David Johnston attacked government-owned shipbuilder ASC during Senate debate on new submarine contract

This article is more than 5 years old

This article is more than 5 years old

Tony Abbott has thrown his support behind Australian submarine makers his defence minister wouldn’t trust to build a canoe.



David Johnston told parliament on Tuesday the government-owned shipbuilder ASC was $350m over budget on a project to construct three air warfare destroyers for the navy.



“You wonder why I wouldn’t trust them to build a canoe,” he told the upper house.



The heated exchange came amid debate about whether the government will honour a promise to build a dozen new submarines in Australia, or buy them from overseas.



The prime minister defended ASC, formerly the Australian Submarine Corporation, saying it played a vital role in supporting the navy.



“Whilst ASC has had challenges meeting the government’s cost and schedule expectations of the Air Warfare Destroyer program, we are working closely with ASC on a reform strategy to improve shipyard performance and productivity,” he said in a statement on Wednesday.



“It is early days, but the government is confident that ASC and its partners will successfully turn the corner on this important build.”



He said ASC had transformed its submarine maintenance program over the past year and exceeded navy-set targets.