Radio interview, ABC Adelaide

INTERVIEW WITH NIKOLAI BEILHARZ
ABC ADELAIDE

TUESDAY, 21 JANUARY 2024

SUBJECTS: Inauguration of Donald Trump, the future of AUKUS, $262 million investment in business opportunities for Australia.

NIKOLAI BEILHARZ: Of course, dominating the news headlines today has been the swearing in of Donald Trump as US President for a second time, and he has been busy publicly signing executive orders and starting to put some of his policies in place. 

So when it comes to the relationship between the United States and Australia, and particularly South Australia, are things like tariffs, probably front of mind, but of course also the AUKUS submarine deal. Is it safe? Will it change under this new administration in the US? 

Pat Conroy is the Federal Minister for Defence Industry and Capability Delivery and he's in Adelaide today. Pat Conroy, thank you for your time this afternoon. 

MINISTER FOR DEFENCE INDUSTRY PAT CONROY: My pleasure. 

NIKOLAI BEILHARZ: So, before we get to the specifics of what you've been announcing and taking about today, in terms of the timing of your visit to Adelaide, is that quite intentional knowing, you know, this is Inauguration Day, the swearing in of the President, Donald Trump? 

MINISTER CONROY: No, it's coincidence more than strategy to be honest. We were here for a number of announcements, including the coming into force the Nuclear Propulsion Treaty for AUKUS, which entered into force over the weekend, so this is just the first opportunity to get over to Adelaide to talk about the massive job opportunities that AUKUS is delivering. 

NIKOLAI BEILHARZ: So, it's not, your intention is not primarily to just provide reassurance that AUKUS is still okay. You don't see any changes there? 

MINISTER CONROY: No, no, I think obviously there's a lot of public debate about this, and that's understandable given the scale of the project, this is the most largest and most sophisticated industrial undertaking this country has ever done, it will drive 20,000 jobs and make the country safer, but it's a huge national effort over decades, and so people are right to make sure that it's on track and that it's continuing, and that's one of my key messages, and in terms of the US commitment, I'm very confident in that. 

The Secretary of State, Rubio, in his confirmation hearings, was very clear about their support for AUKUS and how he thinks it's a good thing. The AUKUS legislation passed the US Senate and Congress with incredibly strong bipartisan support at the end of 23. 

So, AUKUS will go for decades, it will outlast any particular government. We've already had two changes of government, and wire just having the third across the three countries. So, people should be assured that this is in the national interest, it will make the country safer, and it will drive a massive industrial uplift in our economy, particularly in South Australia. 

NIKOLAI BEILHARZ: Have you spoken to any members of the new administration about that issue, about AUKUS? 

MINISTER CONROY: No, I haven't. But obviously we've got the public commentary from Secretary Rubio, and in their first conversation, Prime Minister Albanese and President Trump did discuss AUKUS and it was a very positive conversation. 

And as I said to you, Republican lawmakers have been incredibly strong in supporting AUKUS and I'm confident that will continue. 

NIKOLAI BEILHARZ: Okay. So what is today's announcement about? 

MINISTER CONROY: Yeah, today I was announcing a $262 million investment over two years in giving better, giving greater industrial opportunities for local businesses to win work in the supply chain, not just for our submarines but the submarines of the United States and United Kingdom. 

So that $262 million over two years is to do three things: one, it's grants for innovative companies to get more advanced manufacturing equipment so they can produce parts; secondly, it's support for them to get into the global supply chain, so of UK and US suppliers, and the third and most important one is really ramping up the Defence Industry Vendor Qualification Program. This is a program that qualifies Australian companies and their products so they can supply into the US submarine industry. 

A great example of one of those companies is local Adelaide company, AML3D that's making parts of valves that once qualified will have a very good chance of going to US Navy submarines. So this is about more jobs, helping the US with their supply chain challenges and really helping deliver AUKUS. 

NIKOLAI BEILHARZ: And so, is that the qualifying for that, being able to go and be part of potentially, you know, selling this product to the US; is that to do with things like security checks to clear people who might have access to sensitive information? 

MINISTER CONROY: Yeah, it's three things: it's really uplifting their security systems. This is the Crown jewels of the US and UK technology, so we need to give those administrations confidence that their data will be protected. Secondly, it's making sure they're up to the quality standards that a nuclear‑powered submarine is one of the most sophisticated machines humans have ever made, and the quality has to be at its highest to the survive the rigours it's exposed to, and third, it's just getting the general skilling up to support that uplift and making sure that they've got the ability to supply those parts. 

