Radio Interview, ABC Adelaide Breakfast

SUBJECTS: New $200 million hangar to maintain RAAF aircraft in north Adelaide, building Australia’s sovereign defence industrial base

SONYA FELDHOFF: Adelaide. We put the call out for women who like sheds because David has been selling out this big Penfield hangar that is in the process of being built as basically, my shed's bigger than yours.

DAVID BEVAN: Pat Conroy is the Federal Minister for Defence Industry. So, he's the Federal Minister and he's cut a deal with the feds, have cut a deal with the state to build this enormous hangar, and he's on his way out there to start to look at the start of work. Good morning, Pat Conroy.

MINISTER FOR DEFENCE INDUSTRY PAT CONROY: Good morning, how are you?

DAVID BEVAN: Very well. It is impressive. Tell us how big it's going to be when we finish.

MINISTER CONROY: It will be 240 metres long, so 50 per cent longer than the Adelaide Oval, as you said, 60 metres wide and 25 metres high. And it will accommodate four Boeing 737 sized aircraft at once. So, it will be a tremendously sized shed that will be a real asset to the defence of the nation.

JULES SCHILLER: How much does it cost?

MINISTER CONROY: $200 million is the investment. And this is about being able to do deep maintenance and upgrades and modifications to our 737 aircraft for the Air Force. We've got two sorts of 737 aircraft. We've got the P-8 Poseidon maritime patrol aircraft based at RAAF, Edinburgh, and then the E7 Wedgetail early warning radar aircraft. And this is the first time we'll be able to do that deep level maintenance in Australia. So, this is a real boon for our self-reliance and sovereignty.

DAVID BEVAN: Now it's more than 400 people to build the thing. Once it's done, how many jobs will actually be created with the maintenance work?

MINISTER CONROY: There'll be 50 new high skilled, permanent jobs and things like mechanical engineers, avionics and structural engineers. And this is really a critical breakthrough because previously this work was being done in the United States. We’d have to fly the P-8’s and the Wedgetails back to the United States for this deep level maintenance and upgrades. We can now do it in Australia, which means we've got more independence. We've also cut down the time they're offline and we bring 50 high skilled, well-paid jobs to South Australia.

SONYA FELDHOFF: While we're thrilled that it's happening in South Australia, why South Australia? Why was it deemed this was the right place for it?

MINISTER CONROY: Well, there are two reasons. One, you're already home to the P8 fleet. They're based at RAAF based Edinburgh, and you've got a tremendously deep defence industry in this country- in this state, you truly are the defence state. But the other reason, quite frankly, is how forward looking your State Government is. They are paying for the building of the shed and the shed will be on south Australian government land and then we will lease it back for them over many decades. So, we'll pay the State Government back. But they've been active, they've been a great partner and that's why South Australia is a defence state. Whether it's this project or the common user facility at Osborne, successive state South Australian Governments, and I'll be parochial and say Labor ones under Mike Rann and Mally have really driven this growth of the defence industry.

DAVID BEVAN: Well, when you refer to the Rann Government, the obvious example there would be the ship-lift down at, at Osborne, which allowed the last 20 years of work to continue down there, which it's hoped will then build a bridge towards the nuclear powered submarines. But a moment ago, Minister, you said, we'll pay them back. Did the South Australian government have to stump up most of the money for this and you pay us back over a period of time?

 MINISTER CONROY: Yeah, we'll pay back through a lease. So, we'll basically, through annual leases, pay for the construction of the shed. But your State Government, the South Australian State Government has been visionary and forward leaning and saying, we want to win this business, we want those high skilled jobs in this state and we're going to construct a business model where in the end, the State Government gets the resources returned to it. But they've been a really good partner in this co-investment, and it really stands your state in good stead. I find it frustrating that others states aren't as sort of visionary. Like, this work could have been won by my state of New South Wales, where we've got the base for the Wedgetail aircraft. But South Australia is leading the country in saying we want to be a partner with the Federal Government on defence projects. And that's why you have reaped literally thousands of jobs, high skilled, well paid, secure jobs in the defence industry.

