Kevin Andrews to meet with navy shipbuilder ASC in Adelaide ahead of critical call on new warships
THIS is the most important meeting our taxpayer owned shipbuilder has for a major submarine contract, which could still go to a foreign competitor.
TAXPAYER owned shipbuilder ASC will pull out all stops tomorrow to convince new Defence Minister Kevin Andrews that it can build a future submarine for the Navy on time and on budget.
Mr Andrews will make his first official industry visit as minister to the yard to be briefed on the submarine project as well as the troubled Air Warfare Destroyer program and to tour the facility.
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The destroyer program, which is a three ship build at the ASC’s Port Adelaide Techport facility, is running two years late and at least $500 million over budget.
The government is expected within weeks to announce a limited competition for the $20 billion plus new generation submarine project involving firms from Japan, Germany and France.
The Japanese Soryu Class boat was favoured by sacked minister David Johnston who famously said ASC couldn’t build a canoe, but most experts support a local build for the 10 to 12 new boats.
Mr Andrews said he was looking forward to seeing first hand the work being done by ASC.
“The Australian Government has not yet decided on a particular submarine design and more work is required before such a decision is made,” he said.
“Decisions about this next generation of submarines need to be made on the basis of what is best for our Armed Forces and our national security.
“Whatever decision is taken, there will be more submarines and that means more jobs for South Australia,” Mr Andrews said.
Meanwhile one of Australia’s most experienced submariners retired Rear Admiral Peter Briggs said a local build was affordable and would minimise sovereign risk.
In a new paper for the Australian Strategic Policy Institute out today he describes the government’s focus on a Japanese boat as a ‘misdirected distraction’.
“Selecting the most appropriate design partner is the next key step. This should be done using a competitive process,” Admiral Briggs said.
“Prospective designers should be asked to provide costed, fixed-price bids for the design and construction of the submarines in Australia in time to replace the Collins.”
He said the Collins Class submarine was a very good vessel and his paper outlines substantial benefits from building a future submarine in Australia.
“Indeed, local construction is especially beneficial for submarines compared with surface ships, given the submarine’s unique design and strategic importance.”
He said the benefits of a local build include;
• Full operational, legal and security control by the Australian Government
• Critical security arrangements to protect sensitive technologies
• Competitive pricing
• Higher quality construction under Australian control
Admiral Briggs also said that an Australian build would transfer design, construction and commissioning knowledge and technology to Australia for the through life support of the boats.