Mark Dodd | January 31, 2008
THE problem-riddled Super Seasprite helicopter intended to boost the navy's anti-submarine capability is likely to become the first major contract to be axed by the Rudd Government.
The project run by US-based Kaman Aerospace, which has cost taxpayers more than $1billion and is running six years behind schedule, is one of a number of costly marginal defence programs under review by the Labor Government.
The $667 million contract, signed by the Howard government and Kaman in 1997, was to put a state-of-the-art weapons system on 11 upgraded SG-2A Super Seasprites, originally built in the 1960s.
However, the project has been mired in difficulties over the fitting of the weapons system, known as the Integrated Tactical Avionics System, which co-ordinates radar, sonar and air-to-underwater missiles. The Australian understands that rival US manufacturer Sikorsky is offering to sell Australia 27 off-the-shelf helicopters to replace the Seasprites, which are yet to be operationally deployed and are grounded in their hangar at Nowra on the NSW south coast.
While Kaman executives yesterday could not be reached for comment, other industry sources confirmed the Seasprite program was likely to be axed.
In opening remarks on Tuesday at the Pacific 2008 International Maritime and Naval Exposition in Sydney, Defence Minister Joel Fitzgibbon warned of several defence acquisitions unlikely to "ever achieve their desired capability".
Asked to clarify his remarks, Mr Fitzgibbon identified the Seasprite program and the $1.4billion FFG guided missile frigate upgrade as two projects a Labor Government would not have proceeded with.
Both were listed for an impending federal government review of troubled defence projects.
Yesterday a well-placed senior government source confirmed to The Australian: "All options (including cancellation) are on the table."
Former defence minister Brendan Nelson is known to have favoured cancelling the Seasprite project but was overruled by cabinet colleagues in May.
Labor's program review will be overseen by the new Parliamentary Secretary for Defence Procurement, Greg Combet, who yesterday launched the Defence Export Unit.
Two successful Australian-made products have elicited considerable overseas interest: Austal's Armidale-class patrol boats and the Thales Bushmaster Infantry Mobility Vehicle, recently sold to the Dutch army. Britain was also interested in buying theBushmaster and negotiations were under way, Mr Combet said.
The Defence Materiel Organisation expected the $8 billion Air Warfare Destroyer program - Australia's most ambitious defence shipbuilding contract - would be delivered on time and within budget, DMO general manager Warren King told The Australian. The DMO boss said much had been learned from the controversial $6 billion Collins-class submarine program.
Unlike the Collins-class, the AWDs are being fitted with proven combat systems, Mr King said. "In an area where it's said there are skills shortages, we've (the AWD program) had no shortage of people wanting to work on this program ... We've got a skills centre being built in South Australia that will allow the ships to be maintained throughout their life. These destroyers are leading-edge protection," he said.
