The Australian Industry Group (Ai Group) has released a report outlining what it describes as essential next steps for ensuring the success of AUKUS Pillar 2, the trilateral security arrangement between Australia, the United Kingdom and the United States aimed at jointly developing advanced defence capabilities.
Based on consultations with industry stakeholders, Ai Group’s report says AUKUS Pillar 2 needs to shift from what is widely viewed as a policy-driven initiative to a program focused on delivering tangible capabilities.
In a news release, the group noted that while early measures – such as policy reforms, export control alignment and innovation pathways – have laid a solid foundation, the next phase must focus on commercialisation and acquisition, backed by dedicated funding.
“AUKUS Pillar 2 offers Australian companies an opportunity to work with leading UK and US defence sectors, creating high-tech jobs, boosting Australia’s defence innovation and – most importantly – delivering advanced capabilities to the Australian Defence Force,” said Innes Willox, chief executive of Ai Group.
“Our research shows that while there is strong political backing for AUKUS Pillar 2, the initiative must be given clear capability and acquisition pathways and specific, designated funding.”
Willox added there is still “a lack of clarity across industry as to what AUKUS Pillar 2 is trying to accomplish,” with different stakeholders viewing it as a research program, a procurement initiative, or primarily about policy reform. “This is hampering industry engagement and investment decisions,” he said.
The report recommends five key actions: releasing a clear national strategy outlining objectives, funding, timelines and success measures; focusing on capability delivery through defined development and acquisition pathways; providing dedicated funding streams; expanding supporting policies including cybersecurity and workforce development; and improving coordination between AUKUS partners and industry.
“The groundwork is set, but progress must speed up,” Willox said. “Australian Industry Group encourages decision-makers, industry and broader stakeholders to review this report and collaborate to make AUKUS Pillar 2 a driver of Australia’s national security and economic future.”
The report, Developing industry capability and partnerships for AUKUS Pillar 2, is available from Ai Group.
