South Australia Minister for Defence Industries Martin Hamilton-Smith has expressed concern at comments by Federal Government Minister for Defence David Johnston on timeframes for delivering Australia’s next generation of submarines.
When asked yesterday by Sky News on whether he would honour his pre-election commitment to build the next 12 future submarines in Australia, Mr Johnston said “the most important thing that we need to understand about the future submarine is that there is an enormous degree of urgency.”
When pushed on if he was saying a locally designed option for the submarines was being ruled out, Minister Johnston stated “we have to come up with a solution that solves the time schedule problem.”
Minister Hamilton-Smith believes the assertions being made around the timeframe of the project is an attempt to distract Australians from the broader issue.
“This is an attempt by the Federal Government to soften up the Australian community and prepare it for bad news,” Mr Hamilton-Smith said.
“The Federal Government said no decision has been on the future of our submarines, but these statements by Mr Johnston only give the impression that a decision has been made.
“It is clear that Mr Johnston is failing to listen to a growing list of defence and economic experts who have publically stated that there is time for a project definition study, an open competitive tender and a considered decision on the future of our submarines.”
Last month Retired Commodore Paul Greenfield told the Senate Economics References Committee there was no reason why the future submarines couldn’t be built in Australia. “An Australian build should be no more expensive than an overseas build. The sail away cost of $20 billion for 12 submarines built in Australia is entirely feasible.”
This view was echoed by Professor John White, Former Head of the New Submarine Capability Team, Retired Rear Admiral Peter Briggs AO and retired Commodore Terence Roach – who urged the inquiry to hold a competitive tender process.
A call unanimously backed at the South Australian Defence Industries Summit held last week, attended by Economics expert Professor Goran Roos and former ASC head Professor Hans Ohff.
Mr Hamilton-Smith said “the experts have advised that Australia’s Collins Class goes out of life in 2027 and that a full tender would take 12 months. This would bring us to the end of 2015, leaving 12 years to put a submarine in the water.
“German and Swedish companies have indicated they could put a submarine in the water in 7 to 8 years. So there is time and we must choose an open competitive tender process.
“The defence and economic issues relating to the next generation of submarines are too important to our nation for decisions to be made without a more considered process.”
“Before the election, the Federal Government promised to build Australia’s Future Submarines in Adelaide. It is becoming increasingly concerning that it is planning to break this promise, a move that will cost thousands of Australian jobs”.
The South Australia Government will provide its Defence White Paper submission, outlining many of the expert arguments and calling for a considered process, to the Commonwealth this week.