Earlier today, Prime Minister Malcolm Turnbull announced the winner of the biggest defense contract in Australia's history. While Japan was long believed to have the inside track, France received the order for 12 new submarines in a deal estimated at 39 billion dollars. We have more from Neal Conan, in the Pacific News Minute.
Two years ago, then- Prime Minister Tony Abbott reportedly made a handshake deal with Prime Minister Shinzo Abe. To clear the way, Abe forced through a re-interpretation of Japan's constitution to allow for the export of weapons. Then, government MPs from South Australia rebelled - they wanted guarantees that the vessels would all be built in Australia, and last September, Tony Abbott was out… toppled by his own party. Even so, Japan still looked like the winner until ominous leaks emerged about its lack of experience managing overseas contracts. Then, last week, news that bids from France and Germany were both considered superior... a Japanese Soryu class submarine... the same model on offer...quietly concluded its port visit to Adelaide and headed home.
Australia's new submarine- dubbed the Shortfin Barracuda...is a diesel-electric design from the French Consortium, DCNS, that features advanced pump jet propulsion that's claimed to be much quieter than propellers. Defense Minister Marise Payne noted, "we need submarines that are quiet... to detect other submarines." Plus, with an election now coming up fast in Australia, Prime Minister Malcolm Turnbull was able to stand in the shipyard in Adelaide and declare, "it will be built here in Australia, with Australian jobs and Australian Steel."