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Funding promise for Henderson Naval hub welcome news for WA industry, economy

A commitment to make Perth’s Henderson defence precinct the biggest Naval hub in the Southern hemisphere will create significant opportunities for WA’s defence industry, but more certainty over funding timelines is needed to help industry direct investment.

CCIWA Chief Executive, Chris Rodwell, said the Commonwealth’s commitment as part of the AUKUS agreement would create tens of thousands of secure jobs and establish a significant industrial pipeline for West Australian businesses.

“This commitment to make Henderson the biggest Naval hub in the Southern Hemisphere will give a level of confidence to the businesses already in the defence space, and those looking to pivot to defence to make the significant investment needed to become compliant with defence requirements,” he said.

“Importantly, the investment in defence will help WA to further diversify its economy beyond mining, which is critical to securing WA’s long-term economic sustainability.

“WA’s defence industry has huge potential, not just in terms of its direct impact on jobs and investment but right along the supply chain – many of the skills and innovations WA has developed in the mining sector are directly applicable to defence manufacturing.”

Mr Rodwell said while the funding commitment is welcome news, it is vital industry has a clear line of sight on long-term funding commitments.

“The defence industry in WA has often been lured by the vision, only to find the funding isn’t there to back it,” he said.

“There needs to be a detailed pipeline with clear funding milestones, so WA defence businesses and those seeking to enter the industry can invest and expand their businesses with confidence.

“CCIWA calls on the Federal Government to outline an indicative long-term funding timeline in the February budget papers.”

Mr Rodwell said significant investment was also needed in skills and training, to ensure the long-term supply of skilled workers for the sector.

“This includes not only trade-based skills but university level training to ensure WA has the right mix of qualified workers to service a fleet of nuclear submarines,” he said.

“WA is already struggling with skills shortages, so it’s vital the planning happens now to ensure the opportunities presented by AUKUS can become a reality.”

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