Land 400 project: Defence decision ‘bitterly disappointing’

VICTORIA has been snubbed for a multimillion-dollar defence contract which was hyped as a saviour for thousands of out-of-work automotive employees. The state treasurer says the decision was “bitterly disappointing”.

VICTORIA being snubbed for a multimillion-dollar defence contract is “bitterly disappointing”, the state treasurer says.

The lucrative $5.2 billion Land 400 contract to replace the Army’s current ageing fleet of 200 armoured combat ­vehicles was last night awarded to Germany defence giant Rheinmetall, which will base itself in Queensland.

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Treasurer Tim Pallas said the decision to snub BAE’S bid to build the $5.2 billion war machines in Fisherman’s Bend continues “a long litany of discrimination against Victoria.”

The project was hyped as a saviour for thousands of high-skilled out-of-work automotive employees across Melbourne.

“It is bitterly disappointing,’’ he said.

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He said it was devastating for Victoria’s former highly-skilled auto-manufacturers who would have been perfectly suited to work on Land 400.

“The thing about the Turnbull government is that they will never waste an opportunity to do Victorians in,” Mr Pallas said.

The protracted contract process had been politically sensitive for the Turnbull Government, with MPs in the key election battleground demanding it be sent north to help hold on to a handful of marginal seats.

Rheinmetall has pledged to work with more than 40 companies across Australia, which will create up to 170 jobs in Victoria and 140 in New South Wales on top of 330 in Queensland.

The Rheinmetall Boxer. Picture: Supplied

The protracted contract process had been politically sensitive for the Turnbull Government, with MPs in the key election battleground demanding it be sent north to help hold on to a handful of marginal seats.

Rheinmetall has pledged to work with more than 40 companies across Australia, which will create up to 170 jobs in Victoria and 140 in New South Wales on top of 330 in Queensland.

Prime Minister Malcolm Turnbull said the decision to select Rheinmetall was the result of a “rigorous testing process” which assessed its Boxer CRV as the most capable vehicle for the Australian Defence Force.

He said the government was determined to leverage the investment to build a “sovereign and sustainable” defence industrial base as a national strategic asset.

“Our investment decisions in defence capability are complemented by a comprehensive defence industry policy agenda to support a robust, resilient and internationally competitive defence industry, which will support jobs and investment across the country,” he said last night.

He said the government would also spending about $235 million to upgrade military based across the country, including Puckapunyal and Bandiana in Victoria, where the vehicles will be used.

BAE Systems Australia’s AMV-35 defence vehicle tackles an obstacle course at Puckapunyal. Picture: Supplied

The Victorian Government launched a $600,000 advertising blitz in the past fortnight in a last ditch bid to win the deal for BAE Systems Australia.

The BAE bid was to have based itself as the site of the former Holden factory at Fishermans Bend.

It had also announced a partnership with chain company Marand to use Geelong’s Ford Factory to manufacture hulls and turret shells — ­creating about 60 jobs.

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