States race for army work

PREMIER Annastacia Palaszczuk will today launch a campaign to secure a whopping $15 billion defence contract for the state, potentially creating thousands of new jobs.

Ms Palaszczuk will fire the first salvo in the battle to have the contract — the next phase of the lucrative Land 400 army vehicle rollout — awarded to company Rheinmetall so they can be built in Queensland.

If successful, the contract would allow for 402 army vehicles — 385 infantry fighting vehicles and 17 “manoeuvre support” vehicles — to be built in the state, expanding Rheinmetall’s Military Vehicle Centre of Excellence (MILVEHCOE) at Redbank, Ipswich. Rheinmetall is building the facility as it starts constructing 211 boxer tanks in Queensland after it and the state secured the $5.2 billion phase 2 of Land 400 last year following a concerted campaign by state and federal MPS.

“We won the last big military contract by securing Rheinmetall to Queensland,” Ms Palaszczuk said.

“This step.”

Requests for Tender closed on March 1 with Rheinmetall in the running.

Ms Palaszczuk said the Department of Defence was due to announce a shortlist of potential winners within the next six months.

“Our government’s goal is to make sure Queensland and is the natural next Rheinmetall is on the shortlist. I am calling on all Queenslanders to get behind this bid,” she said.

State Development Minister Cameron Dick said more than 6500 Queenslanders were employed in the defence industries, with $9.5 billion in Australian defence contracts secured for the state in 2017-18.

Phase 2 of the Land 400 contract is expected to generate 450 jobs.

The Government is hoping phase 3, worth three times as much money, will generate thousands more.

“Rheinmetall expects the MILVEHCOE and its impact across Queensland’s supply chain will contribute more than $1 billion to Queensland’s economy,” Mr Dick said.