Today the Government releases a comprehensive report into the Australian naval ship building industry, Australia’s Naval Shipbuilding Enterprise – preparing for the 21st century by the RAND Corporation, one of the world’s leading defence think-tanks.
In September last year, the Government commissioned RAND to conduct a detailed review of the Australian naval ship building industry. The report is one of the most detailed studies undertaken into the Australian naval shipbuilding industry.
Following the election of the Coalition Government, it was clear that the former Labor Government had no commitment and no plan for Australia’s naval shipbuilding industry. In six years Labor did not commission a single naval vessel from an Australian yard, resulting in the creation of Labor’s ‘valley of death’.
Indecision and inattention by the former government has left the Australian naval ship building industry in a precarious and uncertain state.
Although the report makes clear that Labor’s valley of death cannot be overcome, this Government is prepared to invest in the skills and knowledge base of the Australian naval ship building industry, and is prepared to commit to a long-term investment to make sure this important industry enjoys a future in Australia and these critical skills are maintained.
To this end, the naval shipbuilding industry must be prepared to work constructively with the Government. The sustainability and viability of naval shipbuilding in Australia must be predicated on major reform of the industry and significant productivity improvements, as well as improvements to Defence’s acquisition and sustainment processes.
The RAND report found that:
The RAND report is a critical input into the Defence White Paper and the Naval Shipbuilding Plan. The Government will now carefully consider the report’s analysis and findings in preparation for the release of these documents later this year.
The Government looks forward to engaging industry on the challenges and opportunities identified in the report, so as to ensure that naval ship building has a strong and sustainable future in Australia.
We encourage industry to review the RAND report and provide feedback on the findings via defencewhitepaper [at] defence.gov.au.
The RAND report is now available on the Department of Defence website (www.defence.gov.au/Whitepaper/Links.asp) and the RAND Corporation’s website (www.rand.org/pubs/research_reports/RR1093.html).
Media contacts:
Brad Rowswell (Minister Andrews’ Office) 0417 917 796
Defence Media Operations (02) 6127 1999
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