Senator the Hon Mathias Cormann

The Government is putting in place long term arrangements to ensure the future success of the Air Warfare Destroyer project and address the legacy of unresolved issues inherited from the previous Labor government.

Following a limited tender process, Navantia SA has been selected to bring an experienced shipbuilding management team into ASC Pty Ltd (ASC) to maximise program performance through to the end of the three ships’ construction. Navantia will also locate a design team in the Osborne shipyard.

This latest step is the culmination of a number of reforms we have made to address budget and schedule overruns and bring the project back on track. These reforms included improvements to the senior management at ASC Shipbuilding and inserted additional shipbuilding and related capability from Navantia, BAE Systems and Raytheon Australia.

These initiatives have seen a marked turnaround in the project’s performance. Productivity has improved by around 35 per cent and delivery of the second and third Air Warfare Destroyers is now expected up to three months earlier than the timeframes estimated by a forensic audit in May this year.

The Government recognises the significant value to our nation of a skilled naval shipbuilding workforce. The Government is prepared to invest in the skills and knowledge base of the Australian naval ship building industry, and is prepared to commit to a long-term investment to make sure this important industry enjoys a future in Australia and these critical skills are maintained.