Australia is set to provide key military hardware to a global defence market with a $3.8 billion backing for exports announced this week by the Prime Minister. There is a broad range of products that Australian exporters could cater for, including troop-carriers, radar equipment, boats and aeroplane parts.
The USA will boost its defence spending and reports forecast a $US716 billion rise in their 2019 Budget. Australia has niche manufacturers which could get a significant share of that monster spending. There are some 3,000 Australian companies serving defence requirements and hoping to get some of the bounty. The government is spending $200 billion over 10 years on defence industries, but the domestic market is not big enough to sustain the manufacturing through peaks and troughs.
Existing defence industry manufacturing includes the Bushmaster, the prized local-grown troop carrier made in Bendigo by Australian Defence Force contractor Thales; the Active Phased Array Radar made by CEA Technologies and used by the RAN; “multi-mission surface warfare combatants†such as its Littoral Combat Ships built by Austral in Perth for the US Navy; in the air, Australian companies are involved in the support for the RAAF’s F-35A joint strike fighter. Hundreds of companies are contributing to an ongoing naval shipbuilding program including nine frigates, 12 submarines and 12 offshore patrol boats.
Companies can’t send off military hardware to just anyone. No other industry has greater government involvement in what can be produced and who can buy it. There are controls to ensure the buyers don’t offend Australia’s foreign policy, strategic and humanitarian priorities. The Defence Export Controls (DEC) has final say on the destinations of items designed for, or adaptable to, military use and keeps watch on exports of items and technologies that may be used or adapted for use in a military program or contribute to the development and production of chemical, biological or nuclear weapon systems.
The growth in military sales is seen by the Government as critical to rescuing Australia’s manufacturing industry following the closure of car makers, a key economic and political objective. There will be target export markets, with staff in embassies receiving special training to push the Australian defence product. One government priority will be on compatibility with the military gear of allies such as the US, Canada and New Zealand and other countries considered part of the “rules based international orderâ€.
