Labor leader Bill Shorten has called for Defence Minister David Johnston to be sacked for saying he wouldn't trust Australian submarine makers to build a canoe.
Senator Johnston told parliament on Tuesday that government-owned shipbuilder ASC was $350 million over budget on a project to construct three air warfare destroyers for the navy.
Mr Shorten moved a motion in the lower house on Wednesday calling on Prime Minister Tony Abbott to sack him.
He said the minister had trashed the reputation of local submarine makers.
"(It's) a shocking insult to thousands of Australian men and women working at the Australian submarine corporation," Mr Shorten told parliament.
Mr Abbott has defended the ASC, formerly the Australian Submarine Corporation, saying it played a vital role in supporting the navy.
Mr Shorten labelled that a "startling repudiation" of the minister by Mr Abbott, challenging him to put his words into action.
There were several reasons why Senator Johnston should be abandoned by the government, including 15 months of "chronic failure" in his handling the defence portfolio.
"This is a government that has let Australia's defence capacity down," Mr Shorten said.
But Assistant Defence Minister Stuart Robert said it was a "bit rich" of Labor to complain about the handling of defence.
This was the first year that defence spending has been stable, he said.
"Seriously, are you kidding the nation?" Mr Robert told parliament.
"The legacy Labor left should have them hanging their head in shame."
