WA wins in $11bn Navy investment: PM

Western Australia will be a significant beneficiary of an $11 billion investment to double the size of the nation’s Navy surface combatant fleet, according to Prime Minister Anthony Albanese.

Defence Minister Richard Marles today announced a government spend of $1.7 billion over the budget’s forward estimates, and $11.1 billion over a decade, to accelerate the delivery of the Navy’s 26-vessel future surface combat fleet.

The fleet will be the nation’s largest of its kind since World War II and comes in response to the findings of the Defence Strategic Review.

A significant portion will be delivered through Henderson, which is being consolidated to enable the construction of eight general purpose frigates, and six large optionally crewed surface vessels.

Speaking at a media conference in Perth this morning, Mr Albanese said the spend would be a shot in the arm for the state’s defence sector.

“We’re talking about more than doubling the surface fleet into the future,” he said.

“Today’s announcement will be good for defence, but as well it’s good for jobs – particularly in Adelaide, and here in Perth.”

Treasurer Jim Chalmers reiterated the view and said the state would benefit in the order of billions.

“WA will be among the biggest beneficiaries of the billions of dollars the government has announced today,” he said.

“By more than doubling our surface fleet, WA will get a big slice of the action when it comes to the billions of dollars involved in those investment.

“This means decades of continuous shipbuilding at Henderson, and all the jobs and the industry and technology and certainty that that brings the people and workers and communities of Western Australia.”

The announcement comes months after Henderson-based Austal was announced the nation’s strategic shipbuilder of choice in WA, under a heads of agreement.

Shares in the Paddy Gregg-led business were trading up more than 4 per cent this morning.

On announcing the spend in Sydney, Mr Marles said the investment would deliver ‘enhanced lethality’ to the nation’s surface combat fleet.

“Australia’s modern society and economy rely on access to the high seas: trade routes for our imports and exports, and the submarine cables for the data which enables our connection to the international economy,” he said.

“The Royal Australian Navy must be able to ensure the safety and security of our sea lines of communication and trade routes as they are fundamental to our way of life and our prosperity.”

The upgraded fleet will include three Hobart class air warfare destroyers; six Hunter class frigates; 11 new general purpose frigates; six new large 'optionally crewed' surface vessels; and six Anzac class frigates.

A further 25 ‘minor’ war vessels, including six offshore patrol vessels, will also be part of the fleet.

The Hunter class frigates will be built at Osborne in South Australia, as will work with the nation’s Hobart class destroyers.

The Chamber of Commerce and Industry WA labelled today's announcement a "game changer" for WA industry. 

“Our state has long had the potential to play a much larger role in Australia's defence industry and this is a major step towards reaching that potential,” CCIWA chief executive Chris Rodwell said. 

“Securing the build and maintenance for these ships in Perth will create thousands of direct and indirect jobs for decades to come, which is great for our economy.

“It gives us the certainty to make long range investments.”

The CCIWA said shipbuilding, and the increase of defence activity as a result of the AUKUS partnership, would generate substantial business and contracting opportunities for years to come.

Today’s investment announcement brings the total funding for acquisition and sustainment of the nation’s Navy fleet to $54.2 billion over the decade to come.