Due to announced future spending of more A$200 Billion on COVID-19 the Australian Government will eventually announce severe payment delays in big ticket naval defence projects. This especially impacts major projects that have not yet “cut steel” including the:
- 12 x Attack class future submarines to cost more than A$100 Billion (life of project) for the RAN
- 9 x Hunter class future frigates to cost more than A$35 Billion for the RAN, and
- 12 x Attack class future submarines to cost more than A$100 Billion (life of project) for the RAN
- 9 x Hunter class future frigates to cost more than A$35 Billion for the RAN, and
- 6 x MQ-4C Triton marine reconnaissance UAVs to cost more than A$7 Billion for the RAAF.
Major contractors, including Naval Group (Attack class) and BAE Systems (Hunter class), will find their projects may be delayed 2 to 5 years.
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Pete