Firms want Navy's new fleet made at home

By ELLEN READ

Two companies are joining forces to try to ensure New Zealand gets the lion's share of the work flowing from the $500 million plan to re-equip the Navy.

Tenix Shipbuilding NZ and Babcock New Zealand, which worked together on the Anzac ship programme, yesterday said they would tender for the work.

The Government plans to spend almost half the $500 million budget on a new multi-role vessel to support military operations, humanitarian relief projects and help patrol New Zealand waters.

Another $250 million has been set aside for at least two new speedy offshore patrol boats. Some of the money will also be used either to upgrade the Navy's five inshore patrol boats or buy new vessels for the role.

Announcing the package, Defence Minister Mark Burton said New Zealand shipbuilding companies would be particularly encouraged to put forward proposals.

Strong interest is also expected from Singapore, Australia, the United Kingdom and South Korea.

The Government has not said when work is expected to start but the multi-role vessel is needed by the time the frigate Canterbury is retired in 2005.

Tenix Defence managing director Robert Salteri and Babcock New Zealand chief executive Mike Franklin said the pair were the only two companies with the facilities and skill base, the track record and the New Zealand industry connections to make them the logical choice for the prime contractor for the Navy's requirements.

Mr Salteri said the New Zealand build programme - a requirement of the Anzac ship project - had delivered substantial benefits to the country through jobs, capability and infrastructure.

"This is a contract which offers potential for meaningful New Zealand industry involvement," said Mr Franklin.

Tenix Shipbuilding NZ is a subsidiary of Tenix Defence, Australasia's largest defence and technology contractor.

The company has a shipyard and fabrication site in Whangarei where parts of the Anzac ships have been built.

Babcock runs the country's largest ship repair and engineering operation, in the Navy's refit and repair facility at Devonport.