High local content for Anzac ships

Press, 21 May 1988, Page 7

High local content for Anzac ships

PA Wellington The future of the Anzac ship project will rest on the level of local industry content, according to the project director, Commodore Peter Mitchell of the Australian Navy. New Zealand and Australia have set a target of 70 per cent local content, with one-third going to New Zealand firms. Commodore Mitchell said at a special briefing in Wellington today he was confident such a level could be achieved. The two classes of ship under consideration, the Dutch M class Royal Schelde frigate and the German Meko from Blohm and Voss, already existed, were not ahead of technology, equipment

was already on the market, were neither complex nor overly expensive. Between 5000 and 10,000 contractors are expected to take part in the contract which is for eight frigates for the Australian Navy and four for New Zealand.

Though the contracts will be awarded on a competitive base, local firms will be given a 20 per cent premium. They will be considered competitive even though bids are 20 per cent above international tenders. Commodore Mitchell said a ceiling price had been set by both Governments of $291.2 million a ship in December, 1987, terms. This price did not include ammunition, fuel, logistics or spares.