Fight steps up to stop China steel in $520 million Darwin Defence bases upgrade

THE fight to stop China steel being used in the $520 million Larrakeyah Barracks and HMAS Coonawarra upgrades has stepped up

Larrakeyah Army Barracks and Darwin Naval Base ... a row has broken out over revelations that structural steel to be used in the $520 million refurbishment of the Barracks and HMAS Coonawarra bases in Darwin is being sourced from China. Picture: Patrina Malone

• Darwin Defence bases in China steel fight

THE fight to stop China steel being used in the $520 million Larrakeyah Barracks and HMAS Coonawarra upgrades has stepped up.

The Australian Manufacturing Workers’ Union (Queensland and Northern Territory Branch) has launched a petition calling on the Prime Minister to direct the Department of Defence to source the steel locally.

The Department of Defence said quotes for supply and fabrication of the 4200 tonnes of steel required for the wharf piles were sought from an Australian company and the estimated cost was $10.5 million.

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“The quote by the Chinese supplier … was $6 million,” a spokesman said.

“Not only are the costs of supply and fabrication of the steel required for the wharf significantly less when sourced from China, the shipping costs between China and Darwin are also less than between Brisbane and Darwin.

“If a decision had been taken to opt for the more costly option of procuring the steel from an Australian company, it would result in millions of dollars less being available for the works required at the Larrakeyah Defence Precinct to support Defence capability. This would also represent lost opportunities for local NT businesses to be involved.”

AMWU Northern Territory organiser Lloyd Pumpa again called for local steel to be used and appealed for community support.

“We’ve got local steel fabricators suffering, with little to no work in the pipeline and people are losing their jobs as a result,” Mr Pumpa said.

“The best way to get Territorians back into work is to invest in local businesses, not foreign fabricators. I think when people pay taxes and it is spent on large infrastructure programs, they expect the money and benefits to flow locally, not overseas.

“It’s pretty simple. Use local steel and back local jobs.

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“We need to demonstrate our commitment to local jobs in the Territory.

“With the Department of Defence refusing to source this steel locally, the only option is for Scott Morrison to intervene.”

Chief Minister Michael Gunner, who is also the business minister, said he understood that not everything could be sourced locally.

“But we can still make things and if it can be made locally, it should be made locally,” he said. “I’ve got a commitment from the Feds that local content and local jobs will be maximised and I expect them to keep that commitment.”