The advertisement in TheAustralian, in mid September 2016, was put up by prominent Australians including Dick Smith and John Singleton, questioning the wisdom of the Turnbull Government's April 26, 2016 future submarine decision. This may have been a significant reason for the Government's early signing of the design contract with DCNS today. (This advertisement above was reproduced on the internet by Crikey)
---
In addition to the Lockheed Martin announcement Australia's Defence Ministerial duumvirate made another major announcement on September 30, 2016 http://www.minister.defence.gov.au/2016/09/30/first-contract-signed-with-dcns-to-commence-design-phase/:
“The Minister for Defence Industry, the Hon Christopher Pyne MP and the Minister for Defence, Senator the Hon Marise Payne today announced the next significant step in the building of Australia’s Future Submarines with the signing of the [Design and Mobilisation contract] between the Government and DCNS to commence the design phase of the Program."Whole Announcement
- signing of the contract “was ahead of schedule”
- good for Australian industry especially Adelaide, South Australia's.
The Government has signed the design contract with DCNS earlier than intended to head off opposition to the decision to select the DCNS Shortfin. Basically signing nails down a legal relationship with DCNS that the Government could not plausibly walk away from. Walking away might today also involve the Government paying compensation to DCNS.
The design contract may set out an initial design period of about three years with design work mainly done at the DCNS submarine building yard/design center at Cherbourg, France and also significant design work in Adelaide. The design contract is just the first of a long series of Government-DCNS contracts and hurdles, involved in the Shortfin Project.
The Government has signed the design contract with DCNS earlier than intended to head off opposition to the decision to select the DCNS Shortfin. Basically signing nails down a legal relationship with DCNS that the Government could not plausibly walk away from. Walking away might today also involve the Government paying compensation to DCNS.
The design contract may set out an initial design period of about three years with design work mainly done at the DCNS submarine building yard/design center at Cherbourg, France and also significant design work in Adelaide. The design contract is just the first of a long series of Government-DCNS contracts and hurdles, involved in the Shortfin Project.
Other factors influencing the signing being “ahead of schedule” include:
1(a). Concern over the last few weeks that prominent Australians, including philanthropist Dick Smith and entrepeneur John Singleton, are running a campaign against the Australian Government’s decision to buy/build a new conventional submarine design (in the shape of the DCNS Shortfin Project) rather than buy a cheaper, existing, off-the-shelf, submarine design. Stories have appeared in News Corp Australia newspapers which have an excellent standard of national security coverage. The newspapers are headed by The Australian, and The (Sydney) Daily/Sunday Telegraph and The (Adelaide) Advertiser. The Government is probably concerned that further articles and advertisements, critical of its decision, may resurface in the press.
1(b). The high cost nature of the AU$50 Billion Project might become increasingly unpopular nationally when placed against civilian health, education and welfare funding priorities.
The above opposition to the Project has boosted pressure from pro-Project forces including:
The above opposition to the Project has boosted pressure from pro-Project forces including:
2. the South Australian State Government (see State Premier Weatherill’s concern).
3. Federal Liberal MPs and Federal Liberal Senators from South Australia (including concern from Defence Industry Minister Christopher Pyne who just happens to be a Federal MP from South Australia).
4. Prestige and political need to confirm one of the Turnbull Government’s major political achievements to crow about - specifically the April 26, 2016 submarine decision which selected the DCNS Shortfin.
5. The very ship/submarine building orientated Nick Xenophon Team (NXT) political party has a near balance of power in the Senate and House of Representatives in Federal Parliament, Canberra. This allows NXT, if unhappy, to hold up Government legislation.
6. DCNS concern that the anti-Project forces might significantly delay or impede the Project.
7. Workers, voters and unions in South Australia concerned the Project might be delayed or impeded.
9. A political and/or legal need to simultaneously announce the DCNS signing decision with the Lockheed Martin selection decision.
Pete