Labor will now push for Senator Reynolds,who is on leave this week as the submarine project is due to be scrutinised in Senate estimates,to front a spillover hearing after she returns after April 2.
The new agreement follows more than 12 months of mounting concern about whether Naval Group would meet its local content requirements underthe biggest defence contract in Australia’s history.
The strategic partnership agreement will now be amended to insert Naval Group’s commitment to spendat least 60 per cent of the contract value in Australia over the life of the program to build 12 new Attack-class submarines.
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Under the agreement,Australian content will be agreed for each stage of work and Naval Group will be liable for not meeting certain thresholds.
The acting Defence Minister Marise Payne said the agreement includes commitments to maximise Australian industry involvement in all phases of the program.
“Today’s announcement builds on the opportunity for industry to participate in the manufacture of equipment designed by Naval Group worth hundreds of millions of dollars across the 12 boat fleet,” she said.