A BAE Systems Australia report has revealed that the Hunter-class future frigate programme will add a total of A$17bn ($12.33bn) to national gross domestic product (GDP) over the project’s lifetime from 2018-19 to 2047-48.
Dubbed ‘The economic impact of BAE Systems in Australia’, the report also shows that the Royal Australian Navy’s (RAN) frigate development programme will provide more than 6,300 full-time job opportunities in the region.
Produced by BIS Oxford Economics, the report shows that every job directly created under the Hunter-class programme will be 2.7 more in 2028.
The contribution will be an addition to the ongoing impact of BAE Systems Australia’s activities in the country.
Last year, the company contributed A$1.2bn ($867.26m) to support the Australian Defence Force (ADF) at more than 25 major sites across the country, the report added.
Australian Department of Defence Minister Christopher Pyne said: “The Oxford Economics report emphasises the important role the Hunter-class programme and the broader naval shipbuilding enterprise play in Australia’s economic growth and the ongoing development of our skilled workforce.”
The economic modelling reveals that the programme will also have wide-ranging effects on the country’s GDP.
The report also states that more than 500 domestic businesses have been pre-qualified to be part of the Hunter-class frigate supply chain.
BAE Systems Australia chief executive Gabby Costigan said: “We are pleased to release this report today demonstrating that BAE Systems’ involvement in the Hunter-class frigate programme alone will more than double the company’s already significant contribution to the national economy.
“Australia’s defence industry plays an indispensable role in supporting the Commonwealth Government as it adapts to our changing security environment and grows the capability needed to better protect the nation.
“As regional defence priorities have changed, we have supported the development of a stronger and more capable sovereign defence industry.”