Deputy Prime Minister and Defence Minister Richard Marles declares SA’s shipbuilding industry in good hands for the future
Deputy Prime Minister Richard Marles has declared the SA shipyards at Osborne will “build and continue to build forever”.
The South Australian shipbuilding industry will “build and continue to build forever’’, Deputy Prime Minister and Defence Minister Richard Marles says, with the federal government giving a firm commitment that funding for the decades-long naval surface fleet expansion is locked in.
Speaking at a Defending Australia panel discussion hosted by News Corp Australia in Adelaide on Tuesday, Mr Marles said people should have a sense of “confidence” and “certainty” that the money is there to fund the ongoing shipbuilding program.
The government on Tuesday released the independent Enhanced Lethality Surface Combatant Fleet review, which will more than double not only the size of the current warship fleet but also its firepower capability.
While, as widely expected, the review downgraded the number of Hunter Class Frigates to be built at the Osborne shipyard in Adelaide from nine to six, it also guaranteed a continuous shipbuilding program in SA - even before factoring in any contribution from the AUKUS submarine program.
This will be achieved by basing the construction of three enhanced air warfare destroyers at the Osborne shipyard following BAE Systems’ current Hunter class frigate build, with the new AWDs to replace the navy’s Hobart-class destroyers, providing a continuous shipbuilding program in Adelaide well past 2043.
The Osborne shipyard will also be used to upgrade the Hobart destroyers with the US navy’s Aegis combat system.
Mr Marles said it was important not only that the forward shipbuilding program be articulated, but that it be paid for.
“What we have been really keen to do is make sure that we are paying for and provisioning the changes and the decisions that we are making in relation to defence,’’ Mr Marles said.
To this end, the government has increased the defence budget by $11.1bn over the next decade, and $1.7bn over the Budget’s forward estimates.
The spend will lift the Defence budget from 2.3 per cent of GDP to 2.4; up from 2.1 prior to Labor coming in.
“We will have, in the Budget which we will announce in May, the money which bridges the gap for what’s already been provisioned and what we will need to be provisioned,’’ Mr Marles said.
“That means that people know that there is money behind this.’’
Mr Marles said a key message for SA, and workers and businesses in the defence industry, was that “we are going to build, and continue to build forever’’.
Mr Marles said the shipbuilding program was “a national endeavour’’, and “the next challenge is the people challenge’’.
State Premier Peter Malinauskas said Tuesday’s announcement was “a big deal’’ and sent a strong message to future generations that shipbuilding in SA was here to stay.
The state now had the “extraordinary responsibility’’ to deliver the skills and industry capability to “to get this done and do it well’’.
Mr Malinauskas said there had been “no shortage of speculation’’ and critics calling for the Hunter program to be scrapped.
Mr Malinauskas said young people could now confidently commit to a career in the defence industry knowing they had a “job for life”.
The state government says the Hunter build will sustain at least 2000 jobs and create at least 500 new jobs over the next decade.
“These are in addition to the 4000 estimated jobs required to build the new submarine construction yard at Osborne, and the more than 4000 direct jobs to build the nuclear-powered submarines themselves,’’ the state government said on Tuesday, referring to the AUKUS nuclear submarine program.
BAE Systems Australia chief executive officer Ben Hudson took the opportunity at the forum to sing the praises of the Hunter frigate platform, which commentators dubbed “armchair critics” by panel members have criticised and sought to undermine.
Mr Hudson said the Hunter frigate was the “ultimate stealth ship” and would underpin a naval capacity in Australia which was unparalleled globally for nations of our size.
“It is very hard to find,’’ Mr Hudson said.
“(They) are forecast to be the quietest ships to ever go into service. They are a stealth ship.
“Most people don’t realise that. In a congested and contested environment in the Asia Pacific with a large undersea threat, Hunter will bring our sailors back home alive where other ships may or may not.’’
Flinders University Vice-chancellor Colin Stirling said the university sector had already started on tackling the skills challenge, increasing enrolments in relevant courses, expanding the type of courses, and engaging closely with industry and government.
“I think the university sector is ready to go and we’ve already started in many instances,’’ he said.
“We’ve already been looking at the shortfalls’’.
Mr Stirling said areas such as advanced manufacturing, engineering and project management were being scaled up, but the task ahead should not be underestimated.
“The scale of it is somewhere between mammoth and gargantuan,’’ he said.
“The long term nature of the decisions today, the fact that we now know that into the 2030s, 40s and of course beyond with the submarines, there will be shipbuilding and very advanced manufacturing here in South Australia, makes it possible for educational institutions to plan and it makes it possible for young people to aspire.’’
Defence Industry Minister Pat Conroy said the government aimed to sign a contract for the six Hunter frigates with BAE this year.
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