Television interview, Afternoon Briefing

SUBJECTS: Western Australia Shipbuilding; Housing; Cost of Living.

HOST, GREG JENNETT: But we'll jump across to Western Australia straight up. And a central part of Australia's plans to build a whole new surface fleet for the Navy, as well as maintaining existing submarines and future nuclear ones, is the development of new facilities in the main yard at Henderson in the West. Defence Personnel Minister and local Labor MP for the seat of Burt, Matt Keogh was on hand to witness a new set of announcements about the Henderson Shipyard. He joined us from there. Matt Keogh, welcome back to Afternoon Briefing. So, Henderson Shipyard, where we find you today, is a really packed site, industrially speaking, and it will only become more so, won't it, in the years ahead. You've announced today $127 million over the next three years. What exactly does that buy the Commonwealth by 2028?

MINISTER FOR VETERANS’ AFFAIRS AND DEFENCE PERSONNEL, MATT KEOGH: So, what we've announced today is an agreement with the State Government to create a Commonwealth owned Consolidated Defence Maritime Precinct here at the Henderson Shipyards just south of Perth in Western Australia. The $127 million investment will start the work necessary to expand the facilities, but also do the further studies and design work necessary to support the sustainment of the nuclear powered submarine programme, starting with rotations and then, of course, moving through us operating the submarines we're getting from the United States and then the AUKUS submarine. So, this is setting up for an intergenerational future of submarine sustainment and shipbuilding here in Western Australia.

JENNETT: All right, so unlike the Osborne site in Adelaide, which is already through two Commonwealth companies, fully Federally owned, that is not presently the case at Henderson. But today you have announced this consolidated Commonwealth owned Defence precinct. I'm just wondering, what will the Feds now own or control that you currently do not there.

MINISTER KEOGH: So, currently there is what's called the Common User Facility here in Henderson, which is owned by the State Government. We also have ASC that do sustainment work on it, the Collins-class submarine at the moment next door, but a number of other private businesses that do some Defence work, but also do some non-Defence work here, what we'll be doing is consolidating that site into purely Defence driven work. So, shipbuilding sustainment work on ships and on the submarines and the non-Defence work will be moved to other areas of the Henderson complex. So, it means that we've got the consolidated area, which will still involve Defence industry in a very significant way, but making sure we've got all of that in one place in a consolidated way to deliver the best effect in terms of doing the work, but also to provide the necessary uplift in security that's required for a Defence precinct doing this sort of work.

JENNETT: I see, so you're talking about common user areas. Of course, a major shipbuilding brand there is Austal as a company, the Defence Strategic Review designated Austal a strategic partner at Henderson Yard. Is it still regarded as that?

MINISTER KEOGH: Yes. Austal is the strategic shipbuilder for the Australian Government and the work - they have entered into an MoU with Civmec, which is also currently building the OPV’s here in Western Australia, which will see them cooperating. And it is one of the key enablers to allow us to bring this consolidation together, working with the State Government, who is the current owner of the common user facility down here to create this very important Defence precinct. And what this will enable is what will be generations of work to come. It's not just the thousands of jobs in construction that we'll see over the next decade and beyond, but the over 3000 people that will be working here doing that shipbuilding and that sustainment on submarines, we will see generations going into the future. When you look at our counterparts in the UK and the US, their shipbuilding towns, you've got four, five generations of people that have worked in this area and we'll be having the same thing happening right here in the Henderson precinct in Western Australia.

JENNETT: And will these structures, or could these structures withstand any ownership changes by companies around the yard? You know, we're discussing Austal, of course, it's a matter of record that they've been, or they have had in the past at least discussions with a Korean shipbuilder interested in buying them. Is all of that factored in to what you're setting up here today?

