Millions in TCF Contracts Exported Under Idle Carr’s Nose

01-June-2011

Embattled Innovation Minister Kim Carr has been caught asleep at the wheel again – allowing Australian textile companies to be locked out of tendering for the design of Australia’s next generation of combat uniform fabric and garments.  

Shock evidence at this week’s Senate Estimates hearings from Defence Materiel Organisation (DMO) officials has revealed that innovative Australian TCF businesses lost $7.8 million to US competitors in potential contracts to supply a new camouflage combat uniform. Worse still, the work could have been completed at a fraction of the price if undertaken locally. 

This is a breach of procurement guidelines and a stunning repeat of earlier disasters in the administration of defence industry contracts. These have included the Government allowing contracts to purchase camouflage fabric from China and its refusal to reinvest in the critical DMTC Soldier Survivability program. 

“Why has Minister Smith delayed committing funds to the DMTC Program and why does the Government have money for an American design company but not for Australian firms to develop new products to enhance Australian soldier survivability?” asked Shadow Innovation Minister Sophie Mirabella.

“Everyone already knows Mr Carr is a weak and ineffectual Minister, but this is yet another damaging revelation about the extent of his incompetence.  

“Excluding Australian companies from even bidding for this work makes a farce of the Government’s procurement arrangements and so-called innovation policies.

“It’s a disgrace not only that contracts continue to be sent offshore but also to less qualified companies; it is also a huge slap in the face for Australia’s textile and garments sectors.

“Mr Carr sits idly by while these incidents continue to occur. We need a public inquiry into defence procurement to give Australian companies a fair hearing.

“The union has also been mute while thousands of jobs have gone offshore. I am waiting to see when they’ll find their voice.

“The Government must scrap the $7.8 million contract and provide Australian companies the opportunity to undertake the work required.

“It will be just another embarrassing backflip after the Government was forced to contradict DMO earlier this week, when it tried to redefine the meaning of ‘Australian made’ to include imported woven fabric,” said Sophie Mirabella, Shadow Minister for Innovation, Industry and Science.