‘Time will tell’: Call from SA defence boss for new UK minister to deliver
One of the state’s most prominent defence leaders has called on the brand new UK finance minister to ‘deliver’ on the AUKUS pact, as ground breaks on a new subs headquarters in Adelaide.
BAE Systems Australia CEO Craig Lockhart has welcomed “stability” as major political leadership changes are underway in the United Kingdom, with the country’s new Prime Minister Andy Burnham unveiling his cabinet overnight.
Burnham – dubbed ‘King of the North’ after a fiery speech over COVID restrictions in his former role as Manchester Mayor – announced his new team, making the man who pushed for a recent increase in UK defence spending his new Finance Minister.
John Healey, the former UK defence minister who helped trigger Keir Starmer’s departure by accusing him of failing to spend enough to keep the country safe, was named finance minister, formally known as the ‘chancellor’.
As defence minister, Healey spent months lobbying Starmer and the finance ministry to lay out a pathway to spend three per cent of GDP on defence by 2030, rather than the 2.68 per cent that the government eventually had budgeted for.
At a press conference this morning, Lockhart said “stability is key”, noting “I’m not detecting in any of the discussions that I’m having that there’s any changes in support for AUKUS”.
AUKUS is a trilateral defence pact signed by Australia, the UK and the United States. It envisions a big transfer of defence technology, enabling Australia to build its own nuclear-powered submarines.
South Australia is set to be a key beneficiary of the $368 billion program, with the nuclear submarines to be constructed at Osborne, north of the Adelaide CBD.
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“It has been, since day one, a trilateral endeavour,” Lockhart said.
“It still is and Andy Burnham is coming in again and making the same kind of sentiments and commitments to AUKUS as his predecessor.”
Asked whether Healey’s appointment would be a boon for BAE Systems – headquartered in the UK – and the AUKUS program, Lockhart said “I can’t comment on what John Healey is going to do as the Chancellor”.
“But I think his comments as defence minister [lobbying] for more money [for defence] … well now it’s on him as the Chancellor to deliver against those commitments,” he said. “Time will tell.”
Federal Minister for Defence Industry Pat Conroy added that Healey was “a good friend of Australia and was integral to AUKUS”.
“Him becoming Chancellor or the Exchequer adds another strong voice in the UK cabinet table to continue their investment.”
South Australian Premier Peter Malinauskas said he did not have plans in the “immediate future” to meet the new Prime Minister and his new cabinet in the United Kingdom.
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Construction of defence tower begins
Meanwhile, construction has commenced on a new 11-storey tower hosting defence giant BAE Systems as a key tenant.
To be called Defence HQ, the building will house defence, space and critical technologies businesses and will support the country’s AUKUS endeavours.
Alongside BAE Systems Australia, three projects totalling more than $100 million will take up residency in the tower.
This includes two projects jointly funded by the state and federal governments: a $60 million Australian Defence Technologies Academy and a $24.5 million Innovation Hub to be operated by Adelaide University.
A $20 million SpaceBase, fully funded by the SA Government, will also be a tenant of Defence HQ.
BAE Systems will establish its new SA headquarters in the building, which will be constructed by Australian company Built.
Up to 500 employees will work out of Lot Fourteen with a focus on delivering defence programs, including the construction of the nuclear submarines under the AUKUS pact.
It was expected that construction would be completed by the end of 2028. More than 300 workers would be employed across the construction phase, a state and federal government media release stated.
Once all tenants have moved in, the workforce population of the broader Lot Fourteen technology precinct was expected to double to more than 3000 people.
“Establishing a new head office in the centre of Adelaide also reflects our strong partnership with the South Australian government and the importance of ensuring we are an attractive employer that enables teams to work in an environment that inspires them to thrive and can accommodate our plans for employee growth in coming years, Lockhart said.
“We expect to hire some 1300 employees in 2026, with 80 per cent of our growth in engineering trades and production roles.
“This recruitment tempo will be maintained for at least the next three to five years, with most of our growth expected in South Australia.”
Built general manager Henry Meaney said he was “proud to partner with the State Government on this project, giving South Australians the opportunity to help deliver major infrastructure that will shape the state’s future economy”.
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