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Old August 19th, 2007, 07:44 PM   #1
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Labor to build new subs in SA

Labor to build new subs in SA
Article from: The Advertiser

MARK KENNY, POLITICAL EDITOR, CANBERRA

August 20, 2007 02:15am

A RUDD Labor government would build Australia's next generation of hi-tech submarines in Adelaide.

The plan would cut through years of tender evaluation processes.

The surprise decision would ensure South Australia remained the centre of naval ship building beyond 2030 and guarantee thousands of jobs. And it would pump billions of dollars into the state economy.

The project could generate more than 5000 jobs, depending on the number of vessels ordered and their complexity.

It is likely the final contract for the new submarines could easily be up to $15 billion.

The choice of Adelaide without resort to a tender process also reflects the electoral importance of the state, which has five of the nation's most marginal seats.

The Labor initiative is the latest in an emerging bidding war for SA voters and comes just two days after Prime Minister John Howard pledged $100 million to upgrade the Southern Expressway, turning it into a dual carriageway.

The submarine announcement is also a major victory for incoming national ALP president, SA Premier Mike Rann.

The early declaration of Adelaide's ASC as the constructor for the major works places the Howard Government under political pressure to respond between now and the poll.

"There is widespread agreement that the Collins-class boats built by ASC in Adelaide are the best conventionally powered submarines in the world and that they provide a vital military capability for Australia," Mr Rudd said.

The lucrative contract would have major commercial implications for ASC, which is due to be privatised next year.

It will also come as unwelcome news to other hopeful companies, such as the Melbourne-based Tenix. ASC beat Tenix in 2005 to secure the then $6 billion contract to build the navy's new air warfare destroyers.

Labor wants construction of the first of the new submarines to begin as the fourth and last of the air warfare destroyers nears completion in 2017. This would be 30 years since the then Australian Submarine Corporation in 1987 won the $5 billion contract to build six Collins-class boats.

Labor plans to have the assessment process complete within three years to allow the federal government to give "first pass approval" in 2011.

The defence community has been aware of the eventual need for replacements for the Collins-class subs but no Government decision has been taken.

Opposition Defence spokesman Joel Fitzgibbon will tonight outline the plan and other aspects of Labor's defence thinking at a meeting of the Royal United Services Institute of SA.

Labor believes planning for the replacement vessels for the Collins-class submarines must begin immediately to take advantage of the flow of work and the retention of expertise associated with the air warfare destroyer contract.

That contract has been valued at $9.5 billion after the recent decision to build a fourth ship.

The decision is potentially a major boost for the state and cements it as the premier shipbuilding state into the future.

Labor's policy calls for the initial planning phase to begin immediately to identify the kind of vessels needed and the number to be built.

The Collins-class submarines, which in the early days of the project were beset with technical difficulties, are now regarded as the world's best conventionally powered submarines.

However, analysts advise the fast-moving nature of defence technology and the warfare it allows, means replacements must be planned for early.

SA's new Governor, retired Rear Admiral Kevin Scarce, recently said helping SA secure major defence contracts was part of his job.

He said there could be as much as $100 billion worth of defence work to tender for in coming years.
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Old August 20th, 2007, 02:21 AM   #2
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There's quite a difference between a $100m road upgrade and a $15 BILLION Submarine construction contract.
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Old August 20th, 2007, 03:18 AM   #3
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It is hardly earth shattering news, in 10-15 years the Navy's submarines are going to need replacing, and the logical place to build them is at the ASC in Adelaide.

We hear a lot about the "best conventional submarines in the world". We should think about getting nuc boats, a conventional subs greatest vulnerbility is when it is near the surface charging it's batteries, and also its poor endurance limited by battery power when high spends are needed. Nuc boats can stay deep, and go a lot faster. AIP is good, but has limited endurance.

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Old August 20th, 2007, 03:23 AM   #4
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Quote:
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There's quite a difference between a $100m road upgrade and a $15 BILLION Submarine construction contract.
Plus $1billion towards making South Road a expressway (Howard Proposal)
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Old August 20th, 2007, 07:17 AM   #5
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Looks like SA is going to get another major defence project, bringing the total cost of defence projects past the $25 billion mark. After Defence Minister Brendan Nelson has pledged to match the deal.

Total major projects - $49 billion!
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Old August 20th, 2007, 07:22 AM   #6
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Quote:
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Looks like SA is going to get another major defence project, bringing the total cost of defence projects past the $25 billion mark. After Defence Minister Brendan Nelson has pledged to match the deal.

Total major projects - $49 billion!
Over 20 years.
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Old August 20th, 2007, 07:23 AM   #7
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Hope they are better than the last lot Defence Minister, Beasley ordered in the Hawke/Keating government. What with leaks, steering problems, and a weapons system that was out of date even as it was being installed, it doesn't inspire any confidence for a future Federal Labor govt to get it right.

Leave sub building to the experts - Yanks, British, Germans, etc.
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Old August 20th, 2007, 07:26 AM   #8
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Quote:
Originally Posted by Crawf View Post
Labor to build new subs in SA
Article from: The Advertiser

MARK KENNY, POLITICAL EDITOR, CANBERRA

The Collins-class submarines, which in the early days of the project were beset with technical difficulties, are now regarded as the world's best conventionally powered submarines.
Says who? Mark Kenny, longstanding Labor Party hack from Adelaide.
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Old August 20th, 2007, 07:27 AM   #9
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Quote:
Originally Posted by gappa View Post
Over 20 years.
Actually most of it will be spent in the next 5-10 years.

