BAE System’s Hunter class frigate under fire

Cost blowouts, design and delays of the AUKUS-backed Hunter Class frigate is at the centre of an inquiry into Defence projects.

Navy’s new Hunter Class frigate has come under fire before the vessel is even built with an inquiry launched into cost blowouts, design and delays of the AUKUS-backed warship.

The federal parliament’s Joint Committee of Public Accounts and Audit has announced an expansion of its inquiry into Defence projects in the wake of the damning Auditor-General report released last week.

The scathing Australian National Audit Office report warned the $45bn frigates program was now 18 months behind schedule and there were likely to be significant cost blowouts due “in large part” to immaturity of the British-designed vessel.

A concept design of the Hunter Class frigate to be built by Osborne Naval Shipyards. Picture: Supplied

The joint committee’s chair Julian Hill MP said this audit was a concern.

“This is a deeply concerning report by the Auditor-General into a critically important Defence project,” he said.

“Given the seriousness of the concerns the Committee initiated this inquiry less than 24 hours after the tabling of the report and has scheduled initial public hearings for Friday, May 19.”

He has also requested written submissions by June 15 from among others, the contractor BAE Systems as well as the British High Commission.

Joint committee chair Bruce Julian Hill. Picture: AAP

The request specifically for British diplomats signals the first chink in the armour promoted by the AUKUS security pact from the British, American and Australian governments.

The pact was specifically designed to enable the smooth supply of nuclear-powered submarines to Australia but also other pillars of defence technology and hardware.

Last week the auditor confirmed suspicions there were serious issues with the proposed new vessel, likely to create strains to the AUKUS pact.

“Defence’s procurement process and related advisory processes lacked a value for money focus and key records, including the rationale for the procurement approach, were not retained,” the auditor-general concluded.

The British BAE Systems beat rivals from Spain and Italy in 2018 under the Turnbull government to secure the contract to build nine new hi-tech anti-submarine frigates, despite subsequent evidence both EU countries’ options were better for Australia’s naval needs.

The Hunter Class frigate as envisaged by BAE.

Since then the Hunter design, based on the British Type 26 warship, has been plagued with design issues including being heavier and with a wider hull than the British model, and being potentially slower and undergunned more generally.

The Albanese government in releasing the Defence Strategic Review earlier this month has since announced a review of the Royal Australian Navy future needs with the likelihood of a scaling back of the BAE contract in favour of another smaller, faster, cheaper and bigger missile-armed vessel.

BAE has maintained its ship would be seaworthy and its manufacture was underway and making gains. It declined to comment on the audit report. The first Hunter was expected by mid-2032.