NXT senators push for all navy ships to be built in Australia by local companies

ALL new Royal Australian Navy ships would be built in Australia by locally controlled companies, under a law proposed by South Australian crossbench senators.

• Winner of $35 billion future frigates bid expected soon

ALL new Royal Australian Navy ships would be built in Australia by locally controlled companies, under a law proposed by South Australian crossbench senators.

The radical proposal would ensure the 12 planned Future Submarines were built by Adelaide-based ASC and that the construction of nine Future Frigates was carried out by either the ASC or Australian-owned Austal.

The Nick Xenophon Team will on Monday argue the law is needed to ensure Australia develops a truly sovereign naval shipbuilding program.

The ASC and Austal are the only two Australian-owned naval shipbuilders.

The proposed law would force France’s Naval Group to subcontract the construction of 12 submarines to the Australian Government-owned ASC.

NXT Senator Rex Patrick said that foreign companies could still supply the designs for new ships and act as the prime contractors in shipbuilding programs.

“Australia needs to be able to exercise a much greater measure of independent maritime power in our region and to do that we need a sovereign naval shipbuilding and support sector,’’ Senator Patrick said.

The Global Combat Ship-Australia (GCS-A) is BAE Systems' offer to the Commonwealth for the Future Frigates project.

Minor party senators have added clout in Canberra at the moment as ministers try to win support for company tax cuts.

Naval Group was awarded the tender to build the submarines in Adelaide but isn’t required to involve the ASC.

The Government is believed to be close to making a final decision on whether the $35 billion contract to build the new frigates in Adelaide will be awarded to Britain’s BAE, Italy’s Fincantieri or Navantia of Spain.

Senator Patrick said the proposal was necessary to prevent the “quiet death” of Australia’s sovereign shipbuilding capability and its replacement with foreign companies operating in Australia.

He and NXT colleague Stirling Griff will introduce the sovereign naval shipbuilding Bill into the Senate when Parliament resumes next month.

Under the Bill, Australian naval ships could only be built overseas during wartime or during a designated “Defence Emergency’’.

The NXT is in the process of officially changing its name to the Centre Alliance.

Defence Industry Minister Christopher Pyne will on Monday discuss the Government’s ambitious procurement program during a speech in Canberra.

New Australian supply ships and an icebreaker are currently being built for Australia in Europe.