17 May 2017

Australian Naval Shipbuilding Plan

The Australian Government has released its Naval Shipbuilding Plan, in which it outlines its intent for The Australian Navy and the country’s shipbuilding enterprise.

The current intent is to provide significant investment into the sector over the coming decades, thus laying the foundations for an Australian-wide naval shipbuilding enterprise.

By investing into the sector, the government is hoping to provide certainty to local businesses and ship workers, by creating a sustainable industry, supported by investment into the country’s naval forces.

By building and sustaining Australia’s naval capabilities, the government will create economic growth through maximising Australian industry involvement, securing Australian jobs for future generations.

The Government will invest:

  • some $90 billion in new naval ships and submarines;
  • more than $1 billion in modern shipyard infrastructure; and
  • over $25 million in workforce growth and skilling initiatives to enable the delivery of these platforms.

Four key enablers are required to implement the Government’s Naval Shipbuilding Plan:

  • modern, innovative and secure naval shipbuilding infrastructure;
  • workforce growth and development;
  • a sustainable and cost-competitive Australian industrial base; and
  • a national collaborative approach.

As part of the $89 billion naval shipbuilding programme, Australia’s Government has purchased a ‘common user facility’ with surrounding land, to substantially increase the size of the ship and submarine building facility at Osborne, South Australia.

In a deal worth $230M, the facility will now be fully owned and operated by the federal government. It represents an important part of getting the infrastructure up and ready to cut steel on the new Offshore Patrol Vessels planned for next year.

Defence Industry Minister Christopher Pyne said: “The Turnbull Government is solely committed to delivering its $89 billion naval shipbuilding programme on time and on budget in order to deliver the jobs and economic growth to South Australia as soon as possible.

“The purchase of the common user facility and associated parcels of land at Osborne is an important step in delivering on our commitments to naval shipbuilding.”

He added that assistance includes items such as assisting with relevant approvals, providing utilities and services, road, rail and emergency services access, and stamp duty relief.

 

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