Soldiers' uniforms 'not from China'

Defence has backed away from an optional deal with China for cheap fabric to make Australian Defence Force camouflage uniforms.

It would have saved about $1.5 million out of a $13.6 million contract price.

But defence procurement head Dr Stephen Gumley said it was only an option in a contract with Victorian firm Bruck Textiles to supply the distinctive disruptive pattern combat uniform (DPCU) material to make 120,000 uniforms over two years.

Under that option, DPCU fabric would have been sourced from a Chinese firm in the second year.

Whatever the source of materials, uniforms would have been stitched together by Bendigo firm Australian Defence Apparel (ADA).

"We won't be going ahead with that particular part of the contract," Dr Gumley told a Senate estimates committee hearing.

"We are all very relieved to hear that," commented opposition defence spokesman David Johnston.

Dr Gumley said he had initiated an internal inquiry into the tender which was issued on July 17 and closed on August 4.

Brigadier Bill Horrocks acknowledged that sourcing fabric from China seemed a good deal.

"The value for money option was considered and there was a clear saving in terms of cost and also in terms of schedule," he said.

However, the very thought of cladding diggers in Chinese-made combat-wear, revealed in reports in News Limited newspapers, sparked outrage.

Ian Harrison, chief executive of the Australian Made, Australian Grown Campaign, said moving production of hi-tech combat uniform fabrics to China should be a massive concern to all Australians.

"It is of course encouraging to hear that the Defence Force is seeking to contain expenses," he said in a statement.

"But this needs to be balanced against the longer term advantages to Australia of retaining and building our technologically advanced manufacturing industries, particularly those located in regional centres."

"This sounds every bit like a wrong decision for our manufacturers, our workers, our soldiers and Australia."

Defence Personnel, Materiel and Science Minister Greg Combet said no Australian troops were currently deployed or in training wearing combat uniforms made from Chinese fabric.

He said there was never a requirement to use Chinese fabric in combat clothing and the option to use cheaper Chinese material would not be exercised.

"The combat clothing that Australian troops will be supplied with is required to meet exacting specifications. All fabric used in uniforms is rigorously tested before use," he said in a statement.

"The government is committed to giving Australian products a fair go, as long as local industry is competitive on schedule, cost and capability."

Senator Johnston said it was totally unacceptable that for a measly 10 per cent saving, the government was willing to have the fabric made in China, risking the intellectual property behind the Australian government-owned high-tech fabric.