Canty set for frigates work

Press, 31 August 1989, Page 1

Canty set for frigates work

By

CULLEN SMITH

Canterbury manufacturers have welcomed the deal between Australia and New Zealand this week on a pricing package for the Anzac frigates.

Hard bargaining in Canberra on Tuesday produced an agreement which both the Minister of Defence, Mr lizard, and the Minister of Finance, Mr Caygill, said would be recommended to caucus and the Cabinet. The deal involves New Zealand purchasing two frigates and taking options on two others and is expected to cost about $lOO million a year over about 20 years. If the Government gives the nod, New Zealand manufacturers will gain access to the lucrative Australian defence procurement market, estimated to be worth about $25 billion in the next decade.

Canterbury manufacturers, linked to the successful Australian Amecon frigate consortium, could gain about $3OO million of work and create about 500 jobs from the frigate project alone. The director of the Canterbury Manufacturers’ Association, Mr lan Howell, welcomed "very positive” comments from Mr Tizard.

“Canterbury manufacturers are poised to gain new technology and create increased employment as the Government moves towards the purchase of Anzac frigates,” Mr Howell said. New technology did not apply only to the frigate project. With improved quality assurance, a significant flow-on effect will enable companies to compete for work in designing, planning and managing other technological projects, Mr Howell said.

Many Canterbury companies had clearly identified an interest in the frigates project, covering engineering, electronics, electrical, computer software, furnishings and communications fields. Work would probably be com-

pleted at Christchurch, Lyttelton, Timaru and Temuka, he said.

The general manager of Lyttelton Engineering, Ltd, Mr Bill Gilray, expects his company could employ a further 50 to 60 workers if the frigate project goes ahead. Lyttelton Engineering, a subsidiary of Amecon’s New Zealand partner, the Cable Price Group, was geared to fabrication and machine componentry, having a general engineering capability. “We’re pretty keen. We’ll have to compete for tenders like everyone else, but we’re looking for work and we’re keen,” Mr Gilray said. "We think it will be a big boost to Canterbury which has been savaged a bit lately.” Mr Syd Goldsmith, chairman of the Engineering Consortium of Canterbury, Ltd, which was set up to co-operate in seeking important contracts, is also keen to take part in the Anzac project. Mr Goldsmith believed it was too early to estimate exactly how much work will come to Canterbury or how long the contract will last.

The Manufacturers’ Federation was still analysing the latest developments yesterday and seeking more information on the pricing deal. The federation’s director-gen-eral, Mr Wally Gardner, said the $2 billion project was a breakthrough in terms of New Zealand industry content and would generate a considerable return for the country in jobs and expertise. “In spite of all the doubters we still believe it will give us a boost at a time when we badly need a boost,” Mr Gardner said. “We only hope the Government, at long last, makes a commitment.”

Further reports, page 6