891 ABC Breakfast

E&OE TRANSCRIPT
891 ABC Adelaide Breakfast with Spence Denny
07/12/16
SUBJECTS: Infrastructure development at ACS’s Osborne shipyard.

Spence Denny: But first, you might have read this morning that the ASC's Osborne shipyard is going to undergo a major redevelopment to support the construction of the Navy's Offshore Patrol Vessels and Future Frigates.

Defence Industry Minister Christopher Pyne, good morning to you.

Christopher Pyne: Good morning Spence.

Spence Denny: So the contract for the design has been awarded.

Christopher Pyne: That's exactly right. So Odense Marine Technology, which is a Danish company will plan and design the infrastructure that we need at Osborne to sustain the Offshore Patrol Vessels and then the Future Frigates, and then of course the submarines further down the track. So there needs to be a major restructure and building of infrastructure at Osborne, and we want to start that mid next year in order to support the workforce of course and train more workers for the future, and as- fill in that valley of death that Labor left us. So we're moving with alacrity and it's very good news.

Spence Denny: And we're talking about a huge area; we're talking an area bigger that Adelaide Oval, aren't we?

Christopher Pyne: Ah yes, it's a massive area, much bigger than Adelaide Oval. It's a massive space, and of course in 2022 there'll be the busiest and most modern surface shipyard there at Osborne South and the busiest and most modern submarine yard at Osborne North. So this will be of course a massive shot in the arm to the South Australian economy, and we've been making the decisions this last few months that I've been the Defence Industry Minister that will make it happen, it will lay the foundations, and eventually there'll be 5300 people employed on that site. So imagine the impact that's going to have on our economy.

Spence Denny: Where are these people going to come from?

Christopher Pyne: That's a very good question. Obviously we want to use the current workforce, but we'll need to go and- we're going to need to seriously increase the skilled workers that we need down at Osborne South and North. That's a problem that I'm happy we should have; rather than worrying about redundancy payments we're actually more concerned at the moment...

Spence Denny: [Interrupts] Well that was going to be the point - aren't we losing some of that skill right now?

Christopher Pyne: Well we're trying not to. I mean, obviously Labor didn't make any decisions in six years, but we are trying to make the decisions that will keep the workforce employed, and infrastructure building is part of that, which is why I wanted to get on with choosing the designer, getting the plans by early next year, starting the infrastructure in mid-2017, because that will employ a lot of people. And of course we're not so concerned about - well, obviously we are concerned about redundancies, but we are also deeply concerned about finding the people. But that's a good problem to have, it means we can skill more of our young people, more coming to South Australia, jobs for South Australians, so it's a great news story for our state.

Spence Denny: What about the actual construction of the facility to build these ... these additions to the naval fleet? Because we know that the fabrication business that was involved in the construction of Adelaide Oval has gone into liquidation, so are we - is there a potential life line there for local business to get involved in the construction process?

Christopher Pyne: Well a construction process will be all local business, all local business. The Odense Marine Technology will be designing the shipyard, but they won't be building them. The building of the shipyards will all be local, and for example the shed for the submarines is higher, wider and longer than the Adelaide Oval, so this is a massive development. You won't exactly see it from space, Spence, but it will certainly be something you can't miss when you're flying into Adelaide, so.

Spence Denny: And are there other safeguards built in? You're saying local industry will be used - are we going to use local Australian steel?

Christopher Pyne: Absolutely. We will...

Spence Denny: Completely?

Christopher Pyne: We've already announced that. It'll be Australian steel for the Offshore Patrol Vessels, Future Frigates and the submarines...

Spence Denny: No, I'm talking about the facility.

Christopher Pyne: And for the infrastructure of course, yes, we'll be using Australian steel for that for as much of the infrastructure as Australian steel is available for.

Spence Denny: What's the timetable?

Christopher Pyne: Beginning the infrastructure mid next year, the designs will come to us early in the New Year - although that's obviously a big job, so Odense has already begun work on Monday, which was terrific; we signed the contract on Sunday and they started work on Monday. We've already been working with them for the last six months and with another business of course to sort of see what we might need to do, so the infrastructure will start being built in mid-2017.

Spence Denny: And how close is it to the existing ASC facilities?

Christopher Pyne: It's right next- it's- well there's land abutting Osborne which will be used, but the major works will be the upgrading of the current shipyards that are being used for the Air Warfare Destroyer, so they'll be in the same place, and next to that at Osborne North, sort of literally a walk across a car park, if you like, will be the submarine facilities that'll be needed.

Spence Denny: Christopher Pyne, thank you.

Christopher Pyne: A great pleasure.

Spence Denny: Defence Industry Minister here on 891 ABC Adelaide.