Marise Payne (NSW, Liberal Party, Minister for Defence) Share this | Hansard source

I thank Senator Macdonald for his question and particularly acknowledge his ongoing advocacy for local businesses in Queensland. Last week, in Darwin, I announced the local industry capability plan initiative, which is intended to strengthen the opportunity for local businesses, particularly throughout rural and regional Australia, to maximise their involvement in defence estate and infrastructure projects. In relatively small communities I know even modest levels of defence spending can provide tangible economic benefits, whether they are to be seen in increased skills, jobs or economic sustainability.

It is also the case that using local businesses near defence bases, facilities or training areas simply makes sense and, frankly, provides value for money. So Defence will be piloting a local industry capability requirement as part of the request for tender for three upcoming major facilities projects: the $230 million explosive ordnance logistics reform, which covers 12 defence sites across Australia; the $135 million Shoalwater Bay training area redevelopment; and the $24 million Townsville field training area mid-term refresh. They all go to market in the next few months.

There will be an additional requirement on tenderers bidding. It will take the form of a specific schedule in a request for tender. It will require tenderers to clearly state how they have engaged with local industry in providing their proposed response and detail how local industry will be involved in delivering the work packages that underpin the project. The successful tenderers' local industry capability commitments will be a deliverable at contract signature, and contractors will be required to provide regular reporting of their achievements. This is a very important initiative for local businesses across Australia, particularly in rural and regional areas, where there is significant opportunity related to growth in defence estate and infrastructure.