The Turnbull Government today announces that the next generation of submarines for Australia will be constructed at the Adelaide shipyard, securing thousands of jobs and ensuring the project will play a key part in the transition of our economy.
DCNS of France has been selected as our preferred international partner for the design of the 12 Future Submarines, subject to further discussions on commercial matters.
Along with our recent naval shipbuilding announcements, the commitment to an Australian build will create a sustainable Australian naval shipbuilding industry and provide the certainty that industry requires to invest in innovation and technology and grow its workforce.
The Future Submarine project is the largest and most complex defence acquisition Australia has ever undertaken. It will be a vital part of our Defence capability well into the middle of this century.
This $50 billion investment will directly sustain around 1,100 Australian jobs and a further 1,700 Australian jobs through the supply chain.
Today’s announcement follows the comprehensive Competitive Evaluation Process (CEP) involving DCNS, TKMS of Germany and the Government of Japan. Each bidder submitted very high quality proposals and the Australian Government takes this opportunity to thank both TKMS and the Government of Japan for their ongoing commitment to Australia and their participation in the process.
The CEP has provided the Government with the detailed information required to select DCNS as the most suitable international partner to develop a regionally-superior future submarine to meet our unique national security requirements, as detailed in the 2016 Defence White Paper.
This rigorous and independent process was led by Head of the Future Submarine Program, Rear Admiral Greg Sammut AM CSC, and General Manager Submarines, Rear Admiral Stephen Johnson USN (retired), who was previously in charge of the program to replace the Ohio Class ballistic missile submarines.
The process was overseen by an independent Expert Advisory Panel, chaired by former Secretary of the United States Navy, Professor Donald Winter. It was peer reviewed by Vice Admiral Paul Sullivan USN (retired) and Rear Admiral Thomas Eccles USN (retired).
This decision was driven by DCNS’s ability to best meet all of our unique capability requirements. These included superior sensor performance and stealth characteristics, as well as range and endurance similar to the Collins Class submarine. The Government’s considerations also included cost, schedule, program execution, through-life support and Australian industry involvement.
Subject to discussions on commercial matters, the design of the Future Submarine with DCNS will begin this year.
The Turnbull Government is also conducting a strategic review of the workforce, skills and infrastructure needs to deliver this key capability as part of its Naval Shipbuilding Plan, to be released this year. The Plan will bring together the requirements for the Future Submarine program, along with the more than $35 billion Future Frigate program and the more than $3 billion Offshore Patrol Vessel program, as part of the broader continuous naval shipbuilding philosophy to which the Government is committed.
The Turnbull Government will maximise Australian industry involvement in the program and will work closely with DCNS to identify opportunities for local businesses to integrate into the supply chain.
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Belated good news for South Australia
SENATOR THE HON STEPHEN CONROY
DEPUTY LEADER OF THE OPPOSITION IN THE SENATE
SHADOW MINISTER FOR DEFENCE
SENATOR FOR VICTORIA
SENATOR KIM CARR
SHADOW MINISTER FOR HIGHER EDUCATION, RESEARCH, INNOVATION AND INDUSTRY
SENATOR FOR VICTORIA
DAVID FEENEY MP
SHADOW ASSISTANT MINISTER FOR DEFENCE
FEDERAL MEMBER FOR BATMAN
GAI BRODTMANN MP
SHADOW PARLIAMENTARY SECRETARY FOR DEFENCE
MEMBER FOR CANBERRA
Labor welcomes the Turnbull Government’s belated announcement today to build all 12 of Australia’s Future Submarines in Adelaide.
Malcolm Turnbull and Marise Payne have been brought kicking and screaming to this decision by Labor, the South Australian Government, shipyard workers and the unions.
The South Australian community deserves full credit for this decision, for refusing to accept the Government breaking its promise to build 12 submarines at ASC.
After trying everything else Malcolm Turnbull and Marise Payne have finally made the right decision. The fact that it has taken close to three years is an outrage.
More than 1,500 shipyard workers have lost their jobs because of the games the Liberals have played with our strategically vital shipbuilding industry.
These submarines must be built in Australia from day one.
The Abbott-Turnbull Government has proven time and time again that it simply can’t be trusted with Australia’s naval shipbuilding industry.
The Government has confirmed it is yet to enter into contractual arrangements, which are subject to further discussions on commercial matters.
Australians have learnt that anything less than a signed contract is meaningless under this Government.
Labor calls on the Turnbull Government to ensure a requirement to build all 12 submarines in Adelaide is written into the contract.
Malcolm Turnbull and Marise Payne must guarantee there will be no backsliding on their announcement and that the commercial negotiations do not lead to a hybrid build that would see work sent offshore.
They must ensure that no future Government will be able to walk away from this announcement.
Whilst we welcome today’s announcement, the Abbott-Turnbull Government’s handling of the Future Submarines Project has been deeply flawed.
Labor’s 2009 and 2013 White Papers identified that Australia needs 12 submarines to meet our future strategic and national interests.
Instead of fulfilling its 2013 election promise, the Abbott-Turnbull Government has spent close to three years reaffirming what Labor identified years earlier.
Its chaotic approach has created unnecessary uncertainty and distress for Australian defence industry, particularly South Australian shipbuilders and their families.
First the Liberals promised the submarines would be built in Adelaide.
Then the former Defence Minister denigrated the South Australian workforce by saying he wouldn’t trust ASC to build a canoe.
Then we saw the submarines promised to Japan in a secret deal between Tony Abbott and his Japanese counterpart.
Finally Mr Abbott was forced to invent a risky and unproven Competitive Evaluation Process in order to save his job – a process Labor has been highly critical of.
While the Liberals have wreaked havoc on Australia’s naval shipbuilding industry, Australians have known all along what they would get from a Shorten Labor Government – 12 submarines built in South Australia.