MINISTER KEOGH: So, an important element of this is that the Defence precinct will be Commonwealth owned. We will be the owner of the Defence precinct here and obviously we'll be partnering with a number of industry providers that will be supporting the shipbuild and also the sustainment of submarines. So, we obviously are working with Austal and as I said before, we're working with Civmec and ASC, which is the Australian Government owned submarine sustainment business. And it will be growing considerably and already is, as it's training its staff in the United States and in the UK right now for that uplift of work to be able to support the rotations of American and then UK nuclear submarines into WA, as well as when we are operating our own nuclear propelled submarines and the other real benefit here, Greg, is for the submariners themselves, because at the moment, with the sustainment work that happens on Collins, they have to relocate from Western Australia to South Australia for about six months at the end of that major sustainment work to do the workup of getting the submarine back into the water, because that sustainment work for the nuclear propelled submarines will now all be happening here in Western Australia at Henderson, literally across the water, across the sound from HMAS Stirling. It means we're able to provide greater locational stability for our submarine workforce in the Royal Australian Navy, which is crucial for supporting retention and growing the Defence Force as well.

JENNETT: I see. There's going to put a real squeeze on the housing market there, isn't it?

MINISTER KEOGH: Well, one of the things that I announced last week was actually a programme we're doing with Defence Housing Australia, acquiring up to 500 new homes and that's going to be larger again. We're concluding a few other contracts. There'll be several hundred on top of that, which will be available to support the increasing Navy personnel presence here in the south of Perth and around HMAS Stirling, making sure that they're not competing with the rental market with everybody else by having the Defence Housing Australia homes available to support that. So, we're conscious of that impact and that's why we've entered into those agreements, and are going to be concluding more agreements shortly to make sure that we're meeting that need as well.

JENNETT: Yeah, there's a mind boggling amount of activity that needs to take place over the next three to five years. That is absolutely true. Look, since we're discussing housing, Matt, it’d be remiss of me not to ask, you will have observed that there's quite a bit of muttered criticism from within the Caucus about why the Prime Minister chose this time to buy a $4 million home with his fiancée, Jodie. It is quite a talking point. Just wondering, what feedback have you received or observed on this since the news broke 24 hours ago?

MINISTER KEOGH: Well, you know, what the Prime Minister chooses to do with his housing arrangements is a personal matter for him and Jodie. But what it has highlighted in the conversation at large is actually how our Government is so focused on meeting cost of living pressures for Australians, whether it's groceries, whether it's dealing with providing tax cuts, whether it's providing credits on electricity bills, cheaper childcare, cheaper medicines, and, of course, our programme to support housing through the Housing Australia Future Fund, part of which is about supporting veterans that need support if they are experiencing or at risk of homelessness as well. And what it's highlighted is actually the Government is doing a lot in this space and we know that there's more to be done. People are feeling that pinch and we'll continue to be focused on that work, which is what Australians want us to do.

JENNETT: I see in that presentation you almost make it sound like a positive because it's shone a light on the issue of housing. But as I observe it, it does seem to raise issues, criticism perhaps about judgement and timing. Not about the successful working life of the Prime Minister or aspiration in general, but judgement and timing. In fact, it's been reported by the ABC that one senior Labor insider, Matt, described this as the PM's ‘Hawaii moment’, obviously a reference to Scott Morrison's ill-judged and secretive trip to that US state. Do you see or what are the similarities or differences in that comparison?

MINISTER KEOGH: Well, what you see here is an Australian Prime Minister that's dedicated to the job of making sure we're addressing the cost of living pressures that Australians are feeling across the country. And that's what he is doing each and every day. And it's what our entire Government is focused on each and every day is meeting the needs of ordinary Australians, when it comes to housing pressures, grocery price pressures, which we've been taking significant action on when it comes to delivering tax cuts for every taxpayer. And I think that's actually the prism that people are seeing. It is raising that issue and it's giving us an opportunity to talk to not only what we're doing, but also that we very much understand these pressures. And when we think about the war on inflation that we have been fighting, when we came into Government, inflation was over 6%, it's now under 3%. And there's more work to do and we're continuing to do that work and we're able to do that because of our strong track record on economic management, delivering two Budget surpluses, which is something that the previous Government talked about all the time. It even issued some mugs to that effect, but it never actually delivered on the surpluses and it created that inflationary environment that has caused such hurt for Australian families trying to make ends meet. And the steps that we have taken have brought that rate of inflation down. There is still more to do and we are focused on that and will continue to be focused on that so that we can make life easier for Australians.

JENNETT: All right, well, we're certainly focused on housing. That much we do agree on. Matt Keogh, we'll wrap it up there. I know your time is tight, which means we thank you, as always.

MINISTER KEOGH: Thank you very much Greg, great to be with you again.