Raytheon Australia has blamed cuts to defence spending for the loss of 5000 manufacturing jobs.
The Australian Financial Review reports that Raytheon, the country’s third-biggest defence contractor according to its website, has blamed a reduced Department of Defence budget for a loss of jobs in the defence manufacturing sector.
“In just three years, the workforce has fallen from 29,000 people to somewhere between 24,000 and 25,000, according to the DMO (Defence Materiel Organisation)," said Michael Ward, Raytheon’s MD.
He believes that the 2009 Defence white paper encouraged investment, but things have since slowed.
“That growth has not come, return on investment has not been realised, and the fragility of Australia’s defence industry has been exposed.”
Federal government’s defence spend of 1.5 per cent of GDP is now at pre-World War Two levels. Spending was reduced by $5.5 billion across the forward estimates to 2015-16 as part of the last budget’s savings measures.