Coalition casts doubt on plan to replace Collins Class submarines

The Abbott government is considering scaling back Australia’s long-held plans to build 12 new submarines – a reduction that would yield billions of dollars in savings to the budget.

The government is also preparing to reveal that rather than design the new submarines in Australia – an option favoured by Labor – Defence could buy an off-the-shelf design from abroad.

And while the Coalition looks favourably on directing most of the building work to Adelaide, it will demand that the government-owned shipbuilder ASC – based in the South Australian capital – make a sound case to win the work, potentially opening the way for the submarines to be built overseas, effectively ending homegrown naval ship-building.

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