Lock in a time to build new ships in SA

2013-05-07

URGENT decisions on funding and timelines for new vessels are needed to lock in jobs for South Australian defence companies, industry warns.

Federal Defence Minister Stephen Smith visited Adelaide today after the release of a new strategic plan.

He confirmed that money for the patrol and resupply vessels would be included in next week's Budget.

However, there is no firm timeline for the builds and SA is expected to face competition from other states.

SA's defence sector is currently underpinned by assembly of three Air Warfare Destroyer ships, work that will wind down from 2017, and there are fears of a grave gap opening up before the future submarine program starts.

The $36 billion plan to build 12 submarines in Adelaide is unlikely to start before 2020.

Defence Teaming Centre chief executive Chris Burns, who represents SA supply firms, said the patrol and resupply projects could help bridge the gap but time was running out to ensure they commenced in time to avoid a costly exodus of workers.

"The projects are all vitally important to us and can go to solving the valley of death (between projects), but decisions have to be made very, very quickly and money allocated," Mr Burns said yesterday.

"They are already laying off design engineers at Australian Submarine Corporation because there is no work for them and the blue-collar workforce out there starts to be reduced from 2016 on."

Mr Burns said the complexity of maritime programs meant long delays between approval and construction.

"It's decisions that should have been made last year, not in the next Budget," he said.

Defence SA chief executive Andrew Fletcher, who lobbies Canberra on behalf of the State Government, said the Techport facility gave Adelaide a "huge advantage" in bidding for the boat contracts.

Premier Jay Weatherill said the industry should have "great confidence in the future".

SA Opposition Leader Steven Marshall said Friday's revelation that a fourth Air Warfare Destroyer would not be built here was "a major blow" to the economy.

Source from : adelaidenow

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