Sub standard state: $50 billion submarine package to save South Australia
MALCOLM Turnbull has saved hapless South Australia from falling off the map, committing a mammoth $50 billion so the state can build a dozen world class submarines to secure the nation.
NSW
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MALCOLM Turnbull has saved hapless South Australia from falling off the map, committing a mammoth $50 billion so the state can build a dozen world class submarines to secure the nation.
The failed state will receive taxpayer funded billions, over several decades, to avoid going into virtual liquidation with unemployment rising into double digits.
French company DCNS won the contract to build the submarines in South Australia despite Japan having a “handshake agreement” with former Prime Minister Tony Abbott to win the contract.
Japan yesterday asked the Turnbull government for an explanation, while a German bid also missed out.
The announcement will create 2800 jobs in South Australia which has been rocked by multiple factory closures in recent years. The announcement is also expected to sandbag Liberal seats ahead of a tight election in July.
The 99m submarines will form a critical part of Australia’s defence force, replacing the outdated Collins Class submarines.
The submarines, which will come online in the 2030s, will be able to remain at sea for 80 days and have the ability to house F21 torpedoes fired from eight tubes, anti-shipping missiles, SCALP Cruise missiles, A3SM anti-helicopter missiles and sea mines.
Mr Turnbull described the announcement as a landmark moment in Australia’s defence history.
“This is a momentous national endeavour,’’ he said.
“These submarines will be the most sophisticated naval vessels being built in the world.”
Mr Turnbull said building the submarines would boost the South Australian economy and boost interstate industries.
“The spin-offs into the rest of the economy will be immense.”
The announcement was slammed by Centre of Independent Studies researcher Simon Cowan who suggested taxpayer money could have been saved by building overseas.
“Australia will have to spend tens of billions of dollars more to build these subs in Australia out of Australian steel. This is a waste of taxpayer money,” Mr Cowan said.
“$50 billion to prop up less than 3,000 jobs in Adelaide just doesn’t add up.”
While the $50 billion spend is in many ways a rescue package for struggling South Australia, Defence Minister Marise Payne said it was critical for Australia’s national security that the fleet of submarines were upgraded.
“Our decision to expand our submarine fleet to 12 regionally superior submarines is a decision driven by national security,’’ she said.
“We need submarines with considerable range. We need the capacity to remain undisturbed and undetected for extended periods, we need submarines that are quiet, that have advanced sensor technology to detect other submarines.”
The decision has angered Japan who expected to win the contract on the back of a very close relationship between Mr Abbott and Japanese Prime Minister Shinzo Abe.
Japan’s Defence Minister Gen Nakatani described the Turnbull government’s decision as “deeply regrettable”.
“We will ask Australia to explain why they didn’t pick our design,” he said.
Mr Abbott said he believed the relationship would withstand the work and congratulated Mr Turnbull for continuing the work he had started.
“Today’s submarine decision flows from an exhaustive and very comprehensive process put in place by the Abbott government,’’ he said in a statement.
“I am pleased that the shameful procrastination of the Labor years is now over. “Australia’s special relationship with Japan is more than strong enough to withstand this disappointment and I am confident that our strategic partnership will continue to grow through other means.”
Originally published as Sub standard state: $50 billion submarine package to save South Australia
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