Aid groups have criticised the Federal Government's plan to dramatically ramp up defence exports, accusing the Coalition of contributing to a global arms race.
Key points:
- Current defence exports are worth around $2b per year
- Aid groups say the Government's plan undermines its claim to be in favour of peace building
- The Coalition is eyeing growing arms markets in the Middle East and Asia
The Government has declared it wants Australia to be one of the world's top 10 arms exporters, unveiling a new loan scheme for defence companies which want to sell their products overseas.
Australia's defence exports are worth about $2 billion a year — but Defence Industry Minister Christopher Pyne said he wants that figure to be higher.
"We sell a veritable welter of [defence] products, but we haven't really taken it to the next level which is to seriously compete in the world for a part of what is a $1.5 trillion part of the world economy," he told ABC's AM program.
"We have a high reputation for quality and capability — we need to turn that into products and services."
But Marc Purcell from the Australian Council for International Development said the announcement undermined the Government's claim to be in favour of peace building.
"In a very uncertain international environment where conflict is much more likely we should be using our diplomatic efforts to build peace," Mr Purcell said.
"We should not be getting into the game of marketing weapons which kill, maim, and bring great sorrow and destruction to communities around the world."
Mr Pyne tried to head off the criticisms by emphasising Australia would focus on boosting exports to our closest allies, including New Zealand, Canada, the United States and the United Kingdom.
"We need strong alliances with those kinds of countries, with the capabilities, militarily, to ensure we maintain peace in the world," he said.
"I don't think anyone would question our role in places like Iraq and Syria."
But the Coalition is also eyeing growing arms markets in the Middle East and Asia.
Mr Purcell said that was particularly concerning.
"The Middle East is a hotspot for conflict and violence. We do not need Australian weapons being sold there," he said.
$3.8b loan scheme to close international market gaps
Under the plan, the Government will establish a $3.8 billion loan scheme for defence companies seeking finance to sell weapons and equipment to other countries.
Australia's export credit agency EFIC already helps defence companies access bank loans.
But Mr Pyne said many banks were "very risk averse" and the Government should be willing to step in and provide credit when companies needed help to boost exports.
"There are certain characteristics of the defence industry — particularly in markets like the Middle East and Asia — where banks are not as enthusiastic to have loan facilities," he said.
"Sometimes banks won't even go near such an industry, whereas there's no reason why EFIC can't have its facilities available for defence exports."
The Coalition is also creating a Australian defence export office to work with Defence and Austrade to create a central point to implement the strategy.
A new Australian Defence Export Advocate will help coordinate the push.
Labor frontbencher Anthony Albanese said he backed the new strategy, but questioned the Government's focus on defence.
"This is a Government that seems to say manufacturing of cars, advanced manufacturing, use of smart technology, renewable technology, it's all bad — but when it's defence, it's OK," he said.
The Stockholm International Peace Research Institute estimates that Australia was the world's 20th largest arms exporter in 2012-16.
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