An Australian business has flatly rejected accusations from the Greens that it “exports some of the critical components for the Israeli Spike missile which has been used to blow up apartment blocks” in Gaza.
Varley Rafael Australia, a joint venture between Australia’s Varley Group and the Israeli company Rafael Advanced Defense Systems, has said it does not export any missiles or any components that are used in other countries, including Israel.
The government singled out comments about Varley Rafael Australia as “the worst” recent example of misinformation about arms trade with Israel.
The Greens’ defence spokesperson, David Shoebridge, told Newcastle’s 2HD radio on 29 May: “To Australia’s shame, we continue to export weapons parts and weapons to Israel.
“Varley Rafael, just north of Newcastle, exports some of the critical components for the Israeli Spike missile which has been used to blow up apartment blocks and residential buildings in Gaza.
“That’s exported out of Varley Rafael, just north of Newcastle. We should absolutely end that.”
But the chief executive of Varley Rafael Australia, Ben Walter, told Guardian Australia: “We do not manufacture or export missiles or any components that are used in other countries.”
The joint venture has secured several contracts with the Australian government to supply Spike Long-Range 2 anti-tank guided missiles for use on the Australian army’s Boxer combat reconnaissance vehicles and Redback infantry fighting vehicles.
However, it is understood the joint venture is importing those missiles to Australia.
The defence industry minister, Pat Conroy, alleged that Shoebridge had “outright deceived the Australian public by claiming that a company in the Hunter is supplying components for missiles used by the Israeli defence force in the Gaza conflict”.
Shoebridge was contacted for a response and issued a statement defending his previous comments.
He pointed to previous open-source reporting, including a 2021 article on the Australian Manufacturing Forum website that Varley Rafael Australia had “begun local production of the Spike Guided Missile Integration Kits (SIKs) – the first time the Israeli company Rafael has conducted assembly operations overseas”.
Shoebridge also cited a 2017 story on the Defence Connect site that included the line: “The joint venture also means Varley will become part of Rafael’s global supply chain for Spike missiles, enhancing the company’s export opportunities and giving access to Rafael’s cutting-edge, fifth generation defence technologies.”
“Based on the evidence above we have repeated the company’s statements and public media position and said that they are part of the global supply chain for the Spike missile,” Shoebridge said on Monday.
“As such they are complicit in the deaths from that weapon.”
Guardian Australia understands those reports accurately conveyed the plans at the time, but to date no contracts are in place for domestic Australian manufacturing of the Spike Long-Range 2 missile and its components.
The Australian Manufacturing Forum reported in March 2023 that Varley Rafael Australia “has already manufactured and delivered SIKs (launcher and missile control elements) back into the global Rafael supply chain for Rheinmetall’s Land 400-2 Boxer Combat Reconnaissance Vehicles”.
Rheinmetall is a German company that has been contracted by the Australian government to deliver those Boxer vehicles for the Australian army, and it has set up a manufacturing site in south-east Queensland.
Despite the 2023 language about Varley Rafael Australia contributing to a “global” supply chain for the Rheinmetall Boxers, Guardian Australia has been told that those parts were produced solely for Australian use.
Conroy said people in public life had a responsibility to check their facts before they made claims that were “having an impact on communities and businesses and workers” and fuelling division.
Conroy said he was aware from discussions with union officials that some apprentices were seeking to quit the Varley Group “because they’d heard the story and obviously were really upset by these claims”.
He said the Greens should “establish there’s a fire in a theatre before [they] run around yelling fire”.
In August last year, Conroy announced that the Varley Group would “present options to government for domestic manufacturing”. To date, that has not been adopted.
Shoebridge made the claim about the active export of components before making a broader argument that Australia “should not buy weapons made by Israeli arms manufacturers that they’re currently right now experimenting on Palestinian people”.
That second argument is grounded in a view that collaboration with Israeli arms manufacturers, even if the equipment is to be used exclusively in Australia, should be scrapped to apply pressure on Israel to “stop this war”.
The government has repeatedly said Australia does not export arms or ammunition to Israel, but has defended its role in the global supply chain of parts for F-35 fighter aircraft and brushed off calls for an end to all links with Israeli defence firms.
With the death toll in Gaza mounting, the government says the only Israel-bound export permits it has approved in recent months are for Australian equipment to go to Israeli manufacturers for repairs or upgrades before returning to Australia.
The government said seven of the eight defence permits issued since 7 October were in this category, while one was for “a nonlethal item” to return to Israel.
Officials also confirmed 66 defence permits issued since 2019 remained active, including some for Australian defence force capability and others for “parts, components and technology exports” such as dual-use items.
The government is now reviewing those pre-existing permits and has signalled it may revoke them.
