Malcolm Turnbull faces backlash from furious Queensland MPs over patrol boat contract

MALCOLM Turnbull faces a backlash from MPs, furious that a Queensland city missed out on a $500 million-plus plan that would have helped create jobs.

MALCOLM Turnbull faces a backlash from his Queensland MPs who are furious that Cairns missed out on a $500 million-plus plan to build Pacific patrol boats.

In a decision that will cost thousands of jobs for north Queensland, Defence has selected a West Australian consortium led by Austal Steel as its preferred bidder after it put in a cut-price offer.

The move has infuriated Queensland LNP MPs, who say it undermines the Government’s push to develop Northern Australia.

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Cairns-based MP Warren Entsch and north Queensland Senator Ian Macdonald called Mr Turnbull to express their anger yesterday.

Mr Entsch blasted the move as “bitterly disappointing” and lashed the Government for the “clumsy and very, very inappropriate” way it was announced.

“I think it is a very, very bad decision,” Mr Entsch said. “We are talking about building Pacific patrol boats in the Indian Ocean, which doesn’t make sense.”

Mr Entsch said he could not believe the Perth bidder could build the ships at such a cheaper price and demanded guarantees they would not increase the cost later.

He also cast doubt on the WA consortium’s abilities, saying the companies had only built aluminium ships and had never constructed steel-hulled vessels similar to the Pacific patrol boats.

“If, in fact, they are as cheap as they claim to be, and acknowledging they have never built a steel boat before ... then I want to know what will happen when these guys start building this and suddenly say ‘oops, it’s going to cost us more’,” he said.

Federal politicians Ian Macdonald and Warren Entsch are furious that Cairns missing out on a $500m-plus plan to build Pacific patrol boats.

Senator Macdonald said the decision would cost jobs in the north.

“The construction of the Pacific patrol boats would have been a wonderful employment generator and confidence boost for the north,” he said.

“I am very disappointed to hear the decision.”

Queensland Senator Glenn Lazarus said the ­Government was buying “votes in marginal seats and left my home state ... high and dry”.

The Defence decision was endorsed by the National Security Committee of Cabinet and announced by Mr Turnbull and Defence Minister Marise Payne yesterday.

The Cairns bid, led by Teekay Shipping, was ruled out because it was about two thirds more expensive, a senior Government source said.

The contract to build the ships is still being negotiated but the Government estimates it can save more than $200 million by going with the Perth bidder.

Senator Payne said “the strong view of Defence and the advice Government received was that the Austal proposition represented the best value for the Commonwealth dollar”.

Cairns will still receive a $40 million boost because the up to 21 patrol boats, which will be used by Pacific nations, will be maintained in the city.

Petrie MP Luke Howarth, who is Queensland’s most marginal seat holder, asked Ms Payne to explain the decision to MPs in a party room meeting today.

Townsville-based MP Ewen Jones echoed these sentiments and said the Cairns patrol boat bid could have created jobs for people in his electorate.