The Government announced today that it would support continued production of ammunition at Mulwala in southern NSW. The decision announced by the Parliamentary Secretary to the Minister for Defence, Dr Brendan Nelson MP, means guaranteed jobs for hundreds of workers while ensuring Australia continues to produce its own propellants for ammunition.
"This is a decision of national significance that balances key economic considerations with their impact on people and communities", said Dr Nelson
"Apart from supporting Australia's domestic ammunition production and avoiding the prospect of importing propellant, this decision demonstrates the Howard Government's resolve to support regional and rural Australia."
"Australia has been producing world class propellant since Federation and it is fitting that the Howard Government has made a long-term commitment to retain Australia's national capability in this Centenary of Federation year," Dr Nelson said.
"Australians can relax in the knowledge that Dick Smith will not have to step into the breach and consider making ammunition. Australia's domestic production of high quality ammunition is now guaranteed for at least the next 20 years."
The decision represents a significant investment by Government, in excess of $200m, to maintain Australia's independence in ammunition propellant production and is consistent with the ongoing implementation of the Defence White Paper issued in December 2000. The current Mulwala facilities were built in the 1940s and will be replaced progressively with state of the art facilities to meet current safety and environmental standards.
Dr Nelson acknowledged the strong representations made by the local Member for Indi Lou Lieberman and Tim Fischer from the adjoining seat of Farrer. Dr Nelson said his office had been flooded with calls from people all around Australia telling him how important it was to keep Mulwala open. He also paid tribute to the strong support from local Liberal Party candidates Sophie Panopoulos (Indi) and Sussan Ley (Farrer).
The plant at Mulwala is operated by Australian Defence Industries Ltd to manufacture ammunition, explosives, propellants and chemicals and has a long-term agreement to supply munitions to the Australian Defence Force.
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Government Locks In Domestic Ammunition Production
