Senate Foreign Affairs, Defence and Trade Legislation Committee, , 6:38:51 to 6:44:24
Update on the Mogami frigate build schedule at Henderson shipyard and the impact of Whyalla steel supply concerns.
Topics: ADF, Manufacturing, Infrastructure
Speakers: David Hanley, James Paterson, Sheryl Lutz, Unknown Speaker, Speaker 23, Raff Ciccone, Speaker 28
>> don't quit your day job. Um, I just have a couple of quick questions and then I'm going to share the call with my colleagues, uh, Senator BL and Senator Collins. Um, it's about Mami again if the relevant officials could be
Magami may not be able to be built at Henderson and it may have to be built in Japan. What's the kind of drop dead date that we would know that or need to know
>> Yeah. uh Cheryl Lutz uh first assistant secretary major service combatants and combat systems. Uh we will be doing a an assessment um in early 28 um and that will be completed by mid28 to go to government to determine um whether the conditions are right to be able to commence prototyping in 2030.
>> Okay. And given the lead times required for, you know, ship building of this kind, if we decided in mid28 based on that advice that we weren't ready to build ship for at Henderson, that would be sufficient time for our partners in Japan to continue that continuous ship build and provide it to us on the scheduled time frame.
>> Yes, that's correct, Senator. We we're in Cheryl and I are engaged with um the right officials within Japan within MHI to make sure they understand that and in fact it was at a recent meeting um between the Minister of Defense here uh and the Japanese Minister of Defense where that was reiterated.
>> Right. So they are on standby and they know that we may ask if there is slippage Henderson that they may be required to do that
>> if there is. And I just might clarify two points there Senator. one is um and it's a correction on the record for me. I think earlier I'd said that the prototyping would start in 2029. Cheryl is correct. It starts in 2030. So just to correct that error. >> And second one is um there are two conditions. One is and you rightly point out is the availability of the Henderson defense precinct for construction for Magami. The second condition is the readiness of our strategic ship builder Oel.
>> Yes. Yes. And presumably the progress on landing craft heavy and medium.
>> Sorry, can you repeat that?
>> And presumably the progress on landing craft heavy and medium.
>> Correct. Yes. The landingcraft heavy program and the landingcraft medium program are pilot programs.
>> Yeah.
>> For OAL. So they can go from where they are today to where we need them to be building a tier one warship such as the Magami.
>> And if there was any slippage in their ability to deliver those platforms, that would have implications for Magami.
>> Correct. And Cheryl is right again that um the condition check that she mentioned involves both those aspects.
>> Yeah.
>> So and we are working on on both right now. So we are uplifting OT's capability as we speak. We are not only just relying on the landingcraft heavy landingcraft medium program but we also doing a corporate capability uplift with OEL. >> Right. Um and then on the readiness of the yard, that's a schedule that we're working to to make sure that there are the facilities, fabrication sheds, um construction halls, block building facilities, etc., etc.
>> So that final date for decision is mid 28, but it's possible that it might become evident to us before then that we're not going to meet those deadlines.
>> The the assessment will be done from first half of 28 and then we'll go to government second half of 28. Right. But
but for example, if we identify issues with hostel uplift or the landing craft delivery earlier than that, self-evidently, there are implications that flow from that for mami.
>> I think I think the answer is self-evident as well, Senator. Um the answer is yes. Um but the good news is we've started that work already. There are no indications at this point in time that we'll be behind on either item.
>> But it is an ambitious thing for OEL to do. No knock on them, right? They're a great company, but this is something they've not done before.
>> Correct. and and maybe I can refer to Cheryl here to talk about the engagement between OEL and Japan and MHI already please.
>> Yes, please just quickly and then I'll share the call with my colleagues. Uh
yes. So um we've had several meetings um which the Commonwealth has facilitated um to ensure that we get OSU and MHI um with initial um discussions on their relationship and how they will be contracting and making sure that um OS sorry ADA get the information they need to be able to assess the onoring to start doing that preparation work um from now through to um 28.
>> Okay. All right. Thank you. Uh, I'm >> To my colleague.
>> The coalition are done. Good.
>> Not quite. >> Sorry.
>> Thank you.
>> All right. All right. I know you're not done yet. I know.