Support for Defence industry during virus crisis

Fast-tracked payments to defence industry is a key feature of initial assistance to mitigate the effects of the global coronavirus pandemic, with the government providing certainty and funding to help Australian companies through the crisis.

FILE PHOTO: ASC shipbuilding facilities in Osbourne, South Australia. ASC image.

The government promised that some suppliers would receive payment up to two weeks earlier than usual.

About 35,000 Australians are employed in the defence industry.

Minister for Defence Industry Melissa Price said the government was committed to ensuring Australian industry personnel were supported, so they could keep equipping and sustaining Australian troops.

“Australian small businesses are the backbone of our defence industry and we will continue to do everything we can to relieve the current pressures they’re under,” Minister Price said.

“Minister Reynolds and I are speaking today with major defence companies and industry groups to hear how we can further assist and provide support to Aussie workers and small businesses in our defence industry.”

Minister for Defence Linda Reynolds said COVID-19 posed an unprecedented challenge to Australia’s defence industry, which makes an important contribution to the Australian economy, its security and safety.

Measures in place include:

• Accelerating payments to Australian suppliers by making payment as soon as possible after their invoice has been approved for payment by Defence, irrespective of the contracted payment terms;
• Reinforcing to strategic prime contractors the important role their Australian sub-contractors play in ensuring prompt payment across the supply chain; and,
• Providing appropriate relief to contractors in circumstances of demonstrated adverse effects as a result of the COVID-19 crisis on the supply of labour, equipment, materials or services required to meet current contractual obligations.

Defence assistance also extends to the sizeable Defence estate with a continued focused on delivering capital facilities and infrastructure works across Australia to support existing and new capabilities.

These works will help keep Australians in work across the construction industry, from large-scale firms to small, locally-owned businesses.

Defence has proactively amended and implemented all current and future contractual clauses to provide time and cost relief for COVID-19 impacts under its construction contracts.

Minister Reynolds said the government was committed to finding ways to bring forward Defence activities or additional works, to provide economic stimulus to the country, and support Australian industry during this difficult time.

For further information or support, businesses can contact the Centre for Defence Industry Capability on 13 28 46 or www.business.gov.au/cdic or email cdic@industry.gov.au

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