Japanese push bid for $20 billion Australian submarine construction during Adelaide visit

THE admiral leading Japan’s submarine bid has dismissed the existence of a secret deal with Prime Minister Tony Abbott, insisting an Australian build is among his country’s three options.

• Japanese to meet with Adelaide companies on submarine bid

THE retired admiral leading Japan’s submarine bid has flatly dismissed the existence of a secret deal with Prime Minister Tony Abbott as he insists an Australian build is a serious option in his country’s efforts to secure the $20bn construction project.

Former Japanese Self Defence Force chief of staff Admiral Takashi Saito today will outline to an Adelaide industry forum the potential for Australian involvement in a domestic or foreign build, or a “hybrid” of both.

In an interview with The Advertiser last night, retired Admiral Saito firmly shook his head when asked if an understanding had been reached with Mr Abbott that Japan would win the $20 billion construction project.

“There is no such a deal at all. We are confident that there is no such secret deal between the two (countries),” he said through an interpreter.

His 10-member government and industry delegation includes Defence Ministry weapons and warships division director Shigenori Mishima and submarine builder Mitsubishi Heavy Industries vice president Noboru Flores .

The delegation will meet today with Premier Jay Weatherill, ahead of the industry briefing at Mawson Lakes’ Technology Park, and visit Osborne shipbuilder ASC tomorrow morning.

Admiral Saito repeatedly declined to be drawn on Japan’s preferred construction site should it win the future submarine project, insisting that it was giving equal weight to all three options required by the Federal Government’s competitive evaluation process.

The competitive evaluation process requires bidders to submit proposals for overseas and Australian builds, as well as a hybrid of both. ASC is considered a likely partner for an Australian build.

This afternoon’s industry briefing is designed to showcase the Japanese bid’s “special emphasis on relationships with Australian industry” and opportunities for cooperation in “supply chain management”.

“For all three build options, Japan is investigating to maximise Australian industry involvement,” the briefing presentation says.

“Japan will introduce and share Japanese production management system for Australian future submarines, which will contribute to jointly enhancing quality, cost and delivery for Australian industries.”

OFFICIALS: Hisakazu Mizutani of Mitsubishi, Admiral Takashi Saito and defence attache Hiroyuki Nakamura in front of Adelaide Oval. Picture: DYLAN COKER

Admiral Saito emphasised Japan’s proven technology by building the world’s largest conventional submarine, the SORYU class, with a fleet of six and four more in construction.

He praised Australian technology development, saying it was more advanced in communications, sonar detection and weapons systems.

Mr Flores stressed Mitsubishi Heavy Industries’ cooperation with the United States since 1999 on missile technology, saying this had overcome the language barrier to produce innovations.

Mr Mishima said both Australia and Japan were trusted partners of the US, which was important because the future Australian submarine would have a US combat system.

The Japanese government and defence industry officials’ visit follows tours from French and German rivals, ahead of bids being submitted by Christmas.

Japan has been considered the frontrunner because of speculation Mr Abbott has already sealed a handshake deal — which he rejects.

State Defence Industries Minister Martin Hamilton-Smith said the State Government stood ready to partner with the preferred international submarine partner, urging a minimum of 70 per cent local worker participation in the project.

Defence Minister Kevin Andrews said: “We welcome the visiting delegations of all three potential international partners and we encourage them to continue their active participation in the process.”