The process of securing a contract to design and build Australia’s next fleet of submarines has been subject to fresh debate.

The former Defence Materiel Organisation (DMO) boss Warren King has urged the government to delay the decision saying the result of a rushed process could “haunt” the nation for generations.

But his warning appears to have fallen on deaf ears with South Australian ministers keen to finalise a contract and inject much needed jobs into the state where a majority of the construction will take place.

Germany, Japan and France are all vying for the contract to design and help build the submarines but Mr King believes they have not been given enough time to present their proposals and give the Australian government sufficient understanding of “issues such as capability, cost and sustainment”.

Mr King was the chief executive of the DMO which controlled about $12 billion in annual military spending before it was abolished in February.

The government has given the contenders until the end of next month to present their final bid. Under the Abbott government, a decision on the winner was scheduled for early next year. But Mr King has called for the decision on the $50 billion project to be delayed another 12 months.

“You would have a much better understanding of what the final design will be, what capabilities it will have and about how to maximise Australian industry content,” he told The Australian on Thursday.

Warren King has a warning for the South Australian government.Source:News Corp Australia

But ministers in South Australia, who are keen for the influx of jobs that will be created by the project, have rejected Mr King’s concerns.

The state’s Minister for Investment and Trade and Minister for Defence Industries, Mr Hamilton-Smith said there has been sufficient time for a deal to be reached and “any further delays would not be welcomed”.

“We’re in the valley of death now and people are losing their jobs as we speak,” he told news.com.au.

He slammed the idea of delaying the decision by 12 months calling it “very risky” in terms of ensuring the deal is completed. “That would put it beyond the next federal election,” he said. “The voters and stakeholders would not have a bar of that.

“We have put this off again and again. And Mr King would know this better than anyone.”

Mr Hamilton-Smith said he would like to see the commonwealth government reject a hybrid option that would see some of the vessels built overseas, and commit to build all 12 submarines in Australia. Such a move would mean the competing countries would not have to submit alternative submissions. “That would expedite the process,” he said.

His comments were echoed by SA Premier Jay Weatherill who urged the government not to take heed of Mr King’s concerns.

“Any delay to the Future Submarine Project would delay the future job opportunities here in South Australia and it’s not something we support,” Mr Weatherill told the ABC.

“Warren King’s no longer in his role and we hope the Commonwealth is listening to different advice.”

If French company DCNS is awarded the contract it has committed to create 2900 jobs in Australia, 2000 of which would be in the southern state.

While the French bid has put a lot of careful public relations into its proposal, there is no clear front runner at this stage.

“All three bids are very cogent,” Mr Hamilton-Smith said.

He has called on the new Turnbull government to use the project as an opportunity to revive the country’s manufacturing industry.

“Not only do we need to defend the nation, we need to build the nation,” he said.

Premier Jay Weatherill is focused on jobs.Source:News Corp Australia

South Australian minister Martin Hamilton Smith.Source:News Corp Australia