New submarines may be built in Australia

Once panned as dud subs, Australia's Collins submarines are now widely regarded as the world's top conventional submarines, a new report says.

The success of the Collins class suggests Australia should consider building the next generation of submarines, the report's author Patrick Walters said.

Mr Walter's report, released by the Australian Strategic Policy Institute (ASPI) also says the prospect of powering the next generation with nuclear reactors should not be dismissed out of hand.

Mr Walters, a former adviser to Kim Beazley and now national security editor at The Australian newspaper, said the Collins submarines "are now widely regarded as the finest conventional submarines in the world".

"The Collins project also delivered a massive shot-in-the arm to Australia's defence industry and it is only now, after the completion of the project, that the industry benefits can begin to be assessed," he said.

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