Scott Morrison stays silent on moving SA’s Collins Class submarine maintenance jobs to WA

Scott Morrison says he won’t rush a decision on Collins Class submarine maintenance – but there are growing concerns hundreds of SA shipyard jobs could move to WA.

An Australian Collins Class sub at Hamilton in Brisbane. Picture: Peter Wallis

Prime Minister Scott Morrison is staying silent about when he will make a decision on the future of a lucrative submarine contract, amid growing fears hundreds of South Australian shipyard jobs could shift to Western Australia.

Mr Morrison, visiting Adelaide on Wednesday, said he wouldn’t “rush” a decision on where full-cycle docking for the ageing Collins Class submarine fleet would be based.

“I am not one to rush these important decisions,” he told reporters at the opening of the Australian Space Agency at Lot Fourteen.

Mr Morrison added he wouldn’t outline any timetable for a decision, but said it would be made in the national interests.

It comes after a defence analyst said the decision had become “politically toxic”.

Prime Minister Scott Morrison during the opening of the new Australian Space Agency at Lot Fourteen in Adelaide. Picture: AAP

Mr Morrison described the defence industry capabilities in Adelaide as “fantastic”.

But he said one of the biggest challenges for SA would be finding enough workers to fill 2600 jobs in the pipeline.

“We are going to have to put the pedal to the floor to ensure there is training and skilling and getting people into those important defence industry jobs, which we are creating here in South Australia,” he said.

“If you are working in the shipbuilding industry, if you are working in defence, if you are working in the space industry in South Australia, you have a bright future.”

A decision on full-cycle docking was expected to be made last year but former senior Defence Department official Marcus Hellyer said it had become “politically toxic” for the Federal Government.

“If the decision was to stay in SA, they would just announce it, so I do suspect that the recommendation is to move,” the Australian Strategic Policy Institute analyst said.

“I suspect they’re working on messaging or strategies to sell the move to South Australians.” MacTaggart Scott Australia director Peter Richings, an SA-based supplier, said companies needed an answer soon because it affected their decision-making.

“I don’t understand why a decision can’t be made,” he said. “What is more frustrating is just the lack of any timescale.”

Collins Class submarines. Picture: Chris Prescott

Mr Richings pushed for a decision by Easter.

Mr Morrison’s National Security Committee of Cabinet will ultimately make the final decision after receiving a recommendation from Defence.

Powerful crossbench Senator Rex Patrick, who has put the Government on notice it will have a tougher time working with Centre Alliance if there is an unfavourable outcome for SA, said it “should be made as soon as possible”.

Prime Minister Scott Morrison will face questions about the delay on a decision regarding submarine maintenance while in Adelaide today. Picture: AAP

Splitting the work made no sense “other than to manage the politics,” Senator Patrick said. But he was concerned the split had become the Government’s preferred option.

Workers were “becoming more and more concerned about the delays,” Australian Manufacturing Workers’ Union SA branch president Peter Bauer said.

“They want a decision … so they can get on with their lives,” he said.

Australian Industry & Defence Network SA president Gary Bettcher warned the delay would affect business confidence.

Premier Steven Marshall at the weekend said he wanted a “speedy decision” to remove some of the uncertainty for workers.

A decision to move the jobs would be a nightmare scenario for his Government.

Labor’s defence spokesman Richard Marles said Mr Morrison needed to make a call “sooner rather than later” and must “provide a full explanation to South Australians”.

Defence Minister Linda Reynolds confirmed a decision had not yet been made.

Originally published as Scott Morrison stays silent on moving SA’s Collins Class submarine maintenance jobs to WA