$40-BILLION SHIPBUILDING PLAN TOO LATE FOR FORGACS

Tony Abbott has today announced a $40-billion shipbuilding package, but the bulk of the work will be going to South Australia.
Newcastle shipyard Forgacs, which has just laid off 160 workers, will be able to tender for the contracts, but says it’s all come too late.
FULL STATEMENT FROM FORGACS CHAIRMAN PETER BURGESS:
The government’s announcement today on a continuous naval shipbuilding program is welcome news for the industry but it has come too late to retain the shipbuilding skills at Forgacs. These skills have been developed over the last 6 years on the Air Warfare Destroyer contract which is due to complete in December 2015.
· The announcement states the Future Frigates and Offshore Patrol Vessels will be built in Adelaide however Forgacs and the Hunter region has great shipbuilding pedigree and should be involved in the construction of ship modules similar to the AWD modules it has been building for ASC Adelaide.
· A continuous naval ship build program has been promoted by Forgacs and other industry companies for many years and it is pleasing for the industry that this program will preserve the naval shipbuilding skills in Australia and the Hunter region.