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| Australian Hobart class Destroyer under-construction at ASC |
Daniel Hurst Political correspondent
Government-commissioned report highlights concerns about gaps in demand between defence acquisitions, when demand for shipbuilders ‘could fall to zero’
Building naval warships in Australia costs 30% to 40% more than it does in comparable overseas shipyards, a government-commissioned review has found.
The government asked the US-based military research thinktank Rand Corporation to review Australia’s shipbuilding capabilities and the costs and benefits of government investment in the industry.
In a report to be released on Thursday, the company noted the Department of Defence was in the early stages of its “ambitious” effort to procure up to 50 naval surface warships and submarines over the next two decades. Up to 15 of these vessels would be large surface ships such as air warfare destroyers, landing helicopter docks and future frigates.
The report’s executive summary – which has been distributed to media in advance – said 7,950 people were working in shipbuilding and submarine and ship repair last financial year. About half of those were employed by the government-owned shipbuilder ASC.
The report examined the issue of gaps in production – sometimes referred to as the “valley of death” – that would occur as companies reached the end of their work on the air warfare destroyer and landing helicopter docks.
The timing of planned acquisitions of future frigates, offshore patrol vessels and new submarines “is likely to produce short-term and long-term gaps in demand for shipyard production, facilities, services and workers”, it said.
Read the full story at The Guardian