Defence industry

The company building Australia's $45 billion frigate program has warned there could be delays, but the federal government is yet to decide on any changes to the construction schedule. British company BAE Systems, which was selected in June 2018 to build nine frigates in Adelaide, has advised the government the COVID-19 pandemic has resulted in a shortage of engineers.

The Department of Defence has been told this could result in delays to the design phase for the ships, which are slated to start replacing the ageing Anzac-class warships from the late 2020s.

Defence Minister Linda Reynolds told a Senate estimates hearing on Monday the government had received a range of advice and was working with BAE Systems subsidiary ASC Shipbuilding "to refine the schedule and cost projections". "But we are still on track as I said for construction by the end of 2022," she said...MORE