The Federal Government formally committed to the purchase of two additional Wedgetail Airborne Early Warning and Control aircraft in a special signing ceremony at the Royal Australian Air Force Base Amberley today.

The ceremony was attended by Defence Minister Robert Hill, the Member for Blair, Cameron Thompson, the head of the Wedgetail project, Air Vice Marshal Norm Gray, and the President of Boeing Integrated Defense Systems, Mr Jim Albaugh.

The $3.4 billion AEW&C project, which is on budget and ahead of schedule, will equip the RAAF with a fleet of six Wedgetail aircraft and provide a state-of-the-art air and maritime surveillance capability. Four of the six aircraft will be modified in Australia. The first of these is scheduled to arrive at RAAF Amberley late next year, with the final Wedgetail due for completion in early 2008.

Australian industry involvement in Project Wedgetail is already worth more than $A400 million. Completion of the four aircraft in Australia will increase that Australian industry involvement by $80 million. Strategic industry development activity worth an additional $99 million has also been included with the purchase of the extra two aircraft.

"The Wedgetail project will create around 170 new jobs in South East Queensland – most based at Amberley," Senator Hill said.

"The project will require highly skilled aircraft technicians for structural and avionics work, plus support engineering. Experts in project management, planning and industrial design will also be in demand.

"Since the 737 is an advanced, new generation aircraft, the modification work will bring cutting edge technologies into Australia, with a significant up-skilling of the workforce.

"Boeing expects to establish a centre of excellence at Amberley for large aircraft modification. The region will then be well placed to win commercial contracts, such as passenger to freighter conversions, cabin reconfigurations and cockpit upgrades, along with RAAF work.

"The Howard Government is committed to maintaining a strong and skilled Australian Defence Force team in the South-East Queensland region for the next 20 years," Senator Hill said.

"This will have a significant flow on effect in the local community. There will also be a flow down of component manufacturing work and the ability to do more of the through life support of Wedgetail in Australia.

"Other high-tech benefits will include the establishment of a formal research and development relationship between Boeing and the University of Sydney. This relationship will focus on research into advanced bonded materials technology."