N.Z. involvement in ships pledged

Press, 20 July 1988, Page 8

N.Z. involvement in ships pledged

By

BRENDON BURNS,

political reporter

A pledge to maintain New Zealand industry’s involvement in the Anzac ship project — even if New Zealand’s order for four ships is cancelled — has been given by one consortium bidding for the project.

Australian Warships Systems, which includes a New Zealand company, McDonnell Dowell, as a partner, has been lobbying for the tender in Wellington this week. New Zealand is tentatively scheduled to take four of the frigates, while Australia will buy eight. The managing director of A.W.S., Mr Bill Petersen, said yesterday that 335 New Zealand companies had registered interest in sub-contracting work for the project. These ranged in size from firms employing a dozen people to large corporations. Mr Petersen said New Zealand tenderers who were successful for subcontracts would be given the work, even if the Government withdrew from the project. “That is a philosophy of A.W.S. that we will stick to.” Mr Petersen and other

consortium representatives met the Minister of Defence, Mr Tizard, yesterday after meeting defence officials. He said Mr Tizard confirmed New Zealand’s continued role in the Anzac ship project — if the price was right. “All of the vibrations seem very good to us,” Mr Petersen said. Questions have been raised about New Zealand’s role in the project. Some defence experts say Australia is unlikely to be able to contain costs to early estimates of about $4OO million for each vessel. Australia’s poor industrial relations record has been a big concern. Earlier this year, the competing consortium, based at the Williamstown dockyard in Melbourne, included Victorian trade unionists in a delegation visiting Wellington. They attempted to assure Minis-

ters and officials of an improved industrial climate at the shipyard. Mr Petersen said yesterday that the facilities in Newcastle, New South Wales, to be used by his consortium would have as good an industrial relations record as anywhere in Australia. However, last week, Mr Tizard and Australia’s Minister of Defence, Mr Beazley, announced that New Zealand would be able to seek separate prices outside Australia for its four frigates. Mr Beazley said it was important that New Zealand be assured of getting its ships on time and at an over-all fixed price. These prices will be supplied by the European designers of the two frigates being considered for construction in Australia. The designs are the Netherlands Royal Schelde, with its M-class vessel, and West Ger-

many’s Meko, by Blohm and Voss. Mr Petersen said there was a rumour in Australia that the two competing consortiums might share the building project. His company would not be interested in anything but the prime contract, he said. A short list of New Zealand companies seeking sub-contracts would be made in three weeks. A.W.S. was seeking a high quality of New Zealand content rather than a high quantity. Mr Petersen said that if New Zealand companies could provide items such as electronics and computer software it would be a catalyst for technological development throughout the economy. The tenders are due to be completed by the end of the year. New Zealand will decide whether to proceed with the project by June next year.