The Federal Government just broke a $20bn election promise and will build its submarine fleet overseas

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Defence Minister Kevin Andrews today confirmed the Australian Government is eyeing Japan, France and Germany as prospective partners to build Australia’s next generation of submarines.

Although it’s sticking to its promise of a “competitive evaluation process”, the Federal Government revealed the new submarines will not be designed or built by an Australian company.

The Federal Government says despite missing out on the multi-billion dollar contract, which has been the subject of intense scrutiny over the past few months, 500 new Australian jobs will be created over the lifespan of the project.

The Defence Minister said the majority of the jobs would be based in South Australia.

“The Government expects that significant work will be undertaken in Australia as part of the build phase of the future submarine including, but not necessarily limited to, combat-system integration, design assurance and land-based testing,” Andrews said.

Labor has been arguing against the Government’s decision to allow the Future Submarine contract to go overseas since before former defence minister David Johnston said he wouldn’t trust Adelaide-based Australian Submarine Corporation “to build a canoe”.

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