WA gets small slice of $89bn shipbuilding plan

Defence Issues Minister Paul Papalia says Western Australia has been dudded in the federal government’s $89 billion naval shipbuilding plan, of which WA will receive just over $3 billion of work, while the prime minister has lauded it as “unashamedly nationalistic”.

Mr Papalia told reporters today that only 4 per cent of the project would be carried out in Henderson, with Adelaide to take the lion’s share.

The program will produce 12 submarines, nine frigates and 12 offshore patrol vessels for the Australian Navy, as well as 19 Pacific patrol boats for neighbouring countries.

“What we’ve had confirmed is Austal will build the Pacific patrol boats, that’s a $500 million project, and we’re promised 10 of the offshore patrol vessels, but they’re going to start building them in South Australia,” Mr Papalia said.

“Who thinks that after the next federal election they’re going to shift all of that to Western Australia? Who’s confident of that?

"I’m worried that that won’t happen and I think doesn’t make any sense anyway because you’re spending taxpayers’ money to start construction in one state and then you’re going to lift it all and shift all of that capability to another state and replicate that process all over again. It doesn’t make economic or political sense because I would expect South Australians to fight to keep them once they start building those ships.”

The plan includes $1.3 billion allocated to upgrade facilities in the two states, with only $100 million of that slotted for WA.

The federal government will also establish a $25 million naval shipbuilding college in Adelaide to train workers, with the SA workforce to reach 5,000 by 2026.

“We’re getting dudded on ship and submarine builds and Western Australians should remember that as we approach the next election,” Mr Papalia said, dismissing assurances that sustainment work would be carried out over decades to come in WA as a no-brainer for ships that are built in the state.

“By comparison there is very little fabrication work in that. We need fabrication work now.

“There are 100,000 Western Australians out of work and they are highly skilled from the offshore oil and gas and mining sectors. They have the capacity to do this work.”

Mr Papalia said he believes the $1.2 billion spend on facility upgrades in SA would be to build what already existed in Henderson.

“It is ridiculous that they’re trying to establish something from scratch down in SA,” he said.

“It doesn’t make any sense at all to spend so much money on trying to replicate a capability in SA when we’ve got it right here, but I also don’t think the South Australians are up to it.”

WA Senator Linda Reynolds dismissed Mr Papalia’s comments, saying it was disappointing to hear him talk down the announcement.

“This is unequivocally great news for WA,” she said.

“The state minister must step up and stop his unproductive megaphone politicking at the federal government and work with us to deliver Australia’s second naval shipbuilding hub in Henderson.

“The only way this will be delivered is by state and federal governments working together in the interest of all Western Australians.”

However, Senator Reynolds said federal funding for a floating dock was needed for the local industry to service sustainment and maintenance needs in the future.

“The former Liberal state government had already put forward a business case for the estimated $300 million floating dock and it’s ready to go,” she said.

Prime Minister Malcolm Turnbull told reporters in Adelaide today that the project was a continuous shipbuilding commitment for generations to come.

"This is truly nation-building, a great national enterprise and it brings with it that enormous employment boost,” he said.

"It is unashamedly nationalistic.

"My government believes that it is not only in the interests of securing the capabilities that our defence forces, but also it secures our economic future, our industrial future.

"This is about national security and it's about economic security."

The strategy indicates that recruiting the necessary skilled workers will be a challenge but suggests job opportunities in allied industries and the defence supply chain could top 10,000.

But Defence Industry Minister Christopher Pyne said Australia would not look overseas to fill positions.

"We will not be bringing foreign workers in to build the ships or submarines," Mr Pyne said.

However, he said a miniscule number of trainers would be brought in to "transfer their intellectual property to our workforce" as part of the submarine project involving French contractor DCNS.