www.landforces.com.auMaritime Industry Australia Limited (MIAL) has today renewed its calls for the Government to commit to bolstering Australia’s shipping capability through more ships and the same tax and regulatory settings that are applied in other maritime nations. MIAL CEO Teresa Lloyd said the unfolding war in Ukraine further underscored an increasingly unstable geo-political context and drove home what many in the industry have been calling out for years – the need to urgently arrest the decline in Australia’s shipping capability and restore it to levels that will safeguard Australia’s national security and resilience.

“More than two-thirds of Australians are concerned about the impact Russia’s invasion of Ukraine will have on our national security and rightly so, we have just 13 large scale national ships we can be sure will bring in the supplies we need to live,” Lloyd said. “In absence of having our own ships, we rely totally on overseas ships who are ultimately beholden to the countries they are owned by. In times of crisis, those countries can direct their ships to act in their interests cutting Australia off from vital trade links for essential supplies making us extremely vulnerable.”

MIAL Board Director Vice Admiral (Rtd) Tim Barrett said internationally, many shipping companies are already feeling the consequences of the sanctions rightly placed on the Russian economy by the West. “Indirectly this will affect us as it is likely to add pressure to the number of ships available to ply our trade routes putting Australia at risk of being unable to access supply links for important commodities such as fuel for our cars, medicine for when we are sick and fertilisers to grow our food,” Barrett said.

MIAL warns this is further disruption to an already fragile situation in the country where 90 percent of Australian trade is conducted by sea and yet the country has a huge dependency on overseas shipping to do it. Lloyd said the industry recognises change doesn’t happen overnight, but that we don’t have any time to waste and the government can take a step in the right direction by announcing:

  • An immediate commitment to establish a sovereign commercial fleet
  • Budget allocation for a base-level of commercial ships to kickstart the industry and the same tax and regulatory settings that other countries apply to their shipping industry.

“We look forward to working closely with our members, the community and Government on this important issue that will benefit everyone and ensure our national security and the nation’s resilience is protected,” Lloyd concluded.

Swedish neutrality in the balance, says GlobalData
Sweden has spent almost US$150 million on military aid for Ukraine and draws closer to NATO membership, news which has not been received well by Russia. James Marques, associate aerospace, defence and security analyst at GlobalData, said, “The recent Russia-Ukraine conflict has dramatically altered the landscape of defence and security on the continent in ways that will have a massive impact on the industry. Sweden is among those countries whose political restraints on military activity have already been loosened – the nation will break with its doctrine of not sending arms to a war zone by supplying the Ukrainian military with 5,000 anti-tank weapons, ballistic protection and field rations. One of the key weapons systems that Sweden is supplying to Ukraine is the Bofors AT-4, a single-use anti-tank launcher, designed to be operated with minimal training and an ideal weapon for the fast-moving situation. Recent comments from Sweden’s Prime Minister Magdalena Andersson signal a clear break from Sweden’s historic position of neutrality,” Marques said.

“There are reports that Ukraine has specifically asked Sweden to send more SAAB NLAW Anti-tank systems, which have already been deployed against Russian armour and have proven to be popular, reliable and effective,” he added. “GlobalData’s latest report on Sweden’s defense market found that SAAB had a 4 percent drop in sales in Q4 2021 but maintains strong cashflows and will likely be bolstered by increased defence spending in Europe, which now includes a significant increase in Germany’s annual defence spending to 2 percent of GDP. This initial supply of Swedish arms to Ukraine is unprecedented and along with Finland, the country is being offered elevated access to NATO’s intelligence community. Even though Sweden is unlikely to join NATO anytime soon the discussions around their possible membership have already provoked a threat of ‘serious military and political consequences’ from Russia. Historically Sweden has enjoyed strong sales in Asia and the Middle East however Russia’s remarks will only serve to draw Sweden and NATO closer, who will likely continue to purchase arms from the Swedish market.”

APDR Newsletter


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