Additional defence investment to stimulate economy announced

Military bases will be upgraded, a new ship built for humanitarian missions in the Pacific and dozens of former Qantas and Virgin aircraft engineers hired under a $1 billion package to enlist the Defence Force to boost the economy and underpin 4000 jobs.

Prime Minister Scott Morrison will announce the stimulus package, which also includes increasing the number of days reservists can be deployed on activities as well recruiting an extra 500 reservists.

Scott Morrison and Defence Minister Linda Reynolds have announced a $1 billion defence stimulus package for the post-COVID-19 recovery. Alex Ellinghausen

The government will also upgrade the Bendigo-built Bushmaster protected vehicle, which is credited with saving countless Diggers' lives from roadside bombs in Afghanistan, and invest further in developing Boeing's Loyal Wingman drone, the first combat aircraft to be designed and developed locally in 50 years.

Mr Morrison said the government wanted to build sovereign industrial capabilities and have the local workforce to keep Australians safe as well as assist in the economic recovery from coronavirus.

"Like much of the economy, our local defence industry is doing it tough because of COVID-19. This is especially so for small and medium-sized businesses that are critical to jobs," Mr Morrison said.

"Supporting our defence industry is all part of our JobMaker plan – especially high-paying, high-skilled jobs that ensure we are supporting a robust, resilient and internationally competitive defence industry."

Defence Minister Linda Reynolds said Defence had already fast-tracked a range of capability, infrastructure, skills and workforce initiatives, including rolling out tenders for construction projects at defence establishments.

The Defence Department has also provided more than $11 billion in early payment for invoices for defence companies.

Under the government's plan, $300 million will go towards upgrading a slew of defence bases and facilities in regional areas, including Jervis Bay and Eden in NSW, giving a lift to communities that were devastated by the bushfires over summer. This will support 2200 jobs.

With Darwin becoming increasingly important as a base for both Australian and US forces amid a period of growing regional instability, the government will bring forward $190 million for seven infrastructure projects in the Northern Territory, including the military's main base at the Larrakeyah Defence Precinct, Robertson Barracks, the local RAAF base and the Delamere Air Weapons Range.

The government has given the go ahead for a new large-hulled vessel – first promised almost two years ago as part of the "Pacific Step Up" – that will be stationed semi-permanently in the south-west Pacific for rapid deployments to humanitarian and disaster relief missions.

The ship will be built in Perth, supporting 165 jobs directly.

Aviation contractors to the RAAF will throw a lifeline to 23 former Qantas and 14 ex-Virgin engineering and technical personnel to maintain the C-27J troop and cargo carrier at the Amberley and Richmond bases, increasing fleet availability.

A further 110 jobs will be supported in the garment industry through a more modern uniform to be provided to navy officers and sailors, including the availability of non-steel cap boots.

With the government using thousands of defence personnel first during the bushfire crisis and then the pandemic response, Mr Morrison and Senator Reynolds will also announce plans to expand the Defence Force reserves.

An extra 500 reservists will be recruited, while an extra 210,000 days of service will be allocated to help reservists who have lost their civilian job or had to take a pay cut to supplement their income.

The government will make $110 million available for defence companies under innovation and workforce development schemes, as well as cybersecurity training.

 

Source: AFR