A report commissioned by the South Australian Economic Development Board has identified which local council regions will be hardest hit if the future submarines contracts are lost.
The independent analysis was compiled by the National Institute of Economic and Industry Research and assesses the economic ramifications of purchasing 12 next generation submarines overseas to replace the existing Collins class vessels as compared to building the submarines in Australia with a foreign design partner.
The Minister for Defence Industries Martin Hamilton-Smith said the report concludes that there would be no difference in the price for the submarines if they were built overseas as compared to being built in Australia. However if the Federal Government opted to build the submarines overseas, there would be a negative impact of $29 billion on Australian GDP over the 40-year life of the project.
“At stake is 120,000 man years of work over the next four decades,” Mr Hamilton-Smith said.
“Expert modelling has been used to pin point the real winners and losers when comparing domestic or overseas build scenarios. The report provides a clear breakdown of the cash and jobs implications that this decision would have on local council regions throughout Australia.
THE HARDEST HIT
Impact on GDP-
$Million over 40 years:
- Port Adelaide Enfield 5,183
- Adelaide 2,837
- Charles Sturt 541
- Norwood Payneham St Peters 468
- Unley 468
- Salisbury 432
- West Torrens 388
- Marion 276
Job years over 40 years
- Port Adelaide Enfield 14,753
- Salisbury 10,935
- Charles Sturt 10,303
- Onkaparinga 8,588
- Tea Tree Gully 8,503
- Playford 5,730
- Marion 5,449
- West Torrens 4,256
“The Port Adelaide Enfield council area would be the hardest hit and could expect to lose $5 billion in economic activity and thousands of jobs over the next 40-years if Australia’s submarines were built overseas.
“This is an issue which should concern all South Australians. It crosses political and social boundaries – affecting communities from West Torrens to Walkerville.
“I encourage every community leader to contact their Federal Government member of parliament and urge them to call for an open competitive tender and to support local jobs.”