Nick Xenophon: Show us the ship contract and the fine print

SOUTH Australians mustn’t forget that when it comes to the federal Government’s shipbuilding promises announced yesterday, they should be shouting “SHOW — US — THE — CONTRACTS!”

Remember how in the movie Jerry Maguire, Cuba Gooding Jr’s character kept shouting at his sports agent (played by Tom Cruise) to “SHOW — ME — THE — MONEY”? South Australians mustn’t forget that when it comes to the federal Government’s shipbuilding promises announced yesterday, they should be shouting “SHOW — US — THE — CONTRACTS!”

REMEMBER how in the movie Jerry Maguire, Cuba Gooding Jr’s character kept shouting at his sports agent (played by Tom Cruise) to “SHOW — ME — THE — MONEY”?

South Australians mustn’t forget that when it comes to the federal Government’s shipbuilding promises announced yesterday, they should be shouting “SHOW — US — THE — CONTRACTS!”

Because, last time I checked a press release isn’t a binding contract.

And if you scratch below the surface, the initial welcome nature of the announcement gives way to some harsh reality checks.

It seems naval shipbuilding promises can be broken as easily as matchsticks.

In the months leading up to the 2013 election, then Shadow Defence Minister David Johnston, promised that 12 submarines would be built in SA, with a decision being made within 18 months of a Coalition government.

Nearly 14 months after that deadline, we’re still waiting to hear if the subs will be built here or offshore.

In an act of policy petulance, the Government decided in 2014 to exclude local shipbuilders from even bidding for the $2 billion supply ships contract. Instead, Spain now gets almost all the work and jobs.

The policy announcement was short on details, but there was one element that should raise alarm bells for not only every South Australian, but for the nation’s taxpayers.

Saying the first couple of the 12 Offshore Patrol Vessels (OPVs) will be built in SA from 2018, and then production shifted to WA by 2020 when the Future Frigates build commences here, makes no sense.

Any sensible view — based on defence’s own analysis — says that shifting production to WA midstream could cost many hundreds of millions of taxpayer dollars by having to retool, re-skill and duplicate infrastructure 2600km away.

What does make sense is that Perth, Sydney, Cairns and Darwin — where the naval bases are — is where the maintenance takes place after the ships are built in SA.

After three years the Government is still failing to make good on its subs promise for SA. The PM Malcolm Turnbull and Defence Minster Marise Payne just wouldn’t engage when asked about the subs at yesterday’s press conference.

Usually with a big announcement like this it’s important to look at the fine print. Problem is, there isn’t even a contract with the big print yet — and that’s what we should all be shouting for.

Nick Xenophon is an independent Senator for South Australia.