Manufacturing News

Three contenders all want to build submarines in SA: Pyne

New industry minister Chris Pyne has said this morning that all three contenders in the “Competitive Evaluation Process” have said they’d prefer to build Australia’s upcoming fleet of submarines in Australia.

Speaking to Channel 9, Pyne – whose South Australian seat is considered marginal and affected by the controversial CEP – said bidders were aware that there was a desire to have the new submarines built in Australia.

The French, German and Japanese bid submitted each included a local, hybrid and overseas build scenario.

"As a South Australian that is music to my ears but we will go through the proper processes and we'll make an announce at the appropriate time," Pyne said.

"Sounds to me like all three bidders are picking up that we'd like to spend $50 billion of defence industry money in Australia where it creates jobs, new technologies, innovations, all sorts of spin-off industries.”

SA will lose thousands of jobs as the automotive assembly industry is wound up in 2017.

The state’s independent senator Nick Xenophon has meanwhile accused the federal government of sitting on a report on the economic benefits of building the Future Submarine project locally, AAP notes.

In a statement, Xenophon said a Macroeconomics report commissioned by the former Labor government in 2012 and due to have been completed in June 2014 hadn’t been released.

“The Government appear to be on a ‘go slow’ in releasing the expected economic and employment benefits of building the Future Submarines in Australia,” said the senator.

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