Submarine Delivery Delay !

The steadily deteriorating relationship with China is putting immense pressure on our defence procurement programme.  High on that list is bringing twelve new attack class submarines into service to replace our existing Collins class boats.

After a long and tedious evaluation process we finally settled for the hulls to be built in France and the fitting out done in Australia.   Under this arrangement, the first boats are not expected to come on stream until the early 2030's.

This is a big ticket price item and was subject to many negotiations, not the least of which is the arrival timing.  It would be quicker - and cheaper - to have these submarines completely built overseas but we want Australian industry to gain the technology aspect and learn the intricate repair function.

A Defence Committee hearing was told that delays are causing the government to have second thoughts about the viability of this arrangement.  The possibility of conflict in the South China sea is such that bringing these submarines into service is becoming more urgent.

Under the existing contract, it impossible to predict a certain delivery date and we might do better to buy the completed submarines from another country.  That is a thought percolating through the minds of our defence planners, although there is also support for maintaining the present arrangement to avoid the cost of contract termination.

The lack of operational submarines leaves a gap in our northern defence. The old Collins class boats are past their use by date and long overdue for replacement.  We have chosen diesel/electric over the option of nuclear units on cost effectiveness and quietness.  A submarine fleet has the ability to offer protection to a continent surrounded by water, as is the case in Australia.

We were not facing any immediate threat when this submarine contract was negotiated, but tensions have increased with time and now an indefinite delivery date is a reason for concern.  Delivery could blow out even further and the ability to produce world class submarines is a capability of several other NATO countries.

Many of our defence procurements are bought in on a " ready to use " basis and this submarine contract seems to be the exception.  France was awarded the contract despite spirited competition from both Germany and Japan.  The boats all were offering were comparable from a military point of view. Unless we can resolve this difference with France the cancellation option should be seriously considered.

Having a fleet of operational submarines in place as soon as possible is an imperative defence necessity.