Due to announced future spending of more A$200 Billion on COVID-19 the Australian Government will eventually announce severe payment delays in big
ticket naval defence projects. This especially impacts the specific vessels or aircraft, Australia is buying, that have not yet actually “cut steel” including the:
- 12 x Attack class future submarines to cost more than A$100 Billion (life of project) for the RAN
- 9 x Hunter class future frigates to cost more than A$35 Billion for the RAN, and
- 12 x Attack class future submarines to cost more than A$100 Billion (life of project) for the RAN
- 9 x Hunter class future frigates to cost more than A$35 Billion for the RAN, and
- 6 x MQ-4C Triton marine reconnaissance UAVs to cost more than A$7 Billion for the RAAF.
Major contractors, including Naval Group (Attack class) and BAE Systems (Hunter class), will find their projects may be delayed 2 to 5 years.
This is
Pete
2 comments:
I don’t think the local build defence projects will be overly affected. The naval & army local build projects deliver jobs in both the build & supply chain. I do expect an even greater push for local suppliers, even those that would not normally get a look in. If a company that has never built medical ventilators can tool up & start doing so in a few weeks, others with a bit of help can do similar. It will likely cost more $ up front, but jobs are what we are going to need. Jobs & profits mean tax returns to the coffers. Completely overseas buy’s though is another matter.
Hi Anonymous
Naval defence jobs - hence votes - in Adelaide and Perth are always important, but the Australian Government has a limited amount of money it can safely spend without dire economuc distortions.
I predict there will be a renewed emphasis on the Collins class "life of type" extension https://www.abc.net.au/news/2019-02-20/navy-chief-collins-class-submarine-upgrades-future-subs/10829580
and
a two year delay in the Attack class program. The Government may only divulge this in Senate Estimates hearings later this year or in 2021.
It will mean steel will be cut on the Attack class no sooner than 2025.
In any case Naval Group (an arm of the French Government) is fully committed getting the Barracuda SSN to commissioning stage and
progressing the high priority French Replacement SSBN Program.
Regards
Pete
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