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BAE SYSTEMS calls for a global perspective in developing Australian defence industry policy

09 May 2002

With a growing US customer, a small number of multi-nation programs and a global industry re-focusing on core capabilities, the key to future success is a global approach to Defence industry policy, according to Jim McDowell, Chief Executive, BAE Systems Australia.

"Australia's small and fractured local defence industry base will disappear if we do not develop a new approach to industry policy," said Mr McDowell.

Speaking in Canberra to members of the Royal United Service Institute of Australia (RUSI), McDowell highlighted the need for companies in Australia to find a long-term sustainable place within the global defence framework.

"Every day defence becomes more of a global industry and we must all seek to operate in these global defence markets," he said.

Currently Australian industry is engaged in crucial discussions with the Commonwealth on the future size and shape of the Australian industrial base in many fields including naval shipbuilding and repair, aerospace and electronics.

According to Mr McDowell, "We need to shift from the model of the third quarter of the last century - an Australian national defence industry policy - to the new paradigm of global defence industries. And we need to do it quickly."

"Decisions are right now being made that will affect Australian Defence Force (ADF) capability for the next 20 years and which we know and acknowledge are employing failed procurement practices."

"While I'm disappointed with the speed of change, I have guarded optimism for the current sector strategies process being led by the Defence Materiel Organisation," he said.

McDowell also took the opportunity to dispel some defence industry myths - in particular about BAE Systems.

"BAE Systems is not only British and is not only aerospace. BAE Systems is first and foremost a global systems company. And as such, BAE Systems is focused on leveraging its strong global position to partner with the ADF as the world's leading systems company," he added.