Press conference, Washington DC

TUESDAY, 22 OCTOBER 2024

SUBJECTS: $7 billion investment into missiles, Australia’s relationship with the US.

MINISTER FOR DEFENCE INDUSTRY PAT CONROY: Well, thank you for joining us today. Today I’m joined by Air Marshal Leon Phillips, head of the Guided Weapons and Explosive Ordnance Enterprise, and Captain David Turner Assistant Defence Attaché. 

As we’ve said many times, Australia is facing the most contested geostrategic environment since the Second World War. Our relationships with allies and partners are critical. Over the past week, I visited the United Kingdom and Belgium to meet with counterparts and attend the North Atlantic Treaty Organisation, NATO, Defence Ministers Meeting and in Washington, D.C., I’m meeting with US officials and industry leaders to progress efforts to strengthen our relationship and deepen our collaboration on the defence industry. 

I acknowledge the active and continuing commitment of the United States to working with us to ensure the safety and security of Australia and our Indo–Pacific region. Today I’m announcing that the Australian Government has procured from the United States the Standard Missile 2 Block IIIC and Standard Missile 6 for the Hobart‑class destroyers and for the Hunter‑class frigates. This is a $7 billion investment in protecting Australia against modern and evolving missile threats. Let me repeat that: this is a $7 billion investment in defending Australia against evolving missile and aircraft threats. 

These are state‑of‑the‑art long-range missiles. In fact, they are the best air defence missiles in the world. The SM-2 IIIC brings active seeker technology and significantly enhanced defensive capabilities against missile threats and the SM-6 missile will provide Australia with long-range air defence capability against air and missile threats and offensive anti-ship capability and for the first time a terminal ballistic missile defence capability. 

Australia was the first country other than the United States to test fire an SM‑6 missile underscoring the strength of our relationship. These capabilities will ensure the Royal Australian Navy is equipped to protect the nation from future air and missile threats. In February this year, the Australian Government released our blueprint for a larger and more lethal surface combatant fleet for the Royal Australian Navy along with the most significant investment in the Royal Australian Navy in decades. We are more than doubling the surface combatant fleet of the Royal Australian Navy, which complements our acquisition of nuclear‑powered but conventionally armed submarines. In June we cut the first steel to be used on the lead ship of the Hunter‑class frigates. In July we conducted the successful firing of a naval strike missile from the Hobart‑class destroyer HMAS Sydney and in August Sydney conducted the first test firing of an SM‑6 missile outside of the United States. 

With today’s announcement of the acquisition of the Standard Missile 2 IIIC and the Standard Missile 6, we will provide the Hobart‑class destroyers and the Hunter‑class frigates with the increased lethality the government has promised. This acquisition is part of the Albanese Government’s commitment to the Guided Weapons and Explosive Ordnance Enterprise, a commitment that’s been matched by a $16 billion to $21 billion investment in it over the next decade. This government is moving fast to keep Australians safe and deter any threat in the missile age that we face. 

In summary, ladies and gentlemen, the highest duty of any government is to keep Australians safe and to do that, we need to invest in the best capability for the Royal Australian Navy, and that’s why we’re spending $7 billion to acquire the best medium and long-range air defence missiles in the world. I’m very happy to answer any questions.

JOURNALIST: What sort of time frame can we expect on the delivery of these? 

MINISTER CONROY: For operational reasons we don’t comment on timing of deliveries, but these are the most advanced air defence missiles in the world and it’s appropriate the Royal Australian Navy’s premier surface combatant vessels, the Hobart‑class destroyers and the Hunter‑class frigates, are equipped with them.

JOURNALIST: Why does the Royal Australian Navy need more long range missiles to protect itself and the area of the Pacific? 

MINISTER CONROY: Well, the Defence Strategic Review and the National Defence Strategy was critical – sorry, wasn’t critical. It was clear that we live in a missile age. We live in the greatest arms race in our region since 1945 with a high degree of strategic uncertainty. You just have to look at the lessons from the Ukraine conflict to understand the importance of air defence and the ability to defend against missile threats. That why acquiring the SM‑2 IIIC missile, which is the best medium-range air defence missile in the world, and that’s why we’re acquiring the SM‑6 missile, which is the best long-range air defence missile in the world. And importantly, the SM‑6 has the ability to defeat ballistic missiles in their terminal attack phase and also has good anti-ship strike capability, and that complements the naval strike missile. 

So, this is about equipping the Royal Australian Navy with the best possible missiles as part of our commitment to giving us the safest – sorry the strongest Defence Force to help keep Australians safe.

JOURNALIST: Just to follow up on that, how do you think someone like China would respond to such a deal between Australia and America on something like this? 

MINISTER CONROY: Well, that’s a question best directed at other parties, but what I can say is that I think we’ve been very clear through the National Defence Strategy and our increase in the Defence budget of $50.7 billion that the Albanese Government is very serious about keeping Australians safe by investing in a stronger and better equipped Australian Defence Force. That is critical to defending our nation and projecting deterrents. I’ve been very clear that the best way of avoiding conflict is by deterring any potential adversary and this investment is part of that.

