The Morrison Government has locked Australia into a deal on the Future Submarine Program with the conclusion of negotiations between the Australian Department of Defence and French company Naval Group.
ARTIST’S IMPRESSION: Shortfin Barracuda – Australia’s future submarine.
Amendments to the earlier Strategic Partnering Agreement will see Naval Group commit to spend at least 60 per cent of the contract value in Australia over the life of the program.
Acting Minister for Defence Marise Payne said the amendments made Naval Group’s commitment a contractual obligation, measured during the course of the program, driving Australian industry involvement as the Attack-class submarines are designed and delivered.
“The conclusion of these negotiations reflects the Morrison Government’s joint commitment with Naval Group to Australian jobs, Australian industry and Australian sovereignty,” Minister Payne said.
“Beyond maximising opportunities for engagement with Australian industry, this will also ensure that the Morrison Government’s requirement for a sovereign future submarine capability is met.
“Importantly, the amendments have been incorporated to uphold the current structure of the Strategic Partnering Agreement, which the Auditor General concluded had established a fit-for-purpose strategic partnering framework that addresses this government’s objectives for the program.
“These include maximising Australian-industry involvement in all phases of the program.
“Today’s announcement builds on the opportunity for industry to participate in the manufacture of equipment, designed by Naval Group, worth hundreds of millions of dollars across the 12-boat fleet.” [although, if you did the maths on the $80billion project, 60% would/should actually equate $48billion, which is actually thousands of millions of dollars]
Minister Payne said the amendments complemented existing requirements under Defence’s contractual arrangements with Naval Group to drive Australian-industry capability, including establishing procurement organisations in Australia, and the need to approach the Australian market in the first instance for the majority of equipment.
She said Naval Group was contracted to report the level of contract expenditure in Australia during the course of the Future Submarine Program.