EVEN the collective clout of WA’s business and government communities was not enough to capture the $2.5 billion Navy submarine refit deal.
EVEN the collective clout of WA’s business and government communities was not enough to capture the $2.5 billion Navy submarine refit deal.
The Prime Minister has put his name behind the South Australian Government in a move many in WA saw as politically motivated, with both the Federal and the South Australian Liberal Govern-ments facing elections soon.
But WA’s loss was not through lack of trying.
While it was difficult to ascertain the total amount spent by the State Government in its fight to win the contract, figures released to Business News show the Government spent almost $100,000 on promotional videos and advertising in national newspapers up to June 30 to bolster support for the bid. But the total figure could easily be twice that.
The money included almost $11,000 spent on producing a video package, $1,302 on flipcharts, $2,320 on CD burning and more than $25,000 on the production of a brochure and CD.
A further $61,392 was spent on advertising and $7,566 was channelled toward public relations firm RHK Public Relations.
In addition, money was spent by the WA Department of Industry and Technology on a report commissioned by British submarine refitting company Babcock Engineering, which endorsed WA as having the infrastructure in place to deal with the work.
The submarine contract, which was awarded by John Howard on Tuesday, will be worth $420 million over the next seven years and $2.5 billion over the 28-year life of the vessels.
Each of the six submarines will be refitted by the Adelaide-based Australian Submarine Corporation every seven years, taking 12 months and costing $70 million each.
Five of the vessels are in operation now with the sixth to be launched by Mr Howard on November 7.
But WA does not completely go away empty handed. Mr Howard said an additional $240 million of maintenance would be carried out in WA.
But it is small comfort for the major defence contractors such as Tenix, Raytheon, Transfield and United Construction.
Smaller operators, including Veem Engineering, Austindo, Reads Electrical Co, EJ Electrical Engineering Contractors, Westrek and Wiltrading, which already provide maintenance services to the WA-based submarines will not receive the much anticipated windfall.
By making the announcement this week, Mr Howard went against the advice of the Chamber of Commerce and Industry of WA.
CCIWA chief executive Lyndon Rowe had called on the Federal Government to put its decision on hold until after the election.
“Though the Prime Minister has signalled the Government’s intentions, the decision on where the Navy’s west coast submarine fleet will be refurbished should be shelved until after the coming Federal election and reconsidered in a non-political environment,” Mr Rowe said.
The Prime Minister has put his name behind the South Australian Government in a move many in WA saw as politically motivated, with both the Federal and the South Australian Liberal Govern-ments facing elections soon.
But WA’s loss was not through lack of trying.
While it was difficult to ascertain the total amount spent by the State Government in its fight to win the contract, figures released to Business News show the Government spent almost $100,000 on promotional videos and advertising in national newspapers up to June 30 to bolster support for the bid. But the total figure could easily be twice that.
The money included almost $11,000 spent on producing a video package, $1,302 on flipcharts, $2,320 on CD burning and more than $25,000 on the production of a brochure and CD.
A further $61,392 was spent on advertising and $7,566 was channelled toward public relations firm RHK Public Relations.
In addition, money was spent by the WA Department of Industry and Technology on a report commissioned by British submarine refitting company Babcock Engineering, which endorsed WA as having the infrastructure in place to deal with the work.
The submarine contract, which was awarded by John Howard on Tuesday, will be worth $420 million over the next seven years and $2.5 billion over the 28-year life of the vessels.
Each of the six submarines will be refitted by the Adelaide-based Australian Submarine Corporation every seven years, taking 12 months and costing $70 million each.
Five of the vessels are in operation now with the sixth to be launched by Mr Howard on November 7.
But WA does not completely go away empty handed. Mr Howard said an additional $240 million of maintenance would be carried out in WA.
But it is small comfort for the major defence contractors such as Tenix, Raytheon, Transfield and United Construction.
Smaller operators, including Veem Engineering, Austindo, Reads Electrical Co, EJ Electrical Engineering Contractors, Westrek and Wiltrading, which already provide maintenance services to the WA-based submarines will not receive the much anticipated windfall.
By making the announcement this week, Mr Howard went against the advice of the Chamber of Commerce and Industry of WA.
CCIWA chief executive Lyndon Rowe had called on the Federal Government to put its decision on hold until after the election.
“Though the Prime Minister has signalled the Government’s intentions, the decision on where the Navy’s west coast submarine fleet will be refurbished should be shelved until after the coming Federal election and reconsidered in a non-political environment,” Mr Rowe said.
