Report French experts believe ASC shipbuilding site needs extensive upgrades rubbished by DCNS

A CONTROVERSIAL European report has claimed French experts who visited the ASC shipyards last month fear the Adelaide site needs extensive work to bring it up to scratch to build submarines.

ASC rolls out HMAS Farncomb from the maintenance shed. Picture: Tricia Watkinson.

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A CONTROVERSIAL European defence journal has surfaced claiming a French visit to the ASC shipyards last month failed to win over its experts who fear the Adelaide site needs extensive work to bring it up to scratch to build submarines.

Sources said the report was another example of how tense and murky the competition for the multibillion-dollar submarine contract was becoming as the Federal Government draws closer to making a decision on the preferred bidder.

The local head of French shipbuilder DCNS Sean Costello immediately rubbished the report, calling it “mischievous’’ as well as saying it was “completely false’’ and he was “completely baffled’’ by it.

The report in French published newsletter TTU said that last month’s visit to Adelaide by French Defence Minister Jean-Yves Le Drian and DCNS chief executive Herve Guillou along with a group of 15 French entrepreneurs “has not won over the French experts”.

“Some have even posted their concerns given the extensive work necessary to upgrade its current state and this view is shared by many observers in Australia and Japan, and partly explains the reluctance of Mitsubishi Heavy Industries, another candidate for the SEA 1000, to build the Soryu on site,” the report said.

Collins-class submarine HMAS Farncomb is rolled out from an ASC maintenance shed. Picture: Tricia Watkinson.

It also said “highly experienced Australian executives have chosen to leave facing the gloomy outlook” at the ASC yard as staff numbers fall off along with work.

He said it was more important to hear from an “eyewitness” like himself, who accompanied the French Defence Minister and French chief executive of DCNS during the visit.

“I was there that day, I was an eyewitness and this couldn’t be further from the truth, all conversations before, during and after were extremely complimentary of ASC,” he said.

“We’re completely baffled, we think it could possibly be wires crossed confusing France with Japan.”

If it is awarded a contract by the government to build its proposed Shortfin Barracuda Australian submarines at the ASC, DCNS will purpose-build a factory larger than the Adelaide Oval.

Mr Costello said the company was asked to outline three options for the SEA 1000 contract to build the new submarines, and they included all submarines being built in France, all submarines being built in Australia and a hybrid of the two.

“We don’t favour one over the other,” he said, “and unfortunately the issue has been turned into politics”.

A Collins-class submarine undergoes maintenance at the ASC site in Osborne. Picture: Tricia Watkinson.

TKMS Australia chairman John White did not want to comment about the story in the TTU journal but said the German bidders wanted to build all 12 submarines in Adelaide, targeting 70 per cent Australian content.

“We don’t have any problem with the facility in Adelaide,” Dr White said.

“We would have to upgrade the facilities and we would bring in the world’s leading digital software system to design and manage the product and support the submarines.

“We have absolutely no problem with the skills and capabilities of the Australian workforce.”

Defence Teaming Centre chief executive Chris Burns said Australia had built up a workforce from scratch before and now “as an industry for over 20 years we’ve been building submarines in some of the most advance shipyards in the world”.

“It’s very mischievous to suggest we don’t have the intellectual or the physical infrastructure to build submarines,” he said.

An illustration of the Shortfin Barracuda submarine, which French shipbuilders DCNS have proposed as Australia next submarine fleet.

The row came on Wednesday as Labor Leader Bill Shorten urged the Government not to rush a decision on which company should build the new submarines but immediately commit to all of the construction taking place in Adelaide.

Prime Minister Malcolm Turnbull has ruled out rushing a decision on the submarine contract and it is possible a preferred tenderer might not be announced before the federal election.

Mr Shorten said the government should not rush a decision on awarding the contract but it should commit to all 12 submarines being built in Adelaide.

“What Mr Turnbull can do, without rushing the timing to suit his key fascination which is the date of the election ... is make sure they commit that the submarines will be built in Australia — not a hybrid option, not built overseas,’’ Mr Shorten said.