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HE Defence Industrial Capability
Plan outlines the government’s
vision to achieve a more mature,
resilient and internationally
competitive defence industry in the
next 10 years, underpinning the Government’s
$200 billion investment in Defence capability
over that period.
The plan was launched on 23 April by the
Minister for Defence Industry, Christopher
Pyne, at the Australian Strategic Policy Institute
“Until now, Australia has never had a
long-term plan for what we want our defence
industry to be, nor did we have a blueprint to
guide the development of that industry,” the
“In releasing this first ever Defence Industrial
Capability Plan today, the Government is
putting forward its vision, its direction and plan,
for a defence industry that is positioned to meet
Australia’s strategic and capability goals.”
The Director Defence Industry Capability
Strategy, Defence Industry Policy Division,
Kerry Doyle, speaks of industry as a
fundamental input to capability.
“We need an Australian defence industry that
is capable, ready, and robust to support Defence
capability,” she says.
“The Defence Industrial Capability Plan is
about how we will actually implement support
to industry, and make sure that our industry is
effective in providing those capabilities.”
According to the Industry Policy and
Program Officer, Defence Industry Policy
Division, Veronica Jerez, the Plan’s five
strategic objectives not only build on the 2016
Defence White Paper and the 2016 Defence
Industry Policy Statement, but bring together a
host of existing defence industry policies.
“The plan in a way is another piece of the
puzzle in the government’s vision for defence
industry”, Veronica says.
“We’ve got the Defence White Paper,
the Defence Industry Policy Statement, the
Integrated Investment Program, the Naval
Shipbuilding Plan, the Export Strategy, and now
this is the Plan. So it’s building on that whole.”
A central part of the Plan is the Sovereign
Industrial Capability Priorities, which are
determined through the Sovereign Industrial
Capability Assessment Framework.
“The Sovereign Industrial Capability
Priorities are the ones that government says are
so important to our Defence capabilities that we
need to have access to, and control over, those
industrial capabilities in Australia,” Kerry says.
She says the Sovereign Industrial Capability
Assessment Framework is designed to be
responsive to changes in technology or our
strategic circumstances, so Sovereign Industrial
Capability Priorities can be reviewed.
The Plan is primarily directed at small to
medium enterprises (SME) within defence
industry and includes a dedicated $17 million
annual grant program to help SMEs contributing
to a Sovereign Industrial Capability Priority.
“One of the things the plan does is it explains
to industry all of the mechanisms they can use
to help them become part of defence industry,
or if they’re already in defence industry, to
improve their capabilities or expand their access
to Defence capability procurement processes,”
At the most advanced stage, this will extend
“If you’re an SME and you want to work in
defence industry, there’s a way in, and if you’re
already in, there’s a way up,” she says.
Another key aspect of the Plan is integrating
the Sovereign Industrial Capability Priorities
into existing Defence decision-making
processes, including Force Design and
Capability Life Cycles.
“It is a way to ensure that Defence considers
the health and resilience of these priorities when
they’re making decisions,” Kerry says.
The Defence Industry Policy Division is now
moving ahead with implementing the Plan in
close partnership with the Centre for Defence
Industry Capability (CDIC).
“Defence Industry Policy Division will be
focused on integrating the Sovereign Industrial
Capability Priorities into Defence capability
decision-making, whereas the CDIC will be
focused on delivering the new grant that goes
along with the plan,” Kerry says.
According to Veronica, implementing
the plan will also require coordination with
By Jenna Sorby-Adams
Long-term vision sets agenda for future to meet
strategic and capability goals
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