Naval shipbuilding a boon for Australian economy

The strong boost to Australia’s economy from the Coalition’s sovereign Naval Shipbuilding Plan has been further confirmed through an Oxford Economics report on the Hunter class future frigate program.

Minister for Defence, the Hon Christopher Pyne MP, said the modelling vindicated the Coalition Government’s determination to develop a sovereign naval shipbuilding capability in Australia.

“The Oxford Economics report emphasises the important role the Hunter class program and the broader naval shipbuilding enterprise play in Australia’s economic growth and the ongoing development of our skilled workforce,” Minister Pyne said.

The modelling estimates the Hunter class program will contribute $17 billion to the national economy and over 6,300 full-time jobs will be generated across Australia at the program’s peak in 2028.

“The Government is investing $90 billion in continuous naval shipbuilding to deliver the critical capabilities the Navy needs for decades into the future to defend the nation and its interests.

The Coalition’s commitment to building 55 vessels in Australia using Australian steel and Australian workers is also delivering great benefits to the Australian economy.

The report states over 500 Australian businesses have been pre-qualified to be part of the Hunter class supply chain.

The Australian steel industry will benefit in particular with approximately 48,000 tonnes of steel required. 

“As well as the direct contributions to our national economy, the Hunter class program will enhance technical knowledge in Australia’s naval shipbuilding enterprise,” Minister Pyne said.

“Australia’s shipbuilding sovereignty is being guaranteed through the Hunter class program, with ASC Shipbuilding constructing the frigates.”

The Oxford Economics report was commissioned by BAE Systems and can be downloaded at: www.baesystems.com/en-aus/download-en-aus/20181127151654/1434623092503.pdf