1 00:00:00,200 --> 00:00:03,080 Speaker 1: Let's talk about defense in South Australia and you've heard 2 00:00:03,080 --> 00:00:05,720 Speaker 1: it on five Double A News this morning. Big announcement 3 00:00:05,800 --> 00:00:09,200 Speaker 1: regarding hundreds of jobs to be created, a two hundred 4 00:00:09,360 --> 00:00:14,120 Speaker 1: million dollar defense project at the Where is this now, 5 00:00:14,200 --> 00:00:16,479 Speaker 1: let's find out exactly. I suspect it's at the Double 6 00:00:16,560 --> 00:00:20,200 Speaker 1: AF base at Edinburgh, but Stephen Mulligan is a Treasurer 7 00:00:20,200 --> 00:00:23,160 Speaker 1: and also Minister for Defense and Space Industries in essay, 8 00:00:24,079 --> 00:00:25,480 Speaker 1: mister Mulligan, good morning. 9 00:00:25,760 --> 00:00:27,280 Speaker 2: Oh, good morning, Matt. It's great to be with you. 10 00:00:28,400 --> 00:00:30,760 Speaker 1: Thanks for your time. And you are at Edinburgh. I 11 00:00:30,840 --> 00:00:33,000 Speaker 1: understand this morning where this announcement was made. 12 00:00:33,720 --> 00:00:37,120 Speaker 2: Yeah, that's right. This is a really significant expansion of 13 00:00:37,159 --> 00:00:41,479 Speaker 2: the facilities next to the Edinburgh Air Base. And what 14 00:00:41,560 --> 00:00:45,960 Speaker 2: it is really is a huge two hundred and forty 15 00:00:46,400 --> 00:00:51,920 Speaker 2: by sixty meter hangar facility which will enable the Air 16 00:00:51,960 --> 00:00:55,440 Speaker 2: Force's new fleet of what they call the P eight 17 00:00:56,360 --> 00:01:01,240 Speaker 2: Poseidon and Wedgetail aircraft. These are basically an Air Force 18 00:01:01,360 --> 00:01:05,319 Speaker 2: version of the seven three seven that Bowing builds for 19 00:01:05,400 --> 00:01:10,280 Speaker 2: passenger services. These will now be maintained but also go 20 00:01:10,440 --> 00:01:15,360 Speaker 2: through periodic deep modification right here in South Australia next 21 00:01:15,400 --> 00:01:19,360 Speaker 2: to the air base currently these aircraft are having to 22 00:01:19,560 --> 00:01:22,800 Speaker 2: fly to the US and be out of service, sometimes 23 00:01:22,840 --> 00:01:25,600 Speaker 2: for years at a time to go through this, and 24 00:01:25,640 --> 00:01:27,319 Speaker 2: this will mean that not only does the Air Force 25 00:01:27,360 --> 00:01:30,600 Speaker 2: get these planes in service a lot more of the 26 00:01:30,640 --> 00:01:34,400 Speaker 2: time that the downtime is a lot briefer, but all 27 00:01:34,440 --> 00:01:37,000 Speaker 2: of the jobs that go into maintaining and upgrading these 28 00:01:37,040 --> 00:01:40,039 Speaker 2: aircraft will be done right here in South Australia. 29 00:01:40,240 --> 00:01:41,959 Speaker 1: So this will be a national base for it. 30 00:01:42,840 --> 00:01:46,440 Speaker 2: Yeah, that's right. I mean Edinburgh Airbase in South Australia 31 00:01:46,520 --> 00:01:49,600 Speaker 2: is one of two superbases that the Air Force has 32 00:01:49,720 --> 00:01:54,640 Speaker 2: in Australia, one here and one in Queensland, and having 33 00:01:54,640 --> 00:02:00,320 Speaker 2: this facility here will effectively make Edinburgh a base for 34 00:02:00,360 --> 00:02:05,960 Speaker 2: these aircraft to be maintained and upgraded from time to time. 35 00:02:06,760 --> 00:02:10,120 Speaker 2: So it's a lot of jobs and the state government 36 00:02:10,240 --> 00:02:13,760 Speaker 2: once again is directly investing in this facility because we 37 00:02:13,880 --> 00:02:16,520 Speaker 2: realize the value it has for our economy and for 38 00:02:16,560 --> 00:02:20,440 Speaker 2: the local workforce. It's a two hundred million dollar investment, 39 00:02:20,480 --> 00:02:23,880 Speaker 2: so it's a very big investment, but one that will 40 00:02:23,960 --> 00:02:27,040 Speaker 2: not only pay itself off financially, but send a really 41 00:02:27,080 --> 00:02:29,640 Speaker 2: clear message to the defense industries that they've got a 42 00:02:29,639 --> 00:02:32,680 Speaker 2: state government that will directly invest in them, but send 43 00:02:32,720 --> 00:02:34,919 Speaker 2: a message to our school kids that so want to 44 