Oz to build new naval fleet in $65 bn package

Australia on Tuesday announced a $65 billion shipbuilding package to construct new frigates and patrol boats locally, with a decision on an international supplier for replacement submarines made “in coming months”.

The “continuous shipbuilding” proposal, which involves the replacement of frigates, patrol boats and submarines over two decades, is expected by the government to keep up to 2,500 jobs in the sector in what Prime Minister Tony Abbott said was “a very historic announcement”.

“Previous Australian governments have announced that individual ships or classes of ships will be built here in Australia,” Abbott said at a press conference. “What we are announcing today is basically a fleet build here in Australia, centred on (South Australia).” France, Germany and Japan are in the running for the contract, which has been touted as Australia’s biggest-ever defence procurement programme with cost estimates of Australian 50 billion dollars.