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| Spain's F-100: Design base for the Hobart class AWD |
Grant Turnbull
Australia’s troubled shipbuilding industry could be overhauled under radical proposals by the Canberra government, local media reports have indicated. Speculation is rife that British defence giant BAE Systems will be brought in to rescue the Navy’s long-delayed and over-budget Hobart-class air warfare destroyer (AWD) project.
Defence minister David Johnston told the ABC - Australia's public broadcaster - on Wednesday that no decision had been made to sideline the government-owned shipbuilding firm ASC. Privately, however, it is thought ASC will be 'sacked' from the project and its overall role reduced to maintaining submarines and not building ships.
Johnston said there had been no decision made but the current situation couldn't go on. "What has been happening here is a cover-up. When we came to power I realised very quickly that this project was completely off the rails," he said.
The drastic action is seen as a way to resolve the long delays and cost overruns which have hampered the construction of the AUS$8.5 billion destroyers. In June 2014, the destroyers were added to the government's 'Projects of Concern' list after increasing commercial, schedule and cost risks were identified in an independent review.
ASC has already been subject to a "management shake-up" over the AWD project's poor performance. The government has also commissioned an emergency review by former US secretary of the Navy, Professor Don Winter and Australian expert John White which is thought to contain the recommendations to reduce the role of ASC and re-think Australia's approach to shipbuilding.
The Abbott government has not released the full report as commercial discussions are reportedly still ongoing.
Read the full story at Naval Technology