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The NSW government is set to boost the state’s commitment to sovereign defence industry capabilities with the launch of a new $1.23 million Regional Defence Networks Program aimed at making it easier for local businesses to expand and supply to the defence and aerospace industry.
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According to Minister for Enterprise, Investment and Trade Stuart Ayres, the three-year program will focus on driving business growth across four key regions: Western Sydney, Shoalhaven/Illawarra, Riverina-Murray and the Hunter.
"We know that procurement requirements and entering the defence market requires a deep understanding of the industry, so we want to do all we can to help existing suppliers grow, and support new players to enter the sector," Minister Ayres said.
Following a competitive procurement process, Investment NSW, working with Western Parkland City Authority and Regional NSW, has appointed four partner agencies to deliver the program:
- Ai Group for the Western Sydney region;
- Shoalhaven City Council for the Shoalhaven/Illawarra region;
- Hunter Defence Cooperative for the Hunter region; and
- NSW Business Chamber for the Riverina-Murray region.
"These organisations have a deep understanding of the defence ecosystem in their respective regions, which is critical to achieving the program’s objectives and in turn expand NSW’s defence and aerospace capabilities," Ayres said.
For example, in the Hunter and Shoalhaven, the economic activity attributable to Defence is estimated to be between 8 per cent and 12 per cent of gross regional product. The defence industry is a major employer and attractor of skilled workers in these regions and the local economy also benefits from the movement of skilled workers out of Defence and defence industries into local education and technology-dependent sectors.
NSW is home to the largest number of Defence bases and capabilities of any state or territory, and is home to nearly 30 per cent of Australia’s military and Defence civilian personnel.
According to the NSW government Defence and Industry Strategy report, Defence makes a substantial contribution to the NSW economy and is critical in supporting the delivery of the Premier’s priorities in areas such as jobs growth, regional activation and industry investment.
In 2014-15, Defence contributed just over 20,000 jobs to the NSW economy with a direct spend of approximately $7.9 billion, including $5.5 billion in operations and $2.4 billion in capital expenditure.
In addition there are around 6,500 defence industry jobs and a further 29,500 from supporting industries whose activities make a major contribution to the wider NSW economy.
The NSW government recognises the significant contributions made by Defence and defence-related industries to the state in terms of attracting investment, economic growth and job creation.
Significant Defence acquisition decisions are being made now and over the next decade and NSW industry is well placed to respond to capability and capacity requirements, either within NSW or in partnership with other states and territories, the Defence and Industry Strategy report outlined, further explaining that a strategic and coordinated approach to developing NSW industry has potential to substantially increase direct Defence expenditure in NSW with significant flow-on benefits.
For every $1 billion recurrent Defence operational spending (non-capital) that comes into NSW, the estimated economic impact is approximately $1.4 billion in gross state product (GSP) and 10,000 jobs supported.
"This program is about helping businesses understand the defence supply chain and identify that their offering has value and need," Minister Ayres concluded.
"We want to turn local businesses from being ‘Defence Interested/Able’ to 'Defence Ready'."
[Related: NIOA bolsters weapons engineering team]
