New torpedoes will fail great expectations

A troubled defence project to acquire new torpedoes appears to be back on track but will never deliver the full capability originally sought, the national auditor says.

Three years ago, the $639 million project was experiencing major technical problems and running years late.

"When examining the project across its life and comparing it to the original plans, it is clear that it will not deliver the full capability originally expected," the Australian National Audit Office (ANAO) said in a report released on Thursday.

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