Greg Combet (Charlton, Australian Labor Party, Minister Assisting the Minister for Climate Change) Share this | Hansard source

I would just like to repeat my thanks to the member for Bendigo for his question. He has been a very active advocate for the defence industry in this country. Yesterday the government announced that Australian manufacturers will be given a chance to win a contract worth more than $1 billion for the manufacture of the next generation of protected mobility light vehicles. These vehicles will play an important role in keeping Australian troops safe in combat roles, including command liaison and light battlefield resupply operations. They will be provided to the Army’s combat units and Air Force’s airfield defence guards and will be designed to operate in future conflict environments. Three companies will be awarded up to $9 million each for the development of protected mobility vehicle prototypes, putting them in the running to land a manufacturing contract for up to 1,300 vehicles. The three companies down selected that were announced yesterday include Tallis Australia, Force Protection Europe and General Dynamics Land Systems Division Australia, which is based in Adelaide. Tallis has facilities in Bendigo in Victoria and, as I indicated, General Dynamics are in Adelaide.

This decision means that these companies now have a chance of competing against prototypes also being developed in the United States under the joint light tactical vehicle program that are also in the running for the contract. Importantly, the Australian down selected manufacturers will have access to approximately the same funding that the government has allocated through the Department of Defence to the prototypes being developed in the United States. This announcement means that there will be greater competition for this very important contract in defence, an outcome that can only lead to better vehicles and better capability for the ADF. There is some way to go, of course, in this competitive tendering process, with two more stages of decision making still ahead of us. Just as an example, should Tallis Australia ultimately be successful in this competition, they have indicated that it would generate approximately 500 jobs in the Bendigo area and nearly 700 across Victoria in total.

Finally, I would like to acknowledge the role a number of members have played in pushing toward this particular outcome. The member for Makin has been active in relation to this issue in particular, but I think it is fair to say no-one has been more active than the member for Bendigo who, when you are a minister in my position, is a person that certainly keeps the issues right in front of you. We are very pleased with this stage in this particular process.

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