Senate inquiry finds Australia’s naval shipbuilding riddled with cost blow outs, delays, poor management

NAVAL shipbuilding is riddled with “cost blow outs, delays and poor management”, a Senate inquiry has found.

• BAE Systems scores $35 billion Future Frigates contract
• Adelaide shipbuilders told they deserve ongoing work
• Work underway on $535 million shipbuilding facility

NAVAL shipbuilding is riddled with “cost blowouts, delays and poor management”, a Senate inquiry has found.

In a report tabled on Thursday the committee says it is also concerned that the Government has at times excluded Australian workers.

The Advertiser revealed that the tender for the $35 billion Future Frigates made it clear that the designers did not have to contract Australian shipbuilders; however, there was immense pressure on all of them to use the workforce.

All three promised that they would use the workers from Adelaide’s ASC shipyard, but the exact arrangement was unclear.

French President Emmanuel Macron and Australian Prime Minister Malcolm Turnbull on the deck of HMAS Waller with Royal Australian Navy sailors. Picture: AFP / Ludovic Marin

The Advertiser has revealed that BAE will contract ASC Shipbuilding to make the warships.

According to the Future of Australia’s naval shipbuilding industry final report the “committee remains concerned about the government’s management of the naval shipbuilding programs”.

“The Auditor General concluded that in order for the ($50 billion Future Submarines) program to be successful, implementation of the programs must be ‘seamless’,” the report states.

“There are early warning signs that the government’s management of naval shipbuilding is far from seamless.

“Further, the committee is concerned that the government has at times actively excluded Australian workers and shipbuilders from participating in naval shipbuilding programs.”

But the report does note that, throughout the inquiry process, the committee was “reminded of the tremendous capacity of Australian industry and Australian workers to contribute to the naval shipbuilding enterprise”.