UK Policy Exchange Doorstop

QUESTION: Anyone want to start? You want to go?

QUESTION: You better go then, Percy.

QUESTION: I notice that President-Elect Trump tweeted today – which is always fun – the F-35 program and cost is out of control. Billions of dollars can and will be saved on military and other purchases after 20 January. Do you agree with him, and do you take that to suggest that the JSF Project might be under threat under a President Trump?

CHRISTOPHER PYNE: Well, we’re very confident that the Joint Strike Fighter is the right jet for Australia and for the United States and the rest of the world. Whether it has been efficiently managed from the United States’ point of view in terms of their cost and delays and so on is really a matter for them and for President-Elect Trump’s opinion. That’s perfectly fine for him to have that opinion.

But in terms of Australia’s view about the Joint Strike Fighter, we’re very committed to the program as a partner nation. We’ve just become the Asia-Pacific hub for the Joint Strike Fighter in terms of maintenance and sustainment. Eventually there’ll be 3000 Joint Strike Fighters operating in the world. It’s the most potent weapon in the air, and we think it’s the right choice for our country. How he wants to manage the actual delivery of the program is of course a matter for him and for his incoming administration.

QUESTION: But are you worried? I mean, couldn’t he do what he did with Air Force One and just like, strike it off the budget, and then where would you be at after that?

CHRISTOPHER PYNE: Well, the Joint Strike Fighter is a very far way down the road in terms of delivery. There are four Australians right now in Arizona being trained and testing the Joint Strike Fighter: two ground staff, two pilots. So it is a long way down the track, and obviously a great deal of money’s been invested in it.

QUESTION: Minister, can you just elaborate on what you said here about that Australia’s going to be operating in a more dangerous environment with states- non-state actors have unprecedented capabilities to damage our forces, particularly in our region? Can you just put a bit of flesh on those bones?

CHRISTOPHER PYNE: Well Ellen, obviously our region is more unstable now than it was a few years- even a few years ago. The South China Sea is an ongoing source of tension. The pretensions of the North Korean Government are very deeply concerning, and ones that we are always monitoring. And there are non-state actors, whether they are Islamic cells- Islamist cells in the South Philippines, or whether they are terrorist organisations that are operating in Indonesia and elsewhere that we need to be always monitoring and being abreast and in front of. And as we saw with the attacks on the USSMason by the Houthi rebels in Yemen, which our Nulka successfully defused, Australia has a role beyond our region where we can be of assistance to our allies.

So sadly as we get older, we all hope that the world becomes a safer and less scary place, but unfortunately because of things like Al-Qaeda and the pretensions of the Daesh, we can’ t be complacent.

QUESTION: You commented here before about the changing relationships between China and the United States. Given Donald Trump’s view that he doesn’t necessarily think that they should abide by One-China policy – Australia has a One-China policy – do you agree with Donald Trump?

CHRISTOPHER PYNE: Well, we do have a One-China Policy, and we haven’t changed our view about that. President-Elect Trump hasn’t changed any policy setting with respect to the United States at this stage, and really how he chooses to communicate his views to either the Chinese Government or the American public’s really a matter for him, but the Australian Government has not changed its policy with respect to One-China.

QUESTION: When Australian ministers come over here, they get a lot of nice lip service, some jokes about cricket and things like that, but really do Australia and the UK have much more- much in common? And is Australia overlooked by the UK in various industries, including Defence, do you think?

CHRISTOPHER PYNE: Well, blessedly I’ve been spared the jokes about cricket. Unfortunately, they’re constantly chatting on rugby union at the moment, having just had an unfortunate visit here.

Well, the Australia-UK relationship is a very deep one. There have been times in its history where I think it’s been taken for granted. What I said in my answer to one of the questions about the Cameron Administration I think is true. David Cameron and William Hague really did put a new focus on the Australia relationship, and did sharpen the saw in terms of visits to Australia by both the Prime Minister and the former Secretary of State, and they did recognise the capacity of Australia to assist the UK.

