$45bn Adelaide frigate program may move to Scotland according to speculation

As speculation mounts that Adelaide’s $45bn frigate program will be abandoned, the Premier says that would be a “breach” by the federal government.

Adelaide construction of the $45bn Hunter-class frigate program may be abandoned in favour of a Scottish shipyard, according to high-level speculation casting further doubt over the project.

The Advertiser has been told shipbuilder BAE Systems will build the frigates at its Govan shipyard in Glasgow, rather than at Osborne Naval Shipyard, in Adelaide’s northwest.

Under the scenario presented to The Advertiser, this would involve building only four ships in total under the program – and all in Scotland – instead of the original nine, in Adelaide.

BAE Systems Australia has more than 1800 people working on the Hunter-class frigate program, which is predicted to create and sustain more than 5000 jobs throughout the program, including up to 1000 apprentice and graduate roles.

Equal to the size of two houses and taking 45,000 hours, the first steel prototype “block'” was constructed by Adelaide shipbuilders working on the Hunter-class frigate program. Picture: James Elsby/ BAE Systems Australia

In response to questions from The Advertiser, Deputy Prime Minister and Defence Minister Richard Marles’ office did not directly comment on the Osborne frigate program but emphasised the federal government’s previous commitment to continuous naval shipbuilding in Adelaide.

“As the Deputy Prime Minister has said, the Albanese Government is taking the necessary time to consider the independent analysis of navy’s surface combatant fleet and its recommendations,” Mr Marles’ spokeswoman said, in a statement.

“The report, along with the government’s response, will be released early in the New Year. It would not be appropriate to pre-empt that response.

“The government continues to work closely with the South Australian government, and other key stakeholders, to ensure there is a viable, continuous naval shipbuilding industry in Australia.”

Premier Peter Malinauskas said he did not believe the speculation was being pushed on the basis of fact but argued the federal government would breach its promise of continuous naval shipbuilding if the frigate program moved to Scotland.

“I don’t think there is any way that the Commonwealth can honour its commitment to continuous naval shipbuilding effort here in South Australia as a whole program, and moves over and starts delivering in Scotland, which is why I just can’t believe that whoever is pushing this speculation is doing it on the basis of fact,” he told ABC Radio Adelaide.

“And it would be very disappointing indeed, and I would seek to hold the Commonwealth government to account on this, if they do not honour their commitment to a continuous naval shipbuilding effort down at Osborne.

“I mean, we are partners as a state government with BAE, and indeed the Commonwealth, on a number of efforts to develop the skills that are required to build these ships.”

A rendering of a Hunter-class frigate design.

BAE Systems Australia did not speculate on the frigate program’s future but said it was “committed to supporting the Australian Government in delivering critical sovereign naval capabilities”.

“The Hunter program is making strong progress at Osborne Naval Shipyard and last May we begun building the first schedule protection block – which will be capable of being used in the first ship,” a company spokeswoman said, in a statement.

“We are focused on designing and building the world’s best anti-submarine warfare capability for the Royal Australian Navy, and continuing to build the foundations of continuous naval shipbuilding to support Australia to own and operate tier-one naval warships.”

Previous speculation about program changes has included three Osborne-built frigates being followed by three air warfare destroyers, using the same hull but bristling with more armaments, particularly missiles. Three more frigates might follow, capitalising on then-updated technology.

The first steel prototype 'block' at Osborne Naval Shipyard. Picture: James Elsby/BAE Systems Australia

Mr Marles in April hinted at significant changes to the Hunter-class program after announcing the surface fleet analysis following the Defence Strategic Review’s release.

At the time, Mr Marles said the primary role of a Hunter-class frigate – hunting submarines – could be done by Australia’s future nuclear-powered submarine fleet.

Mr Marles was in Washington, D.C. on Wednesday as part of a two-day US visit. Director-General of National Intelligence Andrew Shearer met with Mr Malinauskas on Wednesday afternoon at his Parliament House office.

Asked the subject of the briefing, Mr Malinauskas’s spokesman said: “The Premier receives security briefings from various state and federal agencies, including the Office of National Intelligence. The ONI has briefed the Premier on recent geopolitical developments, including in the Middle East.”