The United States Studies Centre (USSC) at the University of Sydney partnered with the McKell Institute to host a Track 1.5 policy workshop at NSW Parliament House to discuss the role of New South Wales in AUKUS.

In New South Wales and AUKUS: Role and opportunities for the ‘premier state’ authors Alice Nason, Edward Cavanough, Prof. Peter Dean and Esther Soulard summarised the emerging themes from the discussion with senior representatives from the state government, trade unions, industry, education and research sectors.

“Despite being the home to 40% of Australia’s defence and aerospace industry and nearly a third of its total manufacturing income, New South Wales does not yet have a confirmed role in the critical manufacturing aspect of AUKUS Pillar I,” USSC Director of Foreign Policy and Defence Prof. Peter Dean noted.

The report highlights the current limitations on engagement by New South Wales on AUKUS that set it behind its South Australian and West Australian counterparts. Structural changes like making Defence NSW more prominent, filling the position of Defence Advocate and appointing a NSW Minister of the Defence Industry were highlighted as particular areas of focus. This coupled with public messaging were viewed as critical by workshop attendees.

“NSW stakeholders are keen, but there is a crisis of confidence when it comes to industry planning,” co-author Edward Cavanough said, “But publishing an industry plan for AUKUS, a statement of support and appointing a dedicated NSW Defence Industry Minister will send the signals industry needs to rise to the challenge.”

Key recommendations

  • Publish a comprehensive and updatable industry plan for AUKUS at the state level to enhance market certainty around the enterprise, supplementing the NSW Defence and Industry Strategy.
  • Reform Defence NSW and separate it from Invest NSW to best surface and regularise engagement opportunities for prospective participants in the AUKUS enterprise and grow the cohort responsible for stewarding NSW engagement in AUKUS.
  • Establish New South Wales as a recruitment, skills and training hub for the AUKUS Enterprise.
  • Release a statement of support from the state government to signal NSW commitment to the AUKUS enterprise.
  • Appoint a dedicated NSW State Minister for Defence Industry, similar to the existing positions in Queensland, West Australian and South Australian parliaments.

Download or view the report

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