New issues paper says keeping naval ship and submarine building local should not be 'at any cost'

This article is more than 6 years old

This article is more than 6 years old

The Abbott government has sent another clear signal that it will not ensure “at any cost” that naval shipbuilding – including the manufacture of a new fleet of submarines – takes place in Australia.



A new issues paper which foreshadows some of the broad policy directions to be set out in more depth in a new defence white paper due for release in 2015 is explicitly ambivalent about the quality and cost-effectiveness of local naval ship and submarine building.

“The government wants to see shipbuilding continue in Australia, but not at any cost,” the new issues paper says. It also says there is “significant debate emerging about the future submarine and whether it should be built in Australia”.

The issues paper cites the future of local shipbuilding as “one of the biggest defence industry issues” but points out there is an opportunity cost if projects cannot be delivered efficiently and cost effectively by Australian firms.

“While successive Australian governments have shown a willingness to support the shipbuilding and repair sector, industry performance has been patchy, with some successful projects and some that have fallen short of international benchmarks,” the new defence issues paper says.

With the Coalition showing an inclination to buy overseas-produced, less costly naval assets, Labor and manufacturing unions have been stepping up a political campaign to keep shipbuilding projects in Australia.

The acting shadow defence minister, Gai Brodtmann, said on Tuesday the broad disposition confirmed in the issues paper was a broken election promise. Brodtmann said the Coalition had committed in May 2013 to build 12 submarines in Adelaide. “It is clear that the Abbott government is prepared to abandon the Australian shipbuilding industry, with no regard for the loss of jobs, skills and capability that will result,” she said.

As well as staking out the ground on domestic defence industry capability and future multimillion-dollar acquisitions, the issues paper also sets out the geopolitical context for defence policy under the new Coalition government.

The issues paper underscores the importance of ongoing intelligence co-operation between the Five Eyes partners – the US, Britain, New Zealand, Canada and Australia. This partnership “still forms the bedrock of our capacity to understand strategic developments in the Indo-Pacific and beyond”, the paper says.

Ahead of Ausmin talks – a forum that brings the Australian ministers for foreign affairs and defence together with the US secretaries of state and defence – the paper gives a strong commitment to the US alliance.

“Without the US alliance relationship it would not be possible for Australia to maintain the intelligence capabilities or the access to high technology defence equipment, which give such combat power to the ADF,” the issues paper says.

It also flags “enhanced cooperation” with the US marine corps and US air force in the north of Australia; the “possibility” of enhanced navy cooperation; and options for cooperation on defence technology areas, including cyber security, space, ballistic missile defence, anti-submarine warfare, special forces and aerospace.

The paper also flags the “more effective strategic use” of the Australian territories, Cocos Island and Christmas Island.

Media reports have pointed to the prospect of a joint Australia-US military base on Cocos that would allow drone flights to be launched into the region, including over hot spots such as the South China Sea.

The issues paper also points to enhanced defence cooperation with Japan, and China.

The issues paper rejects the view “presented by some analysts” that Australia faces a vexed strategic choice between promoting an alliance relationship with the US or pursuing an economic relationship with China.

The paper says Australia’s “surprisingly close and effective defence relationship with China” has been built on 15 years of bilateral dialogue. With China, “there will be opportunities for increased practical military-to-military contact, including on areas like search and rescue cooperation, humanitarian assistance and disaster relief, maritime cooperation and peacekeeping,” the paper says.