February 13, 2019

Australian Government on Future Submarine Program SPA

COMMENT

This is a preliminary, for the record, post on what the current Coalition (noting yesterday’s news) Government of Australian Prime Minister Morrison said. This is regarding the February 11, 2019, Australian Future Submarine Program Strategic Partnering Agreement (SPA).

Further comment and analysis, at Submarine Matters, will follow next week, noting the Australian Government will almost certainly be out of office on May 18, 2019, if not before with a new Labor Party Government in office. 

A rapid change of Government, just after the SPA is signed, will weaken the legitimacy of the SPA.

As usual I've added comments in [...] brackets, links and some bolding for emphasis.

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MEDIA RELEASE:11 Feb 2019: Prime Minister [Morrison], Minister for Defence, Minister for Defence Industry https://www.pm.gov.au/media/government-delivers-future-submarine-program

“A key plank of the Government’s plan to keep Australians safe has been locked in with the signing of the Attack class submarine Strategic Partnering Agreement with Naval Group.
The $50 billion Attack class program will see 12 regionally superior [but inferior to SSNs] submarines designed and built in Australia for the Navy.
The formal signing of the Agreement is a defining moment for the country.
The submarines will help protect Australia’s security and prosperity for decades to come and also deepen the defence relationship between Australia and France.
Work on the submarines has taken place under the Design and Mobilisation Contract and this will continue uninterrupted under this Agreement.
Our Government is committed to maximising local industry involvement in the program to ensure Australians get the most out of this important national investment.
It’s estimated the program will generate an annual average of around 2,800 jobs, helping end the ‘valley of death’ in naval shipbuilding jobs we inherited from the Labor Party.
Work continues to deliver the first Attack class submarine, to be named HMAS Attack, in the early 2030s within budget.
The formalisation of this agreement represents the contractual basis for the program.
The decision to partner with Naval Group (formerly DCNS) was made in 2016, following a competitive evaluation process commenced by our Government after the Labor Party failed to commission even one single new ship for our Navy. During the negotiations, the Government focused on delivering an equitable and enduring agreement in the interests of our nation.
Other activities required to deliver this major program, including the development of the submarine construction yard at Osborne in South Australia, are continuing. 
The Attack class submarines are a major pillar of our $90 billion National Shipbuilding Plan, which will see 54 naval vessels built in Australia, to meet the strategic requirements set out in our 2016 Defence White Paper and giving our Navy the edge it needs in an uncertain world.
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COMMENT

Below is an abridged version of the Transcript deleting most of Morrison’s vacuous embellishments. After all, it is a business deal. Morrison did not need to be part of the event given neither the French President nor the French Prime Minister were there. But perhaps the SPA is Morrison’s Swan song before taking a related post political career position? 

A submarine deal does not maketh a defence alliance with France, particularly since some French companies supply/have supplied weapons and components to China.
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PRIME MINISTER MORRISON TRANSCRIPT, 11 Feb 2019, Russell [DoD] Offices, Canberra https://www.pm.gov.au/media/remarks-strategic-partnership-signing.

PRIME MINISTER [said]: ...I also extend a very warm welcome to [French Armed Forces] Minister Florence Parly, it’s wonderful to have you here with us today. I know you’ve made a special effort to be here with us today...

To his Excellency [French Ambassador to Australia] Christophe Penot, thank you very much for all of your efforts in bringing us to this point today, working so closely....To my ministerial colleagues who are joining us today, particularly the Minister for Defence Christopher Pyne, congratulations Christopher on your stewardship of this....
What that means is that ensuring we are at the front of the pack when it comes to the latest naval vessels and firepower. As part of our Government's plan to keep Australians safe, we’re celebrating a milestone today with the next phase of our Future Submarine Program. In 2016 the Government selected France and Naval Group as our international partners to deliver a 12 strong fleet of cutting-edge submarines, as we promised to do. The signing today of the Strategic Partnership Agreement to deliver these submarines underscores the longstanding and strategic partnership between Australia and France.
...It’s more than a contract.
This is a project that will not only keep Australians safe, but it will deliver Australian jobs. It will build Australian skills. It will be made and require Australian steel....
Our Government is committed to maximising Australian industry content in the Future Submarine Program...
Hundreds of Australians are already employed on the Future Submarines Program and thousands more will be through the supply chain during the construction phase. So, as pleased as I know Premier Marshall is about the jobs in South Australia, these jobs reach right across our great continent.
The signing of this agreement today demonstrates our Government is delivering on our promise on the naval shipbuilding plan. It is a $90 billion commitment to build in total 54 new naval vessels and grow a strong, sustainable and sovereign Australian naval shipbuilding industry.
...Our region, which we keep secure, in close partnership with our valued allies. So we are delivering for our Navy, our nation and our people as we promised. We are delivering for our defence industry and jobs and we are delivering on our steadfast commitment to keep Australians safe and secure.
I conclude by thanking again all of those who have brought us to this point today, but I particularly want to commend Ministers Pyne and Parly for the wonderful working relationship they've had to bring us to where they are today and look forward to that relationship continuing into the future as we get this done. Thank you.”
Pyne and Morrison pleased with themselves, while Parly pensive. Note submarine model has that controversial pump jet which France most probably won't be supplying.
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 Next is a Submarine Matters article with Naval Group comments on the SPA.
Pete

5 comments:

  1. Pete have you missed this?

    https://www.defensenews.com/global/europe/2019/02/11/naval-group-clinches-35-billion-australian-submarine-deal/

    /Kjell

    ReplyDelete
  2. Thanks /Kjell

    I'm looking at https://www.defensenews.com/global/europe/2019/02/11/naval-group-clinches-35-billion-australian-submarine-deal/ and many other articles on what the French/Naval Group may think of the SPA deal.

    More tomorrow and next week.

    Regards

    Pete

    ReplyDelete
  3. jack commented

    [former Australian Prime Minister] John Howard also awarded billions of dollars of defense contracts a few months before he stepped down, including but not limited to the AWD (air warfare destroyer) order.

    ReplyDelete
  4. Thanks Jack

    It will be interesting whether the future Labor Government will continue the Coalition momentum of continuous shipbuilding.

    Or will Labor again worry about negotiating with Labor supporting shipbuilding UNIONS to

    the extent Labor concludes "its all too hard" and grinds all that Coalition good work to a halt.

    Regards

    Pete

    ReplyDelete
  5. The comment in brackets in the article re SSN being superior is not necessarily correct. The 3 main advantages of SSN is range, speed & ability to stay submerged longer. The downsides are a nuclear reactor that you are going to have to deal with for hundreds of years, a heat plume visible in shallow water & a tendency to be noisy. SSK are slower, cannot stay submerged as long & shorter range. They are also quieter (when operating on batteries), no heat plume so can operate easier in shallow waters & are capable of going dead quite for a considerable period of time. SSNs cannot stop their cooling pumps for an extended period of time or the reactor will overheat. If you want to operate in the shallow water to the north of us, or close to shore anywhere, SSK is the better option. Want to operate in the deap waters of the Indian & Pacific oceans, SSN has the advantage. There are reasons why USN has had great difficulty detecting Japanese, Australian & Swedish submarines in exercises. They got so embarrassed they hired a Swedish sub complete with crew to practice against.

    So do you need to worry more about the SSN sitting outside Sydney heads or the SSK sitting inside the harbour?

    ReplyDelete

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