Adelaide Now, 10 March 2016:
SPAIN is celebrating the creation of up to 3000 jobs — building Australian ships — as South Australia desperately waits for news of shipbuilding jobs here.
Local newspapers have revealed that Spain is set to get the contract for two replacement supply ships as Prime Minister Malcolm Turnbull wraps up his trip to SA.
Officials in the shipbuilding town Cadiz described it as “great news” and a “historic” win with one report saying it would create 2000 jobs over four years and another saying 3000 jobs.
ASC was knocked out of the running for the contract early on, with the Government opting for a limited tender. The competition was between South Korea and Spanish shipbuilders Navantia, who designed the troubled Air Warfare Destroyers.
At the time, then-Defence Minister David Johnston said the ships were too big to be built in Australia.
But critics from within the industry and within Parliament said they could be built here and the jobs could help bridge the ‘Valley of Death’.
Radio 5aaa, Adelaide, 6 May 2016:
A shaken Nick Xenophon has spoken to Leon Byner about a government decision that has dashed hopes that shipbuilding work worth “hundreds of millions of dollars” would be done in Australia.
Senator Xenophon spoke to Leon Byner only minutes after stumbling across a bombshell about the deal with a Spanish shipmaker to build supply vessels.
“It was revealed in the course of Senate estimates that the supply ship contract was signed yesterday,” Mr Xenophon revealed. “No media announcement, no media release has been put out yet.”
Mr Xenophon said it was “shocking news” to discover the contract worth $800m will only include $130m of Australian content and no Australian shipbuilders.
Asked whether at least Australian steel would be used in the build, Mr Xenophon told a bemused Leon Byner that the Spanish shipbuilder had simply been given the “contact details” of Australian steelmakers.
“You’re telling me that the best they can do for local procurement is give out a phone number? Are you joking?” asked Leon.
“This is no joking matter,” replied Mr Xenophon.
“I was actually shocked. We were all quite stunned.”
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