We must build subs, not rent them, Cosgrove and Houston warn

Defence heavyweights Peter Cosgrove and Angus Houston say an Australian-built submarine fleet is essential for the nation's strategic interests, urging the government to resist cheaper options for replacing the ailing Collins Class boats.

Air Chief Marshal Houston and General Peter Cosgrove yesterday dismissed the findings of a Centre for Independent Studies report which said the federal government should consider leasing Virginia-class nuclear submarines to save Defence more than $10 billion.

General Cosgrove said looking to cheaper options because of the federal government's budget constraints would damage the industry. "We are realists about the budget, but we also take a deep view of Australia's future and defence industry," he said.

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