Steel fight

A ROW has broken out over revelations structural steel to be used in the $520 million Larrakeyah Barracks and HMAS Coonawarra refurbishments is being sourced from China. Unions have slammed Defence for overlooking local suppliers.

A ROW has broken out over revelations structural steel to be used in the $520 million Larrakeyah Barracks and HMAS Coonawarra Defence base refurbishment in Darwin is being sourced from China.

The Australian Manufacturing Workers’ Union (Qld and NT Branch) has slammed the Defence Department and its managing contractor, Laing O’Rourke for overlooking local steel suppliers in the midst of an economic crisis.

AMWU NT organiser, Lloyd Pumpa said sourcing steel from China at the expense of local manufacturing jobs was “outrageous”.

“The Federal Government has spoken at length about the importance of manufacturing and ‘Australian Made’ to our COVID-19 recovery … we need jobs, investment and industry certainty; and we need them now,” he said. “For the Federal Government to allow their contractors to overlook local industry is a massive kick in the guts to the Territory.

“Here in the Territory our local industry is suffering. When our businesses are struggling to find work, it means local jobs are on the line. I attended the Public Works Committee hearing on the project right here in Darwin and heard, with my own ears, Defence representatives confirm plans to create local jobs. It appears they’re doing the exact opposite.”

A Defence spokesman defended the decision.

“The Australian Government requires Defence to ensure taxpayers’ money is being spent wisely,” the spokesman said. “In this case, the cost quoted by the Australian company was nearly double that of the one sourced from China.

“Being 75 per cent higher, the Australian bid did not represent value for money for taxpayers. The Larrakeyah Defence Precinct includes construction of a new wharf as part of a $495 million redevelopment. The new wharf has been designed to maximise local expenditure and content. It is expected this new wharf package alone will spend about $41 million in the NT, with a further $19 million within Australia, for an overall 70 per cent Australian content.

“The Government is investing $8 billion over the next decade in new and upgraded facilities in the Northern Territory. This is providing a major boost to the local economy, jobs and Top End businesses.”

The AMWU has called on the Department of Defence to source the steel materials locally to support Territory jobs.

“If they don’t, Mr Morrison must intervene and direct them to,” Mr Pumpa said.