The national employer association Australian Industry Group (Ai Group) has announced that they welcome the government release of the independent Enhanced Lethality Surface Combatant Fleet review, in particular the intention to fund an additional $1.7 billion over the forward estimates and $11.1 billion over the next decade for accelerated delivery of the program.
"However, the decision to scale back the Hunter Class program will be challenging for some in the industry. The reduction in the number of Hunter frigates raises concerns, particularly regarding the need for certainty and consistency in South Australia to deliver the pipeline of work," said Innes Willox, Chief Executive of the national employer association Ai Group.
"A further challenge will be that the initial purchase of 'Tier 2' ships will be built overseas and will require transition to an Australian-build. This will need to be carefully managed to ensure the engagement of Australian supply chains throughout the process.
Ai Group states the importance of effective project delivery as the government and Defence work together to implement the updated projects involved in the plans for the Royal Australia Navy's surface fleet.