Warship project heading for cost blowout

The $8.5 billion project to build three advanced warships is facing a cost blowout of at least $300 million and potentially much more, a new report warns.

There have been a range of problems, with substantially lower than expected productivity at Australian shipyards, the Australian National Audit Office says.

The project, launched in 2007, is well behind schedule with the first vessel, to be named HMAS Hobart, set for delivery in March 2016 rather than December 2014.

Read more