JOURNALIST: Minister Conroy, are you able just to put this in practical terms a bit more by providing a couple of situations where we might be using these new missile capabilities? 

MINISTER CONROY: Well, again, I need to be careful about hypotheticals, but what we’ve been very clear is that we live in an age where lots of countries in our region are investing in anti-ship missiles and investing in aircraft to deliver them. So, these missiles are designed to defeat that so by either destroying and attacking aircraft or if they’re successful in launching a missile, destroying that missile in flight. Importantly – and that’s both at medium range with the SM‑2 missiles and at long range with the SM‑6 missiles. Importantly, this is part of a broader suite of protections. So, we’ve got short-range missiles that Australia produces parts for in Australia already called the Evolved SeaSparrow Missile and even closer in we’ve got a beautiful Australian invention called Nulka, which is a hovering rocket that projects a radar duplication of the ship which then drifts away from the shift to distract any missile that’s successful in penetrating that missile defence barrier. So, this is about giving our naval vessels the ability to protect themselves better and to protect any ship they’re escorting better. Also, potentially, obviously convoys of landing craft and other things of that like.

JOURNALIST: Can you comment on the significance of the spend on this initiative and is it more than what perhaps has originally been envisioned or can you give us any background about the process up to here?

MINISTER CONROY: I might invite Air Marshal Leon Phillips to give more detail of that but this is a $7 billion investment. It’s part of the $330 billion investment over the next decade in our integrated investment program. It is critical as we acquire more vessels, we’re more than doubling the naval surface fleet. Let me repeat that: we’re more than doubling the surface combatant fleet of the Navy and you need missiles to equip them with. So, that’s why this very significant investment is being made. Importantly, you can only do this when you have a strong economy and support from the Prime Minister and the Treasurer and the Finance Minister to give the resources needed for a growing defence budget as we have now. Leon is – sorry, Leon is over here. Anything you want to add here? 

AIR MARSHAL LEON PHILLIPS: Just a few comments on that and our focus on Guided Weapons and Explosive Ordnance Enterprise. So, when the NDS and, importantly, the integrated investment plan was unveiled this year, the government allocated $16 billion to $21 billion over the 10‑year period to get after especially domestic manufacturing. It was also an additional allocation across the various domains of just under $30 billion that will go to off-the-shelf acquisitions of various weapons where it doesn’t make sense to do domestic manufacturing for a range of reasons. This is part of that almost $30 billion that will go towards again providing an effective deterrent and offensive capability for our Defence Force. 

MINISTER CONROY: Thanks, Leon. And just to emphasise again it was in my prepared remarks, we are only the second nation in the world to successfully test fire the very advanced SM‑6 missile, which demonstrates the strength of our alliance with the United States and the importance of this capability for our naval vessels.

JOURNALIST: Could you just mention who on the US side that you would deal with on this 

MINISTER CONROY: Sure, so this is a foreign military sales case so our contract is with the US Government, who will deliver it as part of their production line. They are obviously significantly increasing in their investment in their sales to equip their Navy. So, we are part of that purchase. The original equipment manufacturer for this missile is a company called RTX that has a presence in Australia. They are a strategic partner of our Guided Weapons and Explosive Ordnance Enterprise under one of their names otherwise known as Raytheon.

JOURNALIST: Are there any further approvals needed on either side or is this – 

MINISTER CONROY: This is congressional approval for it. So, that is – Leon – this is the last approval in the process. So, they’ll announce, start manufacturing those missiles and start delivering them according to the agreed time frame to equip the Hobart‑class air warfare destroyers and the Hunter‑class frigates. And that’s part of our broader plans around up armouring the Royal Australian Navy.

JOURNALIST: Minister, can I just ask: are you concerned that investigations into what the National Audit Office described as unethical conduct by a former defence official who is now with Thales appears to have hit a dead‑end with the Anti‑Corruption Commission referring it back to the department, which then found no evidence? 

MINISTER CONROY: Well, again, I think the important thing there is all due process was followed. And that all the organisations involved have investigated this matter. Lessons have been learned for the Department of Defence and I know they’ve made changes to their procurement process to ensure that this doesn’t happen again.

JOURNALIST: Can you elaborate on those changes? 

MINISTER CONROY: I’ll suggest Air Marshal Leon Phillips, if you’ve got any details there that might be relevant. 

AIR MARSHAL LEON PHILLIPS: Thank you for the comment. I mean, obviously we welcome any of the input and oversight from the ANAO to help us understand where we are with our processes. Back to your point, the department has investigated that matter and cannot substantiate what was alleged. So, we’ve concluded those matters. In terms of procurement, we continue to sharpen up our procurement policy to ensure that we’re providing effective value for money and oversight.

JOURNALIST: And will Thales be awarded the 155-mm munitions contract despite these allegations having been referred to the Anti‑Corruption Commission? 

AIR MARSHAL LEON PHILLIPS: We’ll have further announcements to be made in the future as to allocation of the 155 contracts. 

MINISTER CONROY: Thanks very much, everyone.

ENDS

MEDIA CONTACT: KARLIS SALNA +61 435 521 326