The state government has joined the opposition in calling on the federal government to ensure there is work for Williamstown’s 1000 shipbuilders in the wake of Friday’s announcement that two new navy supply vessels will be built offshore.
Victorian Manufacturing Minister David Hodgett said his government was seeking a commitment from the Abbott government that Williamstown’s BAE shipyard will be given work on the two replenishment vessels to be sourced from Spain or South Korea.
As reported by Star Weekly in April, Gellibrand Labor MP Tim Watts said unless new work contracts were awarded to BAE, the shipyard would close.
Current work at BAE runs out in January.
On Friday, Mr Watts said the government had “torpedoed the local shipbuilding industry”, while the Australian Manufacturing Workers Union labelled the move to source ships offshore as “insidious”.
Mr Hodgett urged the federal government to guarantee work for local shipbuilders and re-allocate work to Williamstown under its Air Warfare Destroyer (AWD) program.
“While it’s disappointing the federal government has announced it will source two vessels from Navantia in Spain or Daewoo in South Korea, we believe there are significant opportunities for BAE to be involved and complete work on the vessels at Williamstown in the same way they have done on the amphibious assault ship,” he said.
While he welcomed the federal government’s decision to fast-track at least 20 replacement steel-hulled Pacific patrol boats, Mr Hodgett said there would be open competition among Australian shipyards for the work.
“We urge the federal government to ensure that the awarding of this contract is done urgently as we believe BAE Systems is in the best position to deliver steel-hulled vessels,” he said.
BAE spokesman Simon Latimer said timing was critical.
“We believe our highly skilled team, our Williamstown shipyard and the reach back we have to the extensive naval shipbuilding capability that exists in our international organisation can play an integral role in the AWD project,” Mr Latimer said.
“We will be putting a strong case to the federal government that we’re ready to take on additional work and responsibilities to help deliver this significant national project.
“We look forward to quickly discussing with the government these challenges and the solutions that are available to it.
“Once we have done so, we will provide further specific comments regarding both short- and long-term plans for our company’s shipbuilding operations in Australia.”