Reports Austal receives $350 million lifeline to construct six new patrol boats

Six new patrol boats will be built under a fast-tracked $350 million Defence project that aims to keep hundreds of local jobs afloat during the coronavirus pandemic.

Defence Minister Linda Reynolds has announced shipbuilder Austal will construct the additional Cape Class vessels for the Royal Australian Navy in her home state of Western Australia.

The Australian Border Force (ABF) currently operates eight Cape Class Patrol Boats, while the Navy leases another two of the vessels, meaning the nation's fleet will soon grow to 16.

Senator Reynolds says the extra vessels will play an important role in keeping Australia's borders safe, while the Navy's next fleet of larger Arafura Class Offshore Patrol Vessels are brought into service.

"These vessels will not only enhance national security but will provide important economic stimulus and employment continuity during the COVID-19 pandemic," the Minister said.

"The ability to build more of these vessels in Australia will deliver Australian Industry Content of more than 65 per cent, providing significant opportunities for Australian industry and Defence, as well as more than 1,200 workers in the broader Australian supply chain," she added.

Defence Industry Minister Melissa Price says the six new patrol boats to be built at the Henderson shipyard outside Perth "will help to ensure continued employment opportunities for 400 of Austal's commercial shipbuilders in WA, with flow down benefits to Austal's supply chain".

From 2021 the first of 12 new Arafura Class OPVs is scheduled to begin replacing the Navy's ageing Armidale Class Patrol boats as well as its two leased Cape Class vessels.

However, industry insiders have expressed surprise at today's $350 million price tag for the Navy's six latest boats given the ABF purchased its existing eight Cape Class vessels for $330 million.

In 2017 the ABC revealed the ABF had experienced problems dispatching smaller watercraft from its Austal-built Cape Class patrol boats.

That year a health scare involving lead poisoning and Legionnaires disease also hit the ABF's Cape Class fleet.

Source:  ABC