Decision on where submarines will be built within weeks

PRIME Minister Malcolm Turnbull is preparing to reveal the site for Australia’s future submarine construction in a move designed to defuse pre-election unrest in South Australia.

Work continues on a Collins class submarine at ASC docks in Osborne in February. Pic: Kelly Barnes/The Australian.

• Newspoll puts Labor in front of Liberals
• SA Libs pressure PM on submarine decision amid voter anger
• Adelaide submarine decision to come ‘shortly’, PM vows
• No guarantee boats will be built in SA — Payne
• Submarine dossier: An in-depth look at SA’s shipbuilding industry

PRIME Minister Malcolm Turnbull is preparing to reveal the site for future submarine construction in a move designed to defuse pre-election unrest in South Australia.

It is understood early May has been set aside for key announcements on the project as the government reaches the final stages of the controversial competitive evaluation process between Germany, France and Japan.

Industry figures said this might involve nominating Adelaide’s ASC as the submarine construction site, creating thousands of jobs, but setting aside a final decision on the winning bidder until after a July 2 election.

A Defence Department submarine project assessment was almost complete, industry figures said.

This was expected to be considered within weeks by Federal Cabinet’s National Security Committee.

The Liberals risk losing seats in SA if voters are not convinced the 12 submarines will be built in Adelaide, particularly given the Coalition is now trailing in the influential Newspoll on a two-party preferred basis.

Mr Turnbull on Tuesday said only that announcements would be made shortly, when asked if the submarine contract would be detailed before a July 2 election.

An illustration of the Shortfin Barracuda submarine, proposed for Australia by French company, DCNS.

A Soryu class submarine at sea, proposed by Japan for Australia’s navy.

Industry Minister Christopher Pyne said Australians could not be expected to go to the polls without knowing where the multibillion-dollar submarine construction project would be based.

It is understood the May announcement is likely to be political, rather than necessarily concluding the full competitive evaluation process by nominating a design partner or combat system supplier.

Worried SA Liberal MPs last month told The Advertiser they wanted a pre-election submarine decision and some canvassed a partial announcement, like removing the wholly offshore bid option. The competitive evaluation process required bidders to evaluate local and offshore construction, as well as a hybrid of both.

Mr Turnbull on Tuesday said only the competitive evaluation process was being undertaken in a very thorough way. “Announcements about that will be made shortly,” he said.

Defence Minister Marise Payne said: “The competitive evaluation process is ongoing and, as I have consistently said, a decision regarding Australia’s international design partner will be made in 2016.”

Work continues on a Collins class submarine at ASC docks in Osborne in February. Pic: Kelly Barnes/The Australian.

Opposition Leader Bill Shorten said the government needed to fulfil its 2013 pre-election promise to build 12 submarines in Adelaide.

“Our test is straightforward for submarines — build them here, maintain them here, sustain them here,” he said.

A Newspoll published in The Australian on Tuesday showed Labor leading the Coalition 51 per cent to 49 per cent on a two party preferred basis.

The poll found that 36 per cent of voters planned to give Labor their first-preference vote at the federal election, while 41 per cent backed the Coalition.

Mr Pyne blamed the result on the “messy week’’ in which the government proposed then abandoned a plan to reintroduce state income taxes.

Prime Minister Malcolm Turnbull poses for a selfie in Sydney on Tuesday.

It is understood that the poll — and two other recent polls showing Labor back in contention — killed off plans hatched two months ago to mount a challenge to Mr Shorten.

Senior Labor MPs have revealed the plans were being made over fears that Malcolm Turnbull would “wipe out” the Opposition.

Defence Teaming Centre chief executive officer Chris Burns said the government could nominate build sites for submarines and planned offshore patrol vessels without waiting for the competitive evaluation process.

It had already done so for the future frigate program, which will start in Adelaide from 2020.

“By identifying the build location early, industry and governments can commence their workforce and infrastructure planning,” he said.

Acting State Defence Industries Minister Susan Close said overseas and so-called hybrid construction options should be scrapped and the entire future submarine fleet built in Adelaide.

“If the Turnbull Government doesn’t make these announcements prior to the Federal election, South Australians should assume that the submarines and offshore patrol vessels will not be built here,” she said.