SA points to WA ‘skills shortage’ its case for submarine jobs

A Western Australian report “skills shortage” should put the state out of the running submarine contracts, according to SA MPs.

State MPs have highlighted a “skills shortage” in Western Australia as the reason it should not be given a multibillion-dollar submarine maintenance contract ahead of SA.

They say the revelation by the Chamber of Commerce and Industry WA that its skilled workforce is shrinking at an alarming rate raises serious doubts over its tender bid.

The CCIWA admitted on Sunday that its state’s tough pandemic border restrictions had stopped the flow of workers from other states. It also pointed to a long-term decline in the uptake of trade skills in WA, with apprenticeship starts last year at the lowest level since 2004.

SA and WA are vying for the lucrative Commonwealth maintenance contract for the Collins-class submarines, which would provide 700 jobs in SA as well as pump $350m into the economy annually.

The CCIWA revealed “for the first time on record” businesses had identified skills shortages as the No. 1 barrier to growth, cited by 50 per cent half of companies across the construction and resources.

Premier Steven Marshall. Picture: Tricia Watkinson

With a decision still in limbo, Premier Steven Marshall reiterated SA was “unequivocally the best home for the Collins-class full cycle docking”.

The pitch to the Federal Government to shift the program west has been, in large part, based on an argument WA would be able to provide the skilled workforce, whereas SA would struggle.

Mr Marshall said: “We have lent in incredibly hard to ensure we have the skilled workforce ready for the defence jobs of the future.

“We’ve got the very best capabilities, we’ve got the skilled workforce and we’ve been doing the work since day one.” South Australian senator Rex Patrick said the inability of WA to meet the necessary engineering and technical workforce capacity to cope with naval engineering and parallel mining work was revealed by Flinders University in November 2019.

Defence Minister Linda Reynolds promised a decision by Christmas 2019.

“The government has left workers and families at Osbourne hanging and, against the national interest, the submarine enterprise in a state of unnecessary confusion,” Senator Patrick said.

A spokeswoman for Ms Reynolds said the decision would be made in the national interest following a deliberative process of government consideration.

WA Defence Minister Paul Papalia downplayed concerns, arguing WA’s highly skilled workforce was one of the reasons it was in the national interest for the work to move west.