Australia Announces A$89 Billion (US$66 billion) Ships, Subs Building Plan

Australia today announced a massive A$89 billion (US$66 billion) plan to build ships, patrol boats and submarines that will create jobs and technology within the country.

The plan announced by Prime Minister Malcolm Turnbull includes nine frigates, 12 submarines, 12 offshore patrol vessels, along with 19 Pacific patrol boats for neighboring countries, various media reported Tuesday.

The package, first flagged in 2015 to replace its ageing fleets, would boost local industry, with up to 5,000 jobs created in shipbuilding directly and double that in the supply chain, Turnbull said.

"This is a plan for jobs, a plan for security, a plan for the opportunity that investment in our defence industry brings not just today and tomorrow, but for generations to come." He said.

It also includes 12 new submarines at a cost of A$50 billion. French DCNS last year was selected to design and build them at an Adelaide yard, beating off competition from Japan and Germany.

The programme was designed to ensure "we have the most capable, agile and potent Australian Defence Force that we are able to achieve" Defence Minister Marise Payne said.

"The future frigates, the offshore patrol vessels, the future submarines - these are platforms that will deliver ... the capability that we need to ensure we are protecting Australia and our interests." Payne added.

Under the plan, Australia's current ANZAC and Adelaide class frigates will be replaced with new ships better able to "detect, track and, if required, destroy enemy submarines".

Its Armidale offshore patrol vessels, designed for border protection, will also be renewed, along with its diesel and electric-powered Collins Class submarine fleet.

“More than A$1.3 billion would be injected to modernise facilities in South Australia and Western Australia states so the work could go-ahead.” Turnbull said.

A shipbuilding college would also be established to train workers. Construction of the patrol boats is slated to start in 2018 with the frigates beginning two years later and the submarine build getting underway around 2022.