Watch FIFA World Cup 2026™

LIVE, FREE and EXCLUSIVE

Xenophon attacks govt shipbuilding plan

Politicians from Queensland and South Australia have separate gripes about the federal government's ship building announcements.

Independent senator Nick Xenophon
Independent senator Nick Xenophon Source: AAP

Independent senator Nick Xenophon has branded the South Australian leg of the federal government's $40 billion naval vessel program a "flat-pack Ikea exercise" that will add little value to the state's economy.

At the same time, government backbenchers are spitting chips over the decision to overlook opportunities for far north Queensland centres to participate in the massive project.

Under the program a new fleet of 12 offshore patrol boats will be built in Adelaide from 2018 to replace the smaller Armidale-class vessels, which were built in WA.

The work then will go back to WA in 2020, when construction begins in Adelaide on the navy's new frigates.

News that makes sense

Your trusted source for staying up-to-date with the world around you. Get free daily news updates and analysis, straight to your inbox.

By subscribing, you agree to SBS’s terms of service and privacy policy including receiving email updates from SBS.

As well, Austal Ships in WA will build up to 21 replacement steel-hulled Pacific patrol boats at its Henderson shipyards.

Senator Xenophon says there's still no certainty for South Australia because contracts have yet to be signed.

"This is a desperate attempt by the coalition to shore up their support in South Australia," he told reporters in Canberra on Tuesday.

"It could end up being a flat-pack Ikea exercise where we do the assembling in South Australia but there is very little added value - where the steel is cut somewhere else, where the blocks are built somewhere else."

Senator Xenophon believes there should be one centre of excellence for ship building in Australia.

But he denies being greedy for his state, saying it would cost taxpayers millions to move production interstate.

SA Employment Minister Kyam Maher has hailed the job opportunities likely to flow from the boat projects.

However, Cairns-based Liberal MP Warren Entsch is gutted his city was overlooked.

"It's fair to say that the customs boats built by Austal left a lot to be desired, given that we're now seeing a lot of these aluminium vessels undergoing repairs for cracks."

Townsville-based senator Ian MacDonald is also unhappy.

"The construction of the Pacific patrols boats would have been a wonderful employment generator and confidence boost for the north," he said.

Cairns has won the contract for maintenance of the boats.


2 min read

Published

Updated

Source: AAP



Share this with family and friends


Get SBS News straight to your inbox

Sign up now for daily news from Australia and around the world. You can also subscribe to Insight's weekly newsletter for in-depth features and first-person stories.

By subscribing, you agree to SBS’s terms of service and privacy policy including receiving email updates from SBS.

Follow SBS News

Download our apps

Listen to our podcasts

Get the latest with our News podcasts on your favourite podcast apps.

Watch on SBS

SBS World News

Take a global view with Australia's most comprehensive world news service

Stream now

Watch the latest news videos from Australia and across the world