Television Interview, ABC News 24

SUBJECT/S: Mobilization deed between ASC, BAE and the Commonwealth; US Election outcome; Future Trump Administration; Regional Security

HOST, GREG JENNETT: Acting Prime Minister, welcome back to the program. There's some really significant developments to get across today, but it'd probably be remiss of us not to talk about what takes you there to Adelaide. A key element of your announcement today is this agreement with BAE Systems and the ASC to get cracking on preparatory work at Osborne. Can you flesh out the progress on that? What will we see built in, let's say, two years from now on site?

ACTING PRIME MINISTER, RICHARD MARLES: Well, what the- This is the mobilization deed that we have announced today, which is actually between the Commonwealth, ASC, BAE. To take a step back, qhat we announced earlier in the year is that the construction model for our future submarines will be a joint vent venture between ASC which is a government owned entity, and BAE contracting to the Commonwealth to build our future submarines. And getting that in place will take some time. And so the mobilisation deed enables us to get on with things while that is all being worked through. And this will see us be able to purchase long lead items, for example, do workforce plans and start getting the workforce in place, working on the construction yard itself, seeing that that is being put in place so that we can be in a position to build the submarines on time. So, this is an enabler of the joint venture, but it's a really important measure to make sure that as the joint venture is worked through, we don't lose any time in terms of cracking on with actually doing the nuts and bolts of building our future submarines.

JENNETT: I see. So, physically taking shape for the build, you know, large sheds and the like. When would you envisage that begins?

MARLES: Well, we're in the process of working through the construction yard now. We're in the process of building up our workforce now and making sure that we have people with training. And we are in the process of purchasing long lead items right now. I mean, I amazingly was at the Rolls Royce facility in Britain, which is where the actual reactor will be built. And there are long lead items which are being constructed as we speak, which will be on those first submarines that roll off the production line in Adelaide in the early 2040s. So, all of this is taking place. The mobilisation deed is the mechanism under which this is able to take place until we have the full joint venture in place. And the joint venture itself is an important construct because it does maximise the voice, if you like, of the government around the table as this proceeds over the decades to come. We always knew it was going to be a more complicated legal structure, so to get there we didn't want to waste time and that's what the mobilization deed did being in place now enables us to proceed as that is being undertaken.

JENNETT: I see. I understand. Thanks for the explanation and we'll track further developments with you towards that end. Why don't we go overseas now, Richard Marles. The Trump transition team has announced that Pete Hegseth will be Defense Secretary in the second Trump Administration- an army combat veteran, a Fox News host, no direct political experience. Did you see this coming? What do you know of Pete Hegseth?

MARLES: Well, look, I've not met Pete Hegseth, but I certainly do extend my congratulations to him on this very significant appointment. Representing the United States Government as the Secretary of Defense is a huge responsibility and this will be an amazing opportunity for Pete Hegseth. And certainly from my point of view, you know, I've worked more closely with my American counterpart, Lloyd Austin, than I would have with any other Defence Minister around the world, and I'm sure that will be the case when Pete Hegseth becomes the Secretary of Defense. It is a critically important part of the way in which our bilateral relationship exists. So much of what happens between our two countries happens through the prism of defence. So, I very much look forward to meeting him and building a relationship which will help us take the alliance into the future.

JENNETT: Yes. So, would you seek to pay him a visit- arrange a meeting with Pete Hegseth prior to inauguration of the President?

MARLES: Oh, look, I mean, we'll take all of that in due course and in the appropriate way. What, I want, what we will be very keen to do, and certainly what I will be very keen to do, is to build the relationship with Pete Hegseth as soon as I can, because as I said, is I fundamentally important relationship in terms of the broader relationship between our two countries. You know, so many of the equities that we have in the alliance lie in the place of Defence- AUKUS being first and foremost amongst them. And so I'll be very keen to get to know him and build that relationship as soon as possible so that we can take the alliance and AUKUS into the future.

JENNETT: Of course, let's talk about an element of that. Prime Minister Albanese’s foreshadowed arguments that he might use to, to seek an exemption from tariffs for Australia under the Trump Administration. That goes to the fact that the US has a trade surplus with Australia. You've got many components in defence supply chains, including steel, being considered for use in U.S. naval shipbuilding- 

MARLES: Complementary to that, and will help in the creation of American jobs, as those jobs will help in the creation of Australian jobs.

