Page 53 - Australian Defence Magazine November 2021

Is full sovereignty necessary for Australia?
In times of relative stability, probably not. Companies that operate and invest in Australia are well placed to meet Government and Defence requirements, delivering both jobs and local capability. In uncertain times, however, lack of sovereign control over capability delivery could create an unacceptable level of strategic risk.
When crises threaten global supply chains, national interests take priority. One example is Italy invoking EU regulations
to block the export of Covid vaccines to Australia. We have
also seen how sovereignty without self-reliance can compound
a crisis. Recently, as Brexit-induced labour constraints combined with a Covid-induced escalation in shipping costs, much of Britain was left without fuel.
Some countries, like the US, have regulations in place to prioritise their own defence needs. In times of adversity, directives like the US Defense Priority and Allocation System (DPAS) could easily see Australia placed at the back of the queue.
To be fully prepared for a future where crises and conflict coexist, sovereign Australian companies must aim for the highest possible degree of self-reliance when delivering critical Defence capabilities.
When do we need full sovereignty and how long
do we need to sustain it?
Each sovereign Australian company needs to determine
this relative to the SICP(s) it contributes to. Some questions
to consider are: What aspects of the capability are operationally critical or will deliver a strategic advantage to Defence?
Where do gaps exist in the ability to develop and fully support this capability in Australia? How much buffer stock or additional resources are required to sustain this capability for an extended period? What investment is needed to close any capability gaps, is the investment justifiable relative to the benefit, and in what timeframe can we achieve this?
What steps is TAE Aerospace taking?
A 100% Australian owned company, TAE Aerospace has taken significant steps over the last five years to enhance current and future capability in priority areas. It has established Australia’s Centre of Excellence for Defence Propulsion MRO for multiple Defence engines, designed to scale up capacity and take on new platforms as Defence requires. It is working to integrate Land and Aerospace Platform SICPs and leverage the many synergies between them. Alongside its MRO work, TAE Aerospace is innovating in the area of data analytics, using data captured through HUMS on tank engines to improve engine performance.
TAE Aerospace recognises, however, that in-country capability does not equal full sovereignty. For example, its close relationships with engine OEMs allows access to IP and
data for MRO work, but there is a weak link in Australia’s supply chain when it comes to manufacturing critical propulsion components. These vital engine parts are only manufactured
in a small number of US plants, often with long lead times.
To address the shortfalls in self-reliance, TAE Aerospace is looking at each ‘gate’ in its propulsion MRO process
to determine where it has 100% capability in Australia, where it needs to invest in new capability or stock holding, and where to look for a different solution. One option is to strengthen regional supply chains; another is to explore potential for the AUKUS alliance to share IP beyond submarines to include mission critical aerospace parts.
IP transfer could be sought to manufacture these parts in Australia, along with a commitment to train local companies in how to do the work.
For sovereign Australian companies, creating a plan to move toward full sovereignty on priority capabilities is essential.
A measurable plan, endorsed by Defence and shared with Government, will help determine Australia’s priorities for future investment, and quicken our collective pace toward self-reliance. Only then can we ensure Defence has sustained access to mission critical capabilities in an increasingly uncertain future.
Australia’s Centre of Excellence for Defence Propulsion MRO.
www.taeaerospace.com