Anzac ship project might cost $2.1B

Press, 24 August 1988, Page 10

Anzac ship project might cost $2.1B

By

BRENDON BURNS,

political reporter

Defence officials yesterday confirmed that they had estimated the Anzac ship project might cost New Zealand $2.1 billion — a figure the Prime Minister, Mr Lange, has never heard. Officials at a meeting of Parliament’s Foreign Affairs, and Defence Select Committee also said that they had not recommended Australia be the only source for buying the ships. Mr Lange said in Canberra last week it was inconceivable that New Zealand would replace its

four frigates from anywhere but Australia. Officials said that the unit cost of each of the four ships from the Anzac ship project was $3OO million in 1986 terms. But the Opposition spokesman on defence, Mr Don McKinnon, sought explanation of a figure of $2.1 billion, which he said estimated the total cost of servicing the vessels over 20 years. Mr Lange had said last Sunday that he had never heard of this figure. Defence officials said the figure represented a planning estimate. Tenders have yet to be finalised for the project

from the two Australianbased consortia seeking to build the ships. New Zealand has already won the right to seek prices in Europe for the vessels if it is concerned about the Australian tenders. Mr Lange, however, has said that if New Zealand proceeds it would buy only from Australia. Officials said that seeking prices from Europe would provide comparative information to the Government. But they had not provided the Government with a recommendation that it buy the ships only from Australia.