South Australia may not be able to build the first batch of the country’s next generation submarines. Australia’s Industry Minister Ian Macfarlane believes the submarine work could be initially based offshore.
Macfarlane said he remains optimistic about the prospects of South Australia. The Opposition fears the government may have already decided on Japan as the winning bidder to build Australia’s submarines. It was also worried that locals would miss out on job opportunities.
The Abbott government said it wants both local and international firms to compete for the right to build the submarines. Macfarlane said the process is “very competitive.” He added that Australia may not build the first few submarines but he was not going to rule out the local ship building industry since there are many subs needed.
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