PRIME MINISTER:
Thank you very much General. Minister, ladies and gentlemen. This is a very important announcement and part of a series of announcements about the long term re-equipment of the Australian Defence Force. And what we're announcing today is the approval of a $2 billion acquisition of 34 MRH 90 helicopters to replace the existing Sea Kings operated by the Navy and the Army's Black Hawk helicopter fleets.
This acquisition of 34 of these helicopters will supplement the 12, the acquisition of which has already been announced and have been acquired under our additional troop lift helicopter project. It's anticipated that the Sea Kings will be retired from 2010, and the Black Hawks from 2015.
In making this decision, the Government is providing a common platform in helicopters for both the Navy and the Army which will result in very significant additional efficiencies and savings and makes a great deal of commonsense. They are very modern helicopters. They are in use by, or being acquired by, a number of European nations. There will be four placements of them when they've all been acquired, in Nowra, in Townsville, in Holsworthy and in Oakey.
Significantly the project will involve the investment of about $1.2 billion in local Australian industry participation. The modernisation and streamlining of the helicopter fleet will provide a very valuable additional firepower and the commonality of the platform between the two services will be of special advantage.
The Minister may wish to supplement some of the things that I've said. And we'd be very, very happy to answer questions. But, as I think you are aware, the acquisition of these helicopters has followed a very lengthy process of examination and a comparison of competing bids. And it was, of course, unanimous advice from our Defence advisers to acquire the MHR and we believe that they will make a very fine helicopter for both the Navy and for the Army.
MINISTER NELSON:
Thank you Prime Minister. I'd firstly, in welcoming the announcement today, like to thank particularly Major General David Hurley who's headed the Defence Capability Acquisition Programme and Stephen Gumley, the Chief Executive of Defence Materiel Organisation for the enormous amount of hard work that they and their team have put into not only the decision making process, but also the finalisation of the contracts. To the Service Chiefs and the Secretary, who are here today thank you very much also for the enormous amount of support that you've provided to this.
As the Prime Minister has announced, we will be acquiring at a contract cost of $2 billion, 34 additional MRH 90s. That means that the fleet will go to 46. Twenty-four of those will be based in Townsville, four of them at Oakey for training, training for Navy and also for Army. Twelve will go to Holsworthy at 4RAR and as the Prime Minister has announced, six of them will be used to replace the Sea King with interim operational capability in 2010.
I might also add that there will be a $40 million investment at Nowra to support deep maintenance and training at Albatross. There will be a $30 million investment to support the training and simulator facilities at Oakey and there will also be a $30 million further investment in Townsville to support simulator storage and deep maintenance.
As the Prime Minister says the Government, in making decisions about Defence procurement acquisitions, takes into account Australian industry very seriously. There are 350 jobs which depend on the announcement of this contract. It will mean that we will have construction and assembly in the Brisbane Airport, Australian Aerospace facility. The helicopter, the aircraft, will mean that we will go from ten to seven helicopter types across the fleet with economies of scale and efficiencies not only in capability but also training and maintenance.
And I might at that point perhaps ask the Vice Chief of Defence, General Gillespie, to make some additional remarks on behalf of Army and Defence.
GENERAL GILLESPIE:
I have very little extra to add except to say that the great benefit that comes out of the reduction in the number of air platforms that we're flying, the types of air platforms that we're flying, will greatly enhance not only our operational capability and the interaction between two of our services, but will decrease dramatically some of the maintenance and logistics pressures that we currently face with the number of platforms that we're maintaining and that the outcome for Defence, in an operational sense, for our ability to supply the government with options is greatly enhanced. So for us this is a good news story. Thank you.
PRIME MINISTER:
Any questions?
JOURNALIST:
Max Blenkin, Australian Associated Press. Have you decided what to do with Sea Sprite yet?
MINISTER NELSON:
At the highest levels of Defence we are currently looking at all of the options in relation to Sea Sprite and examining the way ahead in terms of its further capability. And when the examination of those options is completed and everything's on the table, I'll take some proposals to Cabinet for its consideration.
JOURNALIST:
A question for Mr Howard. It's not related to the helicopters but is the Government planning to allow American military bases to be built in northern Australia?
PRIME MINISTER:
Well we made an announcement some time ago, I think it may have been two or three years ago, after a, from recollection, a visit to the United States by the former Defence Minister Senator Hill to the effect that we were going to expand the capacity for training and operational exercises, if I could put it that way, in northern Australia for Americans. And whether you describe that as bases or not, I don't know. But can I say very openly that the notion of that sort of thing occurring in Australia, whether you call it a base or not, involving American forces is not something that I would do other than very warmly welcome. And I'm sure it would be warmly welcomed not only by the Commonwealth Government, but I know it would be very, very warmly welcomed by the Northern Territory Government.
In fact, my experience of state governments is that they would all rather like to have operations like this within their borders, unlike certain other things they don't want to have within their borders. But they're very, very welcoming on this. So as far as I'm concerned, subject always to the proper arrangements that fully respect and maintain and continue to assert Australian sovereignty, the notion of bases or operational facilities or training facilities by Americans is something that I would warmly welcome. My understanding is that all the Americans want at the present time is to have the capacity to train. But I don't have any difficulty with that and I would imagine it would be quite warmly supported by the Australian public.
JOURNALIST:
Another question also for the Prime Minister, unrelated to helicopters. Do you expect to see the migration legislation before Parliament this week and how are negotiations going with back benchers?
PRIME MINISTER:
I'm a patient man and I never tire of talking to my colleagues.
JOURNALIST:
Mr Howard, just regarding the deployment in Iraq, are you expecting to this week announce a change of circumstances for our troops in Iraq, and do you expect any new deployment to be somewhat more dangerous than what they have been doing up until now?
PRIME MINISTER:
Well any deployment in Iraq is dangerous. Some areas are arguably more dangerous than others. The deployments in southern Iraq historically have been less dangerous than in other parts of Iraq, but that could always change if circumstances were to change. There is speculation that announcements will be made in relation to the Japanese withdrawal and also the formal transfer of authority, security authority from the Coalition to the Iraqis. If the latter occurs and it's our contemplation at some point it will occur but it is not for me to make that announcement, then Australia would continue, as foreshadowed by Dr Nelson and myself some weeks ago, we would continue to see a role, albeit a somewhat different role for our forces in southern Iraq. The operations would likely be based in and around Tallil. The primary purpose would be to provide a security reinforcement or back up for the Iraqi security forces and also an ongoing training role. I can only say that any operation in Iraq is dangerous and in agreeing to any new arrangements we will go to great lengths to satisfy ourselves that danger consistent with the discharge of the responsibility our forces have, will be kept to an absolutely minimum.
[ends]