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A relocation of the Royal Australian Navy Fleet Base East from Garden Island to Port Kembla has been described as potential "game changer" for the region.
The proposal has bipartisan support from the Illawarra's federal politicians.
Led by Senator Concetta Fierravanti-Wells and co-ordinated by RDA Illawarra, a consortium of regional business, industry and political representatives have prepared a submission (The Jewel of the East Coast report) to the Australian government's Defence White Paper Committee.
"This relocation proposal represents a generational opportunity for this region," Senator Fierravanti-Wells said.
"Our close location to Sydney, Canberra and Nowra, our steelmaking and coal mining industries, internationally renowned university, advanced manufacturing and growing ICT and knowledge service sectors makes Port Kembla, an ideal and strategic choice for relocation of the RAN."
The submission outlines three key recommendations to the government.
The first is that the Port Kembla relocation proposal be given a fair hearing as a White Paper option, and is deemed a RAN relocation option in the Defence White Paper and other strategic Defence documents such as the 20-year plan.
The second recommendation is that the government evaluates the case for relocating all or part of current RAN operations at Garden Island to the port of Port Kembla and undertakes a feasibility and scoping study in consultation with federal and NSW state departments.
The third is that relevant officials, including the Defence White Paper team, tour facilities at Port Kembla and be briefed on the site's capabilities.
BlueScope Steel, which is part of the consortium, has outlined four surplus sites at Port Kembla it could lease or sell to the Navy.
Cunningham MP Sharon Bird said the recommendations put forward were "both sensible and reasonable".
Throsby MP Stephen Jones said it was "a game changer proposal from the region".
"Securing the relocation of the Royal Australian Navy would provide significant and diverse economic benefits for the Illawarra," Mr Jones said.
RDA Illawarra chief executive Natalie Burroughs said the "one-voice" proposal demonstrates the region's ability to unite together and its potential as a world-class region.