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Australia's navy set to grow as next-generation warships expected to be built locally

Xinhua, July 13, 2015 Adjust font size:

Australia's naval presence is likely to grow "much bigger" over the next decade as a result of the federal government embarking on a national shipbuilding program, a feasibility study has shown.

Australia's navy is expected to grow from 11, older warships up to 14 or 15 new surface warships that would remain in service for 20 years as a result of a continuous production model.

The Abbott government has indicated a new shipbuilding plan that would be announced soon, with the rolling build program likely to commence once the current fleet of Anzac class frigates, now almost 20 years old, begin to retire.

The study, released by the Australian Strategic Policy Institute (ASPI) said the move would likely involve the privatization of government-owned shipbuilder ASC.

The ASPI said the Australian shipbuilding industry is currently in the grips of the "valley of death" -- the period between the end of current projects and the start of new work -- meaning the unions have leverage over the government to find them new work, even if it means selling ASC.

The ASPI's study indicated that the expected off-shore build of new submarines for the navy has forced the government to promise the future of Australian shipbuilding as an alternative.

"Given the strong political pressure associated with the potential offshore build of the future submarines, the government will be railroaded into promising the future frigate program to South Australia," the study's authors said on Monday.

Meanwhile unions have said the purpose of naval shipbuilding is to provide the Australian navy with new ships, not to provide the industry with work, signaling the possibility that some ships could be sold as exports, something made easier by the falling Australian dollar.

The study indicated that privately-owned shipyards performed on time and on budget compared with government owned projects. Endit