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Govt must rule out overseas/hybrid build in $15B defence armoured vehicle contract

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Nick Xenophon Electoral Office

Level 2, 31 Ebenezer Place


Senator Nick Xenophon has called on the Federal Government to rule out two of the three options for the building of Defence’s new armoured vehicles and only consider

a local build for the $15billion-plus Land 400 contract.

The Defence Industries Minister has announced a short list of two contractors -

Rheinmetall and BAE Systems Australia for the build of 225 combat reconnaissance vehicles. One option includes having the components made overseas and assembled

here, the second is a hybrid of overseas and local build and the third maximises local content. Manufacturing is due to commence at the end of 2017.

“Given the closure of auto-making in this country and tens of thousands of people losing their jobs by the end of 2017, there is only one realistic option for the Land 400

contract and that is to maximise local build using hundreds of highly skilled auto workers set to lose their jobs,” Nick said.

Senator Xenophon called for the government to factor in the cost benefits of maximising local content including the supply-chain benefits locally and the overall

multiplier effect in the local economy.

“Locking into a competitive local build process will go some way towards cushioning

the impact of shutting down auto-making in this country by the end of next year,” Nick said.

Senator Xenophon also called on the government to free up funds from the $750million of underspent funds in the Automotive Transformation Scheme to be

used to transition the auto sector to new markets and new manufacturing.

For more information contact Karina Natt 0433 620 850

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