Peter Lindsay (Herbert, Liberal Party, Shadow Parliamentary Secretary for Defence) Share this | Hansard source

This is the motion put forward by the member for Paterson. Unfortunately, he is unable to be with us this afternoon so I am here to present his thoughts. This matter is about the development of a new light protected mobility vehicle for the Australian Army. Under phase 4 of LAND 121, Project Overlander, defence will acquire light protected mobility vehicles which will perform roles including command and control, communications, reconnaissance and electronic warfare. This is a major capability acquisition, and one that offers Australian industry a unique opportunity to build on its existing experience in building light armoured vehicles. Yet, remarkably, the Rudd Labor government has decided against supporting Australian industry.

In October 2008, when the former Minister for Defence, Joel Fitzgibbon, announced that Australia would join the United States Joint Light Tactical Vehicle Program, there was no mention of support to Australian industry. Again, in February 2009 when the Rudd Labor government awarded $40 million to American companies for the development of nine joint light tactical vehicle prototypes, it failed to consider an Australian defence industry manufacturer as a possible supplier. The Minister for Defence Personnel, Materiel and Science, the Hon. Greg Combet, has said on many occasions that his government will ensure that Australian industry is given the opportunity to compete for work. However, this is just more droning rhetoric from a government without substance. This government has shown that it is willing to provide $40 million of Australian taxpayers’ money to US companies without, at the very least, offering equal financial support to comparable Australian industry—most notably Thales in Bendigo, Victoria.

The Rudd Labor government will try and argue that Australian industry has had an opportunity to compete for the work, but it is simply not true. Australian industry were only given the opportunity to tender for the work as part of the request for proposal process some eight months after it was announced that defence will join the US Joint Light Tactical Vehicle program, and four months after providing US companies with $40 million worth of funding. This has left Australian industry behind the eight ball.

I strongly support the concept of providing equality of opportunity to the Australian defence industry. It is in our nation’s interest and that is what I am arguing for today. I am not advocating preferential treatment and I am not advocating that defence procure equipment from Australian industry at any cost. I am simply arguing for equality of opportunity for the Australian defence industry. When the Rudd Labor government awards $40 million to US companies without financially supporting Australian industry, this is not equal treatment.

We do have a strong track record of developing and delivering light armoured vehicles. The success of the Thales Bushmaster project in Bendigo is evidence of this. Thales will deliver a total of 737 Bushmasters to the ADF and export 72 Bushmaster vehicles to the Netherlands. More importantly, no soldier has lost their life while riding inside a Bushmaster, despite numerous encounters with improvised explosive devices. As recently as last week I heard comments from the Chief of the Defence Force in relation to how good our Australian Bushmaster vehicles are and how well they protect our soldiers in the line of duty. Ian McPhedran, a defence journalist currently in Afghanistan, recently quoted troops saying that the Bushmaster was the vehicle of choice for protection against IEDs and that the protection they provide is second to none. It stands to reason that a company that has been able to deliver such a highly regarded vehicle receive the same financial support that American companies receive for their work on developing a protected light mobility vehicle.

The contract for the protected light mobility vehicles will be for approximately 1,300 vehicles and is worth in excess of $1.5 billion dollars, according to the latest Defence Capability Plan. How much exactly is unknown due to the vagueness of the document but, importantly, the contract would support over 250 direct jobs and hundreds more indirect jobs in Australia. The economic and social contribution to the Bendigo community would be particularly welcome. It is only because of the continuing opposition from local industry, particularly Thales, and lobbying from the federal opposition that Australian industry has even been invited to participate. Again, all the rhetoric accounts for nothing, and the local Bendigo community should, in fact, be looking at their local member for his lack of support and lack of foresight. Therefore, I call on the Rudd Labor government to immediately provide funding to Australian industry to enable it to progress Australian designed and built prototypes for consideration in the protected light mobility vehicle program.

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