Australia: Prime Minister Kevin Rudd appears to have backflipped on promises to grant government-owned, Adelaide-based defence contractor ASC sole newbuilding contracts for Australia's next-generation submarine fleet, with the government's Defence White Paper, released Saturday, indicating only that the vessels will be, "assembled in South Australia."
The government indicated it was looking to make substantial efficiency savings to pay for an ambitious 20-year expansion of Australia's defence forces. ASC has also been criticised for cost overruns on its maintenance programme of the Australian Navy's Collins-class submarines, and has clashed recently with government weapons purchaser, the Defence Materiel Organisation, according to the Australian Financial Review (AFR).
AFR reported that Adelaide is still expected to be the primary site for the construction of the 12 submarines, but that other local and foreign defence suppliers competing for work in the project, which are expected to include the Australian subsidiary of UK-based defence firm BAE Systems, would be able to use a common user facility built by the government at Port Adelaide.
"My first impression of the White Paper is very positive," responded ASC Managing Director Greg Tunny.
"Of course we will need some time to fully consider the White Paper and its implications, but it is encouraging to see that the government is placing a strong emphasis on submarines and other maritime capabilities.
"We look forward to working with Defence and believe we can make a major contribution to the development of its future naval platforms."
