Major defence companies have been put on notice they can no longer blame higher production costs in Australia for shunning local suppliers, with Defence Industry Minister Melissa Price warning they need to ensure home-grown companies benefit from the country’s multibillion-dollar arms build-up.

In an interview with The Australian Financial Review marking the restoration of her portfolio as well as her return to cabinet rank, Ms Price said she was confident weight issues with the design of the future frigate would be resolved and acknowledged that protracted negotiations over local content in the future submarines had been a distraction.