Good news for the RAN. No wonder Russ Shalders was reportedly so happy...
$1.5 billion ship bonus
IAN McPHEDRAN
August 08, 2007 02:15am
A FOURTH air warfare navy destroyer will be built in Adelaide, worth $1.5 billion to the economy.
The Federal Government decision raises the budget for the existing three-warship plan to $9.5 billion
and guarantees a ship-building skills base for Australia in Adelaide well beyond 2020.
Defence will sign a contract with Spanish designer Navantia, builder Adelaide-based ASC and systems engineer Raytheon by mid-September, The Advertiser has learned.The 6000-tonne navy vessels will be customised - with an extra helicopter - versions of the Navantia F-100 warship.
Senior government sources say there are plans to announce ship number four as part of the election campaign.
Labor is unlikely to oppose the move after supporting the Spanish option over a U.S. bid that would not have allowed for a fourth ship.
The government is keen to make the majority taxpayer owned ASC yard at Osborne a national centre for shipbuilding excellence.
ASC, which now has billions of dollars worth of work on its books, is due to be sold during the next year.
By the time the fourth vessel is launched in about 2018 a decision would have been taken about the "Son of Collins" replacement submarine project and a new ship to replace the ANZAC frigates. Defence Minister Brendan Nelson has already hinted the yard would be in-line for the new submarine contract.
He told The Advertiser he would be hopeful the new generation boats would find an export market as well.
The first destroyer, equipped with the state-of-the-art U.S.-built Aegis combat system, is due to be launched in 2013 followed by two others at two-year intervals.
The head of the Defence Material Organisation, Stephen Gumley, has been pushing hard to up-skill the national workforce and strongly supports a fourth destroyer purely to maintain a skills base.
"Defence has recognised on several occasions the importance for the country of maintaining skills," Dr Gumley said.
Premier Mike Rann said the construction of a fourth ship would further boost the state's economy.
"This is a huge vote of confidence in the South Australian economy, our defence industry and our workers and it further justifies the $374 million investment the SA Government is making in the infrastructure, facilities and skills training centre at the Techport Australia site at Osborne," Mr Rann said last night.
"Although we have yet to be briefed on the fourth ship, our initial expectation is that a fourth ship will extend the life of the build program to about 2020, given the third ship is due to roll off the platform in about 2017.
"This adds more than $1 billion to the $8 billion defence project, which is already the largest defence contract of its type in Australia's history."
Meanwhile defence will spend about $20 million to upgrade another 40 Australian Light Armored Vehicles.
The vehicles will be used as replacements for those deployed in the Middle East Area of Operations which require overhaul after tough tours of duty.
This year the DMO's 7000 staff will manage a record $20 billion worth of defence contracts.
---------------------------------------->>
4x ships with each ship being to a modified design that allows for the operation of 2x helo's per ship.
Nice...