Adelaide jobs warning in feared $1bn Collins subs cut

Warnings of a $1bn cut to the Adelaide upgrade of the Collins Class submarine fleet are being aired, including concerns plans to arm them with Tomahawk cruise missiles will be scrapped.

Warnings of a $1bn cutback to the vital Adelaide upgrade of the Collins Class submarine fleet are being aired, including concerns plans to arm them with Tomahawk cruise missiles will be scrapped.

Opposition Senate Leader Simon Birmingham says the National Defence Strategy released on Wednesday appears to scale back the Collins major upgrade at Osborne Naval Shipyard, for which up to $6.4bn had been earmarked.

But the defence strategy allocates “$4-5bn to ensure that the six Collins Class submarines will continue to provide a potent and credible capability to conduct operations”.

Projects funded will include the Collins life-of-type extension being conducted by ASC at Osborne, sonar upgrades and ongoing sustainment, including “cooperative capability assurance programs” with the United States.

Collins Class submarines, HMAS Collins, HMAS Farncomb, HMAS Dechaineux and HMAS Sheean in formation while transiting through Cockburn Sound, Western Australia.

Arming the Collins fleet with Tomahawk cruise missiles, as had been expected, is not mentioned.

Senator Birmingham, as finance minister in the previous Coalition government, was responsible for government-owned ASC, formerly the Australian Submarine Corporation.

He challenged the federal government to clarify an apparent $1bn cut, particularly what this would mean for defence capability and Adelaide jobs.

“The Albanese Government’s latest rewrite of defence investment plans are horrifically opaque and leave more questions about cuts than answers about investments,” he told The Advertiser.

“Of deep concern appears to be a $1 billion scaling back of the upgrade to the Collins Class submarines.

“If Labor isn’t proceeding with a full upgrade, this would be a big blow to both our defence capabilities and to South Australia.”

Defence Industry Minister Pat Conroy insisted defence spending was being increased by $5.7bn over the next four years and the government was “making hard decisions to reprioritise funding”.

He accused the Coalition of refusing “to commit to matching our increase in defence spending but now they are claiming they will spend more than Labor”.

“Where is that money coming from? Are they planning cuts to health and education again? The Coalition simply can’t be trusted. Unlike the Coalition, our funding commitments are in the Budget,” he said.

HMAS Collins (foreground) rendezvous with HMAS Waller (centre) and HMAS Rankin. Picture: Petty Officer Photographer Damian Pawlenko

Plans to accelerate the introduction of Virginia Class nuclear-powered submarines from the United States to the early 2030s, ahead of Adelaide-based construction of AUKUS submarines, means it is now considered unlikely that Tomahawks will be integrated into the Collins fleet.

Senator Birmingham warned a 20 per cent cut in the Collins upgrade would inevitably mean fewer SA jobs, likely a cut in the hundreds.

He questioned whether major upgrades to Collins weapons systems, including missile capabilities, would still go ahead.

The life-of-type extension, also being conducted by ASC, is designed to keep the fleet operationally capable and available into the 2040s, supporting the transition to nuclear-powered submarines.

ASC in March was named as the joint constructor and sole maintainer of the nation’s future AUKUS nuclear-powered submarine fleet.

Originally published as Adelaide jobs warning in feared $1bn Collins subs cut