More than 1000 jobs at Williamstown’s shipyard could be saved, with reports the federal government wants BAE Industries to take over the country’s largest defence project.
The government has not released details of a review into the $8.5 billion air warfare destroyer (AWD) project, claiming commercial confidentiality.
But it’s believed negotiations for BAE to replace the government-owned ASC in Adelaide as prime shipbuilder on three AWDs are under way. If the British defence giant secured the contract, it would be likely to allocate work to ASC and BAE Systems in Williamstown.
Unless it receives more work, the Williamstown shipyard could close next year.
Federal Gellibrand Labor MP Tim Watts said the government should give the shipyard definitive answers.
“The shipbuilders of Williamstown have campaigned long and hard about the crisis point facing their industry and they don’t need any more false hope,” he said. “Prime Minister Tony Abbott needs to ensure these reports translate into real work for the Williamstown shipyards.’’
Hobsons Bay mayor Sandra Wilson would not be drawn on what the rumoured deal could mean for the city.
“We can’t comment on a contract negotiation, but Williamstown and Hobsons Bay have a proud shipbuilding history,” she said.
BAE Systems declined to comment. Defence Minister David Johnston did not respond by deadline.
