Fearless Conversations: Collins class submarine docking can stay in Adelaide without any decision, says former Premier’s Department chief

SA should not force a decision on submarine full-cycle docking in the face of an interstate raid because the project will just keep going in Adelaide, an industry defence leader says.

South Australia should not force a decision on the multibillion-dollar submarine full-cycle docking project in the face of a Western Australian raid but stand by the longstanding deal for an Adelaide base, says a defence industry leader.

Speaking at a Fearless Conversations forum, Nova Systems group chief executive Jim McDowell said the complexity of the program to overhaul the Adelaide-built Collins class submarines – involving thousands of maintenance and upgrade tasks over two years – made “a nonsense” of the argument to move it.

Mr McDowell, who last November stepped down as Premier and Cabinet Department chief executive, said the full-cycle docking program, based at Osborne Naval Shipyard, had taken 20 years to get right “and it’s very right now”.

SA has been fighting WA to retain the 700-job project, which was awarded to Adelaide in 2003 in a $3.5 billion, 25-year contract.

In the face of the WA bid, the federal government initially said a decision on its future would be announced by December 2019, but no new date has been set.

Royal Australian Navy Collins Class Submarines, HMAS Collins, HMAS Farncomb, HMAS Dechaineux and HMAS Sheean sail in formation while transiting through Cockburn Sound, Western Australia, in February 2019. Picture: Royal Australian Navy

Asked when the full-cycle docking decision should be announced, because workers and industry could not be kept waiting forever, Mr McDowell said: “Well, the fact is the full cycle docking is done here. That decision was taken 20 years ago. And while that continues, long may it, because if no one says anything that’s what will keep happening. If you’re the incumbent, the last thing you want to do is force a decision.”

The six Collins Class submarines were built at Osborne under a $5bn contract signed in 1987.

Three Hobart class air warfare destroyers also were built there, with the third, HMAS Sydney, launched in 2018.

The Advertiser in June reported Adelaide was on the brink of securing the full-cycle docking and a life-of-type extension program for the Collins class submarine.

Four days later, Defence Minister Peter Dutton confirmed the six Collins submarines would be completely rebuilt to extend their life for another decade.

Mr McDowell, who in 2014-15 was part of a First Principles Review team charged with rationalising Defence expenditure and work practices, said the Collins life-of-type extension further bolstered the case to retain full-cycle docking (FCD).

“We’re now going to make it a little bit more complicated, because it wasn’t complicated enough – we’re gonna do a life-of-type extension,” he said.

“ At the same time, we’re going to do an FCD. Now, how else could we make it more complicated? I know, let’s move it to somewhere else where they haven’t done it before and they haven’t got a workforce and so on.

“ In my view, it’s just not an option.”

NO NEED FOR NUKES

Nuclear power will be overtaken by other technologies to drive Australia’s future submarines, the Fearless Conversations forum heard.

BAE Systems maritime Australia managing director Craig Lockhart, who is leading the Adelaide-based design and construction of nine frigates for the navy, said almost a generation of education would be required before Australia might be comfortable as a nuclear nation.

Mr Lockhart, whose experience includes roles in Britain’s nuclear submarine program, said the federal government and the navy would have to determine whether the Adelaide-built future submarines would gain an edge by becoming nuclear-powered.

“To whether our submarines require nuclear power propulsion, the only advantage that it gives them is the ability to perform endless amounts of operations with an infinite range capability. It provides no other capability now,” he said.

Defence SA chief executive Richard Price questioned whether nuclear would be the best technology solution in 20 years time, when the Attack-class submarines were operational.

Flinders University Professor in Innovation Giselle Rampersad said initial research and development would focus on the OsborneNaval Shipyard’s capability for constructing the 12 submarines, while the next generation would examine battery storage, hydrogen power and energetic materials.

“So those are, I guess, along the horizon, and as the shipbuilding program moves further on, this sort of R & D will sort of evolve with it,” she said.

Nova Systems group chief executive officer Jim McDowell said diesel-electric-powered Australian submarines would be operating with US nuclear-powered counterparts.

“What edge does the diesel-electric submarine give them? The diesel-electric submarine is much quieter when it’s not running its engines – a nuclear reactor’s running all the time. So those things need to be need to be balanced,” he said.

Former Australian submarine force commander Denis Mole in April said the Attack class submarines would probably be superior to most regional diesel-powered submarines but “they won’t be superior to China’s nuclear-powered submarines entering service in the 2040s and beyond”.

Mr Mole was responding to an Advertiser column by former defence minister Christopher Pyne, who branded “nonsensical” the argument the Attack class would be “no good because they aren’t nuclear”.

ADELAIDE FRIGATE DELAY DEFENDED

THE leader of $45bn project to construct nine frigates in Adelaide has defended an 18-month delay in starting construction, arguing this would enable the design to be refined to “maximum maturity” so the ships can be built “the right way with the right information”.

BAE Systems maritime Australia managing director Craig Lockhart insisted the workforce’s focus was on delivering the Hunter class frigates “to the Royal Australian Navy at the affordable cost when they require it”.

Defence Minister Peter Dutton in August revealed the start date for ­construction on the first three ships had been pushed back until 2024.

The delay, which is expected to be recovered by the time construction starts on the fourth ship. was caused by hold-ups in the development of Britain’s Type 26 Frigate – the base of the Australian ­design.

Mr Lockhart said a two-year prototyping phase would involve testing the newly built sections of Osborne Naval Shipyard devoted to frigate construction, including the effective transmission to workers of the digital design.

The first prototype unit, or steel box, would move to an outfitting hall by the end of October. “What we’re what we’re going to do is to bring some more of those complex, always difficult shapes (of the prototype hull),” he said.

“So the front end of the bow, where typically ship build programs have got them wrong before, we’re bringing them into prototyping. It’s giving us an advantage to test these things before, again, we go in to cut steel.”

‘I’M REALLY GLAD SOMEBODY INVENTED THE SPITFIRE

A moral view of defence as an industry of death, particularly among some young people, can be overcome by reminding them about the importance of maintaining freedoms and national security, the Fearless Conversations forum heard.

Flinders University Professor in Innovation Giselle Rampersad said prospective industry workers should remember it was about defence, not aggression or attack.

“So the fact that they could go out to the mall, go and enjoy the beach, go out and socialise with their friends, it’s because somebody is defending their society and community,” she said.

“The fact that they could go on social media and not have to worry too much about cyber security is because somebody is looking after them.

“When we see images on television or news, they have that freedom in Australia. And that’s what defence is about – to actually empower and give those freedoms.”

Seven of the world’s top ten defence firms have South Australian operations.

SA promotes itself as the defence state and defence industry is one of nine priority sectors in Premier Steven Marshall’s Growth State strategy launched in February.

Nova Systems group chief executive officer Jim McDowell, who headed BAE Systems Australia from 2001 to 2011, acknowledged some would hold the “perfectly legitimate” view of moral opposition to the defence industry.

“In my experience it’s been a very minority view. Defence is enshrined in the United Nations Charter – a nation’s ability to defend itself,” he said.

“And, as my old father used to say, I’m really glad somebody invented the Spitfire.”