A Greens councillor says she feels she was "lied to" in finding out a missile factory will be built on Newcastle Airport land after Newcastle council said the airport had no intention to secure explosive ordnance manufacturing tenants.
Councillor Charlotte McCabe has expressed outrage at plans for a $200 million factory at the airport's defence and aerospace precinct, Astra Aerolab. Newcastle and Port Stephens councils are joint owners of the airport.
The announcement came after Newcastle council said there "is no explosive ordnance manufacture/assembly on land owned by Newcastle Airport" and "there is no intention by the airport to seek this type of tenant".
That statement was made in a June report by the council's acting chief executive in response to a motion from Cr McCabe calling for the council to not support leasing to companies that "contradict its own investment and borrowing policy".
The policy's environmental and social investment guidelines identify 'production or supply of armaments' as investment that should be avoided as a socially harmful activity.
"I was told there would be no weapons manufacturing verbally in briefings many, many times," Cr McCabe said.
"They always treated me as if I was overreacting with my concerns and I was told 'it's not as if we're going to make bombs'.
"So I feel like I've been lied to.
"I'm disgusted. It makes me feel so angry and I'll do everything in my power to reverse the decision."
Newcastle council did not answer questions about whether it lied or why the June response said the airport had no intention to seek explosive ordnance tenants.
The council has argued that its investment policy provided a framework for council funds and did not apply to the Newcastle Airport, which is structured and governed separately.
A council spokesperson said City of Newcastle had no role in planning approvals for the Astra Aerolab precinct.
"Newcastle Airport is controlled by a majority independent board with management that operates independently of its shareholders, and is located in the Port Stephens Local Government Area," the spokesperson said.
"Astra Aerolab is a defence aerospace precinct co-located with the airport and adjoining RAAF Base Williamtown and will play a major role in the Hunter transition by providing 5,500 new jobs once the site is fully developed.
"The federal government's announcement of investment and jobs in the Astra Aerolab precinct aligns with Australia's Sovereign Defence Industrial Priorities and will bring significant economic benefit to the Hunter."
Minister for Defence Industry Australia Pat Conroy told ABC radio that the site was Commonwealth land, leased to Newcastle Airport.
Cr McCabe said she wouldn't feel as responsible as a councillor if the factory was built on land that was not operated by the council-owned airport.
Newcastle Liberal council candidates welcomed the missile factory announcement.
"I'm pleased to see that the Federal government has orchestrated this investment in our region," lord mayoral candidate and councillor Callum Pull said.
"It's encouraging to see that the Hunter is being recognised as an ideal location for defence industry development. This facility will create 100 permanent jobs and 500 construction jobs, providing a much-needed boost to our local economy."
Councillor Jenny Barrie said the project would have "long-term economic and employment benefits", while ward one candidate Rochelle Manning said Newcastle had always been a "hub of skilled labour and innovation".
"This facility capitalises on our strengths and ensures that our community remains at the forefront of national defence capabilities," Ms Manning said.
Newcastle Labor councillors have also expressed support for the factory proposal.
"Newcastle Labor councillors welcome investment and jobs in regional manufacturing and the expansion of the airport terminal," the councillors said in a statement.
"Our region is in transition, and the extra 500 construction jobs and 70 full time ongoing roles are welcome in Newcastle.
"Land use planning around the RAAF base is a matter for Port Stephens council.
"On-base and off-base defence investments are a matter for the Commonwealth government."