By Matthew Knott
Defence Minister Richard Marles has clashed with one of his top officials over whether the government will delay a critical decision on a new fleet of warships, as the presence of a Chinese flotilla off the coast of Australia focuses attention on the navy’s vulnerabilities.
Military experts urged Marles to override any bureaucratic resistance and stick to the plan to decide this year whether German company TKMS or Japanese firm Mitsubishi Heavy Industries will win a $10 billion contract to build 11 frigates to replace the navy’s ageing fleet of Anzac-class vessels.
German shipbuilder TKMS’ Meko A-200 frigate is under consideration for the Australian navy’s general-purpose frigate.
With Beijing signalling its intention to operate far from the Chinese mainland, the Australian navy’s fleet of warships is set to shrink to nine next year – down from 11 a year ago – with a significant chunk of those vessels unavailable for operations because of maintenance and upgrades.
Asked when a decision would be made on the general purpose frigates, Defence Department deputy secretary Jim McDowell told a Senate estimates hearing this week: “We expect a government decision in the first quarter of next year.”
McDowell, the top Defence official for naval shipbuilding and sustainment, said this was an “aggressive” timeframe given such decisions can take between seven and 10 years. The first ship is due to be delivered in 2029.
Marles refuted McDowell’s comments at a subsequent press conference. “We want to see a decision made this year, so let me be clear about that,” he said.
“Our number one objective here is speed into service. What came out of the surface fleet review [released last year] was really a need to get more surface combatants into service in the Royal Australian Navy as quickly as possible.”
Government sources said that Marles, who has said he expects defence officials to improve their performance, was pressing the department for a decision this year.
Prime Minister Anthony Albanese on Friday said the Chinese task group of three ships was 593 kilometres south-west of Adelaide.
Commenting on the surprise live-fire exercises conducted by the group last week, which forced commercial airlines to divert their routes, Albanese said, “We have protested and made our position clear that more notice should have been given”.
Peter Dean, who co-authored the government’s defence strategic review, said: “We have one of the oldest and smallest surface fleets the nation has ever had, and the past week has shown we don’t have time to mess around.
“I would be gravely concerned if the ministerial timetable is not adhered to. We really need to make a decision by the end of this calendar year, so the winning firm can get on with the work and deliver the ships.”
Dean, the head of defence policy at the United States Studies Centre, added: “The department works for Marles and needs to be working to ministerial direction, not the other way around.”
Jennifer Parker, an expert associate at the Australian National University, said it was time “to get more ships in the water”. “It is a capability they are trying to do at speed, but I don’t think we can wait until next year for a decision,” added Parker, a retired naval officer.
“Our availability of ships is low and our capability to respond to activity like the Chinese task group is diminished.
“If we saw these task groups operating on both coasts, we would be challenged in terms of our ability to monitor them and respond for a sustained period.”
Opposition defence spokesman Andrew Hastie accused the government of confusing the defence industry “who have been waiting months for a decision” on the frigates’ design.
The oldest of the nation’s Anzac-class frigates was retired last year and a second ship, HMAS Arunta, is scheduled to be decommissioned next year, although a final decision has not been made.
Richard Dunley, an expert in maritime strategy at UNSW, said: “We need more ships and quickly. The Chinese navy has expanded dramatically and is adding the equivalent of the Australian navy’s entire fleet every couple of years. They are going to be spending a lot more time in our region, and we will need to respond with surveillance and monitoring.”
A general rule holds that one in every three naval vessels is available for operations at any time, with the others preparing for, or recovering from, operations. The navy’s current ships will likely require more time out of the water because of their age and the need for upgrades to their weapons and combat systems.
Navy chief Mark Hammond told Senate estimates that six of the seven Anzac-class frigates were fully crewed, describing their availability as “at a bit of a high point”.
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