Joint Media Release: Minister for Defence and Senator the Hon Ian MacDonald Senator for Queensland - Local industry to benefit from LAND 400

Local businesses will be given a greater opportunity to be involved in the construction of the facilities to support the introduction of the Army’s new Boxer combat reconnaissance vehicle.

Minister for Defence Senator the Hon Marise Payne today confirmed at a roundtable with Townsville business leaders that the construction contracts for the project will include a Local Industry Capability Plan, which ensures local firms are properly considered to compete and win work.

Last month the Government announced that Rheinmetall had been selected to deliver the Army’s new safer and more powerful combat reconnaissance vehicles.

“As part of this investment in Army capability, the government is progressing planning for a decade-long construction program, between 2020-2030, to build and upgrade facilities and infrastructure at a number of Defence establishments around Australia including Lavarack Barracks in Townsville,” Minister Payne said.

Around $200million is expected to be invested at Lavarack Barracks. This includes approximately $32 million for proposed simulator facilities which are currently scheduled for delivery in 2021-2022, and in 2027-2028 around $160 million is proposed for the delivery of an Armoured Fighting Vehicle precinct including workshops, training areas and command and control and administrative facilities.

Minister Payne also confirmed during the roundtable that the Australia-Singapore Military Training Initiative would include an LICP.

“This will complement the existing requirement under the Memorandum of Understanding with Singapore that priority will be given to local businesses in support of both the development phase and the ongoing training activities,’’ Minister Payne said.

“Through the Government’s Local Industry Capability Plan, Townsville can expect a majority portion of these investments to directly benefit local businesses and suppliers.”

Northern Queensland based Federal Government Senator Ian Macdonald said the government’s continued investment in critical defence capability was a win for Townsville.

“The Turnbull Government’s LICP initiative is helping to create local jobs and investment and ensure there is a strong local industry near Defence bases like Lavarack to support Defence over the long term,” Senator Macdonald said.

“The Australian Defence Force is a significant part of our community and it is great to see this investment benefiting Townsville and creating jobs.”

Today’s announcement expands on the previously announced LICP pilot programs in Townsville:

• The Explosive Ordnance Logistics Reform Program (EOLRP) valued at around $230 million and covering 12 Defence sites, including the Explosive Ordnance Depot at the Mount Stuart Training Area, Townsville, worth $12 million.
• The Townsville Field Training Area mid-term refresh, valued at around $24 million. 
• The $67 million RAAF Base Townsville mid-term refresh.