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Tuesday, June 16, 2015

Subs contract should be ‘local, privatised’: Tony Shepherd

Collins class SSKOne of the Abbott government’s key economic advisers has recommended that the next generation of submarines be built privately in Australia rather than tendering the $20 billion-plus project to Japan, France or Germany.

Tony Shepherd, a former head of the Business Council of Australia who was appointed to conduct the National Commission of Audit, says the submarines could be built in Australia for not much more than overseas and would offer a huge strategic advantage.

“Local construction gives us a much larger degree of independence than a build in an overseas dockyard,” he said in an article for the Australian Strategic Policy Institute.

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