Frigates not ‘think big’ —consortium

Press, 23 February 1989, Page 16

Frigates not ‘think big’ —consortium

PA Wellington One of the two consortiums vying for the multi-billion-dollar Anzac ship project has moved to clarify its position, saying it is not planning a “think big” project for New Zealand.

Cable Price Downer’s projects manager, Mr Bruce McLean, said he was concerned the public might have the impression the project offered New Zealand, little, after recent criticism from the Prime Minister, Mr Lange.

A week ago Mr Lange rubbished an option proposed by the Newcastlebased Australian Warships System consortium to build three of the 12 frigates at Whangarei, saying the option would create another “think big” project, was unrealistic and nothing more than a mirage. On Monday he softened his criticism slightly, saying that the consortium contained people who were “remarkably innovative.”

Mr McLean, whose company is involved with the Melbourne-based Amecon consortium, said the project as conceived by Amecon was certainly not a “think big” project.

Under the modular design based on the German Meko 200 ship, work would be broken up and spread across a ’wide range of both heavy and light manufacturing indus-

tries throughout New Zealand.

Unlike the AWS option, Mr McLean said Amecon planned to split the construction of each ship’s hull into six sections, with two sections of each ship being built in New Zealand, possibly at New Plymouth or Lyttelton, two in Williamstown, Melbourne, and two in Newcastle. As each section weighed only 240 tonnes, compared ■. with 3000 tonnes for an entire ship, no special infrastructure would be required, other than possibly a special lift crane, and weather protection in some areas. Mr McLean said the Amecon tender did not call for a big investment in any one location. He said it was imperative that people understood that the project was about rebuilding New Zealand . industry, not about establishing a big workforce in one location.

“It is not a pipedream, not a think big project. It is about developing industry, to position it for a long-term market which is available in Australia and New Zealand.” Mr McLean said that under agreements with Australia, New Zealand industry was eligible to participate in Australia’s $35 billion defence programme over the next 15 years.

The Anzac ship project would offer New Zealand industry a foundation stone on which to build business links with Australian and European companies. It would also lift quality assurance and management systems. .

Mr McLean said the defence contracts would lead to civil work, and already there had been a lot of discussion in this area.

Under a Tasman agreement, the winning consortium will face a 10 per cent penalty if it does not achieve at least 70 per cent local content, which, if New Zealand decides to take four frigates, is equal to about $1 billion. Mr McLean said C.P.D. had already confirmed three-quarters of this and identified other components that could be produced in New Zealand to reach target. Companies in Auckland, New Plymouth, Wellington, Christchurch and Dunedin,had been identified.

He said Wellington companies in the electrical manufacturing and computer software field could do particularly well. He named Progeni, Marine Air Systems and G.E.C. as possible participants. Other potential areas for participation included the manufacture and supply of galley equipment, carpets, partitions, bunks, and soft furnishings.

Accommodation alone could account for a quarter of the $1 billion target. He played down the heavy engineering aspect of the project, saying the hull sections that could be built in New Zealand accounted for only 20’ per cent of the local content. Mr McLean said the project could directly provide 2000 jobs over 16 years, but had the potential for far greater followon business.