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- Seems like a federal election sooner rather than later (March 2025 rather than May) with the Albanese government doing a deal with the Greens to pass thirty-one pieces of legislation on the final sitting day of parliament for the year. The Greens backed a government guillotine motion which paved the way for the bulk of its legislative package to pass. The Greens struck the deal in exchange for a string of amendments to legislation, securing $500 million for upgrades in social housing and an amendment that no coal, oil or gas can be funded through the Future Made in Australia fund. Labor also gained support for its Reserve Bank reforms, Build to Rent bill and superannuation changes. The move clears the decks for an early election negating the need to return to parliament next year. A controversial bill to reform election funding to favour the major parties, and another to toughen environmental laws were deferred. All eyes will now be on major party standing in the next Newspoll where the Coalition has been maintaining a slight lead on the Government. Though a minority Labor government is still the most likely election outcome on present trends. A bill to ban access to social media for those under 16 also passed the parliament.
- Defence Industry Minister Pat Conroy made two major project announcements this week. The first was the long awaited down select for the General-Purpose Frigate, where Germany’s TKMS and Japan’s Mitsubishi Heavy Industries were chosen for the next phase. The result was speculated on in the media almost a fortnight ago. Minister Conroy said Defence selected the two designs because they were best able to meet Australia’s requirements. The first of the vessels to be built under the $7-10 billion program is to be delivered before the end of the decade. The first three boats are to be built overseas before the build transfers to Western Australia.
- Damen Shipyards Group was also announced by Minister Conroy as the preferred option for the Australian Defence Force’s Landing Craft Heavy. The project is expected to create 1,100 direct jobs and more than 2,000 indirect jobs. Eight vessels will be built by Australian shipbuilder Austal at the Henderson Shipyard in Western Australia, subject to acceptable commercial negotiations and demonstrated performance. The Damen LST100 vessel design has a 3,900-tonne displacement. It will be capable of operating with other vessels to undertake a range of tasks. The vessel will be capable of carrying more than five hundred tonnes of military vehicles – it is intended to carry six Abrams Tanks,11 Redback Infantry Fighting Vehicles or 26 HIMARS – and will be fitted with self-defence weapons systems and Australian military communications. Construction is expected to start in 2026.
- Deputy Prime Minister Richard Marles has reaffirmed the Albanese Government’s commitment to retaining deploying Australia’s armed forces in conflicts as an executive decision. The response follows a Senate inquiry into Australia’s war powers which backed the power remaining with the Executive. However, the Greens in a dissenting report called for the decision to go to war to be made by parliament. The government has agreed to codified transparency measures in updating parliament and the public on the reasons and progress of any conflict. In a memorandum of understanding , tabled this week, the Government has committed to the Prime Minister and Leader of the Government in the Senate giving a statement in both Houses of Parliament at the earliest opportunity and within 30 days of the deployment to inform a timely debate on the decision by the Executive; a written statement to be tabled in both Houses of Parliament outlining the objectives of any deployment; and for regular updates to be given to Parliament during active deployments.
- Thales CEO Patrice Cain and BAE Systems Group CEO Charles Woodburn visited Canberra this week for defence talks with the Federal Government. Deputy Prime Minister Richard Marles told parliament both companies played important roles in Australia’s defence industry supporting more than 10,000 local jobs between them. DPM Marles added that Thales had built the iconic Bushmaster infantry vehicle and had just been awarded an important 155 mm ammunition contract. BAE Systems was the Hunter class frigate builder and partnering with Adelaide based ASC to build the AUKUS submarines. However, DPM Marles admitted that the challenge in delivering projects was finding enough workers which was why a Skills and Training Academy had been established at Osborne in Adelaide. DPM Marles also pointed to the government’s plan to fund a further 100,000 free TAFE places each year from 2027, building on the 500,000 since the Albanese Government had come to power. DPM Marles said in the last financial year the Albanese Government had spent $22 billion on Australian defence industry which was a record spend. However, AIDN has expressed concern to government on the definition of an Australian business it uses and just how much of that spend is currently reaching the Australian SME sector.
- The Australian Submarine Agency (ASA) was at the centre of a controversy over whether it had engaged a consultancy firm with links to the Chinese military. The ABC reported the ASA had awarded a $9 million management services contract to the local arm of McKinsey and Co even though Republican politicians in the US had accused the global accountancy firm of “equipping America’s foremost enemy’’. McKinsey however denied the accusations labelling them “false’’ and insisted the PLA had never been a client. The company said internal policies prohibited it serving defence, intelligence, police, or justice clients in countries that fell below a six in the EIU democracy index, which includes China.
