Defence Teaming Centre raises alarm over ongoing cancellations

The Defence Teaming Centre (DTC) recently expressed ongoing concern over the delays in the decision-making process regarding Australia’s defence procurement, particularly in relation to the future structure of the surface fleet and the continuation of naval shipbuilding within the country. These delays pose a significant risk to both national defence capability and the economic stability of the industry, specifically in South Australia. The uncertainty stemming from speculation about the future of the Hunter Class Frigate Program, following the Defence Strategic Review’s recommendation for an independent review, is creating an untenable situation. A report on this review, completed and submitted to the Government in September, remains undisclosed. The DTC urges the Federal Government to release the findings before year-end to return confidence in defence industry. Libby Day, CEO of the DTC, stresses the urgency: “In the current strategic context, further delay in releasing the review’s findings is not viable. Transparent communication from the government is crucial now more than ever. Today’s article about the Hunter Class Frigates possibly being built in Scotland add more uncertainty and ambiguity, which can all be dealt with by releasing the review. They signal a potential economic crisis for South Australia given defence industry is the second largest employer and economic driver. Businesses need certainty to invest meaningfully in training, infrastructure, and workforce development.” In South Australia over 14,000 people are directly employed in the defence sector, making us one of the largest employing states, and last year the Australian Defence Industry Account reported that defence industry contributed almost $1.2 billion to the South Australian economy, up by 11% on prior year. This highlights how pivotal Australia’s defence industry is to the South Australian economy. Our members have estimated that the Hunter Class Frigate Program would foster and sustain over 5,000 direct jobs. Relocating such projects offshore will not only lead to a significant loss of skilled jobs but will also undermine our sovereign defence capabilities. While highlighting these challenges, the DTC remains committed to collaborating with the government and industry partners. We propose an actionable framework, including: Release prior to Christmas of the surface combatant fleet review. Clear commitment timelines for defence procurement decisions. Strengthened policies to support domestic defence industry capability and workforce development. For Editorial Inquiries Contact: Editor Kym Bergmann at [email protected] For Advertising Inquiries Contact: Director of Sales Graham Joss at [email protected]