Townsville expected to reap benefits of defence spending in federal budget

Big spending on ADF barracks and re-enlisting incentives in this year’s federal budget have knock-on effects for the Townsville economy.

Townsville should come out ahead in next Tuesday’s federal budget with specific measures to upgrade defence force infrastructure and incentives to boost re-enlistment numbers, according to a JCU political scientist.

Dr Maxine Newlands, a senior lecturer in political science at James Cook University, said the nature of political budgets was that announcements were effectively made twice, so most of the big-ticket outlays were already known.

Treasurer Jim Chalmers will hand down the federal budget on Tuesday. Dr Newlands described it as a likely “no surprises” affair for North Queensland.

Key budget items for North Queensland are the already announced $150m grant scheme to repair waterways and stop sediment wasting out to the Reef. The Townsville-based Australian Institute of Marine Science was given $163m last month.

Of particular interest in the federal budget for Townsville will be a $50,000 re-enlistment incentive.

The 10th Force Support Battalion rehearse a parade at Lavarack Barracks. The barracks will be upgraded. Picture: Evan Morgan

Defence Minister Richard Marles recently announced permanent ADF members at the end of their initial mandatory period of service could be eligible for a $50,000 bonus payment if they serve another three years.

“That’s good for particularly Townsville because if that keeps people in Townsville, that keeps that strand of economics feeding into the region,” Dr Newlands said.

James Cook University political scientist Dr Maxine Newlands. Picture: Evan Morgan

The Government expects the re-enlistment scheme – dubbed a “continuation bonus” – to benefit about 3,400 personnel in the first three years.

Defence personnel Minister, Matt Keogh, said “it’s no secret that in the current low unemployment environment it is more difficult than ever to recruit and retain staff.”

Announced in April, about $2bn will be invested in RAAF Base Learmonth (WA), Cocos Islands and RAAF air bases at Tindal (Northern Territory), Scherger (QLD) and Townsville (QLD).

Treasurer Jim Chalmers is tipped to unveil a shock surplus on Tuesday but the back in black budget will be short-lived. Picture: NCA NewsWire / Martin Ollman

Lavarack Barracks will also be updated, with $1bn spent on the Townsville base, Robertson Barracks in the NT and further upgrades to training areas in the Territory.

This was all beneficial for the North Queensland economy, but Dr Newlands said it would not directly help everyone.

This budget was quite “high level”, not much about the individual’s back pocket aside from interest rates and cost of living, she said.

Dr Newlands said there had been a criticism in the past of the army being used to combat the effects of climate change. She expected budget funding for emergency services and infrastructure, like phone lines so people can ring the SES in an emergency.

“These are all big ticket (items), as in building infrastructure (like) roads and tunnels. It’s federal politics 101.”

Originally published as Townsville expected to reap benefits of defence spending in federal budget