Joint Media Release

Agreement reached on Common User Facility

MC 20/17

Senator the Hon. Mathias Cormann
Minister for Finance
Deputy Leader of the Government in the Senate
Senator for Western Australia

The Hon. Christopher Pyne MP
Minister for Defence Industry
Leader of the House
Federal Member for Sturt

12 May 2017

The Turnbull Government continues to deliver on it’s $89 billion naval shipbuilding program with today’s announcement that it has secured the purchase of the common user facility and surrounding land to substantially increase the size of the ship and submarine building facility at Osborne from the South Australian Government for $230 million.

The facility will now be fully owned and operated by the Federal Government and is an important part of getting the infrastructure up and ready to cut steel on the Offshore Patrol Vessels next year.

Defence Industry Minister Christopher Pyne said that the Federal Government was pleased to work with the South Australian Government to deliver this important outcome for the state.

“The Turnbull Government is solely committed to delivering its $89 billion naval shipbuilding program on time and on budget in order to deliver the jobs and economic growth to South Australia as soon as possible,” Minister Pyne said.

“The purchase of the common user facility and associated parcels of land at Osborne is an important step in delivering on our commitments to naval shipbuilding.”

“As part of the deal the State Government has promised to provide assistance to the Commonwealth to progress the development of the shipyards at Osborne. This assistance includes items such as assisting with relevant approvals, providing utilities and services, road, rail and emergency services access, and stamp duty relief,” he said.

Finance Minister Mathias Cormann said the deal was an important part of setting the organisational foundation for the program.

“The acquisition of land and facilities at Osborne marks the successful completion of the first stage of the structural separation of the ASC,” Minister Cormann said.

“This is a critical step in the Coalition Government delivering on its commitment to an historic, $89 billion continuous naval shipbuilding program in Australia,” he said.

[ENDS]

Media Contact(s): 

For Minister Pyne - Rory Grant - 0439 764 809 
For Minister Cormann - Karen Wu - 0428 350 139