.  I mean, imagine the clamour from our political opponents had the State and Federal Governments not been directly supporting the national and state economy so much through the cost of living supports. They would say that we are not doing enough.  Well, of course, we are acting to support Australians and South Australians most in need and I'm very proud of the role that we are playing. But we are not through these difficult times yet.  The Reserve Bank has increased interest rates in an effort to get inflation under control, they are trying to slow demand in the economy and that is having impacts on both households and businesses.  There is no escaping that.  But I think that governments, both federal and state, are playing their role in supporting those people most in need of in our community.

JOURNALIST: We spoke to Oz Harvest who said demand is through the roof for a (indistinct) they have been offering free food.  Is there more - are you concerned about that, is there more that you can do as a government?  

MINISTER MULLIGHAN: Look, we are concerned about that, of course, and that's why over the last two years we have stepped up our direct supports to those organisations, including Oz Harvest and Foodbank, who are helping those people in our community who are most in need.  We have also, for example, significantly expanded our breakfast in schools programs in our public schools, recognising that without that support many kids would go to school hungry and not be able to eat before morning classes start. So we are not only supporting households and businesses generally, but we are also providing targeted supports, particularly to those non‑government organisations who are doing such an important work to support those people most in need in our community.  

JOURNALIST: Treasurer, just on another topic.  Would the State Government push for a national reform to tighten restrictions on gambling? 

MINISTER MULLIGHAN: Well, I think the Federal Government has already undertaken that work.  So it is the Albanese Federal Government that has undertaken this review.  They are actively considering the changes that should be made. But, of course, as much as state governments can regulate the gambling activities that we see in our states, as much as the Federal Government can regulate the gambling activity which is located in Australia, we are going to have a pretty honest conversation about what some of these bad overseas actors are doing to communities around the world, including to Australians, with online gambling and online casinos.  And that is a massive challenge to communities around the world, including South Australians.  

JOURNALIST: There is a clear link between losses and pokies.  Do you think it is time for states to work on uniform restrictions?

MINISTER MULLIGHAN: Well, I think we have got very tight restrictions on poker machine gambling here in South Australia. In fact, it was amendments that we moved in the last term of government to impose betting limits on poker machines here in South Australia and, you know, I think if we go to ‑ if we are going to as a community allow gambling to occur in our community, as we have done in Australia for well over 150 years, well it's important that we regulate it appropriately.  And I would much rather see people who are choosing to engage in gambling do it in a heavily regulated form, for example in a supervised area in a hotel, rather than doing it at home online with an overseas gambling operator, completely unregulated, where people are losing their livelihoods probably as we speak.  So, you know, I think state and federal governments are taking important steps forward, but we have got, you know, new pressures on our communities from outside the country that we haven't seen in times gone by and that is proving a real challenge for people in the community.  

JOURNALIST: Just a light‑hearted one, Treasurer.  The Prime Minister has called a National Cabinet tonight.  Arguably Port Adelaide's number one supporter, the Premier, is going to miss the game.  Are you going to be texting him updates during the game? 

MINISTER MULLIGHAN: I'm sure he will be surreptitiously looking at his AFL app to see how the score is going.  But, look, National Cabinet is one of the most important meetings that we have in the country at any time.  They have got very important business to be talking about at National Cabinet and nothing should get in the way of that.  But we are very hopeful that we see Port Adelaide get up over Geelong tonight.  

JOURNALIST: Can I just ask Pat one more.  Are you able to touch on the importance of the sovereign capabilities of this sort of site and why that matters?

MINISTER CONROY: Absolutely.  So we released our Defence Industry Development Strategy earlier this year and we identified seven sovereign defence industrial priorities.  These SDIPs are the seven critical activities that we must do in this country to maintain our independence and our sovereignty.  And SDIP number one is the ability to maintain, repair, overhaul and upgrade our aircraft for the Royal Australian Air Force in this country.  And as I said previously, the Wedgetail aircraft and the P‑8 have to go to the United States for deep level maintenance and upgrades.  That means they are out of action for up to years at a time.  They are in a production queue of a much larger run.  Now, that's - the United States is our closest ally and we are really grateful and rely on their support, but when we can do it faster in this country, when we can do it cheaper in this country, when we can grow 50 high‑skilled, high‑waged jobs in this country by bringing that work home, we are ‑ that was a no‑brainer.  So this announcement today is about increasing the sovereignty and independence of Australia by letting the Royal Australian Air Force get more access to these aircraft and developing that industry.  So I'm grateful to our partnership with Boeing Defence Australia in bringing this to fruition, but I am especially grateful to the vision of the South Australian Government partnering with us to get this work done here.  It's a real joy to work with the South Australian Labor Government. Quite frankly, I wish every state government was as visionary and forward-leaning as South Australia.  It means they win work, it means more jobs for South Australians and more sovereignty for Australia.  

JOURNALIST: Does this build South Australia as a bit of a defence hub?  

MINISTER CONROY: South Australia, I know it is on your ‑ well, it used to be on your number plate, you truly are the defence state.  If someone said to me 25 years ago that you would be building the Hunter Class frigates after the Air Warfare Destroyer, then you would be building nuclear-powered conventionally armed submarines in South Australia, you are the heart of deep level maintenance for our key aircraft, that would have been a truly incredible vision.  And it has arrived because of the commitment of the South Australian Labor Government and South Australian companies, and most especially a very skilled South Australian workforce.  And I sat in the Federal Parliament when Joe Hockey and Tony Abbott bullied the South Australian car industry out of this country and I had grave fears for what that meant for South Australia.  But the future is so bright, we are investing record amounts in the Australian defence industry and South Australia will be the biggest beneficiary of that.  

JOURNALIST: Can I just ask one to the (indistinct) 

SPEAKER B: Mate, you are building a bloody big shed.  Any challenges there or is this the biggest sort of shed- ‑ 

MARK BAKER,  CEO BESIX WATPAC: It is actually not.  We talked about it being one and half times the size of ‑

JOURNALIST: Sorry, looking ‑ 

MARK BAKER: It is actually not. We were told it was one and a half times the size of Adelaide Oval.  We are actually building something that is much significantly bigger in Sydney at the moment for (indistinct) so while these projects are sizeable in nature, the engineering that goes into them is well (indistinct) capable with our in‑house engineering team we are able to modify the solution to ensure that not only are we able to build it efficiently, we are building it using local subcontractors and we have partnered with a local South Australian steel subcontractor to deliver this project and I have no doubt that we (indistinct) facility.

ENDS