Australia to pledge A$1b defence spend in fresh Covid-19 stimulus

[SYDNEY] Australia will spend A$1 billion (S$984.8 million) to upgrade defence facilities, offer additional paid employment to army reservists and upgrade military vehicles, Prime Minister Scott Morrison will say on Wednesday, as Canberra seeks to support its defence industry amid a Covid-19-triggered recession.

While Australia has reported far fewer cases of Covid-19 compared to other developed countries, restrictions imposed to slow the spread of the virus have had a devastating impact on the country's economy, which will slip into a recession for the first time in three decades.

Australia has so far promised to spend about A$260 billion in stimulus to support its allaying economy.

In a fresh round of stimulus, Mr Morrison will promise greater spending on defence in a bid to grow the country's military and support 4,000 jobs.

"Like much of the economy, our local defence industry is doing it tough because of Covid-19. This is especially so for small and medium sized businesses, that are critical to jobs," Mr Morrison will say on Wednesday according to extracts of a speech sent to Reuters.

Mr Morrison said many of the military facilities earmarked for upgrades will be in areas impacted by bushfires.

Fires razed more than 11 million hectares of bushland across Australia's south-east early this year, killing at least 33 people and billions of native animals, a disaster that Mr Morrison called Australia's "black summer".

The fresh stimulus will include A$200 million for military vehicle modifications.

Mr Morrison will also promise to spend A$80 million to offer additional part-time employment to 27,000 Australian Defence Force Reserve members.

Australia has reported 25,067 cases of Covid-19 and 525 deaths from the virus.

REUTERS