The Grumpy Strategists Australian industry gets more Aussie, while Australia writes defence cheques it can't cash
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Nov 19, 2025 Dive into the Australian Government's new definition of industry, stirring debate over its relevance in defence procurement. Explore the contentious bid by Hanwha for Austal amidst Japanese concerns. There's a critical look at Australia's defence spending, including the eye-opening $12 billion figure. The discussion shifts to the newly signed Australia-Indonesia treaty, raising eyebrows about President Prabowo's leadership. Plus, unexpected US Army helicopter cuts could bolster Australia’s military. Tune in for insight and intrigue!
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Definition Wins But Defence Can Override
- Even with the improved definition, Defence can ignore it through existing procurement exemptions for security.
- That makes the finance definition politically stronger but practically limited for defence procurement change.
Hanwha's Austal Bid Stirred Industrial Fears
- Hanwha sought to buy a chunk of Austal, prompting industry and political concerns about South Korean ownership of an Australian shipyard.
- That raised questions about whether Japanese frigate builders would work with a yard partially owned by South Korean interests.
Foreign Investment Risks Henderson Plans
- The Hanwha Ocean bid will go to the FIRB and the Treasurer must weigh national security and industrial sensitivities.
- Mitsubishi and Japan's refusal to transfer IP to a shipyard with large Korean ownership complicates Henderson's frigate plan.