ASC SALE WILL NOT PROCEED
The Rudd Government announced today that the sale of ASC Pty Ltd, formerly the Australian Submarine Corporation will not proceed at this time.
Lindsay Tanner, Minister for Finance and Deregulation and Joel Fitzgibbon, Minister for Defence emphasised that the current uncertainty in global financial markets presented significant risks to a successful sale of the company. In addition, a sale in the short term could complicate the operations of the company given ASC is currently building the Royal Australian Navy’s Air Warfare Destroyers and likely to be considered in any future submarine build program.
Lindsay Tanner thanked the business, legal and process advisers to the sale, Lazard Carnegie Wylie, Freehills and Sparke Helmore, for their work in helping prepare ASC for sale.
Lindsay Tanner said: “It is unfortunate that the current economic climate presents significant risks to a successful sale of ASC. However, the work undertaken in preparing ASC for sale will provide valuable lessons for the Commonwealth’s roles as owner and customer in the future”.
Lindsay Tanner and Joel Fitzgibbon also thanked ASC’s Board of Directors and management team for their assistance and professionalism in preparing the company for sale.
Source DOD
Well this really was the only decission that could of been made in the current economic crisis.
However I hope the government decides to retain ownership in the long term as having the yard in government hands makes getting technology transfers much easier. If the yard was sold it would be likley end up as foreign owned and the Americans are scared of their technology leaking to foreign competitors. So having the yard owned by our government means that America is much happier to deal with us when it comes to sensitive equipment such as submarine components.
This dose not just apply to naval dock yards as we should never of sold ADI as it ended up being French owned an the Americans refused to deal with it.
I believe we would of sold hundreds of Bushmasters to the USA by now if the proceeds had not been going to "The Frenchies". After all they probably would of thought that ADI standed for "American Defence Industries" any way
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Call me old fashioned but I don't feel comfortable with our domestic arms and munitions manufacturer base being foreign owned.