The Australian Navy's Collins Class submarine HMAS Sheean undergoing a full-cycle docking at ASC in Osborne, in SA.

The Australian Submarine Corporation's Deep Blue Tech deputy general manager Dr Margaret Law on site with the Sheean.

The Government has committed to assembling all 12 submarines in Adelaide. It started with four options to replace the ailing Collins Class submarines, but has narrowed it down to two options - an "evolved" Collins Class design or a new design.

Dr Mark Thomson, a defence economics senior analyst at the Australian Strategic Policy Institute (ASPI), said when the Government said it would "suspend further investigation" into the off-the-shelf options it was leaving itself a loophole.

Coalition vows to build new Collins-class submarines in Adelaide

"It's no secret around town that the word `suspend' was very carefully chosen," he said.

"If the two options turn out to be too risky and too expensive, the word `suspend' is the Government reserving its right to go back to the less expensive options."

 

Defence Minister Stephen Smith said in Adelaide last month that the two off-the-shelf models did not deliver the capability needed and would mean less work for South Australians.

At that time Premier Jay Weatherill said he had "grave concerns" following a report that the Opposition would go for an off-the-shelf option.

A report from ASPI, set up by the Government to deliver insight into defence, says that means "efforts will now be directed towards the two most costly, risky and time-consuming options for Collins replacement".

Techport workforce must navigate choppy waters

A spokesman for Mr Smith said yesterday that the Government's position was "clear" and it had suspended the investigation into off-the-shelf options in favour of the remaining options.

"The reason these options are being pursued is because they will best meet Australia's future strategic and capability requirements," he said.

 

State Defence Industries Minister Jack Snelling said he would "take the Commonwealth at their word" and that his "gravest concern" was the Coalition's plans to tear up the Defence White Paper.

Opposition defence spokesman David Johnston said a Coalition government would not put off any decisions but "the choice of submarine design cannot be made from opposition without the advice you can only be privy to in government".