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Hypocritical debate over ASC's capacity to even 'build a canoe' : Comments
By Brendan O'Reilly, published 1/12/2014I know enough people in the services and in the Defence bureaucracy to be certain that ASC is definitely not held in high regard and that, if our Navy seeks value for money, it should buy its submarines overseas.
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Setting up ASC was difficult, and in hindsight we can say it wasn't worth it. But the Howard government managed to fix the problems, both in the submarines and the corporation. Now the ASC has the capability, though inevitably with this sort of project there will be teething problems every time a new design is introduced. But if no new orders come, the expertise will eventually be lost, and in future we will either have to spend a huge amount of money regaining the expertise or buying from overseas will be the only option for future governments.
Even if offshoring would save $20bn on the purchase price (which seems unlikely) they would not be $20 billion better off because there would be a substantial reduction in tax revenue from SA.