Quote:
Originally Posted by Minnesota Twin View Post
Hope they are better than the last lot Defence Minister, Beasley ordered in the Hawke/Keating government. What with leaks, steering problems, and a weapons system that was out of date even as it was being installed, it doesn't inspire any confidence for a future Federal Labor govt to get it right.

Leave sub building to the experts - Yanks, British, Germans, etc.
I thought it was because of the yanks, not Australia.
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Old August 20th, 2007, 07:39 AM   #10
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Actually most of it will be spent in the next 5-10 years.



I thought it was because of the yanks, not Australia.
The Australian Submarine Corporation, set up in 1985 (Hawke Govt.) built their Collins class subs on the Swedish model.
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Old August 20th, 2007, 10:50 AM   #11
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Quote:
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The Australian Submarine Corporation, set up in 1985 (Hawke Govt.) built their Collins class subs on the Swedish model.
With an 'American' weapons system.
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Old August 20th, 2007, 11:18 AM   #12
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that should never have been purchased becasue it was out of date. Buyer beware!
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Old August 20th, 2007, 11:46 AM   #13
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The "Yanks" helped us to get them sorted out, after some of the diabolical decisions made and contracts signed by the previous government.
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Old August 20th, 2007, 11:48 AM   #14
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Quote:
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The "Yanks" helped us to get them sorted out, after some of the diabolical decisions made and contracts signed by the previous government.


This Government has wasted far more money than the last. We can thank Beazley for some great shifts in policy particularly in national defense.
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Old August 21st, 2007, 01:59 AM   #15
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On what? The Seasprites and LPA's were projects born during the ALP's administration of the ADF. What project since then are you claiming is worse than the original mistakes (since fixed) on the Collins subs?

And what was Beazley's great policy achievments as defence minister that you are alluding to?

In my opinion he was too quick to follow Dibbs recomendations (an isolationist defence of Australia doctrine) and under resourced the Army. He basically watched over the running down of the ADF, to the state where we could barely mount any overseas joint operation. It has taken years to fix the problems caused during that time.

I will give him some credit for getting more F1-11's though, pity he didn't add the proper tanker capability to the RAAF (or airborne AEW) that was so sorely and obviously needed at that time.

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Old August 21st, 2007, 03:58 AM   #16
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The late 80's and 90's was demilitarized compared to the decades preceding it.

He finally initiated a nation defense strategy that the states where promised at Federation. It's all right for someone in Brisbane to under estimate the importance of this shift.

As i said sure diss the previous Government but they did not waste the billions that the current Government has. Two failed overhauls, equipment purchased against the military s wishes.
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Old August 21st, 2007, 06:29 AM   #17
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I hope these are nuclear subs!
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Old August 21st, 2007, 07:53 AM   #18
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Quote:
Originally Posted by Citystyle View Post
The late 80's and 90's was demilitarized compared to the decades preceding it.

He finally initiated a nation defense strategy that the states where promised at Federation. It's all right for someone in Brisbane to under estimate the importance of this shift.

As i said sure diss the previous Government but they did not waste the billions that the current Government has. Two failed overhauls, equipment purchased against the military s wishes.
We'll have to agree to disagree, because I don't know WTF you are talking about, and I was in the military from 1988-1995.
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Old August 22nd, 2007, 01:42 PM   #19
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Destroyer hub deal
Article from: The Advertiser

CAMERON ENGLAND, CHIEF BUSINESS REPORTER

August 22, 2007 01:50pm

THE $170 million contract to build South Australia's shipbuilding hub has been won by a joint venture including local company Built Environs.

Premier Mike Rann announced today the contract to build the shipbuilding facilities at Osborne, as part of the $347 million Techport development, was awarded to Built Environs and fellow Australian-based company McConnell Dowell.

It is the the largest contract which will be let as part of the project and construction is expected to be finished by early 2010.

The 35ha Techport site at Osborne will be the centre of the $9.5 billion Air Warfare Destroyer construction project and will include Australia's largest shiplift, a wharf and a dry berth for ship construction and repiars.

"This is basically to supervise the whole multi-user facility," Mr Rann said, speaking at the Defence+Industry 07 conference at the Adelaide Convention Centre yesterday.

"What we're doing is developing a precinct which can handle a series of projects over many decades.

"But we're also at the same time, bringing together the Defence Unit and the Defence Industry Advisory Board, with the Port Adelaide Maritime Authority that develops Techport.

"The CEO will be Andrew Fletcher, who supervised the construction of the Adelaide to Darwin railway and the chairman of the board, of course, General Peter Cosgrove."

The new body would be named Defence SA, Mr Rann said.

"This board, under General Cosgrove's strong leadership, will ensure we reap the benefits of the defence projects we have already won, and that we aggressively and effectively pursue additional new projects," Mr Rann said.

Mr Rann said the government wanted to see the Edinburgh defence precinct developed into a "super base, covering all of the armed forces", following the deployment of an Australian Army mechanised battalion to the site, scheduled for 2011.

Former Defence Force chief General Cosgrove said the State had the aim, and the ability, to increase employment in the defence sector from 16,000 now to 28,000 in the next decade.

Mr Rann said the State Government was also bidding for a contract to replace all of the trucks and trailers for the Army.

The McConnell Dowell/Built Environs joint venture was previously contracted for the $6 million design phase of the project.
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Old August 23rd, 2007, 09:15 AM   #20
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We'll have to agree to disagree, because I don't know WTF you are talking about, and I was in the military from 1988-1995.
Does anybody ever know what Citystyle is talking about?
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