Turnbulls financially risky defence project for Adelaide

first_imgFrance is the winner of the $50 billion contract to build the 12 submarines, beating the bids by Germany and Japan, after a lengthy competitive evaluation process. South Australia has secured the nation’ s biggest ever defence project after Prime Minister Malcolm Turnbull’s official announcement on Tuesday, that the 12 war naval machines would be built at ASC’s shipyards in Osborne, South Australia, creating 2,800 jobs nationwide. “Historic Choice by Australia for France and DCNS for the construction of 12 submarines; I congratulate all those who have contributed to it,” tweeted French President François Hollande, on Tuesday. “Our future submarines, 12 regionally superior submarines will be built here at Osborne in South Australia and the project will see Australian workers building Australian submarines with Australian steel here where we stand today,” said Turnbull during his official announcement in Adelaide. “We do this to secure our island nation but we do it also to ensure that our economy transitions into the economy of the 21st century,” he concluded. DCNS Australia’s chief executive officer Sean Costello confirmed that 90 per cent of the work will be done in Australia requiring a new production factory bigger than the Adelaide Oval. He also revealed that DCNS was happy to comply with requirements to use local steel, where possible. The Weatherill government welcomed the federal government’s decision which will contribute to SA’s much needed economic boost.“This is a massive step forward in the transformation of the SA economy, to meet our vision for an advanced manufacturing (and) hi-tech manufacturing economy,” said Premier Jay Weatherill after the announcement was made.“We’ve fought hard for it, and today we have the news our State has been waiting for – all 12 subs will be built in South Australia.”“This shows us the South Australian economy is already under transformation.Weatherill also said that he knows that submarines of this sort require steel of the sort that’s produced in Whyalla, giving hope about the financial future of the Arrium plant in Whyalla that’s currently in administration. It is a known fact that South Australia, displays the highest unemployment rate 7.7% in the country and is in desperate need of more infrastructure projects. The submarines, together with other naval projects are integral for SA economy. “12 Submarines built in Adelaide with the bulk of the work here in South Australia with Australian Steel and South Australian labour, is a great victory for our state,” tweeted SA Treasurer Tom Koutsantonis. Opposition Leader Steven Marshall agreed that the decision was “unambiguously good news for South Australia” but called for more detail on the local content. Along the same lines, independent Senator Nick Xenophon is keen to see the promises being followed through after the election. “The PM’s announcement today that the 12 submarines will be built in South Australia by French company DCNS, is unambiguously welcome.“But the devil will be in the detail and my job is to make sure the government guarantees a maximum number of Australian jobs and follows through on promise,” wrote Xenophon on social media. Along the same lines, Steve Georganas, Labor Candidate for Hindmarsh, has attributed this decision to the efforts of Labor, stating that more than 1,500 shipyard workers have already lost their jobs of the games the Liberals have played with the country’s vital shipbuilding industry. “Turnbull and his Government have been brought kicking and screaming to this decision by Labor, the SA Government, shipyard workers & the unions. “The SA community and the people of Hindmarsh deserve full credit for this decision, for refusing to accept the Governmentt breaking its promise to build 12 subs at ASC. After trying everything Turnbull & Marise Payne have finally made the right decision. The fact that it’s taken 3 years is an outrage,” said Georganas to Neos Kosmos before tweeting that “it’s disappointing that Turnbull doesn’t want to tell what percentage of submarines will be built in SA.”On another front, it seems the Japanese government as well as Mitsubishi Heavy Industries – which would have built the Japanese submarines – is not impressed with Australia’s explanation on why they chose to use the French design for the new war machines project. “The decision was deeply regrettable,” said Japan Defence Minister Gen Nakatani on Tuesday, whose country’s bid was publicly backed by former Prime Minister Abbott.“We will ask Australia to explain why they didn’t pick our design.” Facebook Twitter: @NeosKosmos Instagramlast_img read more