The traditional peaks and troughs of Australia's shipbuilding sector remain one of the biggest challenges facing the Australian government as it attempts to drive through the naval acquisition programmes outlined in its 2009 defence White Paper, a policy paper published by a Canberra think-tank has stated.
The Australian Strategic Policy Institute (ASPI)'s report, which was published on 30 March, said the "need to manage the workflow for industry to avoid a 'boom and bust' pattern" had been highlighted by industry and local governments in an ASPI policy forum debating the future of Australian naval shipbuilding.
BAE Systems Australia, the country's largest defence company, wrote in the policy paper that Australia's historical approach to naval procurement has assumed that capability can be procured "when needed", which has resulted in "either boom or bust for industry".
The company added: "In Australia, with a single customer and a relatively small industry base, the competitive tendering of a small number of very high-value contracts results in a poorer outcome for all stakeholders. This high-stakes environment produces winners and losers for companies and communities, and sub-optimal outcomes for navy and government".
The Defence Industry Unit of the Victorian government stated that while the country's naval construction programme appears to be substantial "it will not provide a smooth workload".
To overcome the boom-and-bust challenge, BAE Systems Australia and the Victorian government suggested the need for closer government-industry partnerships to better manage demand.
Jane's