SONYA FELDHOFF: It's 17 minutes to nine. Our guest is Pat Conroy, the Federal Minister for Defence Industry.

JULES SCHILLER: Well, maybe NSW didn't want it because they didn't want to stump up the money.

MINISTER CONROY: Well, that's a call for them, but that means they missed out on the jobs. But also, secondly, all this money will be paid back. So, it's not as if it's not a good deal for South Australian taxpayers. This is about co investment. I can say to you, Mike Rann's investment in the ship lift led to billions of dollars’ worth of work for the south Australian economy. Yes, you co invest up front on a piece of infrastructure that gets paid back and then you get hundreds of millions if not billions of dollars of defence contracts flowing through the state. So, it is an example of state governments making long term investments and the South Australian economy benefiting for over decades.

SONYA FELDHOFF: Minister, what role did council, the local council there have in this? If anything, Steve on the text line suggests this all started with an idea from the CEO of Playford Council wanting to see jobs created in our northern suburbs.

MINISTER CONROY: Well, I'm not in a position to comment on their role on this specific project, but I can say that Playford Council and other councils in the northern suburbs of Adelaide have been very focused on supporting the Defence Industry. They've been great partners and they understand the need to obviously diversify the economy post the end of the automotive manufacturing industry in this country. So, those councils have been great partners and this is a great example of the federation working where councils, State Government and Federal Government work together to increase the independence and sovereignty of our nation by doing this work in Australia and driving lots of economic activity into Adelaide.

DAVID BEVAN: We have a cryptic text here from one of our listeners. I hear New Zealand Air Force is coming here also. Are there plans for the New Zealand Air force to use this facility?

MINISTER CONROY: We're exploring it. We haven't landed it yet, but they're acquiring the same P-8 Poseidon maritime patrol aircraft. So, there'll be opportunities for this hangar to be a regional maintenance hub, not just servicing our aircraft, but servicing aircraft from countries like New Zealand, which is a win for the New Zealand … their aircraft back to the United States. And it results in more jobs and economic activity in Adelaide. It's truly a win-win and you can do that when you've got all levels of government working together on projects like this.

JULES SCHILLER: You're listening to Pat Conroy. He's Federal Minister for Defence Industries, 891 ABC radio, Adelaide. Sonya, David and Jules with you for breakfast. It's quarter to nine. 

Pat Conroy, you mentioned sovereignty and we don't have to go to the US to get these aircraft service. The US are a very close ally of Australia. I mean, we're in. Obviously, AUKUS is a huge deal we're making with them. Are you not satisfied that the US can be relied on to service these aircraft in the future?

MINISTER CONROY: Oh no, they're our cornerstone ally. Our alliance with them is stronger than ever. The point I was making is obviously a, you lose time by having to fly them over the United States to get them maintained and get them upgraded. And secondly, you're naturally in a long queue of aircraft to be maintained. The United States run very large fleets of P-8 Poseidon Aircraft, and they're looking at acquiring the Wedgetail as well. So, we've got no close ally and from the United States. But obviously, if we can do this work in Australia, then that obviously gives us a bit more control over it and a bit more speed of doing it compared to transporting it to the United States. So, this is not a reflection on the alliance, but I think your listeners would agree that anything that increases our sovereignty and independence is a good thing.

DAVID BEVAN: Okay. And Minister, the question without notice. So, I appreciate if you don't have the briefing on this one, but a lot of our listeners drive by the old Keswick army facility. We know that another example of the State and Federal Government cutting a deal, and this related to the land that was freed up for the nuclear power submarines and expansion of facilities down there, was to hand over the Keswick facilities, that beautiful historic building and the land behind it. But I don't think that was going to happen quickly. Do you have any information at all on how quickly that's going to happen? Or will it be a while before we see that the armed services leave that facility?

MINISTER CONROY: Oh, I'm sorry, I don't have those timelines in front of me. I do apologise. But you're right to point out it's a great example of the two levels working well together. We get a massive new submarine construction facility and you get, obviously, land that can be used for other purposes.

DAVID BEVAN: Okay, look, thanks very much for your time.

MINISTER CONROY: Thanks. Have a great morning.

ENDS