By Matt Keogh MP

16 September 2020

A report into the Centre for Defence Industry Capability (CDIC) released today shows the Morrison Government’s failings to support Australian companies into the Defence supply chain. 
Established in 2016, the CDIC was intended to support the Defence supply chain through both business grants and mentorship however, one in five successful grant recipients report they saw no tangible benefit from the grants they received.

The Review confirms a number of key issues:

  • The CDIC’s business advisory and facilitation are “not sufficiently targeted at defence specific support”.
  • The Department of Industry should have established in the Department of Defence.
  • A lack of consistency and clarity around the role of the CDIC.
  • State Governments were forced to go it alone with organisations including “Defence West” and its counterpart in Tasmania have taken it upon themselves to undertake specific industry capability mapping
  • The CDIC is outsourcing work to contractors due to artificial Average Staffing Level caps.
  • Critical data it is not being captured and managed to enable detailed analysis to improve performance

The Morrison Government has only committed to support one recommendation and provide in principle support for seven of the review’s nine recommendations.

The Morrison Government should be able to say when these recommendations will be implemented .
Australian defence industry has already suffered for too long.
Another announcement from Scott Morrison with no follow through.
We must be investing in Australia’s sovereign defence capability, developing our local businesses and providing sustainable jobs for the Australian Industry of the future.