House debates

Thursday, 25 February 2016

Constituency Statements

Defence Procurement

10:25 am

Photo of Lisa ChestersLisa Chesters (Bendigo, Australian Labor Party) Share this | Hansard source

In a few hours, if not in a couple of minutes, this government will release its defence white paper, which yesterday was touted in the media as being an extra $30 billion to be spent in defence over the next decade. What I want to see, and regional MPs want to see, is a commitment to defence manufacturing here in this country. Last year, after a long campaign, this government finally signed the Hawkei contract, a $1.3 billion contract to secure jobs in my home town of Bendigo—a vehicle that was developed and produced in Bendigo for the Australian Defence Force. At the time, it secured 170 jobs, but what it also secured was a number of jobs in the supply chain—local small to medium businesses supplying parts into the Bendigo-built Hawkei.

I am sure that today's white paper will confirm the ongoing funding for that project, but what we also want to see announced today is a prioritisation of local build for other defence projects. Take, for example, the LAND 400, another project that Bendigo Thales is tendering for in a consortium of other Australian-based businesses. That LAND 400 project should be built in Australia. It is also known as the tanks contract. That is another project that helps secure high-skilled advanced manufacturing jobs here in Australia.

With the subs contract, there is no excuse for those 12 new subs not being built in Australia. There is an exciting opportunity here for the government. In Bendigo, Keech 3D printing has been asked to be part of a bid: the TKMS bid. The German-based manufacturer who wants to build here in Australia has invited Keech in Bendigo to be part of that bid. It is an exciting opportunity that will create extra work in my part of the world. Keech Australia are an amazing advanced manufacturer, and they have been asked to help produce and supply parts to go into a local build.

When we talk about defence manufacturing, we are not just talking about the direct jobs for the company like at Bendigo Thales, down in the shipyards in South Australia or in the shipyards in Williamstown. We are also talking about regional manufacturing jobs, the supply chain jobs that feed into the actual build. This is the opportunity that the government has today in this white paper: to commit to local manufacturing, commit to those supply chain jobs and commit to the builds being here. Australian taxpayers want to see their tax dollars spent on local defence manufacturing jobs. It is a good call. The government should do it.

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