Federal Budget 2018: $35b Future Frigates project appears in Budget for the first time as spending on warships, submarines ramps up

WARSHIP and submarine spending is ramping up, with the $35 billion Future Frigates appearing in the Budget papers for the first time.

French president Emmanuel Macron with Australian Prime Minister Malcolm Turnbull in Sydney earlier this month. France was awarded a $50b contract to provide the Australian navy with the world’s most advanced submarines. Photo Jason McCawley/Getty Images.

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WARSHIP and submarine spending is ramping up, with the $35b Future Frigates appearing in the Budget papers for the first time.

An announcement on the winner of the lucrative warship tender is expected within weeks - about $50m will be spent next year getting the project underway.

Spending on the $50b Future Submarines has also begun in earnest with $418m on the books for works including building the infrastructure down at Osborne.

Overall the Federal Government is on track to hit its target of spending 2 per cent of GDP on Defence by 2020-21.

Another national security investment will be on aviation safety - in the wake of concerns that regional airports and airlines could be vulnerable to a terror attack.

Regional airline Rex has warned that if it had to foot the cost of increased screening, it would force it to close regional airports.

The Government will put almost $300m towards beefing up security at airports.

That will include better screening for international cargo and mail and an increased police and Border Force presence.

Spending on Australia’s $35b Future Frigates program has appeared in the Federal Budget for the first time.

About $50 million will go towards security at 64 regional airports.

Home Affairs Minister Peter Dutton said disrupted terrorist plots - including in Sydney last year - “showed a very real and disturbing danger”.

“The Government and industry responded immediately to disrupt and contain the threat, increasing law enforcement and strengthening security screening,” he said.

Regional and major airports will get controversial full-body scanners and better X-ray equipment.

“These initiatives will ensure Australia remains a trusted destination for trade and travel and a world leader in aviation security,” he said.

Defence Minister Marise Payne said the Government was investing about $90b on a continuous naval build to “modernise our naval fleet, support economic growth, maximise Australian industry involvement and secure thousands of Australian jobs for decades to come”.

A omputer-generated image of one of the 4500 tonne Barracuda shortfin submarines to be built for Australia by France. AFP PHOTO

In a joint release with Defence Industry Minister Christopher Pyne, she also listed the spending on the $4b Offshore Patrol Vessels, the first two of which will be built in Adelaide before the project is moved to Western Australia, and the establishment of the Naval Shipbuilding College.

She highlighted a boost to Adelaide’s Nulka program - BAE’s Nulka is known as the “world’s slowest missile”.

It hovers vertically after being fired, projecting a decoy so that enemy missiles are lured away from Australian and allied forces ships, to fall harmlessly into the water.

A $207m program will “strengthen the anti-ship missile defence capability and ensure the system remains at the cutting edge of capability into the future”.

Mr Pyne said that industry was vital to delivering the defence capability, and that meant growing defence exports through the Defence Export Strategy, which was announced earlier this year.