2016 DEFENCE WHITE PAPER

Industry, innovation, research and development 113
Shipbuilding
4.114 A strong, viable, and sustainable Australian naval shipbuilding industry
is a vital element of Australia’s defence capability to manage Australia’s
strategic challenges to 2035. The Government is delivering a long-term
plan for Australia’s naval shipbuilding industry to ensure the retention of
a sovereign Australian shipbuilding industry and the jobs that go with it.
4.115 For the first time in the history of Australian naval shipbuilding, the
Government has committed to a permanent naval shipbuilding industry.
The Government’s strategy is centred on a long-term continuous build
of surface warships in Australia, involving construction of our future
frigates and offshore patrol vessels in Australia. A continuous build of
our major warships and minor naval vessels will see Defence better
manage the demand for naval vessels to ensure continuous construction
over the long term. This will end the boom-bust cycle for shipbuilding,
lower the costs of acquiring naval vessels and provide a long-term,
sustainable plan for the shipbuilding industry.
4.116 The Government is bringing forward the future frigate program to replace
the Anzac Class frigates. A continuous build of the Navy’s future frigates
will commence in 2020. The future frigates will be built in South
Australia following completion of a Competitive Evaluation Process.
SECTION TWO CAPABILITY
4.117 The Government is establishing a continuous build production line for
smaller navy vessels. This will commence with construction of a fleet
of 12 offshore patrol vessels to replace the Armidale Class patrol boats,
with construction to start in 2018 following a Competitive Evaluation
Process.
4.118 This strategy will transform Australia’s naval shipbuilding industry,
generate significant economic growth, sustain Australian jobs over the
coming decades and assure the long-term future of this key Australian
defence industry. The acceleration of the future frigate and offshore
2016 DEFENCE WHITE PAPER