Warships jobs boom
GREG KELTON, MARK KENNY
June 21, 2007 02:15am
THE Federal Government's decision to go with the cheaper Spanish Navantia design for three new air warfare destroyers has opened up the possibility of a fourth being ordered.
The first of the destroyers should hit the water in 2014 after the Government agreed to the nearly $8 billion price tag at a special meeting of the national security committee of Cabinet on Tuesday evening.
ASC, formerly called Australian Submarine Corporation, will build the ships. The third vessel is scheduled for launch in 2017 - three years before what would have happened with the rival U.S. bid.
By that time, the State Government expects 4000 direct and indirect jobs will have been created by the project.
Premier Mike Rann and Treasurer Kevin Foley yesterday were at the site of the proposed Techport facility, which would support ASC's construction of the new destroyer.
Mr Rann said the State Government would invest $374 million in the Techport site at Osborne.
He said $31.4 million of this would be for a new air warfare destroyer systems centre.
The centre, which already has created more than 300 hi-tech jobs, is located at Felixstow.
Mr Rann said it would relocate to Techport in the first half of 2009, providing work for architects, warship designers, systems engineers and project managers.
"This consolidates SA as the centre for naval shipbuilding expertise in Australia," he said. "The decision to award the contract for a smaller Navantia design could lead to a fourth ship being built here - a move the Government will strongly support."
ASC Ship Building chief executive officer John Gallacher said it was not for the company to speculate on any government decision to build a fourth ship but it was a possibility.
"The contract we've got is for three but they've looked at the possibility of an option for a fourth," Mr Gallacher said. Government sources confirmed a fourth ship could become a feature of contract negotiations in November.
Mr Foley said the State Government aimed to double the defence sector's contribution to Gross State Product to $2 billion within 10 years. "Our aim now is to build on that momentum and bring more of the industry and jobs into our state and to achieve our target of increasing SA's defence workforce from 16,000 to 28,000 within 10 years," he said.
"This is an exciting time."
Mr Foley said the Spanish design would give SA as much work locally as if the U.S. Gibbs and Cox ship proposal had been accepted.
Federal Opposition defence spokesman Joel Fitzgibbon welcomed the decision but said the Government had "form" on cost blowouts for defence spending.
He said this included the joint strike fighter, the Seasprite and Tiger helicopters and the frigates.
GREG KELTON, MARK KENNY
June 21, 2007 02:15am
THE Federal Government's decision to go with the cheaper Spanish Navantia design for three new air warfare destroyers has opened up the possibility of a fourth being ordered.
The first of the destroyers should hit the water in 2014 after the Government agreed to the nearly $8 billion price tag at a special meeting of the national security committee of Cabinet on Tuesday evening.
ASC, formerly called Australian Submarine Corporation, will build the ships. The third vessel is scheduled for launch in 2017 - three years before what would have happened with the rival U.S. bid.
By that time, the State Government expects 4000 direct and indirect jobs will have been created by the project.
Premier Mike Rann and Treasurer Kevin Foley yesterday were at the site of the proposed Techport facility, which would support ASC's construction of the new destroyer.
Mr Rann said the State Government would invest $374 million in the Techport site at Osborne.
He said $31.4 million of this would be for a new air warfare destroyer systems centre.
The centre, which already has created more than 300 hi-tech jobs, is located at Felixstow.
Mr Rann said it would relocate to Techport in the first half of 2009, providing work for architects, warship designers, systems engineers and project managers.
"This consolidates SA as the centre for naval shipbuilding expertise in Australia," he said. "The decision to award the contract for a smaller Navantia design could lead to a fourth ship being built here - a move the Government will strongly support."
ASC Ship Building chief executive officer John Gallacher said it was not for the company to speculate on any government decision to build a fourth ship but it was a possibility.
"The contract we've got is for three but they've looked at the possibility of an option for a fourth," Mr Gallacher said. Government sources confirmed a fourth ship could become a feature of contract negotiations in November.
Mr Foley said the State Government aimed to double the defence sector's contribution to Gross State Product to $2 billion within 10 years. "Our aim now is to build on that momentum and bring more of the industry and jobs into our state and to achieve our target of increasing SA's defence workforce from 16,000 to 28,000 within 10 years," he said.
"This is an exciting time."
Mr Foley said the Spanish design would give SA as much work locally as if the U.S. Gibbs and Cox ship proposal had been accepted.
Federal Opposition defence spokesman Joel Fitzgibbon welcomed the decision but said the Government had "form" on cost blowouts for defence spending.
He said this included the joint strike fighter, the Seasprite and Tiger helicopters and the frigates.
