Wait goes on for Geelong military deal

THE federal government says it has no timeline for a long-awaited decision about whether a potential $27 billion military vehicle construction contract would be based at Geelong.

Prime Minister Anthony Albanese was in Geelong on Saturday (January 7) for his first media conference of 2023, alongside Corio MP, Deputy Prime Minister and Defence Minister Richard Marles

Defence was a key talking point at Geelong Waterfront, with the leaders quizzed about topics including nuclear submarine deals, the AUKUS alliance and export of Australia weapons technology.

The Prime Minister’s office passed on questions from the Geelong Times regarding the under-consideration contract to the Department of Defence, which said the government would consider the results of a Defence Strategic Review before awarding the tender.

Hanwha Defense Australia, a subsidiary of South Korean company Hanwha Corporation, is one of the two companies in the running to secure the Land 400 Phase 3 Infantry Fighting Vehicle project – worth between $18 billion and $27 billion – to build armoured personnel carriers.

Hanwha has indicated it would use its Armoured Vehicle Centre of Excellence at Avalon Airport as the base for its tank factory if successful.

The federal government named finalists for the contract in September 2019.

The Defence Department also indicated the existing $1 billion Land 8116 contract for self-propelled howitzers that Hanwha secured in late 2021 was not under threat from Australia’s recent acquisition of the High Mobility Artillery Rocket System (HIMARS) from the US last week.

“The [HIMARS] acquisition… will not impact the construction of the Hanwha Armoured Vehicle Centre of Excellence manufacturing facility being built at the Avalon Airport precinct as part of the Land 8116 Phase 1 Self Propelled Howitzer project,” a Defence spokesperson said.

Meanwhile, Mr Albanese used last weekend’s doorstop to outline his priorities for 2023, which will be his first full year in office since May’s election.

He listed the top challenges as economic and cost-of-living pressures resulting from Russia’s invasion of Ukraine, national security, strengthening relationships with Pacific neighbours, and “promoting fairness in society”.