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Category: Defence Industry / Defence Forces / Defence and Aerospace Industries / States and Territories

Pyne refuses to 'break down' WA's shipbuilding share

Tuesday, 26 Jul 2016 16:25:50 | Kathryn Diss

Christopher Pyne (second from right) toured Austal's Henderson yard on his WA visit. (Supplied)

The head of the new Defence Industry portfolio Christopher Pyne has visited Western Australia to promote the state's role in constructing a new fleet of defence vessels, but has repeatedly refused to say what percentage of the work it will receive.

Key points:

  • Construction of 12 offshore patrol vessels due to shift to WA in 2020
  • 21 Pacific patrol boats also due to be built south of Perth
  • Christopher Pyne declines to say if WA got "fair share" of shipbuilding

Shipbuilding yards at Henderson, south of Perth, and Osborne in South Australia are considered the two key locations for constructing the vessels.

In April, the Federal Government made several announcements about where the next fleet would be built.

Adelaide's Obsborne shipyards was named home to the construction of the nation's next fleet of submarines worth $50 billion, and the early construction of 12 offshore patrol vessels.

Construction of the patrol vessels is scheduled to begin in Adelaide in 2018 before shifting to Western Australia in 2020, when the future frigate construction begins in South Australia.

WA-based Austal Ships was also selected as preferred tenderer to construct and maintain up to 21 replacement steel-hulled Pacific patrol boats, with construction expected to begin in 2018.

Mr Pyne, MP for the Adelaide seat of Sturt, has been a staunch advocate for South Australia to build the next fleet of Navy vessels, and has just been put in charge of the federal portfolio delegating the contracts.

He said he chose WA as his first port of call to reassure the state it would be one of the centres of future shipbuilding for the nation.

"Western Australia and South Australia are the centre of naval shipbuilding from now, well into the 2050's and beyond," Mr Pyne said.

"There is tremendous opportunity for Western Australia and South Australia as the two bases for shipbuilding for the navy well into the future."

But when asked what percentage of the work WA would receive, Mr Pyne repeatedly refused to name a figure.

"I haven't broken down the percentages ... I'm not going to break it down for you, you can do that", he said.

Pyne refuses to clarify $5b figure

WA Liberal senator Linda Reynolds asked Mr Pyne to provide more detail.

"I've got to say in the last six months alone, we've got two new shipbuilding contracts worth over $5 billion for the Henderson shipyards here," Senator Reynolds said.

"I think it is very misleading to focus on the billions of dollars that are now coming to Henderson, for Western Australia, because it is part of a multi-billion-dollar investment."

When asked to clarify the $5 billion figure, Mr Pyne again refused to enter into specifics.

"I'm not playing that game of how much everyone got and whether it was a fair share," he said.

No guarantee: WA Opposition

State Opposition spokesman for defence issues Paul Papalia said only a portion of work announced for WA had been officially locked in.

Pyne declines to reveal WA's share of new shipbuilding work Photo: WA Labor wants a special team set up to help the state lobby for more shipbuilding. (ABC News: Louise Merrillees)

He said it currently equated to 0.55 per cent of the total work.

"What they're saying is that after the next federal election, they will shift some portion of the shipbuilding of the offshore patrol vessels from South Australia to Western Australia, (but) there's no guarantee," he said.

"The vast majority, the lion's share went to South Australia, and yet Colin Barnett and the Liberal Government in Western Australia said they were very happy with that.

"The South Australians do it magnificently, Christopher Pyne is an exceptional advocate for his state ... that's why they got tens of billions of dollars worth of marine contracts."

Mr Papalia called on the State Government to introduce a dedicated defence public service team to help WA secure more contracts.

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