Frigate deal would benefit N.Z.—firm

Press, 1 March 1989, Page 9

Frigate deal would benefit N.Z.—firm

Canterbury firms stand to share in business worth almost $1 billion if an Australasian-German consortium lands the Anzac frigate tender. The consortium, Amecon, believes its tender for the 12 frigates will get the nod and yesterday told interested Canterbury contractors as much as $1 billion of the 15-year-pro-ject’s wealth could come to New Zealand.

Canterbury and Christchurch, through Lyttelton, had the infrastructure to land as much of that work as it could competitively tender for.

Amecon’s project manager, Mr Bruce McLean, promised Amecon in conjunction with New Zealand’s Cable Price Downer, Ltd, Transfield and German shipbuilders, Blohm and Voss, would see New Zealanders building a third of the frigate’s hulls and super-structure as well as contributing to the ships’ electronics, furnishings and weaponry.

Amecon’s tender is within the Australian Government’s guidelines of an individual-frigate “sailaway cost” of $337 million. For 12 frigates the tender would be about $405 billion. Cable Price Downer is looking to buy into Arne-

con — an offer for as much as 25 per cent of the conglomerate is being considered now.

Amecon’s proposal involves Australian and New Zealand interests taking 80 per cent of the entire deal. The other 20 per cent would be completed by the German partners. Mr McLean said Amecon’s deal would reward New Zealand and Australia with further benefits in the form of West German-Anzac trade relations.

Along with parts of the hull and super-structure Lyttelton was in line to

build the ship’s masts and stacks. Mr McLean countered the New Zealand antifrigate lobby saying the four ships would be deliv-i, ered over 15 years end with a life of 30 years, would take New Zealand's blue water defence into' the next century. “Who's to say what will be happening in New Zealand waters 45 years from now?”

The Opposition spoke-! man, on defence, Mr Don» McKinnon, told a Christ-! church gathering of National Party members yesterday his party would} support Christchurch "as a centre for either building or maintaining the frigates.”

The Opposition sup-' ported a frigate navy for New Zealand “provided the price and terms can be sustained within the Defence budget.”

He blamed the Government for narrowing New! Zealand’s options for new frigates through its alienation of the United States. 1

“By bringing us back into A.N.Z.US. we will have more negotiating ability when it comes to frigate purchases,” he said.