Defence spending call reaches crescendo

Former Labor Defence Minister Kym Beazley has backed US calls for Australia to lift defence spending to 3 per cent of GDP. Mr Beazley’s comments came after US president Donald Trump’s head of policy at the Pentagon Eldridge Colby called for Australia to lift its defence spending to 3 per cent of GDP in keeping with its role in a region with an increasingly powerful China. Deputy Prime Minister and Defence Minister Richard Marles said boosting Australian defence spending is an ongoing discussion with the Trump administration. Opposition Leader Peter Dutton pledged a Coalition government would spend more on defence than Labor if it wins office. Mr Beazley who is not without influence within the ALP said Australia could not risk going it alone on national security, backing the Trump ¬administration’s call for tens of ¬billions of dollars to be added to the defence budget each year. “We can’t afford to run our own game; people are full of piss and wind on that,” the former Labor leader and former US ambassador told The Australian. “We have to be mindful that we have our limits, but we do have to bear in mind what Trump’s saying, and the others are saying. We have to up our spending to 3, 3.5 per cent (of GDP).” Mr Beazley’s intervention came in a week when the Prime Minister Anthony Albanese delayed the federal election after Cyclone Alfred triggered flash flooding across southern Queensland and northern New South Wales. Prime Minister Albanese had been expected to call an election straight after the March 8 WA election, which saw WA Labor returned comfortably – for April 12. The Federal budget will now go ahead on Tuesday March 25 and the earliest an election can now be held is May 3 with April dominated by the School holiday/Easter/Anzac Day breaks.

Tariff war to take toll on business

The fallout from the Trump administration’s decision to impose 25 per cent tariffs on Australian steel and aluminium was still being played out late this week. The Prime Minister Anthony Albanese whose appeals to Washington were ignored labelled the decision “unjust’’ an “act of self-harm’’ and not how you treat a friend. Opposition Leader Peter Dutton accused Prime Minister Albanese of mismanaging the relationship in failing to gain an exemption. Australia’s steel and aluminium exports make up 2 per cent of the US market and are worth about $800 million annually. But the aluminium and steel tariff impost is on all importers in to the US. But the broader tariff war the US president Donald Trump started involving the US, China, Mexico, and Canada so far in tit-for-tat tariffs threatens Australian exporters with higher costs and export delays. According to consultancy firm PwC, Australian businesses face the threat of increased supply chain and ecommerce costs, currency fluctuations, higher freight costs and border duties and a dumping threat as part of the fallout from a global trade war.

Wong rebukes Russia over Ukraine troop warning

Foreign Minister Penny Wong has rebuked Russia over its warning that sending Australian troops to function as peacekeepers in Ukraine would have “grave consequences’’. The warning from the Russian embassy in Canberra, followed Prime Minister Albanese indicating Australia would be willing to be part of a European led Coalition of the Willing to send troops to Ukraine to enforce a US brokered ceasefire. Opposition Leader Peter Dutton however suggested Australian troops are needed in the region and he would not deploy them in Ukraine suggesting it is a more appropriate role for EU troops. Australia sent a senior defence official Air Vice Marshal Di Turton to military leaders talks in Paris on Tuesday to discuss support for Ukraine. “Western boots on the ground are unacceptable for Russia, and we will not remain passive observers,” the embassy said.

Comfortable return for WA Labor

As expected, Labor was comfortably returned in an election held on Saturday. Though the Cook government suffered a substantial swing against it of 11.2 percent it was not enough to unseat the government. With 65.4 per cent of the vote counted by Thursday, Labor had won 42 seats (down from 53), the Liberals five and the Nationals four. A further eight seats remained in doubt in the 59 seat Lower House. The lack of success for the Liberals led to immediate recriminations. The Liberals had expected that freed of the “Mark McGowan closed borders Covid factor’’ which delivered a landslide for Labor in 2021 that a lot of wealthy seats would return to the fold. However, this did not eventuate. Former WA Liberal Premier Colin Barnett said it would be impossible for the Liberal side of politics to return to government without the Liberals and Nationals combining to contest further elections. The result led to speculation a leadership ballot would see newly elected former media personality Basil Zempilas taking over from Libby Mettam as Liberal leader. However, it is understood any ballot has been put off until the full WA result is known. Premier Cook declared in the wake of the result that he would work hard for a Federal Labor Government victory in an election due by May 17. Opposition Leader Peter Dutton said it was an interesting position given Mr Cook had won the State election by taking a strong stance against several Federal Labor Government initiatives including against anti-mining environmental laws.

Ongoing support for E-7A Wedgetail

The Albanese Government has struck a $569 million contract with Boeing Defence Australia to upgrade and maintain the RAAF E-7A Wedgetail surveillance aircraft for the next decade. Deputy Prime Minister Richard Marles and Defence Industry and Capability Delivery Minister Pat Conroy in a joint statement declared the new contract would secure hundreds of highly skilled jobs across the country. The contract delivers enhancements to the aircraft and ground systems and ensures this critical capability is upgraded and maintained over the next decade. The additional funding provides job security for hundreds of people in Brisbane and Adelaide, as well as the NSW Hunter Region where it will alone support 170 jobs. This is in addition to the approximately 360 existing Defence and industry personnel who support the Wedgetail at RAAF Base Williamtown. The E-7A Wedgetail is a cornerstone of Australia’s integrated air and missile defence capability, providing crucial situational awareness and airborne command and control. The ADF’s six aircraft are operated by No. 2 Squadron based at RAAF Base Williamtown, near Newcastle.