SA shipyard jobs in jeopardy: Centre Alliance issues ultimatum if Collins Class contract is split between SA and WA

Centre Alliance is threatening to retaliate against the Federal Government if a lucrative submarine maintenance contract is split between SA and WA, potentially jeopardising hundreds of Adelaide jobs.

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Senate powerbrokers Centre Alliance are warning life could be harder for the Morrison Government if the Collins Class full cycle docking maintenance moves to Western Australia.

In a blunt threat, the SA senators who control two crucial crossbench votes said their support for the Morrison Government’s agenda was “wavering” if SA jobs went to WA.

Senator Rex Patrick today told The Advertiser that he would request a meeting with Prime Minister Scott Morrison about the work.

“(Our) support is wavering,” he said.

“We have been working very constructively with Government, we’ve been doing so on some of the really important things like tax cuts, ensuring integrity (Bill).

“We are going to be much harder to deal with,” he said.

As reported on Wednesday, hundreds of South Australian shipyard jobs could be in jeopardy, as political sources say Defence is considering splitting a lucrative submarine maintenance contract between our state and Western Australia.

Three political sources have confirmed to The Advertiser the split is being considered by Defence.

One source suggested the 700 shipyard jobs would be split 60-40 in SA’s favour.

West Australian Senator and key negotiator, Mathias Cormann, did not comment on the Centre Alliance threat but said the decision would be based on the national interest.

“Our most important priority in assessing the most appropriate way forward is to guarantee the ongoing availability of our nation’s submarine capability throughout the transition from the Collins Class submarines to the next fleet of 12 Attack Class submarines,” he said.

“The Federal Departments of Finance and Defence, together with ASC are working to consider the most appropriate options for the future location of Collins Class full-cycle docking.”

A South Australian business in the supply chain has told The Advertiser blue collar work for the Collins Class submarine maintenance could be shifted to WA, while white collar workers would remain in SA.

The manager of a business in the supply chain, who spoke to The Advertiser on the condition of anonymity, said SA would likely retain the technical expertise of white collar workers.

“The reality is there is a seriously strong reason for it to go to WA,” he said, in reference to mid-cycle docking work undertaken at shipbuilder ASC’s Henderson yards.

The navy has previously raised concerns about the work being done in SA, which takes submariners off-base for months and away from their families in WA.

The WA Government has refused to publicly release its pitch for the contract but WA Defence Issues Minister Paul Papalia today told The Advertiser a split between the two states was “one of the options outlined in our business case”.

“Ultimately this is a decision for the Federal Government and the McGowan Government has provided options to ensure the successful transition of full cycle docking to WA,” he said.

Defence is due to unveil its decision in December.

SA Opposition Leader Peter Malinauskas used Question Time on Wednesday to ask Premier Steven Marshall if he could assure South Australians that all the full cycle docking work, including both blue collar and white collar jobs, would stay in Adelaide.

Mr Marshall said: “We have been working very hard to mount the case for the continuation of the full cycle docking to be done here in SA.

“SA is the undisputed home of the Collins class submarine.”

“It is not up to me. This is a federal decision; so, whether or not I can assure it is completely irrelevant.

“What we are doing, though, is that we are working very hard, and my question to the opposition is: what are they doing? We know that Labor is out there talking very strongly about moving full-cycle docking over to WA.”

“We are, I think, putting forward a very cogent case as to why the full-cycle docking should remain in South Australia.”

Senior SA Liberal Senator Simon Birmingham said: “So long as the land, facilities and skills are available to do all of the required work in SA, then SA is where the work should be undertaken to avoid the many risks that would come with relocating sustainment to an untested location”.

Outside Parliament, Mr Marshall said SA had “unparalleled expertise” in both blue and white collar submarine maintenance.

“We built the Collins Class submarines and we have the skills and expertise to continue to maintain them,” he said.

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Mr Malinauskas said “under no circumstances will we accept losing one job to WA”.

“As a state, we need to fight for every single job we have, whether it be white collar or blue collar,” he said.

“Accepting the loss of jobs to WA would be nothing short of a capitulation.”

Defence Minister Linda Reynolds said a decision had not yet been made.

“Irrespective of this outcome, both of Australia’s naval shipbuilding hubs in SA and WA will grow under the Morrison Government’s shipbuilding plan,” she said.

“It is estimated the workforce requirement in SA for the Hunter Class frigate and Attack Class submarine programs will grow by 5200 direct and indirect jobs at its peak.

“The nature of these jobs will be a combination of both blue and white collar skills.”

But Opposition defence spokesman Richard Marles said: “If a decision isn’t made soon then businesses and families are going into Christmas uncertain about their jobs and their income”.

“This would understandably cause a great amount of anxiety for those businesses who are relying on a decision being made,” he said.

Senator Patrick yesterday said shifting the full cycle docking to Perth would have a “devastating effect on submarine availability and, flowing from that, national security.

“Shifting Full Cycle Docking work from SA to WA is a dumb move. Splitting this deep level maintenance work across both states is even dumber,” he said.

“It looks like Defence are under political pressure to conduct planning on the fly; and we all know what happens then – an all too predictable shambles.”