$35b Frigate contract - No need to work with local shipbuilders

9th September, 2017

With news that a Senate Inquiry was informed that Defence department chief Kym Gillis told the three international shortlisted bidders that they do not need to work with local Australian companies, you have to ask yourself, just what is going on here.

The three bidders, Britain's BAE Systems, Italy's Fincatieri and Spanish company Navantia are all tendering for the prospective $35 billion contract to design, build and maintain nine new anti-submarine warfare frigates, needed to replace our existing Anzac class Frigate fleet.

Just who is Kym Gillis and most importantly, who gave him permission to exclude Australian Industry. Let me be very clear, this is Australian money first and foremost, and this decision is an absolute affront to all Australians. At the very least, Australian companies, industry, goods, services and Australian jobs must be the priority in any perspective Federal, State or local government project and/ or tender, and it really is time to put Australia and all Australians first.

Our Australian shipbuilding industry is world class, industry leading and in the case of Western Australia's very own shipbuilder Austal, who is apparently good enough to design and manufacture ships for the US Military and others, however and based on this news is now not good enough for our own Australian Government.

Austal's chief executive David Singleton also told the inquiry that after being informed they did not have to work with Australian companies, communication with the three bidders immediately ceased. Therefore Austal, along with South Australia's ASC are having to lobby for the right to be involved in these projects and again, that's not good enough and our shipbuilding industry, and everyone employed within it, let alone all Australians deserve so much better from our Government.

Should our shipbuilders, (as part of the design and manufacture process) need to include any international companies, experience, expertise or partners, then those Australian companies will include this component within their bid. Most importantly however is that Australia, and Australia alone will make all decisions to protect our national interest and the defence of our country.

With approx. $90 billion earmarked by the Australian Government for their naval shipbuilding plan, its common sense that Australia's own shipbuilders are included and put first, and our procurement process must reflect that position as no more do I want to see Australia's shipbuilding industry, let alone any other Australian defence contractors missing out and being excluded from the tender process.

Whilst yet another example of Australia's manufacturing industry being decimated, Victorian Labor Senator Kimm Carr advised that there is a deep-seated prejudice against Austal and ASC, whilst WA Treasurer Ben Wyatt expressed his disappointment that the Federal Government is not putting local jobs first, and further stated "It is somewhat dispiriting when you see the Federal Government not willing to go the extra mile to ensure that Australian and Western Australian jobs in particular are prioritised" and "If we're just going to denigrate our capability and not invest in it, then we'll simply go down the path of unskilling our own population" a point I agree with whole heartedly.

As a very proud Australian with significant contracts and procurement expertise, we deserve better from our elected politicians, and I can also understand the frustration of our Australian shipbuilders who find themselves in this position. I therefore look forward to working with them and all Australian industry to further develop opportunities for Australian companies and Australian jobs within our defence sector.

Its time for change Australia and together we can do it.

Philip Couper

See: http://www.abc.net.au/news/2017-09-09/defence-tells-foreign-bidders-no-need-to-work-with-australians/8888608