Following a recommendation from Defence, Collins class submarine sustainment has been listed as a Product of Concern to enable enhanced ministerial oversight of this critical capability.
The Collins class sustainment program has experienced challenges in recent years. With the submarines required to operate beyond their original design life, it is essential that increased sustainment requirements are met to ensure the Collins class remains an effective and formidable capability until it is withdrawn from service.
Defence will now develop a remediation plan as a priority, to allow a Product of Concern Summit to be held in early 2025.
The Albanese Government is committed to investing in priority capability enhancements, obsolescence management and fleet sustainment for the Collins class to ensure it remains a potent and credible capability to conduct operations to safeguard Australia's maritime approaches and sea lines of communication.
This includes a $4-5 billion commitment over the next decade to extend the life of the Collins class and ensure there is no capability gap until Australia transitions to its future conventionally armed, nuclear-powered submarines.
Under the former Coalition Government, an efficiency dividend of approximately $120 million was applied as part of the Collins class In-Service Support Contract signed in 2020. This cut directly affected the level of sustainment support provided to the Collins class submarines.
In June this year, Defence, under the Albanese Government, signed a new four-year sustainment contract with ASC valued at $2.2 billion, without a detrimental efficiency dividend.
Since coming to office, the Albanese Government has strengthened and revitalised Defence's Projects and Products of Concern framework. It is an important tool in the proper stewardship and governance of Australia's vital Defence capabilities.
The Product of Concern process has demonstrated its value in addressing challenging projects through enhanced Ministerial oversight. Product of Concern Summits allow for Defence and industry to come together in the in the national interest to remediate Defence capabilities.
Collins class submarine sustainment has previously been a Product of Concern spanning successive governments, from November 2008 until October 2017.
Quotes attributable to Minister for Defence Industry and Capability Delivery, Pat Conroy:
"This is another example of the Albanese Government bringing the necessary energy and oversight to fix troubled projects.
"I have convened seven Projects of Concern summits in just two-and-a-half years as Minister. The former Coalition Government held only four of these important summits during almost a decade in office.
"By listing Collins class sustainment as a Product of Concern, the Government is demonstrating its commitment to remediating these challenges and ensuring the Submarine Enterprise, which includes Defence and ASC Pty Ltd, delivers and sustains improved performance.
"This is in stark contrast to the approach taken by the former Coalition Government which ripped money away from funding sustainment of this critical capability. This is another example as to why Peter Dutton and his crew cannot be trusted on defence."
