Greg Combet, The Australian Minister for Defence Personnel, Materiel and Science, has announced reforms to Australia's naval ship repair sector.

"These reforms will lead to greater certainty in the naval ship repair sector allowing for increased investment and better performance," Mr Combet said.

"Under these reforms, the Defence Materiel Organisation will reform the Navy's Major Fleet Unit Repair and Maintenance programme as outlined in the Smart Sustainment initiative. The principal element of the reform programme is the establishment of long-term performance based contracts for repair and maintenance activities in lieu of the current arrangement that is based on awarding a contract under a panel arrangement for each and every maintenance activity.”

Mr Combet said that the reforms would affect the maintenance and repair of the eight Anzac-class frigates, four Adelaide-class frigates, two amphibious landing ships and one heavy landing ship.

The announcement comes just days after the Australian Navy reported mechanical and electrical failures on the HMAS ‘Farncomb’, part of the Collins-class of submarines.

"It is also intended that these new maintenance concepts will be extended to new ship classes such as the air warfare destroyers and the landing helicopter dock ships when they are introduced.”

The Australian Government spends an average of US$134 million on major surface ship repair and maintenance.

The Defence Department also released a statement on January 28 confirming that the Australian Government’s new submarines would be build in Adelaide.