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In the wake of its recent 2006-2007 defense budget proposal “To Defend Australia” [PDF format], the Australian government has announced that it will begin a comprehensive review of its defense industrial policy. Australian Minister for Defence Dr Brendan Nelson recently noted that:

“Today’s discussions primarily allowed us to capture industry’s views. They will inform a Discussion Paper to be released later in June 2006. Further consultations undertaken by my colleague the Hon Bruce Billson MP, the Minister Assisting the Minister for Defence, assisted by Mr Kerry Clarke, Dr Henry Ergas and Dr Mark Thomson will take place around Australia. These will inform the key issues, including sustaining key strategic industry capabilities in Australia needed to supply and support the Australian Defence Force…. Following these consultations, the Government will determine the need for a new Statement on Defence Industry Policy.”

Britain also undertook a review of its defense industrial policy recently, resulting in wide-ranging recommendations and a new blueprint. Defense-Aerospace.com has more re: Australia’s initial steps.