DEFENCE POLICY – AUSTRALIA

Collins forced to plug the subs gap

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Original article by Paul Maley
The Australian – Page: 1 & 2 : 1-Oct-18

The Federal Government has yet to sign a strategic partnering agreement with France-based Naval Group to build a new fleet of submarines. Marcus Hellyer of the Australian Strategic Policy ­Institute has warned that a delay in finalising the agreement may in turn push back the delivery date for the 12 new submarines. He says that the government may have to extend the life of the Collins-class submarines until at least the 2040s. The first of the new Shortfin Barracuda submarines is slated for delivery in the early 2030s.

CORPORATES
NAVAL GROUP, AUSTRALIAN STRATEGIC POLICY INSTITUTE LIMITED, AUSTRALIA. DEPT OF DEFENCE, LOCKHEED MARTIN CORPORATION

Rule Britannia as UK design wins $35b frigate deal

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Original article by Andrew Tillett
The Australian Financial Review – Page: 9 : 29-Jun-18

The federal government has selected UK-based BAE Systems to build Australia’s new frigates. BAE secured the $A35 billion contract ahead of Italy’s Fincantieri and Spanish company Navantia. The frigates will be known as the Hunter class and are expected to enter service in the late 2020s. Prime Minister Malcolm Turnbull has indicated that the frigate program will create 4,000 jobs, while BAE has stated that the frigates will feature up to 70 per cent Australian content.

CORPORATES
BAE SYSTEMS PLC, FINCANTIERI CANTIERI NAVALI ITALIANI SPA, NAVANTIA, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, AUSTRALIA. DEPT OF DEFENCE, AUSTAL LIMITED – ASX ASB, ASC PTY LTD

Subs blowout could scuttle tax cuts

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Original article by Andrew Tillett
The Australian Financial Review – Page: 5 : 12-Jun-18

Centre Alliance senator Rex Patrick has sought to link his support for the Federal Government’s company tax cuts package to the construction of a new submarine fleet. Patrick has expressed concern about the cost of the 12 submarines and warned that he cannot support the tax package until the full cost of the new fleet is disclosed. The Senate budget estimates committee was recently told that it will cost about $A50bn to build the submarines, but Patrick estimates that they could cost taxpayers around $A200bn in total during their operational life.

CORPORATES
CENTRE ALLIANCE, AUSTRALIA. DEPT OF DEFENCE, AUSTRALIAN STRATEGIC POLICY INSTITUTE LIMITED, NAVAL GROUP

PM plots possible sale of naval shipbuilder

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Original article by Laura Tingle
The Australian Financial Review – Page: 1 & 6 : 28-Apr-16

The value of Adelaide-based ASC has risen significantly since the Federal Government announced that its shipyards will be used to build the nation’s new $A50bn submarine fleet. There is renewed speculation that the Government may consider privatising ASC, whose shipyards will also be used to build new naval frigates and patrol boats. Meanwhile, some estimates have suggested that building the submarines in Australia will increase the final cost by 30-40 per cent, although the Government believes that the cost can be reduced significantly by the time construction commences.

CORPORATES
ASC PTY LTD, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, AUSTRALIA. DEPT OF DEFENCE, AUSTRALIA. DEPT OF FINANCE

Adelaide-built submarines will cost more, Coalition concedes

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Original article by Laura Tingle
The Australian Financial Review – Page: 1 & 8 : 27-Apr-16

The Australian Government’s decision to build a new $A50bn fleet of submarines in Adelaide will create 2,800 jobs in South Australia, including 1,100 direct jobs. RAND Corporation has estimated that building the 12 submarines overseas would have reduced the cost by 30-40 per cent, but notes that the cost will be reduced by having a continuous shipbuilding program. The submarine contract has been awarded to France-based DCNS, which edged out defence contractors from Japan and Germany.