00:02:35,000 --> 00:02:38,560 Speaker 2: work in defense, they can do it right here in 45 00:02:38,680 --> 00:02:42,560 Speaker 2: South Australia, only twenty or twenty five minute drive from 46 00:02:42,600 --> 00:02:43,000 Speaker 2: the city. 47 00:02:44,000 --> 00:02:47,079 Speaker 1: Yes, that's certainly pretty good and obviously a lot of 48 00:02:47,160 --> 00:02:50,280 Speaker 1: jobs as you're saying, construction and then ongoing beyond that 49 00:02:50,440 --> 00:02:52,800 Speaker 1: in the defense industry. How many of these aircraft are 50 00:02:52,840 --> 00:02:54,280 Speaker 1: there in Australia. How many do we have? 51 00:02:55,440 --> 00:03:01,639 Speaker 2: So the total fleet is twenty four. It into different variations, 52 00:03:02,160 --> 00:03:07,040 Speaker 2: some of which will do a surveillance, some of which 53 00:03:07,080 --> 00:03:13,200 Speaker 2: will do much higher level and broader threat monitoring for 54 00:03:13,280 --> 00:03:17,239 Speaker 2: the region for Australia. So there are three different variations 55 00:03:17,919 --> 00:03:20,519 Speaker 2: of these aircraft and twenty four in total. And you 56 00:03:20,639 --> 00:03:23,240 Speaker 2: might remember, Matthew that in the past we used to 57 00:03:23,240 --> 00:03:26,680 Speaker 2: have those big P three to O'Ryan airplanes with the 58 00:03:26,760 --> 00:03:29,440 Speaker 2: four props and the long thing that suck out from 59 00:03:29,440 --> 00:03:32,919 Speaker 2: our tail that would fly out of the Northern suburbs. Well, 60 00:03:32,960 --> 00:03:37,560 Speaker 2: this is these seven three seven based P eight aircraft 61 00:03:37,680 --> 00:03:40,800 Speaker 2: are the replacements for the P three and it's really 62 00:03:40,840 --> 00:03:42,920 Speaker 2: good that they're going to be based here in South Australia. 63 00:03:43,880 --> 00:03:49,080 Speaker 1: Yeah, absolutely so defense rolls on and big announcements like this, 64 00:03:49,160 --> 00:03:52,680 Speaker 1: and we apart from Orcus and that's certainly the biggest 65 00:03:52,720 --> 00:03:55,720 Speaker 1: of the big Are we getting anything else from defense? 66 00:03:55,760 --> 00:03:58,200 Speaker 1: We are the defense states still, are we not? And 67 00:03:58,320 --> 00:04:00,400 Speaker 1: i'd imagine there's a lot going on in that space. 68 00:04:01,080 --> 00:04:04,119 Speaker 2: Yeah, absolutely. And even a federal minister who was over 69 00:04:04,160 --> 00:04:08,760 Speaker 2: here today, Pat Conroy, you know, he was really praising 70 00:04:09,000 --> 00:04:11,920 Speaker 2: South Australia not only as the defense state, but you know, 71 00:04:11,960 --> 00:04:15,160 Speaker 2: we've we've put in a good twenty years worth of 72 00:04:15,240 --> 00:04:18,520 Speaker 2: work to make sure that we can position ourselves to 73 00:04:18,600 --> 00:04:21,440 Speaker 2: be the home of these major defense activities, whether it's 74 00:04:21,480 --> 00:04:25,000 Speaker 2: that continuous naval shipbuilding and of course headlined by what 75 00:04:25,040 --> 00:04:31,480 Speaker 2: you mentioned Orcust and building our country's first nuclear powered submarine. 76 00:04:32,040 --> 00:04:34,800 Speaker 2: But you know, I'm at pains as the defense industries 77 00:04:34,839 --> 00:04:37,880 Speaker 2: indus here in South Australia to send a particular message 78 00:04:38,040 --> 00:04:41,159 Speaker 2: not just about naval shipbuilding. We've got so much more 79 00:04:41,200 --> 00:04:44,200 Speaker 2: here in South Australia in our defense industries. You know, 80 00:04:44,200 --> 00:04:48,560 Speaker 2: we've got one of two massive air spaces here with 81 00:04:48,680 --> 00:04:52,119 Speaker 2: so much industrial activity going around it. We've also got 82 00:04:52,640 --> 00:04:56,479 Speaker 2: the largest facility of the federal government's defense science and 83 00:04:56,520 --> 00:05:00,160 Speaker 2: technology groups out here in the Northern Suburbs as well, 84 00:05:00,400 --> 00:05:02,680 Speaker 2: and I think that's eight hundred staff and they are 85 00:05:02,680 --> 00:05:07,320 Speaker 2: doing the cutting edge research and development and testing work 86 00:05:08,120 --> 00:05:11,360 Speaker 2: for all of the technological advancements that our defense forces 87 00:05:11,400 --> 00:05:15,480 Speaker 2: are using into the future. So these are jobs which 88 00:05:15,520 --> 00:05:20,039 Speaker 2: are really highly skilled and really highly paid. And as 89 00:05:20,240 --> 00:05:23,200 Speaker 2: an economy, we of course want more and more young 90 00:05:23,279 --> 00:05:26,200 Speaker 2: South Australians getting into these high skill, high paid jobs 91 00:05:26,800 --> 00:05:30,320 Speaker 2: because overall that's good for our economy wide standard of living. 