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Sunday, February 15, 2009

Budget cuts scuttle destroyer

F-100 Class DestroyerPlans to build a fourth Air Warfare Destroyer in Adelaide, worth more than $2 billion, may be abandoned as the economic downturn hits federal revenue.

The recommendation to shelve plans to extend the $5.5 billion destroyer project at Osborne-based ASC Shipbuilding is understood to be contained in a draft of a top-secret Defence White Paper. It includes plans to mothball one or two of the Collins-Class submarines.

This comes amid a severe breakdown of goodwill between the Government and Defence chiefs over the impact of cutbacks to perks the officers enjoy, including limousines and valet services.

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