Team South Australia urges Collins Class repair work to stay at home, as speculation mounts of imminent decision on WA shift
With a decision on the Collins Class maintenance anticipated as soon as tonight, influential SA figures have made a united and compelling case to keep the work in Adelaide.
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A united South Australian front is making a forceful final pitch for full cycle submarine docking jobs to stay here, warning a shift to WA would compromise national security.
The National Security Committee of Cabinet is due to meet on Monday night, with growing speculation a decision is imminent on whether SA keeps the job-rich heavy-duty repair work.
WA, which now has a clutch of influential ministers and half a dozen marginal seats, has been publicly lobbying for a slice of the up to 700 Collins Class sub maintenance jobs.
Senior sources have told The Advertiser a decision could come on Monday evening, but the meeting is not a hard deadline.
Some Federal Government insiders are tipping a so-called “split decision”, with SA and WA sharing the work as about 400 positions stay here.
Such a move would keep ‘white collar’ functions in SA and move ‘blue collar’ labour in WA.
Premier Steven Marshall said he was urging the Federal Government to make a call that was “100 per cent” about national security and that SA had the skills to defend Australia’s borders.
“Our submarine capability is one of our most important pieces of sovereign defence capability, and it needs to be available,” he said.
“Any decision regarding where the full cycle docking is going to be will affect that sovereign capability, and that’s why we are arguing so hard.
“We designed and built the Collins Class submarines. The experts who provide the deep maintenance are living here with their families. Shifting that capability makes no sense.”
Mr Marshall said Prime Minister Scott Morrison and federal Cabinet had sought advice on SA’s ability to do the job, and been provided “every single, solitary piece of detail” needed.
“We are making sure that we put ourselves in the very, very best position,” he said.
Opposition Leader Peter Malinauskas said he was “very worried” that Mr Morrison had “demonstrated an ability to make decisions that are based on politics rather than the merits”.
“There is absolutely no doubt that it is in the national interest for this work to stay in SA,” Mr Malinauskas said.
“The full cycle docking work, done here at Osborne, is world leading.
“They have now developed a level of expertise and skills that is the envy of most other nations.
“I hope the Premier and I are in furious agreement. Not one job should be lost.”
Australian Industrial Transformation Institute director John Spoehr has undertaken a major study comparing the two sites, which found SA was the “prime location” for maintenance.
“Because this (maintenance) is like building a new sub, the work is best done at Osborne where the skills and infrastructure is already in place,” Prof Spoehr said.
“Moving the work would compromise the availability of the Collins Class fleet to the Australian Navy. This represents a risk to national security. It is simply unacceptable.”
Professor Spoehr said it was understandable that WA wanted a share of the jobs and industry investment, but: “The problem is that it is clearly not in the national interest”.
Federal Trade Minister and senior SA Liberal Simon Birmingham, a key player in the decision to award Adelaide the future subs contract, said our state needed to meet key tests.
“So long as the land, facilities and skills are available to continue delivering major sustainment work in SA, in addition to the $89 billion of new shipbuilding works being led from SA, then SA is where the work should be undertaken,” Senator Birmingham said.
West Australian Premier Mark McGowan has claimed SA lacks ability to deliver a workforce for the maintenance contract, given the massive frigate and sub contracts in the pipeline.
He has also argued the maintenance work should be done at Henderson in WA which is a stone’s throw from the Royal Australian Navy base, HMAS Stirling, on Garden Island.
Centre Alliance Senator Rex Patrick said that proposition also did not make any sense.
“If you put full-cycle docking in WA all of the assets would be in the same location – not a good wartime proposition,” he said. The SA Senator, a key crossbencher, said a decision to shift the contract west would be putting political imperatives over national security.
Mr Morrison in October said the decision was “not some prize to be handed out”.
“It won’t be done on politics, it will be done on careful consideration of the issues involved in running a very important program for our defence forces,” he said.
There is too much at stake to move jobs
Comment – Matt Smith, Political Editor
On the surface, a decision over where future full-cycle docking should take place should be simple.
West Australian Premier Mark McGowan and his Defence Issues Minister Paul Papalia have led a spirited campaign to wrest the lucrative contract from South Australia.
But they have not done enough to prove the contract should be shifted west.
The pair have raised concerns SA will not be able to deliver the workforce required for the ongoing contract and future submarine and frigate work in the pipeline.
But serious question marks hang over whether WA can provide the workforce itself.
One mining boom this century has been and gone, but another is on the horizon.
Australian Mines and Metals Association recently announced the state was on the cusp of another mining boom with 30 projects, requiring 10,679 operational employees by 2024.
Mr McGowan’s “national security” concerns, meaning the maintenance should take place in the same state the submarines are based, does not stack up either. At a time of conflict would the nation really want all submarines – operational and otherwise – based at the same location?
Local political and business leaders have made a compelling argument why the contract should stay in SA, centred around the current, highly-skilled and reliable workforce and supply chain that support the work at Osborne.
Prime Minister Scott Morrison has promised any decision will be made in the national interests. If that is correct, the answer is simple.
The risk to national security is too great doing anything but maintain status quo.
Put simply – if it ain’t broke, why fix it?
What they are saying
“The case for relocation of Collins Class FCD to Western Australia has not been accompanied by evidence of any benefit to the nation.” – Flinders University’s Australian Industrial Transformation Institute Director Professor John Spoehr, November 22, 2019
“We’re certainly not intent on stealing anyone’s jobs. WA needs to make a better contribution.” – WA Defence Issues Minister Paul Papalia, November 19, 2019
“This is not a decision that we’re going to make in the back seat of a car over some opportunistic politics. That’s not what’s going to happen.” – Prime Minister Scott Morrison, November 18, 2019
“We’ll be a little anxious to hear what happens in December. You don’t want to lose work from your backyard.” – Axiom Precision Manufacturing Defence Manager Fred Hull, November 14, 2019
“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.” – SA Liberal Senator Simon Birmingham, November 13, 2019
“SA is the undisputed home of the Collins Class submarine.” – Premier Steven Marshall, November 13, 2019