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The Northern Territory (NT) will become home to three new major defence capabilities over the next five years and its Government has recognised the potential for its defence industry to capitalise and expand.
The Territory is about to become home to 16 of Army’s ‘Tiger’ Armed Reconnaissance Helicopters (ARH), 41 M1A1 Abrams tanks and eight Armidale Class Patrol Boats with the first of the platforms arriving from 2005. A further two Armidale Class Patrol Boats based in Dampier WA will be rotated with the Darwin boats and undergo maintenance within the NT.
Defence Materiel Organisation (DMO) commenced handing the equipment over to The Australian Defence Force (ADF) mid 2005, when the first of the ADF’s Armidale Class Patrol Boats arrived in the Territory. DMO expects delivery of the Armed Reconnaissance Helicopters and Abrams tanks to take place in 2007.
Through life support has been awarded to prime contractors for the Armidale Class Patrol Boats and Armed Reconnaissance Helicopters but a request for tender is about to be released for the Abrams tanks.
Hence, details of through life support opportunities for the Abrams in the NT are yet to be determined. The total operating cost of this platform in Australia is expected to be about $30 million per year, which includes ammunition, fuel, maintenance, spares and facility cost. The maintenance of the vehicles will be a small part of this overall expenditure.
Irrespective of which prime contractors deliver the through life support to the Abrams and also to other platforms, opportunities exist for the NT defence industry to assist the primes with maintenance and upgrades to the platforms, and the NT Government and local industry are taking proactive steps in this direction.
Through life support of Australian Defence Organisations’ platforms is big business for defence industry in the NT.
Joint research by the NT Government and Charles Darwin University has estimated that the collective value of through life support could exceed $135 million per year.
The Territory government recently announced the release of 60 hectares of land beside Robertson Barracks for the development of an Industrial Park and Defence Support Hub.
NT Government Minister for Defence Support, Paul Henderson said the release of land close to Robertson Barracks for industrial development presents a significant investment attraction for prime defence contractors, and holds great potential for Territory businesses to develop industry clusters and work in partnership with prime contractors on new activities including through life support contracts.
‘The Tiger Armed Reconnaissance Helicopters, Abrams tanks, Armidale Class patrol boats and other platforms to be based in the Territory will bring advanced technologies that create demands for new skill sets and expertise within the local Defence support industry,’ he said.
‘An increasing Defence presence in the NT is demanding a strong and capable industry to support its operations and we are striving to establish an environment conducive to investment and growth for large and small defence businesses to meet this demand.
‘Defence prime contractors with a presence in the NT include General Dynamics Land Systems- Australia, Tenix Toll Defence Logistics, Tenix Defence, Defence Maritime Services, ADI, Raytheon, BAE, Boeing, MTU Detroit Diesel, Mack Truck, Spotless and soon Australian Aerospace.
‘These prime contractors rely on the support of local small to medium enterprises (SME). In the NT there are about 9700 SMEs employing more than 63000 people.
‘We recognise that industry growth and development is reliant on building a skilled workforce,’ Minister Henderson said.
In 2003, The NT Government formed a partnership agreement with Charles Darwin University aimed at bringing long lasting benefit to the social and economic development of the Territory.
One area of focus for this study was the potential for development of the Territory’s defence support industry to meet the demands major defence projects based in the area or evolving in the Territory across the next two decades.
From this partnership the ‘Developing Defence Support Industry Schedule’ was developed and approved in August 2004. The document acknowledges that three major defence platforms will be based in the NT and may require maintenance and repairs locally for a period of at least 15 years. It notes strategies that will need to be initiated to see the Territory capitalise.
The strategies included: commissioning an industry endorsed quantitative assessment through the Australian Industry and Defence Network (AIDN) on the potential demand for skilled labour by vocation, number required and year expected to arise due to current and emerging defence force projects between 2004 and 2014; tailoring courses to meet defence support industry requirements; and investigating and mapping the linkages between the needs of defence force industry and existing and emerging local industries.
‘Through our partnership with AIDN - NT we aim to establish a network of defence industry and vocational education and training providers to develop innovative training methods,’ Minister Henderson said.
‘Over the next four years the NT Government will support the training of 10,000 apprentices and trainees, this includes backing businesses who take on trainees.
‘To help businesses meet their skills needs in the short term, we are also supporting businesses looking to employ skilled migrants,' he said.
Other initiatives include the establishment of a Build Skills NT Program. The Territory’s government recently approved a grant of $28,500 to General Dynamics Land Systems to help them develop skills in the maintenance of ATKM242 cannons. The NT is now the only centre in Australia and the region for maintenance of this equipment.
The cannons are a component of a number of Defence platforms including the Australian Light Armoured Vehicles and the Armidale Class Patrol Boats.
According to Minister Henderson a major focus of the NT Government over the next few years will be facilitating relationships between prime contractors and SMEs.
‘This is an important role for the NT Department of Business, Economic and Regional Development, as is helping SMEs cluster to combine their capabilities.
‘As the Defence presence in the NT has built up over the last decade, so too has the Territory’s defence support industry. The industry is now at an important cross road with new technologies set to arrive. In recognition of this we will continue to consult with Defence, local small businesses and prime contractors to develop a strategy to guide the development of our industry’s capacity and capability to support Defence in the north,’ Minister Henderson said. |
City skyline: HMAS Armidale sails in the Darwin harbour. 
Tiger Armed Reconnaissance Helicopters hit the tarmac in Darwin.
