Advanced Search

Share Coverage



Category: Defence and National Security / Federal Government / Business, Economics and Finance / Navy

PM to reveal which country will build Australia's next subs fleet

Tuesday, 26 Apr 2016 05:31:07 | Eliza Borrello And Chris Uhlmann

It will be the second investigation of leaks from the submarine program. (Commonwealth of Australia: Navy Imagery Unit)

Prime Minister Malcolm Turnbull will today announce which country will build the nation's next fleet of submarines.

Key points:

  • Prime Minister Malcolm Turnbull is in Adelaide
  • He will announce who will build the nation's next fleet of submarines, ending months of speculation
  • Japan is believed to be out of the running to win the $50 billion contact

Mr Turnbull has arrived in Adelaide and is holding a phone hook-up to inform members of Cabinet this morning.

Japan, France and Germany are all bidding for the work, which the Government says will create jobs in South Australia.

The $50 billion contract will see 12 submarines built to replace the Royal Australian Navy's ageing Collins Class subs.

The ABC last week reported that Cabinet's National Security Committee had all but eliminated the Japanese bid to build the submarines, leaving France and Germany as the front runners.

Defence department officials have had reservations about the Japanese bid from the outset, because it emerged as an understanding struck between former prime minister Tony Abbott and Japanese Prime Minister Shinzo Abe.

Today's expected announcement will end months of speculation over where the submarines will be built.

Adelaide shipbuilder ASC had previously warned there would be significant job shedding in South Australia if the submarines were to be built overseas.

Federal Treasurer Scott Morrison said it would be highly inappropriate for him to speculate on the timing of the announcement.

Mr Morrison is a member of the National Security Committee and said he had been "very involved" in finalising the new submarine bid.

"What's important for our defence procurement plan is that we're actually getting the technology and other transfer that occurs from being involved in these projects," he said.

"They're significant expenditures of public money and we'll be focusing on ensuring that Australians get the real benefit of that for jobs and growth in the future."

The Government's electoral fortunes in South Australia are closely linked with industry policy, in particular the submarines contract.

Local build will 'create thousands of jobs'

Defence Teaming Centre chief executive Chris Burns said an Australian build was paramount regardless of which design was selected, amid speculation France will win the contract.

"I understand that their [France's] intention is to adapt their design for a nuclear submarine," Mr Burns said.

"They have proven history in building submarines so they clearly know what they're doing, but again, whatever submarine the Navy wants that's for them to decide, what we have to do is make sure we build them here in Australia."

He said more than 2,000 jobs would be created around the country through an Australian build.

"We just want the Navy to have the best submarine possible and for Australia and industry to have a maximal opportunity to build those submarines and maintain them in the future here in Australia," Mr Burns said.

AustraliaPlus


 

Copyright © 1999- Shanghai Daily. All rights reserved.Preferably viewed with Internet Explorer 8 or newer browsers.

沪公网安备 31010602000204号

Email this to your friend