Katherine Ziesing | Canberra

Defence Secretary Dennis Richardson confirmed that a decision on the preferred solution for the Future Frigate will be made in the ‘first half of 2018’ during the latest round of Senate Estimates hearings. This will require the winning designer to get their act together relatively quickly if cutting steel is still to take place in 2020 as previously announced.

"A 2020 cut steel is a difficult task."

Senator Kim Carr questioned the validity of the Future Frigate timeframe thusly:

Senator KIM CARR: And you think that that timetable is realistic?

Mr Gillis: That is an aggressive timetable.

Senator KIM CARR: Is that Defence-speak for saying that it is actually quite difficult?

Mr Gillis: It is difficult. I would not shy away from saying that; a 2020 cut steel is a difficult task.

It was also revealed that no cost analysis work has been done regarding the transfer of the OPV build between Adelaide and WA. ASC gave evidence earlier in the week at a separate hearing that such investigations had not taken place as far as they knew. Secretary Richardson confirmed that a decision on the design for the OPV will be made in the first half of next year, while deputy secretary of CASG Kim Gillis confirmed that the details of the cost of transference between the two states would be covered under the CEP and tendering process with the preferred partner.

It was also confirmed that the new tankers to be built by Navantia in Spain at a cost of $650 million will have between $130-$133 million of local content included. Finer details on this figure were not forthcoming aside from the combat system work, despite Gillis having said pressure was being placed on Navantia to use 9,000 tonnes of Australian steel for the hull.

Senator Carr also hammered home the point that Williamstown shipyard in Victoria has no maritime work on the horizon under the two-shipyard plan (read SA and WA) put forward by RAND and supported by government.