Whilst there might be some quibbling about what constitutes a small compared to a middle size enterprise in Australia, what is desperately required is structural and legislative change to make it mandatory for state and federal procurement processes to set aside a progressive targeted percentage of all government purchases including Defence to be supplied by both groups, particularly manufacturers.
This works extremely successfully in a number of countries including our AUKUS partners UK and US where a nominal 25% is mandated.
These 'set aside' legislations establish a positive environment for investment, training and a base load for industry certainty.
Just imagine the economic multiplier to Australia's 100,000 manufacturing and service industry tax paying and employment generating SMEs that would result from a similar initiative.''
This link provides the details and benefits of the UK scheme.
https://lnkd.in/gbHR4ebG
I've also posted below an outline of the US Set Aside Legislation because it is absolutely critical that a common level playing field is fundamental to our new tripartite AUKUS relationship.
Otherwise, the real concern is that the AIC model will become effectively tokenised to create the illusion of Australian Industry participation.
Some might well say that this is already taking place
The facts are that in the late 1990s Australian owned SMEs supplied about 9% of Defence procurement... today the most accurate estimate circulating is that for Australian owned and operated enterprises the figure has collapsed to around 2% -3%
It's all very well our Defence Ministers encouraging local industry to emulate those in the UK and the US, but local SMEs need the critical mass and investment incentive that that this sort of legislation provides!
Last Friday I helped launch a report at the National Press Club of Australia entitled “Developing Australia’s Defence Industrial Base” which can be downloaded in full at the following link https://lnkd.in/gNjxqPPx The report was co-sponsored by Austal, Gilmour Space Technologies, Macquarie Technology Group, the NIOA Group and the Australian Industry & Defence Network (AIDN National). We are hopeful that the report will be seen as a positive contribution to the national dialogue and appreciate the positive response received so far.
#NIOA #AIDN #Austal #GilmourSpaceTechnologies #MacquarieTechnologyGroup #DefenceIndustry #DefenceAustralia #sovereigncapability #GWEO
