The federal government has launched a review of the $8 billion air warfare destroyer program, now running late and with the prospect of a major cost blowout.
The independent review will be conducted by former secretary of the US Navy Don Winter and former Transfield head John White.
Defence Minister David Johnston, speaking at the Australian Defence Magazine conference in Canberra on Tuesday, said the review would examine all aspects of the AWD program including cost, schedule and quality and recommend how it could be improved.
It should be completed in three months.
Under the AWD program, the navy will field three advanced warships, constructed from hull modules made in Newcastle, Melbourne and Adelaide and assembled at the Australian Submarines Corporation yard in Adelaide.
Senator Johnston said the government had also inherited a significant problem for the shipbuilding industry, the so-called valley of death.
That's the period of years between the end of current construction projects and the start of new projects, resulting in the forced lay-off of skilled staff.
The minister said he was receiving advice and working closely with the Defence Materiel Organisation and the sector to avoid production troughs where possible.
