The diagram above is courtesy The Daily TelegraphAugust 20, 2015. Note this is based on Defence Teaming Australia advice in mid August 2015, under different Abbott Government conditions. The $17 Billion might be for 8 submarines.
While the promise of 70% of submarine work in Australia has been mentioned by the outgoing defence minister Andrews in Parliament this is not yet a formal commitment. 70% involves complex costings over a 20 year period.
The new Australian Defence Minister, Marise Payne, will be faced with a highly complex $90 Billion shipbuilding situation.
She and the whole Australian Federal Cabinet will have to:
- plan, conduct and complete submarine/ship selections which heavily rely on the knowledge/designs/industrial capacity/contractural clarity of overseas companies
- decide on political priorities at the federal and state level (including rewards for past, present, future loyalty to the Turnbull government)
- ensuring votes and jobs at the Turnbull federal and state levels
- divide shipbuilding work (for submarines, frigates and patrol vessels) across four major shipbuilding states (South Australia, Western Australia, Victoria and New South Wales)
- other Australian states and territories will also need to be given sub and shipbuilding work that they can efficiently do.
More detail on the four majors:
- home of the AustralianSubmarine Corporation (ASC) in Adelaide
- ASC's efficiency was/is low as seen in the Collins build and the current Air Warfare Destoyers build (3 for $10 Billion - so far) about 200% over the price of highly efficient shipbuilding countries (eg. South Korea and Spain)
- But politically the votes of the 6 Federal Members of Parliament from South Australia were essential for Turnbull to become Prime Minister.
- Industry Minister Christopher Pyne is from South Australia
- its relatively efficient shipbuilder, Austal, is at Henderson, south of Perth.
- Henderson is near Australia's main submarine base HMAS Stirling at Rockingham.
- making Henderson a logical place to assemble submarines and maintain them.
- But politically that may be impossible, even though Julie Bishop, a key kingmaker of Turnbull, is from Western Australia.
- Austal's Mobile Alabama shipyard builds the Independence class littoral combat ship.
Victoria
- relatively efficient shipbuilder BAE Systems Australia is at Williamstown dockyard near Melbourne,
- has a highly efficient record of building 10 x ANZAC class frigates
- and more lately handled the completion of the 2 x Canberra class Landing Helicopter Dock (LHDs)
New South Wales (NSW)
- Forgacs in Newcastle and in Tomago are involved in ship maintenance and building of ship modules
So the handling of $90 Billion project for the submarines, frigates and patrol vessels is Defence Minister Payne's main challenge and may make or break the Turnbull Government.
Pete