92 00:05:31,560 --> 00:05:34,400 Speaker 1: Okay, well, I've got you as a treasure. I put 93 00:05:34,440 --> 00:05:37,440 Speaker 1: on that hat. And yesterday we saw cost of living 94 00:05:37,480 --> 00:05:41,120 Speaker 1: figures come out and showing the economy the growing byzo 95 00:05:41,160 --> 00:05:45,039 Speaker 1: point two percent nationally, but you say, here in South Australia, 96 00:05:45,080 --> 00:05:46,080 Speaker 1: we're well ahead of that. 97 00:05:47,440 --> 00:05:51,920 Speaker 2: Yeah, we had some encouraging news yesterday in the national 98 00:05:51,920 --> 00:05:55,000 Speaker 2: growth figure. South Australia grew at zero point nine of 99 00:05:55,040 --> 00:05:58,840 Speaker 2: a percent, obviously much higher than what the national economy 100 00:05:58,880 --> 00:06:03,440 Speaker 2: grew and highest level of growth amongst all the states' territories, 101 00:06:04,000 --> 00:06:08,640 Speaker 2: equal to Western Australia. So again West Australia and South 102 00:06:08,640 --> 00:06:12,040 Speaker 2: Australia leading the nation in terms of economic performance. But 103 00:06:12,160 --> 00:06:15,640 Speaker 2: you know, these are challenging times. As I'm sure many 104 00:06:15,640 --> 00:06:20,120 Speaker 2: of your listeners would be acutely aware, not only is 105 00:06:20,160 --> 00:06:23,760 Speaker 2: the Reserve Bank still fighting to get inflation under control, 106 00:06:24,120 --> 00:06:27,400 Speaker 2: and they've increased interest rates in an effort to do that. Now, 107 00:06:27,480 --> 00:06:30,000 Speaker 2: that means that the cost of everything has been going up. 108 00:06:30,279 --> 00:06:34,320 Speaker 2: It's really tough on household budgets. And what was interesting 109 00:06:34,360 --> 00:06:36,960 Speaker 2: to see in the figures yesterday, and a really important 110 00:06:37,000 --> 00:06:40,960 Speaker 2: reminder for governments around the country, is that the level 111 00:06:40,960 --> 00:06:45,440 Speaker 2: of spending by households over the last quarter has actually 112 00:06:45,480 --> 00:06:49,320 Speaker 2: gone down. And you know, Matthew, as I'm sure you 113 00:06:49,320 --> 00:06:52,120 Speaker 2: can appreciate if the price of everything is going up, 114 00:06:52,560 --> 00:06:55,200 Speaker 2: but the actual total spend has gone down. That means 115 00:06:55,240 --> 00:06:57,640 Speaker 2: people are really tightening their belts at the moment. And 116 00:06:57,720 --> 00:07:01,040 Speaker 2: that means that not only are they doing it tough directly, 117 00:07:01,400 --> 00:07:03,800 Speaker 2: but they've got less capacity to support a lot of 118 00:07:03,800 --> 00:07:06,240 Speaker 2: other small businesses in the economy. So we are going 119 00:07:06,279 --> 00:07:09,960 Speaker 2: through a period of much softer economic activity at the moment. 120 00:07:10,920 --> 00:07:12,760 Speaker 1: All right, And I was going to say, you know, 121 00:07:12,800 --> 00:07:15,200 Speaker 1: these figures as good as they are for South Australia, 122 00:07:15,240 --> 00:07:20,240 Speaker 1: as you've pointed out, Treasurer cold comfort really given particularly 123 00:07:20,320 --> 00:07:24,800 Speaker 1: electricity prices and general cost of living, the price of 124 00:07:24,840 --> 00:07:27,720 Speaker 1: a shopping basket through the roofs. I'm sure you're well aware. 