The premium cost of a local shipbuild highlighted in yesterday’s RAND report had been overblown because the building of submarines was never in the terms of reference.

South Australia’s Defence Industries Minister Martin Hamilton-Smith said the exclusion of submarines from the report means it didn’t paint a true picture of what a local shipbuild could achieve.

“We welcome the release of the report because it supports exactly what the State Government has been calling for, a continuous build of ships,” Mr Hamilton-Smith said.

“Sadly the report does not mention submarines. This exposes a weakness in the terms of reference, because without submarines we will not have a competitive long-term shipbuilding industry in this nation.

“We need to build both surface ships and submarines.

“Most disappointingly the absence of submarines in its analysis was at the instruction of the Federal Government.

“Apparently the report authors were informed at the outset of the study that Australia’s submarines will be built overseas and they have been provided the same guidance since.

“Inclusion of these 12 boats would have undoubtedly amortised the 40 per cent Australian premium build figure reported to a much lower figure.

“Productivity issues have been driven by the stop-start nature of the industry in this country over decades going back over successive Federal Governments.”

Mr Hamilton-Smith said the South Australian and Victorian Governments would continue to fight for the Federal Government to deliver on its election promise to build those boats here in South Australia.