"The Federal Government's announcement of a new Defence Delivery Agency (DDA) to streamline acquisition and sustainment activities is welcomed by industry," said Innes Willox, Chief Executive of the national employer association, Australian Industry Group.
"As our strategic circumstances become increasingly challenging, the need for a more effective defence capability system has never been more urgent. Bringing together three existing Defence capability functions into a single agency with direct ministerial reporting and budget control will ensure better coordination across capability delivery.
"With an expected $70 billion in additional defence spending over the next decade, getting the structure right for this spending is important. The opportunity now is to ensure these structural changes support faster decision-making and improved project outcomes.
"Despite a recent uplift in spending, Australian defence industry has faced challenges with certainty around programs, the timeliness of contracting decisions and complex pathways for engagement with Defence.
"A National Armaments Director reporting directly to Ministers with control over the budget is a significant step forward. This should create the conditions for more decisive action and improved delivery outcomes.
"Now, the highest priority for Defence and industry needs to be implementation. Australia's strategic circumstances do not allow for extended transition periods or further rounds of review for this critical reform.
"Australian Industry Group welcomes the Government's commitment to consult with industry in the design of the DDA. We and our Defence Council members stand ready to work in partnership with Defence to deliver the capabilities our Defence Force needs," Mr Willox said.
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