Full Cycle Docking: WA Labor MPs accuse Federal Government of ‘intentionally’ delaying submarine project call

The Federal Government has been accused of intentionally delaying a decision on whether the State will secure a lucrative submarine project, with Labor MPs saying ‘they will let the clock run down and then dud Western Australia.’ Finance Minister Mathias Cormann told a senate estimates hearing that the decision had not yet been made on whether Full Cycle Docking of the Collins Class Submarines would be located in SA or WA, initially denying the decision was expected to be “resolved” by December last year. Full Cycle Docking is an extensive upgrade and refit program which includes submarines being cut in half to remove the main motor and engines for servicing, before re-assembly. The program includes thousands of tasks and would create about 3,000 jobs for WA. Senator Cormann said the Government would not be “bullied” into accepting “artificial timelines” put to it by Labor for making the decision on where the work would be allocated. This was despite Defence Minister Linda Reynolds confirming in Senate Estimates in November last year that the decision would be made at “the end of this calendar year” (2019). “I'm not going to get into the timetables,” she told the senate committee. “When the Government's makes a decision, then all of the relevant information on the consequential timetables will be announced at that time.” Senator Reynolds said the Government rejected the assertion there had been a deliberate delay. "Our submarine capability is one of the most strategically important and complex capabilities in our Defence Force," she said. "This is why any decision regarding Full Cycle Docking for the Collins Class submarine will be made in the national interest following a deliberative Cabinet process, not in response to political posturing by Labor MPs who are only focused on the parochial, not the best capability outcome." Senator Reynolds said ASC's evidence showed there was "sufficient time for the Government to make a decision without impacting future Full Cycle Docking activities". ASC, formerly the Australian Submarine Corporation, said that “six years” of lead time was needed should the project be moved from SA to WA. The launch is FCD is slated for 2026. Fremantle MP Josh Wilson said the delay was “calculated” and the Government would use the necessary lead-time for the project as an excuse not to move it. “It’s hard to draw any other conclusion,” he told the West Australian. “They’re in a position to make a decision. “They will let the clock run down and then dud Western Australia.” He said given the absence of any deadline on the decision, he believed the project would stay in SA. Shadow Minister for Defence Industry and Member for Burt Matt Keogh said the Government “will make a decision by not making a decision”. Despite Senator Reynolds explicitly telling journalists in June that the FCD delay was not due to COVID-19, Senator Cormann told the senate hearing the pandemic had in fact thrown a spanner in the works. “I think you will find that the work of the Government... and indeed the work across manufacturing at any level has been impacted by COVID-19,” he said. “I think that that is self evident.” WA Defence Issues Minister Paul Papalia said he was “fearful” the delay would mean Australia would be left without a submarine force at some point in the future. “I’m worried that the Australian nation will potentially lose its operational submarine capability just through an inability to make a decision,” he said. “It’s in national interest that FCD come to WA.” He said Senator Cormann’s “political legacy” should be delivering FCD to his home State. Senator Cormann announced his retirement from politics earlier this year, with Scott Morrison announcing this month the outgoing-Finance Minister would be nominated as Australia’s candidate for Secretary General of the Organisation for Economic Co-operation and Development.