The Federal Government has bought Techport from State Government for $230 million
UPDATED: The Federal Government has bought the shipbuilder Techport from the SA Government for $230 million.
THE Federal Government has bought Techport from the State Government for $230 million – prompting renewed calls for the release of the National Shipbuilding Plan.
Federal Defence Industry Minister Christopher Pyne and Finance Minister Mathias Cormann said yesterday the purchase was a critical step in delivering a continuous naval shipbuilding program.
“The Turnbull Government is solely committed to delivering its $89 billion naval shipbuilding program on time and on budget in order to deliver the jobs and economic growth to SA as soon as possible,” Mr Pyne said.
Mr Cormann said the move marked the completion of the first stage of separating shipbuilders ASC; the company has been split into three companies – one for ships, one for submarines, and for infrastructure. State Defence Industries Minister Martin Hamilton-Smith told The Advertiser that he’d negotiated the price.
“Their initial position was that they wanted the Common User Facility (the lift and the wharf) and the Shipbuilding Expansion Area at no cost,” he said. Mr Pyne has said they worked through the process with the State Government.
SA Senator Nick Xenophon said it was critical that the NSP was now released so people could see where the jobs were – his concern is that the Federal Government ownership will stop “healthy competition” from the state.
“We shouldn’t forget this plan has had a longer gestation period than an elephant . . . let’s hope it doesn’t end up being a white elephant,” he said.
The plan was expected to be delivered alongside the Defence White Paper, which it-self was due halfway through 2015 but released in February last year. The State Government poured about $300 million of taxpayers’ money into the site as part of its bid to win the $50 billion Future Submarines project and the $30 billion Future Frigates. SA will spend another $18 million on some infrastructure at the site and the balance of the sale price will go back on its books.
Mr Hamilton-Smith said the outcome was “win/win” because the state won the bulk of the work on the ships and submarines and can now use the money in advanced manufacturing. Premier Jay Weatherill said SA was now recognised as the nation’s best shipbuilder for its “world-class standards of construction, maintenance and sustainment”.
“This is what happens when you stand up to be tested against the best,” Mr Weatherill said. “The way is now clear for (works) to start.”
The site, run by ASC, is now finishing up work on the Air Warfare Destroyers.