A trio of South Australian Liberal backbenchers are pressuring the government to back away from an expected decision to purchase the next generation of Australian submarines from overseas.
Senators Sean Edwards, Anne Ruston and David Fawcett are calling on the government to heed the advice of an expert witness to a Senate committee examining the future of Australia's naval shipbuilding industry and open the process to a tender.
The Abbott government is on the brink of making a decision which submarines will replace the Australian-built Collins class fleet, and sources have indicated that they firmly prefer an off-the-shelf Japanese boat.
Doctor John White is a key advisor to the government on shipbuilding and in his submission to the Senate inquiry calls for the establishment of a Submarine Construction Authority to oversee the acquisition of new submarines.
Dr White argues "such a process must seek comparative pricing for overseas build … versus an all-Australian build," including maintenance and refit costs.
Senator Anne Ruston told Fairfax Media: "I think the government needs to acknowledge the evidence given by expert witnesses at the inquiry about an open tender for our submarines, and give it due consideration in the development of the next defence white paper".
"This is a massive defence acquisition no matter which way you look at it. The decision – regardless of what it is – will have a big impact on South Australian industry so let's not be hasty about coming to a decision in the first place. I will support any decision which creates more jobs in the defence space in South Australia."
Senator Sean Edwards said: "Dr White has emphatically suggested that this is within our capability and all I'm asking my colleagues is to ensure we're equitable and give the opportunity for shipbuilding in Australian the chance to tender."
He said it would then be up to stakeholders to prove their claims that they can deliver "world class productivity standards".
Senator Edwards said: "I know that the Defence Minister is a strong supporter of domestic industries and will be doing everything within his power that is prudent for taxpayers and meets defence capacity requirements to keep as much business in Australian as he can."
Earlier this month a third South Australian, Liberal David Fawcett, told the Senate that Australia needed a submarine "fit for purpose" but also the "sovereign ability to be able to maintain it" and that contrary to the critics the "most cost-effective way to do that is most likely to do it here".
Senator Fawcett said on Tuesday "an open tender is a normal process and that's what I would expect for a project of this size".
But he said: "Governments have made decisions in the past without on open tender, and some of those have worked well, but I think the important thing here is that we get the right outcome and that is we get a submarine built in Australia because I think that's the most cost-effective way to get a submarine that will be fit for purpose and can be effectively maintained and certified through its life."
Prime Minister Tony Abbott again refused to commit to building the submarines locally when asked about his backbencher's comments on Tuesday.
"We should make decisions on the next generation of submarines based on defence logic, not based on industry or regional policy," he told reporters in Melbourne.
"We want the very best submarines and we want them at the best possible price. They are the criteria that we should look at as we finalise decision making in this area."
Labor has said the government would be breaking a pre-election promise if it wasn't to build the subs in South Australia.
Opposition Leader Bill Shorten has said: "Labor, if elected, will build submarines in Australia – unequivocally."
Labor's defence spokesman Stephen Conroy said the trio of Liberal senators has belatedly signed up to the opposition's policy.
"I welcome the fact that Liberal party senators nave listened to the evidence and are responding appropriately," he said.
"But they are being dragged screaming and kicking to this position and we still get no acknowledgment from Tony Abbott, no acknowledgement from David Johnston that they're prepared to even hold an open tender process."
