The first destroyer is built at Techport’s Common User Facility. Source: News Limited

BAE Systems, Navantia SA and Raytheon Australia are taking on bigger roles in the naval scheme, which has suffered delays and is more than $600 million over budget.

Their increased involvement will drive immediate improvements in the nation’s shipbuilding, said Finance Minister Mathias Cormann.

He said the government was determined to rescue the defence project.

Deep Caption Royal Australian Navy Collins Class submarines off the WA coast. Source: Supplied

“We’re committed to stop the growing scheduling and cost overruns which we’ve inherited from our predecessors,” he told reporters in Canberra.

He said the former Labor government was told in June 2013 that the air warfare destroyer program was nearly two years behind schedule and $360 million over budget.

The government has since been advised the project was closer to three years late.

“The good news is we have turned a corner,” said Cormann.

Navantia will contribute design function skills, BAE will co-ordinate shipbuilding and Raytheon will offer management skills, Defence Minister David Johnston said.

An anti-air warfare training exercise off the east coast of Australia. Source: Supplied

Their involvement is the first step of a three-part plan to build naval maritime capability in Australia. The plan also involves building a “sovereign industry around submarines”, focusing on developing an Australian industry, Senator Johnston said.

He said the latest move was a significant turning point for the AWD program.

“We inherited a significant problem and we are now setting about the very difficult and complex task of putting in place a solution.”

No decisions have yet been made about the long term arrangements for the program.

He didn’t say whether this plan meant the country’s next submarines would be built in Australia, refusing to detail the “nuts and bolts” of the strategy.

He blamed Labor for the uncertainty, adding: “I said at the time, we will go with the Labor Party’s policy on these submarines unless it is fantasy.”

The minister said the third leg of the three point plan would be defined in next year’s Defence White Paper, with $78m already on the table to complete design capability assessments.

“You can see that we are seriously dinkum about getting on with the job of future frigates,” he said.