Mr HATTON - 1998-12-02
Recent media attention has been given to local industries claiming that they are missing out on quite significant amounts of defence industry support work. Could the minister advise the House as to how much work is going to Territory industry through Defence and what measures are being taken by the government to ensure our industry gets its fair share of contracts?
ANSWER
Madam Speaker, it is interesting, isn’t it, that the government has to keep on bringing to the floor important matters about creating jobs while the opposition is down in the gutter, not caring about what occurs out in the streets. In fact, this is a very important issue.
The commander of Northern Command, Brigadier Chris Roberts, and I have just conducted a joint media conference on defence industry support work and the benefits that arise for Territory business. I think it is important to point out that there are some very strong links between the Territory government and Northern Command, and also very strong links with local industry underpinning the flow of defence work to local industry. Industry enjoys a very good relationship with Defence locally.
However, I think there may be a bit of a problem coming up from the nationwide Defence reform program which is leaning towards a system of prime contractors being involved to deliver services. It is important that local business people now need to establish relationships with the prime contractors to ensure that they are included as subcontractors. We are working very hard with our local Defence people with ensuring that that process is well and truly put in place.
In the first 10 months of this year, for example, Defence spent $4.7m on repairs and parts in the Northern Territory. That expenditure equals the total expenditure for 1997. When the figures for the last couple of months come in, it will be obvious that there has been greater expenditure this year than the year before. It is important that that trend continues.
Certainly, there is a very substantial investment in our community and trends show that it is going to continue growing. We have more Defence people moving to the Territory, more vehicles, and that creates greater opportunities for local business. I have written to my federal counterpart, the Minister for Defence Support, John Moore, asking him to make sure the Defence Department gives weight to encouraging prime contractors to use local suppliers in the Territory. I have a very strong belief that the Commonwealth should have support for regional industry capacity cemented into the defence procurement policy, because we have to ensure that the primes look at our capabilities when they are fulfilling a contract, rather than going straight to their established southern contractors.
We have established over the years a very good relationship locally with Defence and we now have to go through a process of re-establishing with those prime contractors from interstate the credibility and the ability of Territory industry, and the fact that it has played a very positive role to date in contributing to our Defence Force.
It is important that Defence give priority to local industry when making its procurement and maintenance contract decisions, to maintain the goodwill that has already been established here between Defence and industry. That is a most important part of the equation. The ability of local industry to support Defence in times of stress means it is important that local industry grows as Defence grows here. The government will continue to lobby to ensure jobs are created here for Territorians and we will continue with that very positive relationship between industry, government and Defence.
ANSWER
Madam Speaker, it is interesting, isn’t it, that the government has to keep on bringing to the floor important matters about creating jobs while the opposition is down in the gutter, not caring about what occurs out in the streets. In fact, this is a very important issue.
The commander of Northern Command, Brigadier Chris Roberts, and I have just conducted a joint media conference on defence industry support work and the benefits that arise for Territory business. I think it is important to point out that there are some very strong links between the Territory government and Northern Command, and also very strong links with local industry underpinning the flow of defence work to local industry. Industry enjoys a very good relationship with Defence locally.
However, I think there may be a bit of a problem coming up from the nationwide Defence reform program which is leaning towards a system of prime contractors being involved to deliver services. It is important that local business people now need to establish relationships with the prime contractors to ensure that they are included as subcontractors. We are working very hard with our local Defence people with ensuring that that process is well and truly put in place.
In the first 10 months of this year, for example, Defence spent $4.7m on repairs and parts in the Northern Territory. That expenditure equals the total expenditure for 1997. When the figures for the last couple of months come in, it will be obvious that there has been greater expenditure this year than the year before. It is important that that trend continues.
Certainly, there is a very substantial investment in our community and trends show that it is going to continue growing. We have more Defence people moving to the Territory, more vehicles, and that creates greater opportunities for local business. I have written to my federal counterpart, the Minister for Defence Support, John Moore, asking him to make sure the Defence Department gives weight to encouraging prime contractors to use local suppliers in the Territory. I have a very strong belief that the Commonwealth should have support for regional industry capacity cemented into the defence procurement policy, because we have to ensure that the primes look at our capabilities when they are fulfilling a contract, rather than going straight to their established southern contractors.
We have established over the years a very good relationship locally with Defence and we now have to go through a process of re-establishing with those prime contractors from interstate the credibility and the ability of Territory industry, and the fact that it has played a very positive role to date in contributing to our Defence Force.
It is important that Defence give priority to local industry when making its procurement and maintenance contract decisions, to maintain the goodwill that has already been established here between Defence and industry. That is a most important part of the equation. The ability of local industry to support Defence in times of stress means it is important that local industry grows as Defence grows here. The government will continue to lobby to ensure jobs are created here for Territorians and we will continue with that very positive relationship between industry, government and Defence.
Last updated: 09 Aug 2016