CORPORATES
AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, AUSTRALIA. DEPT OF DEFENCE, DCNS SA, RAND CORPORATION, JAPAN. MINISTRY OF DEFENCE, JAPAN. OFFICE OF THE PRIME MINISTER, AUSTRALIAN LABOR PARTY

Subs won’t be sunk by unions, says Premier

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Original article by Simon Evans
The Australian Financial Review – Page: 8 : 22-Sep-15

South Australian Premier Jay Weatherill has told the Federal Government that there are compelling reasons to award the contract to build a new submarine fleet to Adelaide-based ASC. He has noted in particular the harmonious relations with the three unions that have a presence on the site. They have agreed to keep industrial action to a minimum in order to increase the prospects of submarine work being awarded to ASC. Several offshore groups are also bidding for the contract.

CORPORATES
SOUTH AUSTRALIA. DEPT OF THE PREMIER AND CABINET, ASC PTY LTD, AUSTRALIA. DEPT OF DEFENCE, AUSTRALIAN WORKERS’ UNION-FEDERATION OF INDUSTRIAL, MANUFACTURING AND ENGINEERING EMPLOYEES, AUSTRALIAN MANUFACTURING WORKERS’ UNION, COMMUNICATIONS, ELECTRICAL, ELECTRONIC, ENERGY, INFORMATION, POSTAL, PLUMBING AND ALLIED SERVICES UNION OF AUSTRALIA, LIBERAL PARTY OF AUSTRALIA, ROYAL AUSTRALIAN NAVY

Plan to save Australian shipbuilding industry

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Original article by John Kerin
The Australian Financial Review – Page: 4 : 31-Mar-15

ASC, BAE Systems and Forgacs have begun shedding workers at their Australian shipyards in response to a lull in defence projects. The Federal Government has proposed a new strategy for the shipbuilding industry whereby new naval vessels will be continuously built over the next two decades, replacing older vessels as they are retired from service. Japan has a similar program for its submarine fleet

CORPORATES
ASC PTY LTD, BAE SYSTEMS AUSTRALIA LIMITED, FORGACS ENGINEERING PTY LTD, AUSTRALIA. DEPT OF DEFENCE, AUSTRALIAN STRATEGIC POLICY INSTITUTE LIMITED

PM pledges SA jobs in submarine project

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Original article by John Kerin
The Australian Financial Review – Page: 6 : 9-Jan-15

The Australian Government has not yet decided which option it will choose to replace the Collins class submarine fleet. Prime Minster Tony Abbott said on 8 January 2015 that there will be no loss of jobs in Adelaide. The Japanese Government proposed to build the new vessels with the Soryu-class submarine as the basis for the $A20 billion project, and some work to be done in Australia

CORPORATES
AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, AUSTRALIAN LABOR PARTY, THYSSENKRUPP AUSTRALIA PTY LTD, DCNS SA, BAE SYSTEMS AUSTRALIA LIMITED, FORGACS ENGINEERING PTY LTD

Japanese subs on the way

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Original article by Phillip Coorey, John Kerin, Simon Evans
The Australian Financial Review – Page: 1 & 4 : 9-Sep-14

The Australian Government is believed to have decided to purchase a new fleet of submarines from Japan, in a major blow for the local shipbuilding industry. South Australian Premier Jay Weatherill has warned that the state’s federal MPs will face an electoral backlash if the submarines are built overseas rather than by Adelaide-based shipbuilder ASC. The Federal Government’s 2013 election platform included a commitment to build the submarines in Adelaide

CORPORATES
AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, SOUTH AUSTRALIA. DEPT OF THE PREMIER AND CABINET, ASC PTY LTD, AUSTRALIA. DEPT OF INDUSTRY, THE AUSTRALIAN INDUSTRY GROUP, SYDNEY INSTITUTE, GROUP OF TWENTY (G-20), AUSTRALIA. DEPT OF DEFENCE, LIBERAL PARTY OF SOUTH AUSTRALIA, AUSTRALIAN LABOR PARTY, DCNS SA, THYSSENKRUPP MARINE SYSTEMS GMBH, SAAB AB