Coalition fuels speculation over Adelaide’s Collins-class jobs

The Coalition has raised fears hundreds of SA jobs could be in jeopardy as crucial government investment is funnelled into US shipyards instead.

The Federal Opposition has fuelled speculation hundreds of South Australian jobs connected to the sustainment of the Collins-class submarine fleet are in jeopardy, with crucial government investment funnelled into US shipyards instead.

James Stevens, the Liberal member for the federal seat of Sturt, has urged Prime Minister Anthony Albanese to clarify the fate of the huge Collins-class life-of-type extension (LOTE) after it was reported Australia was planning to buy up to five US-made nuclear submarines as a stopgap measure before constructing British-designed submarines in Adelaide.

“There is now enormous uncertainty around the future of naval programs in Adelaide, which could have frightening economic consequences for the state,” Mr Stevens said.

“In particular, the spectre of a valley of death, costing thousands of shipbuilding jobs for decades to come, must be ruled out through a clear workforce commitment that transcends LOTE and the construction of submarines in Adelaide.

“Five submarines’ worth of jobs are destined for another country’s economy and the impact of this uncertainty will rightly strike fear into the workforce and businesses throughout the sector.”

Sturt MP James Stevens raised concerns about the Collins LOTE program.

Scheduled to start in 2026, the LOTE program involves huge upgrades to Australia’s six ageing Collins-class boats, taking two years to overhaul each vessel.

When the project was first confirmed last September, it was expected to create an additional 400 jobs in Adelaide – on top of 900 existing jobs associated with Collins-class full-cycle docking. But reports that Australia is preparing to purchase US-made Virginia-class nuclear submarines by the mid-2030s has sparked concerns that the LOTE program will no longer be nec­essary, with government investment going into US shipyards.

Defence Minister Richard Marles’s office did not respond to The Advertiser’s request for comment but it’s understood there’s no suggestion future SA jobs will be impacted.

In September 2021, when the AUKUS deal was struck, former prime minister Scott Morrison confirmed the LOTE program would go ahead in Adelaide.

He also confirmed the full-cycle docking work would remain in Adelaide rather then being shifted to Western Australia, ending years of speculation and pressure from The Advertiser’s long-running Save Our Subs campaign.

The fate of the contentious program will be sealed at a highly anticipated announcement in San Diego on Monday, when Prime Minister Anthony Albanese, US President Joe Biden and UK Prime Minister Rishi Sunak will unveil the “optimal pathway” for the submarine deal.

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Originally published as Coalition fuels speculation over Adelaide’s Collins-class jobs