20 May 2012

Save $40 bn and get something better

The never-ending madness of 'Australian-made':

IT IS not often that a government has the chance to save around $40 billion by buying the best available product rather than trying to design and build what will almost certainly be an inferior version. Yet Julia Gillard’s government seems determined to press ahead with the immensely complex task of designing and building twelve huge submarines at a likely cost of over $40 billion to replace six trouble-plagued, Australian-designed Collins class subs. Never mind that a high-quality submarine fleet can be bought from overseas for under $3 billion – less than it will cost to try to keep two decrepit Collins class boats operationally available until the future subs are due to arrive in 2025. Despite the political and fiscal damage it is inviting down the track, Cabinet seems unwilling to pull the plug on the project initiated by Gillard’s predecessor, Kevin Rudd.

Question: Who benefits?


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