The federal government is determined to see through the air warfare destroyer program despite delays and a cost blowout to $9 billion, Defence Minister Kevin Andrews says.
At the launch of the first destroyer, HMAS Hobart, in Adelaide, Mr Andrews said the Commonwealth remained committed to a viable naval shipbuilding industry in Australia and was prepared to invest heavily in the skills of local workers.
"We are going to see this project through but obviously we want it to be as efficient and productive as possible," he said.
"I've got a budget and if I spent it on one thing I can't spend it on another."
At a two-hour ceremony on Saturday, the 7000-tonne destroyer was lowered into the water at the Techport construction site.
It is 75 per cent complete and will undergo a final fit-out before sea trials next year.
Once operational, the Hobart will have a crew of 186, a top speed of 28 knots and a range of 5000 nautical miles, or more than 9000 kilometres.
It will be followed into service by HMAS Brisbane and HMAS Sydney, now under construction in Adelaide.
South Australia Premier Jay Weatherill used the ship's launch to once again call on the federal government to commit to building the next fleet of navy submarines in Adelaide.
"We have the talent, we have the facilities, we have the commitment to successfully build both ships and submarines here," he said.
Mr Weatherill also questioned whether the audit report, which revealed the cost blowout on Friday, actually existed.
"I don't even know if such a things exists, from my inquiries," he told reporters.
Those comments were "just nonsense", Mr Andrews said.
HMAS HOBART
* Type - air warfare destroyer
* Displacement - 7000 tonnes
* Length - 146.7 metres
* Beam - 18.6 metres
* Draft - 7.2 metres
* Speed - 28 knots
* Range - More than 5000 nautical miles (9300km) at 18 knots
* Complement - 186 crew. Accommodation for 234
* Armament - Aegis weapon system and Harpoon missiles, 62 calibre gun.
* Aircraft carried - Seahawk helicopter
Source: Air Warfare Alliance
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