Labor Under Scrutiny Over Defence Manufacturing Deal

Australian Army aircrewman prepares to conduct a rescue by winch of a community member from an MRH-90 Taipan, over Lismore, Australia, on Feb. 28, 2022. Australian Defence Force

The federal government’s commitment to Australian manufacturing is under scrutiny after a contract worth hundreds of millions of dollars was awarded to a New Zealand company.

Crossbench senator for Tasmania, Tammy Tyrell, has criticised the decision by the federal government to award a $259 million (US$173 million) defence rations contract to a New Zealand company, Prepack, to produce over 400,000 Australian military ration packs for the next eight years.

The ration packs are used by Australian troops deployed overseas, on exercise or domestic operations in Australia. The contract includes not just the new Combat Ration Packs but a Universal Ration Pack, which offers a gluten-free, dairy-free, nut-free option for cadets and potentially civilians.

“Why would we send $259 million of your taxpayer money to New Zealand when it could be spent on Aussie companies? It could be invested here in Aussie jobs,” Tyrell said in a media release.

“It might have been fine back in the 80s, but we saw what happened during the pandemic. We know that we need to shore up sovereign control of foreign supply chains. We’ve got businesses in our own backyard that can do this.”

Australian citizens and visa holders prepare to board the Royal Australian Air Force C-17A Globemaster III aircraft, as Australian Army infantry personnel provide security and assist with cargo, at Hamid Karzai International Airport in Kabul, Afghanistan, on Aug. 22, 2021. SGT Glen McCarthy/Australia's Department of Defence/Handout via Reuters

Defence Says New Rations Designed For Diversity

Defence has said the decision will allow the military to provide meal options to support the diverse cultural and religious needs of Australia’s modern Defence Force.

Head Land Systems, Major General Andrew Bottrell said the ADF was committed to encouraging inclusivity and diversity and the rations deal will enable them to provide for that.

“When deployed or on exercise, our personnel are generally living in austere and high-stress environments while undertaking significant physical activity. These new ration packs play a vital role in maintaining the dietary requirements and morale of the deployed force,” Bottrell said.

“The Australian Army Cadets have specially designed ration packs which include dairy, gluten and nut-free. These are known as Universal Ration Packs, as they may also be used to support the Australian community during disaster relief or humanitarian aid assistance.

“The growing range of innovative products in the Combat Ration Packs will support an advanced force for success on the battlefield.”

PM Promised to Reinvigorate Australian Manufacturing

The criticism from Tyrell comes after Prime Minister Anthony Albanese promised in February that Labor would reinvigorate Australia’s manufacturing sector to help deal with the cost-of-living crisis in the country.

“The cost-of-living pressures Australians are facing can be traced back to a global pandemic that constricted supply chains, making it more difficult and more expensive to bring things here but also a hollowing-out of local manufacturing that meant we weren’t making enough things here,” the prime minister said.

“We can create more of these jobs and grow our economy by diversifying our exports, moving up the global supply chain and revitalising local manufacturing.

“Making our economy more resilient—and our nation more secure.”

Tyrell, who is part of the Jaquie Lambie Network, noted that Tasmanian company, Forager Foods, had bid for the contract that, if successful, would have brought $12-$15 million into the state’s economy.

“I visited Forager Foods at their factory last year and talked with them about what this could mean for their company. The kind of job opportunities it would create for Tasmanians,” she said.

“I’m completely gutted for them. I’m gutted for the Tassie farmers who have lost a market selling food for our soldiers.

“The ‘make things here in Australia’ line is a great slogan for governments to bring out at election time, but I’m not seeing it backed up by decisions made by bureaucrats in the Canberra bubble.”