Uncertainty surrounding the Williamtown Special Activation precinct may put hundreds of millions of dollars of future investment, jobs and manufacturing opportunities at risk, the head of Martin-Baker Australia has warned.
The British-based ejection seat company established its Australian headquarters at Williamtown in 2017.
Its team of six presently perform highly specialised maintenance, repair and overhaul work for the RAAF's Super Hornet, Growler, Joint Strike Fighter and PC21 aircraft.
Future expansion plans began in late 2019 with the aim of purchasing a purpose built facility, which would allow manufacturing to commence.
But along with other small to medium aerospace businesses at Williamtown, the company's expansion opportunities are limited by a lack of suitable land, which the Special Activation Precinct promised to unlock.
"Due to the specialised nature of our business and operations, we need to own our facility. We need the long-term security that freehold development gives us to be able to make the commitment to manufacturing in Australia," Martin-Baker Australia Managing Director Andrew Eden said.
"For a privately-owned business of Martin-Baker's size, it makes no sense to commit to 30 years of manufacturing in a leased building that requires special fit out.
"Without the Special Activation Precinct allowing a choice of facility purchase options that Astra Aerolab cannot offer, we cannot proceed."
He said the situation had been compounded by the lack of meaningful development that had been approved by Port Stephens Council.
The former state government launched the Williamtown Special Activation Precinct in 2020. At the time it was touted as having the potential to unlock hundreds of millions of dollars of private sector investment and create 4300 new jobs over the next 40 years in the defence, aerospace, advanced manufacturing, commercial, freight and logistics industries.
A commitment was also given to streamlining planning approvals and tailoring infrastructure investment in areas such rail, roads and drainage to support the precinct's establishment on 10,000 hectares of land, much of which was contaminated by PFAS.
But minister for regional NSW Tara Moriarty announced in June that the state's seven proposed Special Activation Precincts, including Williamtown, were under review as part of a Strategic Infrastructure Review of the state's capital infrastructure program.
A NSW government spokeswoman said on Monday that the government was reviewing all expenditure, ahead of the September 2023 state budget.
"Unlike the former Liberal-National government, the NSW government wants to make sure all programs are well structured, transparent and accountable, rather than ad hoc funds that do little to support regional communities for the long-term," she said.
Speaking at last year's Hunter Defence Conference, Minister for Defence Industries Pat Conroy noted that medium sized defence industries were essential to the development of a sovereign defence industrial base in Australia.
"One thing that has struck me so far as I've been talking with Defence companies and industry groups around the country, is the lack of medium sized businesses in Australia. Growing medium sized businesses, who are developing and delivering sovereign capabilities, will be a key marker of success for me in the long term," he said.
"The Albanese government has committed to spending $270 billion over the next decade on essential Defence capabilities.
"By the end of the decade, I want to see more medium sized businesses, capable of standing on their own two feet, outside of Defence acquisition cycles."
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