A multibillion-dollar project to build warships for the Australian navy could be under threat as momentum gathers for a revamp of the Defence White Paper released only last year.
Defence sources have said the proposed fleet of 20 ”offshore combatant vessels”, potentially costing $20 billion, could be dropped as Defence struggles to balance the books.
And further doubts about a controversial $36 billion future submarine program have been raised by the news that an $8 billion project to create three new air warfare destroyers has suffered a setback with a key keel block of the first ship reportedly being botched at a Melbourne shipyard.
Advertisement: Story continues below The mooted 2000-tonne offshore combatant vessels are intended to replace the navy’s Armidale class patrol boats, coastal minehunters, hydrographic ships and associated survey launches. Each boat could be reconfigured to perform any of these tasks.
”The modular concept, hosting a range of capabilities in a common or near common hull, should also limit purchase and operating costs and realise cost savings demanded by the 2009 Defence White Paper,” the navy said earlier this year.
However, there is a growing belief within Defence that a stringent review of the most recent White Paper – which was dominated by big, expensive projects – is needed.
Experts have expressed concerns about the offshore combatant vessel concept since its announcement. Andrew Davies, from the Australian Strategic Policy Institute, said earlier this year the offshore vessel could be ill-suited to its task, particularly patrol duties.
”These are just too big, It’s a bit hard to imagine a 2000-tonne ship pulling up alongside a fishing boat,” Dr Davies said.
It is believed companies interested in building the offshore vessel were asked how they would manufacture the boats, but were perturbed to find Defence did not have a clear vision for the project.
