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The federal government is set to sensationally axe the “JP 9102” project to deliver a new military satellite communication capability for Australia, according to a new report.
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The Australian claims the $3 billion deal, arguably the biggest and most significant in the sector, has been shelved as Defence doesn’t have enough money to complete the project.
It significantly comes after Labor made a series of wide-ranging cuts to space last year, including a $32.3 million pledge to help Australia’s spaceports and abolishing the $1 billion National Space Mission for Earth Observation (NSMEO).
JP 9102 was only signed off just 18 months ago, with prime contractor Lockheed Martin beating big-hitters, including Boeing, Northrop Grumman Australia, and Optus, to become the “preferred tenderer”.
However, it’s unknown whether Lockheed formally had the final contract signed after it entered the last formal stages of negotiation.
If approved, JP 9102 was set to create more than 200 direct jobs, while Lockheed Martin itself pressed ahead with making key appointments for its staff to oversee it.
The plan would have seen the launch of a new geostationary satellite alongside multiple ground stations and an advanced satellite management system, creating secure communications that the ADF would have used.
“There is no money. There needs to be money to actually start the program,” a defence source told the newspaper.
If true, the news would be a huge blow to the space sector, already reeling from last year’s cuts.
The separate axing of the $1 billion NSMEO led to Swinburne University Professor Alan Duffy telling journalists the cuts had a “chilling” effect on the industry, while Equatorial Launch Australia CEO Michael Jones argued the sector was a low priority for the government.
“Call it what it is: the lack of federal government support with the change in government makes me nervous, and it makes the job really hard,” said Jones last year.
He hinted that he believes space is now an afterthought for the Department of Industry, Science and Resources and quipped that one had to “look hard” on its website to even spot the Australian Space Agency.
“Poor Enrico [Palermo, head of the ASA] is three or four levels down in that organisation, and that really worries me. As an industry, we had claims last year that we’re looking for 20,000 jobs and $20 billion of economic stimulus in the future. We’re not going to get there if we don’t support the industry,” Jones said.
“Because as we travel around the world trying to get rocket companies to come to Australia, there are a number of impediments for them that we have to design strategies to overcome.
“We’re also competing against sovereign entities almost everywhere, who are supporting the industry in very, very financial and demonstrable ways, which make it hard for us to compete.”
