Why Sovereign Capability is Important for Australia
The past three years brought Australia many challenges – the COVID-19 pandemic, bushfires, and widespread flooding disasters. These events have highlighted Australia’s vulnerability to supply chain disruptions and renewed conversations about risk management and the need to improve self-sufficiency. One way to do that is to increase Australia’s sovereign capabilities. That means more Australian-owned companies delivering goods and services to Australians.
In this blog, we explore what sovereign really means, why it’s important, and what the key advantages are for national security, the economy, and your organisation.
What Does ‘Sovereign’ Mean?
The word ‘Sovereign’ means acting independently, without outside interference. In the context of Australian industry, it means a company that is Australian-owned and has no interference from countries outside of Australia.
Control is a key element of sovereignty. Through increased control, sovereignty can help Australia to build in-country capacity, improve self-reliance, and strengthen resilience during the most challenging of times. It means, as a country, we are less reliant on foreign countries and supply chains. It also means important assets and intellectual property is kept for Australian eyes only, which is important from a national security perspective.
What Constitutes a Sovereign Business?
A sovereign business is an Australian-owned business operating in Australia.
What constitutes an Australian business and how sovereign it is, is more of a grey area.
To be an Australian business, a company simply needs to have an Australian Business Number. Some companies have an Australian board of directors. Others are foreign-owned and have a board located overseas, but they operate an Australian subsidiary of their parent company. Some companies you may think are Australian, are actually owned by foreign parent companies.
OSG is a sovereign, Australian-owned company. The OSG Board are all Australian. The company employs a team of 1900 people located in 39 locations across Australia.
Why Are Sovereign Companies Important for National Security?
Working with sovereign companies helps to protect national security, which is particularly important in the Defence, Space and Technology industries. Recent instances of unrest overseas and a complex global geopolitical environment are a reminder of why sovereignty is essential for Australia’s ongoing protection. As are the increasing number of cyber attacks, as the digital age continues its rapid growth.
Sometimes people and/or countries will go to great lengths to access sensitive national security information, gather intelligence, or influence policy decisions. Cyber criminals are using increasingly sophisticated methods, which poses a challenge for both government and industry.
Unauthorised access to national security information would be detrimental to Australia’s national interests, including our economy and long-term political stability. Working with a trusted, sovereign company minimises these risks and provides superior protection for nationally or commercially sensitive assets.
How Sovereign Businesses Help to Grow and Strengthen Australia’s Economy
Working with sovereign companies helps to maximise economic growth and innovation in Australia.
When you work with a 100% Australian-owned and run company, it means:
- They can continue to upskill and employ Australians
- They pay taxes here and are contributing to the welfare, health and wellbeing, and education of Australian people
- Their profits are retained in Australia and not overseas
- Company profits can then be reinvested in R&D, innovations, and new initiatives that can benefit Australia in the long-term
Spending your money onshore means you are making a valuable contribution to the national economy. It also helps to insulate against the global supply chain issues that many Australian businesses are being adversely affected by today. The pandemic caused many of these issues, with labour shortages, extended shut-down periods, and logistical challenges. However, other issues, such as global instability, are also a factor influencing the current international supply chain challenges.
OSG is a 100% Sovereign, Australian-owned Business
OSG’s mission is to protect Australian interests, above all else. Founded by a group of Australian veterans and diplomats, OSG was created to help meet the challenges that both the Australian government and industry are facing.
OSG practices what we preach when it comes to supporting sovereign businesses and buying Australian. When procuring goods and services, we try to source these from Australian businesses first. This is not always an easy task, but OSG recognises that every dollar we spend supports other Australian businesses and the broader national economy. OSG also reinvests profits to fund initiatives in Australia that support veterans, Defence families, and Indigenous Australians.
If confronted with the choice, would you support a foreign-owned business? Or would you support a sovereign company, like OSG, that is committed to protecting Australia’s interests?
In times of global uncertainty, using a trusted sovereign, Australian-owned and run business is the smart option.
