iscover
Despite rumours swirling that the Coalition would use the Opposition Leader’s budget reply to outline a major commitment to increasing the nation’s defence spending, we will have to wait a little longer for further details.
Budget week has come and gone and for most Australians, it would seem that the key battlegrounds will be rightfully on cost of living, the economic recovery and combating inflation, but given increasing global instability and volatility, defence and national security will no doubt play a growing part in the upcoming campaign.
With the election now set for 3 May, the nation is buckling down for what will no doubt be a hotly contested election battle between Anthony Albanese’s first term Labor government against what many would see as a surprising fight-back by Peter Dutton and the Liberal National Coalition.
The Albanese government committed to a minor “increase” in the nation’s defence spending, with AU$1 billion being brought forward in addition to the spending outlined by the government as part of the 2024 National Defence Strategy and Integrated Investment Program that is characterised by “Increased investment and refocused investment, including more than $330 billion over 10 years through the Integrated Investment Program to deliver a more potent, focused and integrated Defence Force”.
Building on this, the government said on Tuesday night, “As the government announced last year, we are investing an additional AU$50.3 billion into the Australian Defence Force (ADF), which will now see an additional AU$10.6 billion invested over the forward estimates. The value of this investment is now AU$57.6 billion over the decade and is accounted for in the budget.”
Walking the halls, chalets and flight aprons of the Avalon Airshow, I was frequently met by industry representatives who were increasingly frustrated by the rhetoric of the government not seeming to match the experience of industry of all sizes.
Equally, I was met with subdued excitement around tentative expectations that the Coalition, under former defence minister Peter Dutton, would see a strong emphasis on Defence in the Opposition Leader’s budget reply speech, with some believing that the opposition would commit to an increase to 3 per cent of gross domestic product by the end of the decade.
But that wasn’t the case, with the Opposition Leader’s speech focusing on the cost of living and the economy; after all, as former US president Bill Clinton famously said, “It’s the economy, stupid!”
Nevertheless, we did get some hints about where a Coalition would go if elected on 3 May, with the Opposition Leader saying, “In line with our national interest, we will continue to invest in essential services and critical areas of the economy – like health, aged care, veterans’ support, the NDIS, Indigenous affairs, child care and defence.”
Dutton said that a Coalition government would have “A plan to usher in a more confident, resilient and self-reliant people right across the country and we need to accept that we live in a more dangerous and disruptive world.”
This was expanded upon further in the speech, where Dutton outlined a growing emphasis on strengthening the national industrial base, through a combination of reforms to the energy and industrial relations sectors, playing to Australia’s natural strengths and embracing the opportunities of the future.
Dutton added, “Tonight, I commit to removing regulatory burdens where we can – where there’s duplication across local, state and federal government – during a first term Coalition government. My intention is to make Australia a mining, agricultural, construction and manufacturing powerhouse again.
"The revenue generated from these revived sectors will create more money to build new infrastructure, to fund health and education, and, importantly, equip our defence forces. In addition to backing our natural strengths, we will encourage new areas of the economy. Like artificial intelligence; like automation; like cyber security; and space, bio, and nanotechnologies. AUKUS, too, has the potential to foster a new arm of our economy and transform our civil industrial base.
Dutton said, “We will spend taxpayers’ money wisely – in a manner which has an economic multiplying effect, a way in which generates productivity and can attract new investment.”
Focusing more directly on Defence, Dutton said, “We will again invest in defence to play our part as a credible partner to deter aggression and to maintain peace. We’ve already committed $3 billion of additional funding to reinstate the fourth squadron of F-35 Joint Strike Fighters cancelled by Labor.
“Our plan is to energise our domestic defence industry. And to retool the ADF with asymmetric capabilities to deter a larger adversary ... The Prime Minister of our country and the Deputy Prime Minister, the Minister for Defence, tells Australians regularly that we will in the most precarious period, the most dangerous period, since the end of the Second World War.”
However, by far the most interesting and foreshadowing of Dutton’s comments was this, “Mr Speaker, during the election campaign, we will announce our significant funding commitment to defence. A commitment which – unlike Labor’s – will be commensurate with the challenges of our times.”
So for those in the defence, defence industry and the national security ecosystems, while it seems like there is little news at this stage, we will be eagerly watching this space!
Stephen Kuper
Steve has an extensive career across government, defence industry and advocacy, having previously worked for cabinet ministers at both Federal and State levels.
