Sub deal could go offshore
The Australian shipbuilding industry is reeling amidst speculation a new fleet of submarines may be built offshore.
Despite their pre-election promise that up to 12 new submarines would be built in Adelaide, a report by The Australian alleges the Abbott government is considering purchasing them from Japan or Germany.
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Building the fleet of submarines in Australia could cost an estimated $50 toĀ $80 billion, while buying them from Japan would cost as little as $25billion.
Germany company TKMS has allegedly offered to build them for $20bn.
The demand for new submarines comes as the current Collins-Class fleet is due to be decommissioned in 2026-27.
Speaking on ABC radio, Industry Minister Ian MacFarlane insisted that no decision had been made.
āBest price is not the only determinantā¦ there are a number of parameters in that discussion,ā Mr MacFarlane said.
South Australian Labor Premier Jay Weathertrill said he did not accept that the submarines could be built overseas at a better price.
Labor Senator for South AustraliaĀ Penny WongĀ said the government was walking away from itās commitment to build the submarines in Adelaide, describing it: āanother Tony Abbott lieā.
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