The Defence Strategic Review called for a broad approach to national security that requires not just a whole-of-government approach, but a whole-of-nation effort too. This has been enthusiastically embraced by the Albanese government. But the federal government must make funding national security more attractive to draw in another arm of Australian power – the private sector.There are huge, untapped investment opportunities in Australia’s defence industry and capability development.
While Ukraine has generated more debate within boardrooms about the place of defence industry in investment portfolios, Australian banks, super and private equity are constrained by so-called Environmental, Social and Governance guidelines. The “S” in ESG should include the social good of a secure country, to allow for a thriving society. Defence companies provide a social good in contributing to Australia’s autonomy and strengthening our regional voice.
Importantly, as part of the whole-of-government, integrated approach to national security laid out in the DSR, the government has also committed in the budget to new investments in the Department of Foreign Affairs and Trade, the Office of National Intelligence, and the Australian Secret intelligence Service. Reinvestment in these arms of national power is a solid start, but implementing the DSR in full will require more innovative and, frankly, higher-risk appetite approaches.