David Johnston (WA, Liberal Party, Minister for Defence) Share this | Hansard source

The Abbott government believes that Australian shipbuilding has a strong future. That is why the finance minister and I took the steps we did last week to get the Air Warfare Destroyer program back on track. We are absolutely committed to improving shipbuilding productivity at the AWD shipbuilder, ASC, and its subcontractors BAE, Forgacs and Navantia. We have committed $78.2 million to bring forward preliminary engineering and design work needed to keep the option of building our future frigates in Australia open—potentially some eight-plus vessels—focusing around the CEA phased array radar and the SAAB 9LV command and control system from Adelaide. The design work will focus on continued production of the current air warfare destroyer hull. Demonstrating that the air warfare destroyer program is able to provide value for money will be the crucial test. That will be the test by which we have a decent productive industry.