The Federal Government Should Shame Themselves

15 Dec 11

Victorian Manufacturing Minister slams the ADF's decision to use a German company to supply utilities to the ADF instead of locally manufactured Thales utilities.

With all the recent posturing by the Federal Government, with manufacturing taskforces, jobs forums, shaming those that don't include local content into projects, the Federal Government has done just that, and needs to be shamed itself.

Thales Bendigo had hoped to supply Bushmaster utes for the Land 121 Phase Three procurement program.

Victorian Manufacturing Minister Richard Dall-Riva has said "As a result of the Commonwealth's decision to source overseas the Land 121 Phase Three vehicle program, it is now uncertain whether the Bushmaster vehicle will continue to be built in Bendigo beyond the end of 2012."

In another inconsistent move by the Federal Government and the ADF, the Government has announced Thales as a frontrunner to secure the $1.5 billion contract to supply its Hawkei vehicles to the ADF. The Government also announced Thale's Bendigo staff would work on the upgrade of all Bushmaster vehicles currently in service.

A finalised Hawkei contract is not likely until 2015, but can the Federal Government, in light of appointing a German manufacturer to supply utility vehicles, be trusted to favour an Australian manufacturer even with it's recent posturing to assist local manufacturing content in projects.

Mr Della-Riva acknowledged the intended commissions for Thales Bendigo, but he said that the commitment from the Federal Government "as a whole falls short of what is needed to provide long-term certainty and continuity to this important defence manufacturer and its skilled workforce".

Has it escaped the Federal Government's economic management, that even paying a higher price to secure it's manufacturing onshore ultimately means more tax revenue from workers and from the manufacturers themselves to fill Government coffers, not to mention the security of jobs which encourages spending and supports other sectors of the economy such as retail as just one example.

This announcement is inconsistent with the Federal Governments stated intentions over recent weeks not to mention being very short sighted.