Sub-build program to ‘transform the Aussie economy’

Australia’s ability to transform its economy would be lost if it opted for ‘off the shelf’ submarines.

Naval Group Australia CEO John Davis.

Australia’s ability to transform its economy and labour force through major defence projects would be lost if it opted for “off the shelf” submarines rather than building and maintaining its own fleet.

That’s the warning from Naval Group Australia chief executive John Davis, who has revealed how the Australian arm of the French defence giant Naval Group, formerly DCNS, plans to carve out a uniquely Australian identity in “a 50-plus year program” of constant shipbuilding.

Mr Davis cautioned that Australia currently faced a shortfall of skills, saying the capacity of our workforce was “at one of its lowest ebbs” and the immediate challenge was to ensure local workers could be properly trained to execute the $50bn, Attack-class submarine program.

“It’s a massive undertaking that’s going to touch every part of the country,” Mr Davis said.

“It’s not just about getting the workforce for tomorrow but being able to sustain that workforce. We build skills and then we lose them. At this point in time, we are probably at one of the lower ebbs. It’s an incredible challenge getting the right workforce.”

As revealed in The Australian, NGA yesterday signed an agreement with BAE Systems Australia, ASC, Saab Australia, Lockheed Martin and offshore patrol vessel builders Luerssen Australia to work with the federally funded Naval Shipbuilding College in Port Adelaide to identify the required skills to sustain the $89bn Future Navy blueprint.

Mr Davis said the collaborative approach between these defence firms, who in a business sense are often rivals, was crucial to delivering the blueprint as planned for Australia.

“None of us alone has the wherewithal to produce the numbers we require in the time that we require them,” Mr Davis said. “Between us and BAE and ASC, we are building an incredible knowledge base about Australian industry, what are its strengths, what are its weaknesses. We need to architect the education system so we don’t get lots of program managers but no engineers. This is a really important piece of work, not for us but for Australia.”

Mr Davis revealed NGA would in the coming years change its management structure to give it a greater Australian identity.

He said Australia would be unable to tailor the submarines to suit its strategic needs if it had bought them off the shelf.

“We truly are a new design that is bespoke to Australia with specific Australian requirements,” he said. At the peak of the build in 2028-29, Naval Group would have an Australian workforce of 1700.