Submarines win for SA will do more than Olympics did for Sydney, Scott Morrison says

BUILDING submarines will do for Adelaide what the Olympics did for Sydney — and much more, Treasurer Scott Morrison has told The Advertiser.

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BUILDING submarines will do for Adelaide what the Olympics did for Sydney — and much more, Treasurer Scott Morrison has told The Advertiser.

The Government talked up the benefits of the $50 billion agreement with France as French Prime Minister Manuel Valls paid a fleeting, surprise visit to Canberra.

Senior Ministers, the Treasurer and the Prime Minister were all keen to spruik the flow-on effects in other states, which are disgruntled that South Australia sealed the deal.

Mr Morrison said SA would be transformed.

“What this means for the SA shipyards and Defence manufacturing more broadly is not unlike what happened (with the Olympics),” he said.

“Look what that did for Sydney. I think this has the same potential impact and more, frankly, a lot more, for SA.”

The Olympics were expected to bring in billions — although some argue that did not happen — and certainly brought the world’s attention to the city, increasing tourism.

The Government has faced some criticism over the big commitment when their Budget mantra is about Australia living within its means. But Mr Morrison hit back at the idea of looking for a cheap deal when it came to Defence.

An illustration of the Shortfin Barracuda, France's proposed submarine for Australia.

“Submariners don’t like to go in the submarine that won the lowest-cost tender — for their safety,” he said.

German shipbuilders TKMS had said they could build the submarines in Australia for $20 billion but The Advertiser understands comparing the two bids is impossible because they are “apples and oranges”.

Senior sources say the final difference between the two European contenders was “marginal” and The Advertiser understands the cost might come in under $50 billion anyway.

Mr Valls said it was a “very difficult decision” that “honours France” and that he will personally supervise the process to make sure it was delivered on time and on budget.

“We are very proud … and you can count on the support of my Government for the success of this partnership,” he said.

Meanwhile Mr Turnbull said the idea of a nuclear-powered submarine “did not form any part” of the decision-making process; however, The Advertiser understands that it has been informally discussed.

The Defence White Paper made it clear that if there was superior technology available, the submarine design could be updated partway through the process.

Family First SA Senator Bob Day will repeat his call for six conventional and six nuclear submarines on Tuesday.

Mr Turnbull went to pains on Monday to emphasise that this was a “great national enterprise” that would result in work for suppliers “right across the country”.

Mr Morrison said “companies all across the country” would benefit, not just the Perth and Adelaide shipyards.

Industry Minister Christopher Pyne and Foreign Minister Julie Bishop also talked about the flow-on effects to other states.