No minimum requirement for SA jobs on future submarine program

South Australian jobs are not guaranteed for the build on the $50 billion future submarine program, defence department officials have revealed.

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South Australian jobs are not guaranteed for the build on the $50 billion future submarine program, defence department officials have revealed.

A senate estimates defence hearing on Wednesday heard how an agreement — inked last week in the presence of Defence Minister Christopher Pyne and SA Premier Stephen Marshall — did not include a minimum work guarantee for Australians.

When asked if a percentage figure for minimum Australian work was part of the negotiating process with Naval Group in France, Rear Admiral Stephen Johnson, General Manager Submarines said “no”.

Senator Wong said the omission was “utterly contrary” to the promises made before the 2016 election.

She said South Australians were first told the Australian content of the build, the largest in the nation’s history, would be 90 per cent.

“Then that became 60 per cent,” Senator Wong said.

“We learned today at senate estimates there is no minimum Australian content for our submarines project. No minimum number of Australian jobs.”

State Opposition leader Peter Malinauskas, who was in Canberra, said it was a “stunning revelation” that raises questions about just how many jobs and work on the Future Submarines will go to South Australians.

“Not only is there no local job requirement, it wasn’t ever part of the negotiation process,” Mr Malinauskas said.

“It was sold to South Australians as an iron-clad guarantee.”

Federal Defence Minister Christopher Pyne said he would not be lectured to by the Labor Party “who did not commit to build a single naval vessel in Australia in six years”.

He said it was the Coalition’s policy to maximise Australian industry content for Attack class submarines.

“These regionally superior submarines will be built at Osborne generating an annual average of 2800 jobs,” Mr Pyne said.

“To date Naval Group has engaged with over 1100 Australian suppliers and pre-qualified 169 for the program.”