Australia's Turnbull Coalition Government has made a major
announcement today which covers a continuous building program for three surface
vessel classes. These are Offshore
Patrol Vessels (OPVs), Future
Frigates (FFs) and Pacific Patrol
Boats (PPBs).
The announcement, by Prime Minister Turnbull and Defence Minister Marise Payne, is in the Media Release, of April 18, 2016, below http://www.minister.defence.gov.au/2016/04/18/prime-minister-and-minister-for-defence-continuous-naval-shipbuilding/ .
The announcement is aimed at improving the Coalition Government's chances of winning the next Federal Election, which appears very likely to occur on July 2, 2016. [P.S. it did occur on that date]
The announcement in particular is aimed at improving the
Turnbull Government prospects in South Australia, which is described as a swing
state, where Coalition MP and Senate positions may be lost. South Australia was promised the FF build months ago and the OPV build was also thought likely in South Australia. This helps protect
the seat of the most important Government MP in South Australia who is the
Industry Minister, Christopher Pyne. South Australia is heavily contested
between 4 parties: the Liberals, Labor, Greens and the emerging Xenophon Team.
The other major beneficiary of the announcement is
Western Australia – with the most prominent MP being the Foreign Minister (also
Deputy Leader of the Liberal Party) Julie Bishop. Austal
at Henderson (part of Perth) Western Australia specifically benefits. Western Australia is normally Liberal, that is
pro-Coalition but Labor is significant. The shipbuilder Civmec is likely to benefit in Western Australia. Civmec also owns Forgacs shipbuilding sections interests at Tomago, NSW. The Defence Minister Marise Payne is a
Senator from NSW.
Cairns in Queensland gains from PPB maintenance.
The big loser is Williamstown dockyard in Victoria,
considered a Labor heartland. The Coalition has few seats in Victoria to lose,
so this shipbuilding announcement doesn’t favour or even mention Victoria.
A future submarine announcement, however, may benefit Williamstown
Victoria, and also South Australia and Civmec Western
Australia. If any announcement on submarines is made before a July 2, 2016
election it is likely to imply but perhaps not specifically promise that all submarines will be built in Australia. There is
probably insufficient time and political risk in the run-up to an Election of
specifying the actual winning contender (or a shortlist of two).
The Media Release is below http://www.minister.defence.gov.au/2016/04/18/prime-minister-and-minister-for-defence-continuous-naval-shipbuilding/ In [ brackets I have put in hotlinks to the shortlisted vessel type or range of vessels] :
"Prime Minister and Minister for Defence
– Continuous Naval Shipbuilding
18 April 2016
The Turnbull Government is securing a sustainable
long-term Australian naval shipbuilding industry.
Today the Government is announcing the build
locations for 12 Offshore Patrol Vessels and up to 21 Pacific Patrol Boats, in
addition to nine Future Frigates previously announced.
These announcements provide for two shipyards to
implement the Government’s commitment to a continuous build of naval surface
ships in Australia. Major warships will be built in Adelaide and minor vessels
in Henderson, Western Australia.
These three projects will ensure Australia retains
a sovereign capability to build and sustain its naval vessels. Together they
represent close to $40 billion worth of investment in Australia’s future naval
capabilities and our naval shipbuilding industry.
They will directly secure more than 2,500 jobs for
decades to come. They will also generate thousands of additional jobs with
suppliers.
Offshore Patrol Vessels
· First pass approval for the Offshore Patrol
Vessels, with construction to begin in Adelaide from 2018, following the
completion of the Air Warfare Destroyers and transfer to Western Australia when
the Future Frigate construction begins in Adelaide in 2020. This approach
ensures that jobs and skills are retained in Adelaide.
· As part of the Competitive Evaluation Process three
designers have been shortlisted;
- Lurssen of Germany [ offering the PV-80 ]
to refine their designs.
· This program is estimated to be worth more than $3
billion and will create over 400 direct jobs.
Future Frigates
· First pass approval for the Future Frigates. Three
designers
- BAE Systems with the Type 26 Frigate;
[ https://en.wikipedia.org/wiki/Global_Combat_Ship Type 26 ]
[ https://en.wikipedia.org/wiki/Global_Combat_Ship Type 26 ]
- Fincantieri with the FREMM Frigate
[ https://en.wikipedia.org/wiki/FREMM_multipurpose_frigate ]
and
[ https://en.wikipedia.org/wiki/FREMM_multipurpose_frigate ]
and
- Navantia with a redesigned F100
[ https://en.wikipedia.org/wiki/%C3%81lvaro_de_Baz%C3%A1n-class_frigate F100 ]
have been short-listed to refine their designs. The frigates will all be built in Adelaide, incorporating the Australian-developed CEA Phased-Array Radar.
[ https://en.wikipedia.org/wiki/%C3%81lvaro_de_Baz%C3%A1n-class_frigate F100 ]
have been short-listed to refine their designs. The frigates will all be built in Adelaide, incorporating the Australian-developed CEA Phased-Array Radar.
· The Competitive Evaluation Process is on schedule
to return second pass approval in 2018, which will allow for construction to
commence in Adelaide in 2020.
· This program is estimated to be worth more than $35
billion, and will directly create over 2000 jobs.
Pacific Patrol Boats
· Combined first and second pass approval for the
replacement Pacific Patrol Boats. Austal Ships Pty Ltd has been selected
as the preferred tenderer to construct and maintain up to twenty-one
replacement steel-hulled Pacific Patrol Boats in Henderson, Western Australia.
· Subject to negotiations, this program is estimated
to be worth more than $500 million and will directly create over 130 jobs.
· Austal proposes to conduct support of the
replacement Pacific Patrol Boats including deep maintenance from Cairns,
Queensland. In total, through-life support and sustainment (including deep
maintenance) for the Pacific Patrol Boats is valued at a further $400 million
over the life of the boats.
Today’s announcements are central to the
Government’s comprehensive Naval Shipbuilding Plan. These three significant
ship builds will deliver the necessary infrastructure requirements across the
Adelaide and Henderson shipyards. They will create new jobs, develop necessary
skills and broaden cooperation between industry and government.
The Turnbull Government is committed to maximising
the opportunities for our Australian Defence industry to participate in these
shipbuilding programs. Through the Defence Industry Policy Statement the
Turnbull Government will reset the relationship between Defence and industry,
driving jobs and innovation which will have spillover effects into the wider
economy. In particular, the new Centre for Defence Industry Capability
will help small to medium enterprises identify opportunities to join the supply
chains necessary to deliver these ambitious naval shipbuilding projects.
After six years of Labor inaction in which more than
$18 billion was ripped from the Defence budget, the Turnbull Government is
getting on with the job of securing our long-term national security and
economic prosperity. The Government’s historic continuous build program will
ensure the Navy receives its future capability requirements while delivering
the certainty that shipbuilders need."
ENDS
Please connect with:
A good ASPI Strategist commentary on the coming congestion in Adelaide of building so many ship/submarine types, sustainment and upgrades - is Mark Thomson's "Building the future Navy: the OPVs" of 28 April, 2016.
Pete
Please connect with:
A good ASPI Strategist commentary on the coming congestion in Adelaide of building so many ship/submarine types, sustainment and upgrades - is Mark Thomson's "Building the future Navy: the OPVs" of 28 April, 2016.
Pete
