Senator Payne said the Strategic Partnering Agreement, the overarching contract between Defence and Naval Group, had been amended, making the 60 per cent commitment a contractual obligation.
“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,” Senator Payne said.
“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.”
Naval Group Australia chief executive John Davis said his staff were already working with hundreds of local businesses to build greater self-reliance and sovereignty in the Australian defence manufacturing sectors.
“There will be increasing levels of local content in each of the 12 Attack class submarines, as we continue working with local businesses to boost Australia’s sovereign capability,” Mr Davis said.
“Ensuring that at least 60 per cent of the Attack class contract value is spent locally will create hundreds of Australian jobs, for the long term, in new supply chains around the country.”
Opposition defence spokesman Brendan O’Connor remained sceptical about the deal.
“It has taken Senate estimates to force the government’s hand in making an announcement on the future submarines. However, what we see is light on detail,” he said.
“As the acting Minister has made this announcement we expect her to be able answer all questions on these matters in the defence estimates hearing.
“If we are not satisfied with the acting Minister’s responses we will be calling on the Defence Minister to appear before a spill over estimates day in April, after she has returned to work.
“The government can’t evade scrutiny on these important and expensive contracts.”
Naval Group submarine contract local content deal done - The Australian Financial Review
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