Press Conference, Puckapunyal

CHRISTOPHER PYNE: Okay. Well thank you very much for coming to Puckapunyal today for this live firing exercise of the Army. What we have behind us, of course, are the two offerings for the combat reconnaissance vehicles, the replacement vehicles for the armed forces; one provided by BAE Systems, the other one by Rheinmetall. And today’s exercise is part of the risk mitigation activity the Army is conducting into these two combat reconnaissance vehicles to see which one will measure up eventually as the choice that the Army will put to me as the Minister to choose for the future.

I have to say, the Army thinks both of these vehicles are absolutely terrific and both could make an equally good contribution to the Army and the defence of the nation and the protection of the soldiers, which of course is one of our primary priorities. And in the end, it will come down to fine decisions at the margins. This is a $4 to $5 billion project. Because of the Turnbull Government, we are maximizing the Australian industry content, and both companies are working very hard with the Army and with defence in general to maximize that Australian industry content, to bring Australian businesses into the global supply chains, and that is working.

Yesterday one of the companies announced eight businesses here in Victoria that they would partner with, worth $200 million, and that will just continue to increase as part of this project. It will create hundreds of jobs in Australia, but most importantly it gives us ever enhanced capabilities. The Government is increasing our military capability by $195 billion over the next 10 years. We will reach the target of 2 per cent of GDP being spent on defence ahead of schedule, in 2020 rather than 2022, and it’s because we are getting on with the decision-making process.

Today is part of that process and I think it’s been a very impressive occasion for everyone concerned. And while I’ve never fired a rifle in my life, I’ve now fired a cannon, which I’ve gone to the nth degree; rather than starting off with a pistol, I’ve gone straight to a cannon. So with those words, I’m happy to answer any questions you might have.

QUESTION: So when will the decision be made?

CHRISTOPHER PYNE: Well, the risk mitigation activity will go on throughout the year. Army will make assessments which they’ll provide to me; we’ll make a decision in the first quarter of 2018.

QUESTION: And what really comes down to making that decision? How do you choose between A and B?

CHRISTOPHER PYNE: Well, number one is capability. So the Army must have the best combat reconnaissance vehicles that money can buy, effectively. We want value for money, but we must have the capability primarily, of course, to protect our soldiers in a battlefield situation. And as you’ve seen from this live firing exercise, to be lethal in a battlefield situation, and clearly these vehicles will be. So Australian industry content will also be important, and all of those things will be weighed up at the time that the recommendations are made.

QUESTION: So, does each company have different bases where they will be making these? Is one going to make it in Victoria and one in Queensland, for example?

CHRISTOPHER PYNE: Well, both companies have said that Victoria and Queensland are their downselect, if you like, for where the base of the operations for the build will be. Of course, these projects are big, national projects. So in the same way as the naval shipbuilding project – which is $90 billion – will benefit all the country, and there’ll be lots of different businesses involved, the same with the Combat Reconnaissance Vehicle project, which is $4 billion to $5 billion, that will be shared around the nation. But it’s true that both companies have said Victoria and Queensland are their preferred sites, and that will obviously be great news for either Victoria or for Queensland, but everyone will benefit.

QUESTION: You said hundreds of jobs will be created; do you have a more specific figure on that?

CHRISTOPHER PYNE: Well, hundreds is hundreds. It’s obviously more than 200, but it isn’t 1000. So, the choices will be made about the winner of the bid and then they will start to put that into practice. This is a project that is years in the making; it’s not something that you- you can’t go into a delicatessen and buy yourself a CRV, so it does take years. So, it could well be many hundreds of jobs, but it’ll be at least 200 jobs.

QUESTION: And how long is- you said years and years; what’s the rough timeframe [indistinct]?

CHRISTOPHER PYNE: Well, I might ask David Coghlan to answer that for you specifically because there’s different years when it’s delivered, when it comes into operation, when it becomes available to the Army. So it’s hard to specifically say the date that it’ll be available, but obviously it’s in the next few years.

QUESTION: Given the recent terror attacks in Europe, and also in Melbourne, how important is it that we strengthen our [indistinct]?

CHRISTOPHER PYNE: Well, it’s a very good question and it’s critically important. Australia is well ahead of the curve in terms of building up our military capability. We live in a region where there are five of the largest standing armies in the world. We have significant reasons to be concerned about tension in North Asia – obviously from North Korea, in the South China Sea, and even into the Indian Ocean. So, it’s very important that the Government can guarantee to the Australian public that we are doing absolutely everything in our power to protect the nation, to put national security first, which is really the first priority of any government.

So, the Turnbull Government – and before that the Abbott Government – made the decisions to build-up that military capability by $195 billion. It’s the largest military build-up in our peacetime history, it’s one of the largest in the world right now, and to put it into perspective, President Trump’s talking about 70 new vessels for the Navy; we are building 54 new vessels for the Navy, and we are obviously a much, much smaller country than the United States. So, we are really replacing the Navy over the next couple of decades, but it is critically important to be able to deter people from thinking that they can harm our people or our country, and to give us the capability to have a forward defence ability to protect our interests in the region, and in Asia.

QUESTION: What are your thoughts on the events that have unfolded in Melbourne in the past few days?

CHRISTOPHER PYNE: Well, I agree with the Prime Minister that the Victorian Government – and, in fact, all state and territory governments – need to urgently review their parole laws. The assailant in Melbourne received parole the day he was eligible. Now, one has to question how much thought went into the immediate – almost automatic – granting of parole to that man with his history of violent crime. And I think the Prime Minister has said that he wants to review the role of the Federal Government in terms of people in prison because of terrorism offences, and I think that’s a sensible course. And the Attorney-General, I think, is going to make some announcements today, and on Friday the next Council of Australian Governments meeting is being held. I think the Prime Minister will very clearly ask the Premiers and Chief Ministers what they are intending to do about their parole laws, because this is not the first time this has happened: the Lindt Café siege was also an issue surrounding parole. So clearly, that part of policy – at the state and territory level – needs to be urgently reviewed, and of course, the Commonwealth will do whatever it can to make that happen.