| Ms Parly said it took a lot of confidence for Australia to "bet on France" but also confidence on Paris' part to share its top-secret submarine technology. Construction of the first submarine is slated to begin in late 2023 and it will commence sea trials in 2031 and be fully mission-ready for the navy in late 2034. But given the complexity of re-engineering what was originally a nuclear-powered submarine into a diesel version to be built in Adelaide - and Naval Group is already running three years late with its own boat for the French navy - a number of defence experts have raised questions whether the submarines will be delivered on time. While the Opposition has not confirmed anything publicly, many in the defence industry expect Labor to conduct a review or audit of the program if it wins the election in May. Opposition defence spokesman Richard Marles has said that while Labor remains committed to Naval Group, he has criticised the government for failing to maintain competitive tension by selecting one designer, depriving the Commonwealth of leverage in negotiations. The Australian Financial Review understands that as part of the SPA, the government can break the contract at any point, and does not have to wait for Naval Group to miss delivery milestones. However any termination has to be on a "fair and equitable basis", triggering compensation that could run into millions of dollars. The SPA also fails to mandate a minimum level of Australian industry content in construction of the submarines but Defence will push overseas suppliers to show how they will support the maintenance and sustainment of components to ensure sovereign capability. Defence will also have a right of veto over subcontractors. Centre Alliance Senator Rex Patrick, a former submariner who is sceptical of the project, said Mr Pyne had initially promised a minimum 90 per cent of Australian industry content but had pared this back. "This is a sell-out of Australian industry," he said. Senator Patrick said industry had suffered another blow after the Defence Department confirmed through Senate estimates that the Turnbull government had rejected Naval Group's offer to partner with taxpayer-owned local submarine builder ASC on the project. Mr Guillou said there was "no question" all 12 submarines would be built in Australia. "We are building the yard - the first sod was turned on December 13. We are now starting to raise the number of the staff," he said. Let's block ads! (Why?)
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