PM Transcripts

I announce today that all future Full Cycle Dockings (Refits) of the Collins Class submarines will be conducted in Adelaide.
The Full Cycle Dockings will be conducted on a 12-month cycle providing continued employment for the Australian Submarine Corporation (ASC) and supporting local industry and subcontractors.
Each refit of a submarine costs approximately $70 million. With six Collins Class submarines that refit every seven years over their twenty-eight year lives, and eighty per cent of refit expenditure directly spent locally, this will inject approximately $1 billion into the local Adelaide economy over the life of the Collins Class project. The first round of refits will inject at least $336 million.
The Government believes that there is a strategic need to sustain ASC';s core competency and workforce in submarine construction, modification, repair and maintenance.
The capability now in place in Osborne, coupled with a diverse supporting network of local small to medium enterprises should not be duplicated and serves as a strategic asset for through-life support of the Collins Class submarines.
The Government also recognises the importance of the valuable contribution made by the Western Australian defence industry in the area of ship and submarine operational support.
Approximately one half of the Royal Australian Navy surface fleet and all the Collins Class submarines are now “homeported” and operate out of HMAS Stirling in Western Australia (WA).
Much of the annual expenditure of $81 million on maintenance, repair and refit of the Navy';s WA surface fleet, as well as local maintenance and support of the submarines, is being spent in WA.
There is approximately $107 million in Defence salaries paid annually to WA locally based staff, and this will increase from January next year when additional Defence staff will relocate there in support of the new ANZAC frigates.
Operational reasons will continue to dictate that it is appropriate that some submarine support and maintenance is carried out in WA where the boats were “homeported” and where crews and their families live.
With the commencement of the first refit of HMAS Collins earlier this year, the decision to continue with refits in Adelaide has now been confirmed. As a result of this decision, the ASC will remain the major repository of submarine construction and repair knowledge in Australia which will be required throughout the life of the submarine.