In the last five years or so the UK has seen Asia-Pacific as an important growth area for their economy in terms of trade. I mentioned education, that was one of them. Defence, of course, is another. And I think that this will continue into the future. We have a very strong relationship. As with all relationships where we are basically siblings, we don’t want to take each other for granted. It’s important to keep reminding ourselves of what we can do working together.

QUESTION: [Interrupts] Are we taken for granted at the moment, though?

CHRISTOPHER PYNE: No I don’t think so. As I was pointing out I think in the last five years of a Cameron administration and now Theresa May’s administration, the UK has seen a new purpose and usefulness for this relationship and I think that’s a very positive thing. And we do welcome the UK being more interested and engaged in the Asia-Pacific region, both of an economic and military point of view. So I think the relationship is very healthy at the moment, and long may that continue.

QUESTION: When will the Defence Minister be back at work and is she going to Japan for talks with the Foreign Minister?

CHRISTOPHER PYNE: That’s a question you’ll have to put to her. I spoke to the Defence Minister on Saturday and she’s in very good spirits and she’s recovering well. But as for her return to work and the trip to Japan, that’s a matter you’ll have to put to her office.

QUESTION: Minister, you’ve mentioned in the answer to the question there about the pivot to Asia and you said you- it was under the Obama administration, more of an economic pivot. You expected it now to be more of a military or strategic pivot. Does that mean that you’re anticipating greater military tensions between the US and China and if so, is that a threat or an opportunity for Australia?

CHRISTOPHER PYNE: Well President Trump has talked about the importance of two coastal defences and capacity for the United States, meaning both the Pacific and the Atlantic Ocean. And has talked about a massive increase in the US military spending by US$500 billion. Seventy new vessels. I think about 120 new aircraft. So he is talking about a significant military build-up. And of course that military build-up will need to be based in both the Pacific and the Atlantic Ocean. And we welcome America’s military and economic involvement in the Asia-Pacific. That’s very important in terms of a balance of power equation throughout our region.

His economic policies I think will have to be remained to be seen. But unfortunately he’s saying that he won’t sign the TPP – the Trans-Pacific Partnership – whereas the Obama administration was more enthusiastic about the Trans-Pacific Partnership. So it stands to reason therefore that his economic engagement with the Asia-Pacific is- at this stage looks like it’ll be less than the Obama administration intended. But as I said we are trying to convince the Trump team to change their mind about that. And it might well be that we can succeed in altering the TPP in such a way that it does become attractive to the Trump team.

QUESTION: Do we have any hints that that might actually be something they’re seriously considering in the Trump administration or is it just a hope?

CHRISTOPHER PYNE: It’s a hope at this stage but we never give up hope. I’m a glass half full person, not a glass half empty person.

QUESTION: You’re going to Cherbourg this week…

CHRISTOPHER PYNE: I am.

QUESTION: Are you delivering a message to DCNS? And are you happy with the security measures that they’ve got in place?

CHRISTOPHER PYNE: Obviously we’re working very closely with DCNS around security. We’ll expect the security to be at least as good as has been the case for the Collins Class submarines over the last couple of decades, and we fully anticipate that that will be the case. The measures that we have in place for security of the Collins Class submarine and its information have been- well touch wood, they’re yet to cause any difficulties. In fact they’re second to none in the world and we expect that DCNS will deliver the same. And that’s their expectation as well.

QUESTION: And they’re capable of doing that?

CHRISTOPHER PYNE: Of course they are.

QUESTION: Minister, you went to Rolls-Royce today.

CHRISTOPHER PYNE: Yeah.

QUESTION: Can you just elaborate why you went there and what you’ve come back [indistinct]?

CHRISTOPHER PYNE: Well Rolls-Royce produce about 60 per cent of our engines for the Defence Force in Australia, so they’re an important supplier. And they are bidding as part of the Type 26 bid from BAE for the nine Future Frigates. They would have engines from Rolls-Royce so I wanted to see their capability, which is obviously extraordinary. So it was just- it was good to be there and to eyeball the people.

UNIDENTIFIED SPEAKER: Thanks everyone.

UNIDENTIFIED SPEAKER: Thank you.

CHRISTOPHER PYNE: Okay, thank you.