Australian Companies May Not Compete To Build Its Next Gen Subs

Australian companies might miss out on competing with foreign companies to build its next generation of submarines, Sydney Morning Herald reported today.

Prime Minister Tony Abbott has refused commitment to allow Australian companies to compete to build it’s the next generation of submarines. He said, “The last thing the navy wants is a substandard submarine".

“The first priority of defense has to be that equipment is "world class" and "at a competitive price," he was quoted as saying in the report.

"We need to get the best possible submarines for our navy and decisions about future submarines have to be made on the basis of what is best for our armed forces, not what is best for a particular region or what might be best for a particular company here in Australia," he told reporters in Melbourne.

"The navy is still considering its options and could not say when a decision might be made. We have said that we're looking at a range of options and that remains the situation for us. We have not come down to a specific option yet and we continue to look across at what's available," Acting Chief of Defense Force Vice Admiral Ray Griggs was quoted as saying to ABC radio.

Defence Minister David Johnston said in May 2013: "We will deliver those submarines from right here at ASC in South Australia. The Coalition today is committed to building 12 new submarines here in Adelaide."

Labor party’s Veterans Affairs spokesman David Feeney called on the government to listen to the advice of experts and criticized the Coalition for achieving "nothing" on submarines in its first year in office.

"An open competitive tendering process would enable Australia to secure a submarine that meets our requirements for the best price," he said.