"I think the federal government will not only suffer dramatic losses in South Australia if they don't keep their promise [to build the subs in South Australia]...it will become a national economic issue.

"This is a hot button issue and if the Commonwealth government makes the wrong decision about this it will be a central issue at the next federal election...across the nation," Mr Weatherill said.

"We're told in South Australia we can't make cars. Now we're told we can't build the most sophisticated equipment on the face of the planet [submarines].

"What does it say about the ambitions for a nation that's not prepared to back itself in to have the talent, the skills and capacity to have an industry of this sort," Mr Weatherill said.

Mr Abbott has maintained there will be 500 extra jobs in Adelaide no matter which submarine is chosen.

But South Australian Liberal MPs fear there will be fewer jobs with a Japanese submarine given the French and Germans have both offered to build the bulk of the fleet in Adelaide and have experience in joint ventures with other countries.

The acquisition process has come in for heavy criticism from the opposition and analysts who allege it was put together to give the appearance of competition to cover a preference for a Japanese submarine as part of a strengthening of strategic ties between the two countries.

Japan would not have accepted an open tender given sensitivities surrounding its decision to abandon its postwar pacifist stance and embark on arms exports.


The 4200-tonne Japanese Soryu-class submarine, German firm TKMS' Type 216 and French firm DCNS' non-nuclear version of its 4700-tonne Barracuda submarine are being examined as part of the 10-month competitive evaluation process.

All three builders have been asked to put options for an offshore build, a hybrid build and an Australian build.

It was reported on Wednesday that Japan and Sweden's Saab may make a joint bid for the project though the Swedes were excluded from the Competitive Evaluation Process.

But a defence spokesman said there "have been no changes to the Competitive Evaluation Process".

"[However] the Japanese, French and Germans are free to work with third parties," the spokesman said.

Saab Kockums makes the propulsion systems for the Soryu class so some sort of sub-contracting tieup is possible between the two as part of the project.

The Japanese government threw Mr Abbottt a lifeline in January when Tokyo indicated for the first time it was willing to enter in to a joint build of the Soryu with Australia which would preserve some jobs in Adelaide.