Patrol vessels build likely in SA: Cormann

Finance Minister Mathias Cormann has sought to clarify the prospect of government-owned ship builder ASC constructing offshore petrol vessels in Adelaide.

Finance Minister Mathias Cormann says a program to build offshore patrol vessels will "most likely" start in Adelaide in 2018.

However, he cannot offer a guarantee because the procurement process is managed by the Department of Defence.

Senator Cormann was seeking to clarify earlier responses given by officials from government-owned shipbuilder ASC Pty Ltd to a Senate committee on Tuesday.

Senators were told the ASC's skilled workforce could shrink to a skeleton staff of under 100 by the end of 2018, from 1400 now in the absence of any major building projects.

The minister said the reduction in staff would occur whatever the result of the 2018 offshore patrol vessels procurement because contract workers would be laid off in the interim.