And there's huge opportunities for Australian companies to do that, because the US is trying to expand their supply chain, because they're trying to ramp up their production. So that means more work in Australia, which means more jobs for South Australians. 

NIKOLAI BEILHARZ: Will preference for that funding be given to companies that are either South Australian or Australian‑owned? 

MINISTER CONROY: Well, parts of it can only go to Australian‑owned companies, others, they'll have other commitments and requirements. But the most important part of this process is that South Australia already punches above its weight, it truly is the Defence State, I remember that being on licence plates a few years back, and that puts South Australia in the driver's seat to win work on AUKUS. 

I think of the 20,000 direct jobs that will be created under AUKUS, nine and a half thousand of those will be on two individual projects in Adelaide, one constructing the submarine yard, and secondly actually building the submarines. 

So there's lots of South Australian companies that are already part of the vendor qualification process, including ones with South Australian presence, like Mack Valves and Axiom Precision Engineering, and then there's huge opportunities for other South Australian companies to participate. 

NIKOLAI BEILHARZ: It is 10 to 5. 891 ABC Radio Adelaide. Pat Conroy is with you, the Federal Minister for Defence Industry and Capability Delivery. 

So when it comes to ‑ 'cause obviously a lot of the talk around AUKUS has been that the kind of pledge or almost promise of opportunity of jobs and money that will be coming to Adelaide as part of this. When do you think the average person in South Australia, the average person in Adelaide will start to notice that? 

MINISTER CONROY: Well, the money I've announced today, the $262 million is flowing over the next two years, so the average person in the street, if they happen to know someone who works in a Defence company may see a Defence company qualifying and starting to supply parts into the US submarine industry. There might be someone who's involved in the design of a construction yard, or they might be someone who's about to go overseas and train. 

So, we're sending workers from ASC to Pearl Harbor in Hawaii to learn how to maintain Virginia‑class submarines, and we're also seeing Adelaide ASC workers about to be sent to Barrow in England where the United Kingdom produce their submarines to really learn on the job how to make a nuclear‑powered submarine. 

So, this will start permeating through over the next couple of years, and that's great news for a State that's really focusing on winning work in the Defence industry. 

NIKOLAI BEILHARZ: So for a parent of a student who's let's say in the final years of high school is talking to their child and saying, "Look, I'm hearing a lot about all this AUKUS stuff, and gee, there's going to be a lot of jobs, and gee, there's going to be a lot of money", would you feel comfortable saying to that parent, "Yes, tell your child to put those eggs in that basket, this is a safe way to invest into your future and decide your future"? 

MINISTER CONROY: Oh, absolutely. We're funding in South Australian 1,000 additional university places related to AUKUS, for subjects like STEM, we've got 5,000 secondary school students being exposed to the School Pathways Program, which is all about getting kids interested in science and engineering and mathematics to get these sorts of ‑ do these sorts of courses and trades and degrees. 

And it's not just the AUKUS work, there's the other work we're pumping into the State, so I did a tour of the Hunter‑class frigate production yard, they're up to 18 or 1,900 workers, they're putting on 50 apprentices each year, and they told me that they had 650 applications this year for the 50 spots, which is well above ‑ there's some hundred applications that have been running previously, so interest is increasing, and parents of young kids should know that if their kids are interested in building some of the most advanced machinery in the world, getting a trade in a boilermaker or pipefitter or going to uni and becoming an engineer, they could work for their entire work life on these projects helping make Australia safer, working on the most high‑tech projects imaginable, and they can pay off a mortgage, raise their own kids and know that they're contributing to the safety of their fellow Australians. 

NIKOLAI BEILHARZ: And they shouldn't be worried that Donald Trump might turn his attention to AUKUS and change his mind? 

MINISTER CONROY: No, I've got absolute confidence it will continue, and it will continue because it's not charity; this is not United States and United Kingdom feeling sorry for poor old Australia and throwing us a bone. The AUKUS agreement is in the strategic interests of all three countries, it's about growing the industrial base capable of producing the most advanced submarines in the world, that contributes to the safety of all three countries going from three shipyards to four, and that's why it's survived changes of government in Australia and got stronger, that's why it's survived changes of government in the United Kingdom, and that's why I'm confident it will survive the change of government in the United States, because it's in the national interest of all three countries, and ultimately countries will act in their national interest, and AUKUS is in that interest. 

NIKOLAI BEILHARZ: Pat Conroy, thank you for your time this afternoon. 

MINISTER CONROY: Thank you, have a great afternoon, bye‑bye. 

ENDS

MEDIA CONTACT: KARLIS SALNA +61 435 521 326