SA fights interstate raid on submarine jobs as Defence Minister rules out ‘off the shelf’ purchase

WESTERN Australia is manoeuvring to snatch thousands of jobs from Adelaide if Australia’s next generation of submarines is built overseas.

WESTERN Australia is manoeuvring to snatch thousands of jobs from Adelaide if Australia’s next generation of submarines is built overseas.

A WA Liberal government minister yesterday used a major submarine conference to float the idea of all submarine maintenance work being moved to Henderson, near Fremantle.

South Australian Defence Industries Minister Martin Hamilton-Smith responded by warning that it could be harder to keep maintenance jobs in SA if the Future Submarines were built overseas.

About 900 people are directly employed in submarine maintenance at the ASC’s Osborne headquarters and the work contributes at least $150 million to the state’s economy and supports many more jobs.

Defence Minister David Johnston yesterday told a Submarine Institute of Australia conference in Fremantle there were currently no foreign submarines that could be simply purchased “off the shelf’’ and meet Australia’s strategic needs.

His comments buoyed hopes that SA still had a chance of being substantially involved in the construction of the Future Submarines.

But WA Emergency Services Minister and former navy submariner Joe Francis told the conference that it made sense for all maintenance to be eventually carried out at ASC’s Henderson site in Fremantle, WA, where minor servicing is already conducted.

“You’ve got the resources, you’ve got the capability, you’ve got the manpower (in WA),’’ he told The Advertiser.

Mr Francis said it was damaging to the morale of West Australian-based submarine crews to be sent away from their families to Adelaide when major overhauls of their boats were required.

“They pack up their bags, they move over to the West for the sake of their service and the worst thing you could then do to a crew’s morale is to ship them over to Adelaide for six months to bring a boat out of full-cycle docking,’’ he said.

Mr Francis said any gap left in SA’s shipbuilding industry by the removal of submarine maintenance could be filled by other work.

SA Defence Industries Minister Martin Hamilton-Smith said it would be more difficult for Adelaide to hold on to maintenance jobs if the replacements for the Collins Class boats were built overseas.

“It’s very clear that Western Australia would like to have much or all of the sustainment work in WA, as you would expect,’’ Mr Hamilton-Smith said.

“That underlines the point that unless the submarine is built based in Adelaide, the chance of getting sustainment work is reduced.’’

Mr Hamilton-Smith said he had no desire to get into a turf war with another state. He said if the Future Submarines were built in SA, work would also be created in other states.

He welcomed signals by the Federal Government that a tender process would involve at least four contenders but said more could be done to ensure the process was open and thorough.

Senator Johnston was yesterday talking up the prospect for more submarine sustainment jobs being based in Adelaide. He said more submarines meant more jobs for South Australia as two-thirds of the project cost would be in sustainment.

“New jobs will be created. This will be an exciting opportunity for South Australia, for Adelaide and indeed for the entire nation,’’ Senator Johnston said.

He said no decisions had been made on what the government would purchase but there were no current easy “off the shelf’’ options.

“Australia’s next submarine will have longer range and endurance than any diesel/electric submarine currently available off the shelf,’’ he said.

Independent SA senator Nick Xenophon yesterday said it would be dangerous for Australia to award submarine building contracts to Japan without a comprehensive open tendering process.

Senator Xenophon said awarding a tender for modified Soryu-class submarines without a full tender process risked damaging Australia’s relationship with China.

“We must never be bullied by China but we shouldn’t be reckless in spoiling for an unnecessary fight,’’ he said.

Opposition Senate leader Penny Wong said Labor would continue to keep fighting to ensure the Government met its pre-election promise to build 12 new submarines in Adelaide.

“The defence industry is vital for South Australian jobs and our economy,’’ Senator Wong said.