US detained critical medical supplies bound for Australia
Ronald MizenReporterMay 21, 2020 – 12.00amThe US government detained critical medical supplies bound for Australia under sweeping powers invoked by President Donald Trump.
On April 7 medical supplies loaded aboard a Qantas flight were temporarily detained under the US Defence Production Act and were allowed to leave the country only after intervention from Australian diplomats.
Medical supplies loaded aboard a Qantas flight were allowed to leave the US only after intervention from Australian diplomats. Getty
The episode illustrates Australia’s vulnerability to overseas supply chains, even in friendly nations, which was exposed at the height of Australia’s COVID-19 pandemic.
A spokesperson for the Department of Foreign Affairs and Trade said "Australian and US officials in Washington resolved the issue", and "the Australian government is working closely with the US administration to ensure sufficient medical supplies in both our countries".
The Defence Production Act, passed in the 1950s, is designed to ensure the adequate supply of medical equipment within the US. President Trump's decision to invoke the Act for the COVID-19 crisis gave US Customs and Border Protection sweeping powers to detain consignments of personal protective equipment (PPE).
On the day the supplies were detained, Health Minister Greg Hunt highlighted the intense competition facing countries trying to procure medical supplies, saying "I don't count them until they're here".
The Sydney Morning Herald reported this month that France had secured tonnes of medical supplies in April, but was outbid by the US while the plane was on the tarmac.
Multiple government sources told The Australian Financial Review that state and territory governments were briefed about the US' actions to highlight the threat posed to Australia's overseas supply chains.
Mr Hunt said the actions of the government to secure medical supplies and diversify testing platforms and consumables had helped support Australia through a global supply shortage of COVID-19 tests.
"I don't count medical supplies until they're here,' Health Minister Greg Hunt says. Alex Ellinghausen
"One of the government’s most fundamental and important achievements throughout the COVID-19 pandemic has been securing sufficient COVID-19 testing supplies," he said. "This has saved lives and protected lives.
"We believe the supplies secured are necessary, fundamental and their absence would have represented a threat to the testing program in Australia."
Fierce competition for medical equipment led the government to pass legislation in late March allocating $40 billion in a special discretionary fund for incidental costs resulting from the coronavirus, including for the purchase of critical medical supplies.
Since the passage of that legislation, Finance Minister Senator Mathias Cormann said more than $1.58 billion has been spent on masks and other emergencies medical or emergency health equipment to deal with COVID-19 in Australia.
Industry Minister Karen Andrews says the pandemic has exposed areas of need in Australian manufacturing. Nine
Industry Minister Karen Andrews said the coronavirus pandemic had exposed gaps in Australia's supply chains but domestic manufacturers had stepped up to meet demand.
“Our manufacturers pivoted their production, using existing capability to begin making essential medical supplies and components for medical devices like ventilators," she said.
“When we first began preparing for this crisis I was told Australia would not be able to make more than 37 million surgical masks a year – we're now expecting to produce more than 200 million this year."
A regular co-ordination meeting of state and territory industry ministers has been established to deal with the challenge and Ms Andrews said she envisaged in the aftermath of the crisis that the government would continue to buy locally to establish and ensure the ongoing viability of key industries.