JENNETT: It does sound like you're prepared to deploy that argument when the time comes. Look, also, you know, inescapably we're talking a lot about the Trump Administration at the moment. The influential Trump campaign and transition figure Dan Scavino has used that hourglass emoji to connote that time might be running out for Kevin Rudd as Australia's Ambassador. I know you've expressed full confidence in Dr. Rudd as recently as today, but how does this cryptic message not augur badly for Dr. Rudd? He's very much on Team Trump's radar now, isn't he?

MARLES: Well, Kevin has done a fantastic job in representing our nation in the United States across the political spectrum. And we really did see an example of that at the end of last year. As I said, as legislation passed the United States Congress with the support of Trump Republicans. And Kevin, you know, work the Hill across the entire political spectrum. Kevin was there at the Republican National Convention earlier this year. And Kevin has been really important in terms of introducing us to a number of figures who may play a part in the Trump Administration going forwards. I really have no doubt that once President Trump is sworn in again, that Kevin will be able to play a really important role representing Australia ably to that Administration. And that's, that's his focus right now, and obviously that's the focus of our country, is to build the best relationship we can with, with the future Trump Administration.

JENNETT: Because we've had a real slew of appointments announced today or this evening, US Time. We've had John Ratcliffe, Director of the CIA, Elon Musk, Vivek Ramaswamy will run a Department of Government Efficiency. Can you say, or are you aware that Ambassador Rudd has relationships and contacts with any of, or all of those appointments?

MARLES: Well, I don't know the answer specifically in relation to those appointments, but what I do know is that Kevin has been working very closely with, as I said, people across the political spectrum and that very much includes Republicans. And, you know, those who have been in decision making roles throughout the course of the last couple of years in Congress, Kevin has been very close to and has had a real impact on in terms of advancing Australia's national interest and has won their support on key issues which are important for Australia. And AUKUS is central to that. And again, I really have no doubts about Kevin's ability to do that with the Trump Administration going forward. And Kevin is a very senior figure in Australian political history obviously. He carries the confidence of the Australian government, he carries the experience of what it is to govern. And, you know, as somebody who has been a leader in strategic thinking actually around the world, but very much in the United States, who many people look to in terms of what he has to advise in relation to world affairs, Kevin really is well placed to advance our interests with the future Trump Administration.

JENNETT: I hear your confidence coming through loud and clear, Richard Marles. Look, just one more on your program. You've got Lloyd Austin heading into Darwin later in the week on a trip that also takes him to Fiji, Laos and the Philippines. This comes at a time when the Pentagon is actively examining reopening airfields and force posture positions, as they call them, in the Pacific, some that haven't been in operation for 75 to 80 years. Just wondering, have you given thought to the consequences for Australia's relationship with Fiji, Papua New Guinea and other places if the US expands its force posture in our region in that way?

MARLES: Well, actually, you know, we've been encouraging of America over a long period of time to be more engaged with Pacific island countries. And so we really welcome the engagement that we've seen from the American government in respect of that. I mean, the US signed a Defence Cooperation Agreement with Papua New Guinea, for example, which I think is a really important development in terms of helping to build the capability of the Papua New Guinean Defence Force and the Papua New Guinean state. That's very much in Australia's national interest as it is to see America more engaged across the Pacific. So, this is fundamentally a good thing from, from our point of view. And it reflects also the bilateral relationship that we have with the United States. We are seeing increased cooperation occur across all domains; air, sea, land, but also cyber and space. The breadth of the engagement, the defence-to-defence engagement that we have now between America and Australia really is the greatest it's been in a very, very long time. But that is critically important given the strategic landscape that we face. And, you know, Lloyd has been an unbelievable partner in terms of being able to do that. This will be an opportunity for me to express that to him, as I obviously have done on many occasions. It is a trilateral meeting with Japan that construct Japan, the US, Australia working together is a really important practical relationship which we are doing more and more with. And so we look forward to the opportunity of progressing that as well.

JENNETT: Indeed, this may be your last encounter with Lloyd Austin as Secretary. Who knows what the next couple of months bring. You also have a country to run right now, Richard Marles. So, we'll thank you for your time, wrap it up there and talk again soon.

MARLES: Thanks, Greg.

ENDS