Australian shipbuilders have been thrown a lifeline with the government inviting tenders for construction of up to 21 new patrol boats worth almost $600 million.
These will be donated to Pacific nations to replace older vessels constructed in the period 1987-97 but now reaching the end of their lives.
Already one firm has put up its hand - shipbuilder BAE Systems, which constructed the original Pacific Patrol Boats.
Chief Executive David Allott said their bid was being prepared.
Defence Minister Kevin Andrews said construction of the vessels was worth $594 million and their through-life support was estimated at $1.38 billion over 30 years.
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"The government recognises the significant value to our nation of a skilled naval shipbuilding workforce," he said in a statement.
These will be basic steel-hulled vessels, up to 40-metres long and able to stay at sea for up to 20 days.
They are designed for search and rescue, disaster relief, maritime surveillance and fisheries protection.
Replacement patrol boats have been offered to Papua New Guinea, Fiji, Tonga, Solomon Islands, Tuvalu, Kiribati, Samoa, Vanuatu, Micronesia, Palau, Republic of Marshall Islands, Cook Islands, as well as to new member East Timor.
The government hasn't said whether the work will be performed by a single shipbuilder or shared among a number of firms.
Shadow assistant defence minister David Feeney said this was the first time the government had actually done something on shipbuilding.
"Building the Pacific Patrol Boats in Australia is welcome but this dysfunctional government must do more to avoid the shipbuilding valley of death because building 21 patrol boats won't solve the deeper problems this government has created," he said in a statement.
