Media Release

KAP Leader and the Federal Member for Kennedy Bob Katter reaffirmed Katter’s Australian Party will maintain that the Australian manufacturing industry has the ability to develop the technology industrial capacity to make defence ordinance (including submarines) in Australia.

The media has reported the government is considering procuring the Japanese Soryu Class submarine instead of the Collins Class submarines that are currently manufactured in South Australia.

“We already have an ability to manufacture and service our defence capabilities in Australia; an industry that tax payers helped to establish. The government is suggesting that the current submarines are too expensive to maintain, but the ultimate cost will be the loss of jobs for Australians.

“We will not only be losing an industry that supports jobs for over 2400 people directly but we will also lose the income tax generated from employing this workforce,” Mr Katter said.

According to defence sources (Defence SA) in Adelaide ongoing design enhancements and maintenance on the existing Collins Class fleet ‘is worth approximately $150 million and 1400 jobs’ to South Australia’s economy per year.

Mr. Katter said when you include the implications of off-shore manufacturing, the cost of unemployment and the ‘fiscal multiplier effect’ it is simply common sense to support Australian manufacturing.

“When you consider the indirect effect of South Australians forced onto the unemployment benefits such as rent subsidies, child allowances and health benefits, it will be the tax payers that will be out of pocket.

"The cost of off-shoring the defence submarines goes well beyond the costs to manufacture and maintain.

“We have already asked the LNP to address the long term consequences of off-shoring all of our defence manufacturing but to no avail.

"The Trans-Pacific Partnership will be the final nail in the coffin for Australian manufacturing.

“It would seem that the LNP would rather award their new best friends – foreign companies - our defence force contracts, than support Australian jobs and manufacturing,” Mr Katter said.