An independent budget audit of the Defence Department has recommended closing small bases and consolidating land holdings to save more than $1 billion, but no bases have been identified publicly.

The executive director of the Australian Defence Association Neil James said yesterday it was unlikely the bases would be closed.

Mr James said the Wodonga units were part of the major urban centre of Albury-Wodonga with its large employment skills base and opportunities for army spouses to gain employment and enjoy the lifestyle of a regional city.

The intended long-term expansion of the nation’s defence capabilities will depend on maintaining the Army Logistic Training Centre and the Joint Logistics Unit (Victoria) in Wodonga.

About 6000 soldiers are trained at the Latchford and Gaza Ridge barracks each year, while the logistics unit, mainly at Wadsworth barracks, is a big local employer through its contractor, BAE Systems, with 500 civilian workers.

A Defence White Paper in May proposed reducing the 24 defence storage and distribution network units to seven logistics units, which would include Bandiana, though it was not named.

Joss Construction recently started a $25 million military warehouse at East Bandiana designed to last 25 years.

Another $11.4 million will be spent refurbishing 10 old warehouses at North Bandiana and related works.

At the training centre, Kane Construction is building a $9 million parachute rigging wing at Gaza Ridge Barracks.

A third major project for a vehicle fleet building costing $15 million to $20 million, is planned for 2010-11.

Surplus land could become available at North Bandiana within a few years, while a fresh look may be taken at the decommissioned Wirlinga ammunition dump to sell all or part of the 388ha.

Editorial — page 18