125 00:07:28,600 --> 00:07:31,200 Speaker 1: A great, great result for the state in terms of 126 00:07:31,280 --> 00:07:34,000 Speaker 1: being above that national trend, but ultimately what does it 127 00:07:34,040 --> 00:07:35,400 Speaker 1: mean for people? Pretty much? 128 00:07:35,600 --> 00:07:38,880 Speaker 2: Stuff all Well, yeah, and I guess we've got to 129 00:07:38,960 --> 00:07:42,440 Speaker 2: maintain focus on that, Matthew, that you know, while it's 130 00:07:42,480 --> 00:07:45,640 Speaker 2: good to see that our economy is growing, that there's 131 00:07:45,680 --> 00:07:50,000 Speaker 2: more opportunities, particularly for young South Australians to get into work, 132 00:07:50,040 --> 00:07:52,120 Speaker 2: you know we've still got a strong labor market. That 133 00:07:52,280 --> 00:07:54,720 Speaker 2: doesn't take away from the fact that there are many, 134 00:07:54,800 --> 00:07:57,920 Speaker 2: many South Australians who are finding the current times very 135 00:07:57,960 --> 00:07:59,880 Speaker 2: tough at the moment. And you know, when the Reserve 136 00:08:00,000 --> 00:08:05,480 Speaker 2: and increases interest rates, that means that people's mortgages, mortgage 137 00:08:05,520 --> 00:08:10,040 Speaker 2: costs increase, Rental costs go up as well as landlords 138 00:08:10,040 --> 00:08:12,880 Speaker 2: passed on some of those costs of their tenants grow 139 00:08:12,960 --> 00:08:15,880 Speaker 2: through prices are up, a fuel costs are up. Energy 140 00:08:16,320 --> 00:08:20,000 Speaker 2: costs are still a problem across the country. There's still 141 00:08:20,040 --> 00:08:22,840 Speaker 2: a lot of work that governments at all levels need 142 00:08:22,960 --> 00:08:25,960 Speaker 2: to continue doing to make sure that we can get 143 00:08:26,080 --> 00:08:29,560 Speaker 2: households and businesses on a better footing. So that we 144 00:08:29,640 --> 00:08:32,800 Speaker 2: can continue growing our economies stoneably into the future. 145 00:08:35,120 --> 00:08:37,600 Speaker 1: Just a quick clarification and Michael's put this right. Are 146 00:08:37,640 --> 00:08:41,319 Speaker 1: we funding this double af shared when defense is federally funded, 147 00:08:42,760 --> 00:08:44,479 Speaker 1: it's a shared responsibility. 148 00:08:45,160 --> 00:08:47,920 Speaker 2: Yeah, So what's happening is the state government owns the 149 00:08:48,000 --> 00:08:53,120 Speaker 2: land through our Development Organization Renewal LESA. We are building 150 00:08:53,559 --> 00:08:57,280 Speaker 2: the shared directly. It's a cost of approximately two hundred 151 00:08:57,320 --> 00:09:00,400 Speaker 2: million dollars and then that is being leased by Bowing 152 00:09:00,400 --> 00:09:04,800 Speaker 2: Australia who is providing the aircraft and maintaining them on 153 00:09:04,880 --> 00:09:08,920 Speaker 2: behalf of the Royal Australian Air Force. And so those 154 00:09:09,040 --> 00:09:14,000 Speaker 2: lease payments basically make this a pretty profitable commercial property 155 00:09:14,040 --> 00:09:17,560 Speaker 2: investment for the state government. But because we've been willing 156 00:09:17,679 --> 00:09:21,280 Speaker 2: to put that money up front and to build the 157 00:09:21,440 --> 00:09:24,720 Speaker 2: facility first, that means that this activity is going to 158 00:09:24,720 --> 00:09:27,800 Speaker 2: happen in South Australia rather than go off to another 159 00:09:28,520 --> 00:09:31,880 Speaker 2: air bace location elsewhere around the country. And it means 160 00:09:31,920 --> 00:09:34,520 Speaker 2: that for many years we will lock in this activity 161 00:09:34,520 --> 00:09:38,040 Speaker 2: and the jobs that go with it, while also having 162 00:09:38,080 --> 00:09:41,559 Speaker 2: what will be quite a good commercial property investment for taxpayers. 163 00:09:42,480 --> 00:09:45,320 Speaker 1: Okay, so long short term investment up front and long 164 00:09:45,400 --> 00:09:47,800 Speaker 1: term spin off to both the government which it's taxpayers, 165 00:09:47,840 --> 00:09:49,120 Speaker 1: and to the economy in general. 166 00:09:49,840 --> 00:09:54,040 Speaker 2: That's right. Yeah, that's the whole proposition behind making this investment. 167 00:09:54,559 --> 00:09:56,480 Speaker 1: All right, Treasure, I appreciate your time this morning. 168 00:09:56,520 --> 00:09:58,240 Speaker 2: Thank you, no, thanks so much