World Video | Defence | Foreign Affairs | Natural Events | Trade | NZ in World News | NZ National News Video | NZ Regional News | Search

 

Commonwealth Acquires Australian Submarine Corp.

JOINT MEDIA RELEASE

THE HON. JOHN MOORE, MP Minister for Defence

SENATOR THE HON. NICK MINCHIN Minister for Industry, Science & Resources

THE HON. JOHN FAHEY Minister for Finance & Administration

MIN319/00 30 October 2000

COMMONWEALTH ACQUIRES FULL OWNERSHIP OF THE AUSTRALIAN SUBMARINE CORPORATION

The Federal Government today announced that the Australian Industry Development Corporation (AIDC) has signed an agreement for the acquisition of the remaining 51.55% equity in the Australian Submarine Corporation (ASC).

The equity will be acquired for $43.49 million and it is expected that the acquisition will be finalised later this week. Shortly thereafter all of the share capital in ASC will be transferred to direct Commonwealth ownership.

The Minister for Finance and Administration, John Fahey, said that the impending acquisition was the first stage of a reform process expected to lead to ASC's onward sale to the private sector.

"The acquisition is a critical step in ensuring that the Collins project is brought to a satisfactory conclusion and that the capability exists to support submarine repair, refit and enhancements in the long term", Mr Fahey said.

The Government considers that these changes will be beneficial to ASC's future, recognising that the build phase of the Collins Class project is nearing completion and that the company is currently in the process of transformation to a smaller scale maintenance and support operation.

The Minister for Industry, Science and Resources, Senator Nick Minchin, said the Government wishes to maintain and enhance the considerable skill base that has been established at the ASC due to the company's importance to Australia's submarine capability.

The Minister for Defence, John Moore, said that an immediate step would include a review of future contractual arrangements between the ASC and the Commonwealth for the support of the Collins Class Submarines.

As a first stage in this process, three international firms BAE Systems plc, Newport News Shipbuilding Inc, General Dynamics Corporation, and two domestic companies ADI Limited and Tenix Pty Ltd have been invited to take part in a funded study which will canvass options for the future arrangements.

These participants have been selected on the basis of their whole system submarine construction and support experience or their substantial Australian naval shipbuilding and repair expertise.

It is envisaged that other Australian and overseas companies with relevant experience will be given the opportunity to discuss aspects of the study with participants.

The Ministers said that the resultant study reports will be used by the Commonwealth in refining and developing better and more sustainable arrangements for future support of the Collins Class Submarines and will also assist in developing a privatisation strategy for the ASC.

Senator Minchin and Mr Fahey said that a new Board for the ASC would be announced once the Commonwealth had taken full direct ownership and control of the company.

Canberra

30 October 2000


© Scoop Media

 
 
 
World Headlines

 

Afghanistan: Record Number Of Women And Children Killed Or Wounded

More women and children were killed and wounded in Afghanistan in the first half of 2021 than in the first six months of any year since records began in 2009, a United Nations report revealed on Monday... More>>

Tale Of Two Pandemics: Follow The Science And Do Not Forget One At The Cost Of The Other

Covid-19 has posed innumerable health, economic, and social challenges for all, including people living with HIV. It has exposed the fragility of health systems around the globe and has diverted political attention and funding from other infectious diseases like TB and HIV... More>>


UN: Rights Chief Calls For Prompt Release Of Protestors Held In Cuba
The UN High Commissioner for Human Rights on Friday called for the prompt release of protestors and journalists detained during anti-government demonstrations in Cuba, some of whom are being held incommunicado... More>>

Focus On: UN SDGs



Food Systems: More Than 100 Countries Discuss Visions For Futures To Accelerate Global Action Ahead Of September Summit

More than 100 countries came together over the course of three-days to discuss how they will transform their national food systems to drive progress against the Sustainable Development Goals by 2030... More>>


Food Systems: Italian & Rwandan Leaders Join Urgent Call To Transform World’s Food Systems As Pre-Summit Begins

Italian Prime Minister Mario Draghi and Rwandan President Paul Kagame stress need for more inclusive, sustainable and holistic approaches ahead of the Summit in New York in September... More>>


UN: Play:Fair For People And Planet – A Major United Nations Music Activation
organized by the UN SDG Action Campaign in partnership with Music Innovation Hub, Keychange, the city of Milan, the Milan Triennale, and partners from the SDG Music Network, will be held at an unexpected location in the center of Milan, Italy, taking into account safety measures with a limited on-site audience consisting of activists and fans... More>>