Anxious Australians back AUKUS

Global volatility was leading Australians to support AUKUS, Deputy Prime Minister and Defence Minister Richard Marles told a Defence conference in Perth this week. DPM Marles addressing the Submarine Institute of Australia Nuclear Submarines in Australia conference in Perth said the public had a sense of anxiety that the world was a pretty complex and volatile place. He added the mood of the nation provided government with justification to invest a very considerable amount of money on AUKUS. Published polls suggest around two thirds of Australians support AUKUS. DPM Marles also referred to the progress of the US AUKUS review amid reports Washington could axe plans to sell Australia US Virginia class submarines from the 2030’s, because it would not have enough of its own. Mr Marles said Australia was providing input to the review and fully across its process and timing. He expected the review would pull no punches about areas of improvement. But the comments came as the August international journal, The Economist devoted an editorial to urging US allies in the Pacific including Australia to lift defence spending to counter the China threat. The Economist joins the Opposition, Australian defence analysts, academics, former ADF officials, former Australian Defence Ministers, US Secretary of Defense Pete Hegseth, and some US lawmakers. Supporters have argued Australia cannot fund the $368 billion AUKUS program and modernise its forces to be a useful ally on the current spending trajectory of 2.3 per cent of GDP. The Economist suggested US President Donald Trump was right to prevail on Asian allies including Australia to increase defence spending to 3.5 per cent of GDP. The Economist said Australia’s Labor government had no excuse. Australia’s own white papers warned of the seriousness of China threat, but its defence budget failed to reflect the warning.

Northern Australia strategy rethink

Leading Defence thinktank, the Australian Strategic Policy Institute has called for a revamped Northern Australia Strategy. In a paper released this week authors, Dr John Coyne and Ian Satchwell argue against the outdated perception of the north as a periphery, recasting it instead as an indispensable engine of Australia’s security and prosperity. The authors argue chronic underinvestment, fragile infrastructure and limited private-sector depth are eroding the north’s capacity to underpin national resilience. Australia’s defence posture, critical minerals supply chains, energy security, and disaster response capability were increasingly anchored across Australia’s north. But they suggest the region also faces the hallmarks of a developing economy: narrow industry concentration, limited local economic capture, workforce shortages, volatile growth, and severe service deficits. The authors call for a ten-year, three phase plan to further develop the north including an investment authority and investment fund to integrate and support defence, infrastructure and economic priorities, enforceable local requirements in all major projects and full integration of the north into Australia’s national decision-

Conroy hails SME role in drone and counter drone tech

Defence Industry Minister Pat Conroy has announced a further $1.3 billion will be spent on counter drone technologies and praised sovereign SME’s for triggering much of the innovation in cutting edge drone and counter drone technologies. The praise came in an address this week to the Queensland Media Club (QMC). Minister Conroy also held a meeting with AIDN National CEO Mike Johnson, board chair Carl Quarterman and up to a dozen AIDN members after the speech where current challenges facing Defence Industry and the SME sector were raised. In his speech to the QMC, Mr Conroy said he was announcing a further $1.3 billion to go to counter drone tech on top of the overall $10 billion on drone technology pledged over the next decade. Mr Conroy said while all eyes were on the use of drones in Ukraine, the technology was advancing rapidly in conflicts around the world. The government was investing heavily on a range of cutting-edge airborne, surface, and submarine drone systems. He said the funding would strengthen DroneShield, Sypaq Systems, AMSL Aero, Grabba Technologies and Boresight. He said the latter three of those companies had recently delivered 300 drones to the Australian army with future orders planned. Mr Conroy said the government recognised SME’s drove much of the innovation in the evolving drone and counter-drone sector.

Japan Defence logistics win

Coming off the back of the win on the General-Purpose Frigate, Japan Post owned Toll Remote Logistics has secured a $1.5 billion logistics contract. The Defence Theatre Logistics (DTL) 10-year contract consolidates two existing contracts, which will see Defence streamline the delivery of warehousing, national distribution, and retail store services across Defence. Chief of Joint Capabilities, Lieutenant General Susan Coyle said the consolidation of two existing contracts would see Defence logistics systems be strengthened, which is a key element of national resilience and the National Defence Strategy. The 2024 National Defence Strategy identified that Defence must enhance its theatre logistics systems to effectively facilitate the flow of people, capabilities, and key supplies to bases and forward operating locations.

H&B starts AUKUS supply chain validation

H&B Defence has commenced validation visits to the first group of suppliers selected to join the Australian Submarine Supplier Qualification (AUSSQ) Pilot Program. Twelve businesses from five states were down selected. These businesses will each undergo capability and compliance assessments by H&B Defence to determine their readiness to export to the US submarine and aircraft carrier supply chains. The inaugural cohort chosen by H&B Defence will aim to supply critical components and services in two priority areas—Castings and Forgings and Precision Machining—to support delivery of Virginia-class submarines built in the US. Upon qualification, suppliers will be eligible to compete for contract opportunities at Newport News Shipbuilding. Castings and forgings suppliers include CQMS (QLD), AW Bell (Vic), AJAX and Hycast (NSW), Castech and Intercast (SA). Precision machining suppliers include Supashock and Axiom (SA), Stella (NSW), Camco (WA), Marand (Vic) and Ferra (Qld). Suppliers were chosen from hundreds of Australian businesses panning both emerging and established players in the defence sector—reflecting a national determination to strengthen sovereign defence supply chains.