Victoria has ramped up pressure on the Abbott government to save more than 1000 jobs connected to a Williamstown shipbuilding yard after the Prime Minister lifted a ban on Australian companies bidding for future submarine contracts.
On Monday Victorian Industry Minister Lily D’Ambrosio accused Defence Minister Kevin Andrews of postponing an urgent meeting to discuss the fate of BAE Systems’ Williamstown shipbuilding centre so he could hold a press conference in support of the under-pressure Prime Minister last Friday.
Mr Andrews’ office has denied the allegation, saying the pair had rescheduled to meet later this week.
Over the weekend ,Tony Abbott gave a commitment to South Australian Liberal senator Sean Edwards that Adelaide companies would be able to bid for future submarine contracts, which would benefit the state.
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During the Victorian state election, then-Opposition Leader Daniel Andrews promised to lobby alongside South Australian Premier Jay Weatherill to help save the domestic shipbuilding industry.
Major work at BAE Systems’ Williamstown site will finish later in this year with few major defence projects in the pipeline and Australian businesses excluded from bidding for two new supply ships — putting at risk up to 500 shipyard jobs and a further 900 supply chain jobs.
BAE is also worried about losing “capability” without any projects in the sector.
Questions have been raised about why Victorian federal Liberals MP have not been as aggressive with their lobbying for Williamstown as their South Australian colleagues.
But some federal Liberal MPs said there had been some private lobbying to help BAE.
Ms D’Ambrosio said in the wake of South Australia being able to bid for submarine contracts BAE deserved to be able to tender for supply ship building.
“While Tony Abbott frets about his own job, the jobs of 500 Victorians are hanging in the balance,” she said.
BAE has urged the government to fast-track orders of patrol boats to provide some certainty to the domestic industry, a call backed by the Victorian government.
Ms D’Ambrosio said the federal government should also reverse the decision to exclude Australian business from bidding for the supply ships.
“Tony Abbott needs to place an order and give local businesses and local workers the certainty they deserve.”
Mr Andrews’ spokesman said the Defence Minister was looking forward to meeting Ms D’Ambrosio.
He also pointed to the federal government’s plan to create a sustainable naval shipbuilding industry.
“Conscious of the financial disaster left to us by the former government, we will continue to ensure that our navy is served with the best capability at the best price. Announcements about specific programs will be made in due course,” he said.
Federal Opposition Leader Bill Shorten also weighed in, accusing Mr Abbott of acting only to save his own job, not the thousands of shipbuilding jobs at risk.
“If it’s good enough for South Australia, why isn’t good enough for Victoria?” Mr Shorten said.
“This is what policy making has come to under this chaotic Liberal government. It’s a complete shambles.”
A spokesman for BAE said it continued to talk to the federal government about how it could best support Australia’s future maritime defence strategy.
“We are confident that the government and new minister Kevin Andrews understand the issues facing the entire naval shipbuilding industry and the importance of maintaining this sovereign capability in Australia.”
