Strategic Partnering Agreement with France’s Naval Group to be signed to clear Future Submarines hurdle
A major hurdle in the $50 billion Future Submarines project has been cleared with France and Australia finally agreeing on the contract that spans the plan.
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A major hurdle in the $50 billion Future Submarines project has been cleared as France and Australia have finally agreed on the contract that spans the plan.
The Strategic Partnering Agreement between the Commonwealth and France’s Naval Group had hit a wall over issues understood to be around risk and intellectual property. However, today Defence Minister Christopher Pyne will announce that negotiations have been finished.
“I congratulate everyone involved in achieving this significant milestone,” he said.
Now the contracts will be legally drafted in order to be signed next year. The resolution comes just as the first sod is set to be turned on the Future Submarine Construction Yard at Osborne.
Mr Pyne will announce that hundreds of the thousands of jobs to be created by naval shipbuilding will be in construction and infrastructure at Osborne, where Laing O’Rourke Australia will oversee the build of purpose-built facilities.
It comes as a group of retired, high-ranking naval officers have written to Prime Minister Scott Morrison arguing for the submarine project to be scrapped in favour of a new version of the existing Collins class submarines.
The officers fear that Australia will be left short because of delays in the existing program, as the risks in the region ramp up. They want to see Australia work with Sweden on an evolved Collins Class.
Last month Defence revealed the first of the Future Submarines would not be battle ready until 2035. They originally had said the boats would be in service by 2022 but Navy Chief Vice Admiral Mike Noonan said they’d still need years of extensive testing after that.
So the officers say an evolved Collins class could be quicker, much cheaper and less risky than the French option.
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