Mr BURKE - 2006-02-14
Defence spending injects approximately $828m into the Territory economy each year, but many Through Life Support contracts have historically gone south to prime contractors interstate. Please update the House on what the government is doing to see Territory businesses secure more Defence-related work by attracting prime contractors to set up in the Northern Territory?
ANSWER
Madam Speaker, I thank the member for Brennan for his important question which relates to a very important component of our economy. Picking up on an answer given a moment ago, the Chief Minister said the economy is in good shape and we are working hard to keep it there. This is an example of what we are trying to do to attract new investment in the Territory.
Today, I was pleased to announce a proposal for the development of the Defence Support Hub, and an industrial park close to Robertson Barracks. It is 60 ha of land on Thorngate Road near the barracks which is being made available through the Land Development Corporation for prime contractors to establish in the Northern Territory. The real spin-off to this is not only significant investment from the prime Defence contractors, but the capacity for Territory small business to secure partnerships with those contractors’ Through Life Support activities in the Northern Territory.
The Land Development Corporation will promote the industrial park and Defence Support Hub in the same way that it currently promotes land at East Arm. The land will be available on commercial terms. The types of activity that we are looking to attract and establish are major multinational companies into the Territory. Currently, there are 1100 armoured and non-armoured vehicles based at Robertson Barracks. Historically, many of these vehicles are transported south for maintenance, to Bandiana in Victoria and, increasingly, to South Australia. As a government, we believe that it makes a lot of sense not only for the Army but also for those prime contractors for that work to be carried out adjacent to Robertson Barracks where those vehicles are based. Indeed, the Land Sector Development Plan released by the Defence Materiel Organisation last year argued that the most strategic solution for the repair, maintenance and refurbishment of equipment is to do the work as close as possible to where the equipment is based. That is why we are pitching this land fairly and squarely to those prime contractors.
The immediate opportunity is that the Commonwealth government is about to go to tender for the maintenance of 41 new Abrams tanks which are coming to Robertson Barracks from 2007. We believe the value of that activity is worth approximately $17m a year for the next 15 years, and the potential for an additional 100 jobs to be developed in the Northern Territory – it must make sense for the Army to have those tanks maintained and supported here, close to Robertson Barracks, rather than take them to Victoria or South Australia.
We believe that construction of this facility would also generate in the order of 80 new jobs and, very importantly, create opportunities for small Territory business to partner with those prime contractors.
I will be meeting with each of these prime contractors which are going to be tendering for the tanks over the course of the next few weeks, putting this opportunity very firmly and squarely to them. We have to give this our best shot. These companies have large, vested interests, and capital and infrastructure in Victoria and South Australia. We believe it makes sense for the Army; it should make sense commercially. We are making the land available, we are going to give this a red-hot go, and that $828m spend in the Northern Territory is only going to increase as a result of these types of initiatives. We will keep working with Defence and those prime contractors to get as much of that work in the Northern Territory as possible.
ANSWER
Madam Speaker, I thank the member for Brennan for his important question which relates to a very important component of our economy. Picking up on an answer given a moment ago, the Chief Minister said the economy is in good shape and we are working hard to keep it there. This is an example of what we are trying to do to attract new investment in the Territory.
Today, I was pleased to announce a proposal for the development of the Defence Support Hub, and an industrial park close to Robertson Barracks. It is 60 ha of land on Thorngate Road near the barracks which is being made available through the Land Development Corporation for prime contractors to establish in the Northern Territory. The real spin-off to this is not only significant investment from the prime Defence contractors, but the capacity for Territory small business to secure partnerships with those contractors’ Through Life Support activities in the Northern Territory.
The Land Development Corporation will promote the industrial park and Defence Support Hub in the same way that it currently promotes land at East Arm. The land will be available on commercial terms. The types of activity that we are looking to attract and establish are major multinational companies into the Territory. Currently, there are 1100 armoured and non-armoured vehicles based at Robertson Barracks. Historically, many of these vehicles are transported south for maintenance, to Bandiana in Victoria and, increasingly, to South Australia. As a government, we believe that it makes a lot of sense not only for the Army but also for those prime contractors for that work to be carried out adjacent to Robertson Barracks where those vehicles are based. Indeed, the Land Sector Development Plan released by the Defence Materiel Organisation last year argued that the most strategic solution for the repair, maintenance and refurbishment of equipment is to do the work as close as possible to where the equipment is based. That is why we are pitching this land fairly and squarely to those prime contractors.
The immediate opportunity is that the Commonwealth government is about to go to tender for the maintenance of 41 new Abrams tanks which are coming to Robertson Barracks from 2007. We believe the value of that activity is worth approximately $17m a year for the next 15 years, and the potential for an additional 100 jobs to be developed in the Northern Territory – it must make sense for the Army to have those tanks maintained and supported here, close to Robertson Barracks, rather than take them to Victoria or South Australia.
We believe that construction of this facility would also generate in the order of 80 new jobs and, very importantly, create opportunities for small Territory business to partner with those prime contractors.
I will be meeting with each of these prime contractors which are going to be tendering for the tanks over the course of the next few weeks, putting this opportunity very firmly and squarely to them. We have to give this our best shot. These companies have large, vested interests, and capital and infrastructure in Victoria and South Australia. We believe it makes sense for the Army; it should make sense commercially. We are making the land available, we are going to give this a red-hot go, and that $828m spend in the Northern Territory is only going to increase as a result of these types of initiatives. We will keep working with Defence and those prime contractors to get as much of that work in the Northern Territory as possible.
Last updated: 09 Aug 2016