Prime Minister Anthony Albanese has confirmed the government is looking at an 11th hour approval for a loan to an Aussie defence company to acquire a weapons manufacturer before China swoops in.
Prime Minister Anthony Albanese has labelled the Opposition’s nuclear plan an “announcement without any substance”.
Opposition leader Peter Dutton announced the Coalition’s nuclear plan at a media event on Wednesday.
“What we’re dealing with here in 2024 is a Coalition so-called plan that hasn’t lasted a day,” Mr Albanese told Sky News Australia.
“They’ve said there are seven sites, but they haven’t said whether they’re going to be compulsorily acquired.
“They say there will be a community consultation process.
“They’ve made an announcement without any substance.”
As Sky News revealed, Victorian based DefendTex, has spent 18 months working to acquire distressed South American arms manufacturer, Avibras.
With decades of experience, Avibras is known for its tubular rockets, guided missiles, and coastal defence systems. Its website spruiks a successful space program in partnership with the Brazilian government, dating back to the 1960s with hundreds of launches to its name.
Unable to approach a bank, DefendTex has continued to request the Australian Commonwealth provide it with a $70m line of credit on commercial terms through Export Finance Australia to close the roughly $200m deal.
Defendtex has offered to repay the loan plus interest in 12 months, based on already signed contracted sales.
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The Defence Minister, Richard Marles and Defence Industry Minister, Pat Conroy have avoided responding publicly to the issue. However, when Kieren Gilbert asked the prime minister on Sky News, Anthony Albanese acknowledged the matter was being considered but refrained from offering support.
“Well Export Finance Australia are looking at that proposal. We are big supporters of our defence industry,” he said.
“Part of our agenda for a future made in Australia is about renewables, it’s about manufacturing, it’s about our defence industry, our pharmaceutical industry.”
DefendTex’s CEO, Travis Reddy responded from Paris, where he is now seeking European support, publicly stating he’s trying to prevent the asset from falling into Beijing’s hands, and its state-owned company Norinco, who recently wrote to Brazil’s Defence Minister to signal its keen interest in buying the distressed company.
“Prime Minister, the government has had over 12 months to review the details of this proposal. The time for thinking about it over,” he said.
“This one simple move will prevent the technology falling into the hands of China.”
Frustrated local defence experts this week threw their support behind DefendTex who already exports armed drones and loitering munitions to the United Kingdom and United States.
“It’s clearly a robust company that the Australian company is looking at (Avibras), so why would we not want to invest in it,” Brent Clark, Australian Industry and Defence Network CEO told Sky News.
Michael Shoebridge from Strategic Analysis Australia accused government ministers of being “asleep at the wheel,” and behaving like prisoners of Defence headquarters in Canberra.
“They can’t see this incredible opportunity that an Australian company has seen,” Mr Shoebridge said.
“It’s depressing and disappointing that the government isn’t willing to back the company by providing export financing, effectively a cheap loan. It doesn’t even have to spend the money, it will get the money back.”
The former Director of the Australian Strategic Policy Institute tied the government’s slow response with a failure to acquire a legitimate strike capability defence experts have been calling for.
“For all the talk about our dangerous security environment, and the need to increase the military power. The government is failing to even loan money, let alone put its money where its mouth is.
Anthony Albanese confirmed to Sky News, Export Finance Australia was looking into the deal. Picture: NCA NewsWire / Martin Ollman
“The Chinese government is willing to back its own defence industry to get hold of this Brazilian company, partly because they see the technological advantages, but no doubt partly to frustrate what they think is a much smarter government who they would assume would be backing our own Australian company, DefendTex.”
Mr Shoebridge pointed out an underlying problem many inside the frustrated sector privately whisper, but rarely say publicly for fear of persecution, that foreign allied governments are more likely to acquire Australian weaponry and tecnnology than our own ADF who insist on buying from America.
“DefendTex is making successful products right now that are being used in places like Ukraine. They are being used by the British army, but our government and military has failed to buy them.
“Our government is going to be spending about $100-billion on guided weapons and missiles over the next couple of decades if we stay in peace, and it’s likely the best we are going to do is assemble some American ones here.
“This is an opportunity to have some real sovereign missile manufacturing technology and capability that will make us more secure and maybe some of the $100-billion of Australian taxpayer money can go to Australian companies equipping our military. That’s a future the government should be falling over themselves to achieve,” Mr Shoebridge said.