Japan, France, Germany invited to compete for subs contract

The Australian ^ | FEBRUARY 20, 2015 11:03AM | Sarah Martin

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TONY Abbott says the nation’s $50 billion submarine project will create at least 500 new jobs in South Australia, as the government reveals a shortlist of foreign partners to design and build the new fleet.

The Prime Minister has moved to end months of uncertainty over the project in a visit to Adelaide this morning, saying government-owned shipbuilder ASC would be guaranteed more work “under any possible scenario”.

“There will be at least 500 new jobs in South Australia,” he said.

Mr Abbott said the government would select a foreign contractor by the end of the year, but has narrowed down potential partners to Germany, France and Japan.

Defence will ask contractors from each of these countries to present options for the design and build of the boats, including having them built offshore, in Australia, or a hybrid approach.

Swedish company SAAB, which now owns the company that designed and built Australia’s Collins-class submarines, has been ruled out from the competitive evaluation process.

But Mr Abbott said regardless of the foreign partnership, Australia could be guaranteed more naval shipbuilding work, with the majority located at ASC.

“Under any possible scenario there are going to be more submarine jobs here in Adelaide,” Mr Abbott said.

“It’s very important that we get the best possible submarines, at the best possible price, maximising Australian involvement in their construction and maintenance, that is what we want,” he said.

Revising upwards previous estimates of the record-defence spend to $50bn, Mr Abbott said that up to $30bn of this would be spent on sustainment of the new fleet at the Osborne shipyards.

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“Swedish company SAAB... has been ruled out from the competitive evaluation process.”

SAAB should have promised not to build the subs in Australia. Instead, they said they could build them in Australia at a competitive price, when it was obvious the government wanted nothing of the sort. Now they won’t even get to bid. What a shame.

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A shame? It’s a SAAB story!

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I can understand why they wouldn’t want a repeat of the Collins experience.

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Capriottis should be given a shot.

[Praxeologue]

For those of us without a subscription, what type of submarines will these be and why does Australia need these types?

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These will be large diesel-electric submarines, with air-independent propulsion and land attack capability. Current D/E subs are relatively small and do not have the endurance the Aussies require. Japan is proposing a variant of an in-service sub while Germany and France are talking of concepts.