Radio Interview, 4CA - Breakfast with Murray Jones

SUBJECTS: Visit to Cairns; Vanuatu Guardian Class Patrol Boat Handback; Defence Funding; US-Australia Alliance; Regional Partnerships; Critical Minerals. 

MURRAY JONES, HOST: Well, a luncheon today with the Cairns Chamber of Commerce and of course an opportunity to actually spend some time talking to some of our near neighbours. And an important handover today. My special guest this morning to talk about his trip to Cairns, he's about to arrive in the next couple of hours, Deputy Prime Minister and Minister for Defence Richard Marles joins me this morning. Good morning, Richard. Thank you so much for your time today.

RICHARD MARLES, DEPUTY PRIME MINISTER: Good morning, Murray. A pleasure to talk to you.

JONES: Hey, looking forward to seeing you here in Cairns. I know it's got a special place in your heart. We can't start the conversation without talking about the special place that Cairns has in your heart, Richard.

MARLES: Well, you know this story, Murray, I eloped to Cairns. So, it's the place where my bride Rachel and I got married in the Cairns Botanical Gardens. We had a couple of joggers as our witnesses. I've actually not seen the joggers since, but we do have their name on our wedding certificate and we've got a photo of them as our sole wedding photo, so maybe one day we'll go and track them down.

JONES: I'm too scared to go jogging through the Cairns Botanical Gardens these days because I might get roped into something like that. So, I tend to stay away. Always remember your story. Well, look, looking forward to seeing you here in Cairns. A very important time, you do have that luncheon today, but an important handover, a Guardian patrol boat. Tell me the a bit more about this particular event that you're attending today.

MARLES: So the Guardian patrol boat handover is actually tomorrow morning and it's to Vanuatu. So, one of the programs that we have with the countries of the Pacific is to provide them with vessels which enable them, depending on their circumstances, to either have them as part of their navy or in the case of Vanuatu, their police use this. And it's a really important asset to enforce their fisheries, which is for a lot of countries in the Pacific, including Vanuatu, one of their most important economic assets. And this has been a program that's been in place for decades now. But to be handing over a boat tomorrow, which will be the latest in the boats that we hand to Vanuatu will be really significant. The Minister for the Interior, Minister Napuat is in Cairns as well. And so I'm very much looking forward to seeing him again and being able to partake in what is a really important moment in terms of the relationship between Australia and Vanuatu.

JONES: And, you know, as far as regional security is involved, you know, that's certainly a very important thing to be doing as well. And as we well know, supporting nations right across the world, including the Ukraine, with some of the bushmasters and some of the things that we've sent over there, an ever changing environment. Can we talk a little bit more about the funding, defence funding? And obviously there seems like there's more of a connection possibly developing, particularly with Europe and of course, the defence funding. We had that call from the US to increase our funding. During 24-25, the budget saw the defence funding increase to about $765 billion over the decade. I understand it's around about 2.4% of GDP set to increase, particularly with some of the things that are on the horizon, I understand? 

MARLES: Yeah, that's right. So, what we've done is increase defence spending over the next 10 years by $50 billion over the [decade]. That's a more than $5 billion increase and I mean, those numbers end up being so large it's hard to put them in context. But this represents the biggest peacetime increase in our defence budget really since the end of the Second World War, which gives some sense. And as you rightly said, in the last financial year 23-24, we had more money being spent on defence procurement than we've ever done before, and this financial year will be even more again. So, we really are investing heavily in our Defence Force. But that's because, you know, in a rational world, defence spending is a function of strategic threats, strategic complexity, and we certainly face that in abundance. We live in a much more contested world. You only need to look at the headlines overseas to see how difficult the world is at the moment. And what we need to do is make sure that we're responding and building our own capability so that no matter what the circumstance, Australia is in a position to look after itself and be able to pursue its interests. And that's what we're doing.

JONES: And despite those calls from the US, the fact that we're geographically fairly isolated, I guess, making sure that we shore up the relationships, particularly with our near neighbours and of course, friendly countries, and particularly, I guess, a focus on Europe in recent times, means that that independence, even though the US has called upon it, for us to actually that independence, moving forward it seems like we've really got no choice in some ways?

MARLES: So the relationship with the United States, the Alliance, has been very central to our national security, our foreign relations. It's been the case since the early 50s, really, in effect since the Second World War. But you're right, notwithstanding the Alliance that we have with the United States, the relationships with the countries of our region are profoundly important. And that's why we have invested so heavily in our relationships with countries of the Pacific, places like Papua New Guinea, places like Vanuatu. And that relationship will come into focus over the next 24 hours in Cairns. We really need to be making sure that when we think about those countries that surround us from the Northeast Indian Ocean through Southeast Asia, countries like Indonesia through to the Pacific; PNG, Solomon Islands, Vanuatu – that those relationships are in the best possible place, that we are partnering with them very  closely, that they see us as their natural security partner of choice, and that we are having as deeper defence relationships as we can have. And if you do the sweep of all of those countries, those relationships have significantly improved over the last three years and we'll keep investing in them. And that's a really important component of ensuring that we maintain Australia's national security. We need to have our own abilities, our own military capability, but we really need to be working very closely with the countries that surround us as well.

JONES: Look, I know you've got to catch a plane, so I'll let you go. But just as we wrap up this morning, certainly Northern Australia playing a critical role moving forward when it comes to the strategy of Australia and exactly what we can do, particularly as far as exports are concerned. critical minerals and some of the rare earths, particularly in Northern Australia and the northern part of Queensland, there's basically untapped potential there in so many ways moving forward.

MARLES: Look, that's exactly right. Northern Australia is increasingly a really important part of our national security. I mean, just geographically, obviously, Cairns is very much our gateway to a country like Papua New Guinea, which is very central to Australia's national security. But it also possesses, as you've said, so many rare earths and critical minerals, which are really important going forward in terms of developing secured supply chains for a country like the United States for battery technology and other military technologies. That's why we've put in place production credit tax credits, which encourage resource companies who are exploiting rare earths and critical minerals to do so, but then to value add in Australia. Of course, what we saw reported in the West Australian is that the Coalition are going to abolish those production tax credits which is just an absolute own goal on their part. It just shows that they really don't get where our national security lies and what we need to be doing to secure our own nation. The critical minerals, the rare earth play is so important for Australia, we really need to be moving down this path and I'm astounded that the Coalition are actually getting in the way of that and seeking to turn the clock back in respect of that. But from our point of view, we're full steam ahead with that. It helps build our Alliance with the United States, but also our friends and partners in North America, in Western Europe and countries as well, like Japan and Korea. And when you look at the broad sweep of all those steps that we need to take to secure our national security, critical minerals, rare earths is a really important part of that.

JONES: And I know, certainly for a lot of prospectors, they appreciate the programs there because they see, they know that untapped potential is there. Great to talk to you this morning. Deputy Prime Minister, Minister for Defence, Richard Marles. Have a wonderful day and we're looking forward to seeing you here in Cairns. 

MARLES: Thanks Murray.