The Collins Class Submarine Story

Home > Other > The Collins Class Submarine Story > Page 14
The Collins Class Submarine Story Page 14

by Peter Yule


  was built up by the Germans in an attempt to discredit Kockums,

  as part of a campaign in Australia.9 However, the political oppo-

  sition to the project in Australia was generally pro-British and

  wanted to discredit both short-listed companies, as shown by

  attention drawn to security lapses of the West German govern-

  ment and the allegations that IKL/HDW had used bribery to win

  the Indian submarine contest.10

  While the ‘Swedish spy’ story had little substance or signifi-

  cance, another controversy with even less substance had serious

  repercussions. The day before the announcement of the companies

  selected for the project definition study, the project team was to

  brief the ALP Caucus. This was a formal courtesy largely intended

  to assist government back-benchers defend the decision in public

  discussions, and had no influence on deciding the winners. The

  Caucus was not familiar with the details of the program and asked

  the project team to prepare a list of questions that would ensure

  the briefing covered its most important aspects. The meeting was

  also to be briefed by the submarine design tenderers.

  The IKL/HDW team was unsure of the nature of the event and

  asked Graham White what matters the politicians were likely to

  pursue. White recalls that he told them the project had been so

  extensively covered that a search of the newspapers would garner a

  good idea of potential questions. The Germans took this seriously

  and, combined with Juergen Ritterhoff’s deep knowledge of his

  design, answered questions so easily they appeared to have had

  advance knowledge of the questions.

  Others, however, still maintain that the list of questions pre-

  pared for Caucus was passed to the Germans. Whether this was

  so or the Germans were exceedingly diligent, the smoothness of

  their presentation did not pass unnoticed, especially by Graham

  Campbell, the maverick Labor member for Kalgoorlie and a

  prominent supporter of the British bid. Campbell later instigated

  an Ombudsman’s investigation into whether assistance to the

  German team constituted improper dealing in the selection of the

  definition study participants.

  The German team was oblivious to the commotion. They

  always prepared carefully for meetings with the help of Peter

  84

  T H E C O L L I N S C L A S S S U B M A R I N E S T O R Y

  Bowler, an ex-RAN officer, and before the Caucus meeting Rit-

  terhoff was warned by Bowler to expect hostile questions from

  Campbell. Ritterhoff remembers that most of the questions were

  predictable but Campbell was ‘ferocious’. Ritterhoff thought he

  was pursuing a genuine, if isolated, view of Australian interests,

  although he was startled when Campbell jumped the table and

  shouted questions at him while firmly gripping his tie.

  Kockums’ representatives had not asked the project office for

  assistance in facing the Caucus and were not surprised by most of

  the discussion. However, there were some startling questions, not

  normally of the sort that would fall within a politician’s knowl-

  edge – the Swedes, for instance, were pressed on the company’s

  design preference for flat pressure bulkheads when the convention

  was to make them dome-shaped. Some suggest that supporters of

  the British bid were responsible for feeding technical questions to

  willing politicians.11

  Later there was a navy inquiry into the Germans’ possession

  of the Caucus document. It concluded that the questions had

  originated from within the submarine project office. The inci-

  dent had only a marginal connection to the selection processes

  and was noteworthy mainly for the commotion it generated, but

  the inquiry considered that it demonstrated a failure of judgment.

  Fred Bennett recommended that Graham White be removed from

  the project because he felt White appeared far too close to the

  Germans and was concerned that they had better access than was

  given to the others. Now that the project was entering the crucial

  phase of selecting suppliers, nothing in the conduct of the defini-

  tion study should suggest the navy was predisposed to favour any

  particular company.12

  In the autumn of 1984, during the tender evaluation phase,

  Admiral Bill Rourke as chief of navy matériel had changed the

  project’s chain of command by having Graham White report to

  him through Commodore Oscar Hughes, the director general of

  naval production. On 5 August 1985 Hughes took over respon-

  sibility for the project as the director general new submarine, a

  position he held until after the launch of the first submarine in

  1993.

  Oscar Hughes features prominently in the gallery of larger

  than life characters whose actions shaped the submarine project.

  His personal staff officer, Andy Millar, sees similarities with the

  S P I E S , L E A K S A N D S A C K I N G S

  85

  legendary Admiral Rickover, whose drive, ruthlessness and con-

  summate political skills shaped the American nuclear submarine

  force.

  Hughes studied engineering at university, was posted to Britain

  and then to the Australian fleet air arm in 1962. He was involved

  in the formation of 817 squadron, flying Wessex helicopters, and

  spent time in the United States looking at new aircraft and in

  Britain on the Wessex modernisation program. In 1981 he became

  director of the aircraft carrier replacement project. By that time

  the new carrier had become a contest between the Americans and

  the Spanish, but the navy’s ambitions were driving the cost out of

  control. Then the British offered HMS Invincible at a much lower

  price than that of a new carrier. The government approved and

  Hughes spent time working on the contract and other arrange-

  ments, before the Falklands War led Malcolm Fraser to offer the

  British the chance to pull out of the deal.

  Hughes learnt many lessons from the carrier project: that con-

  trol must be taken of costs from the start; that the project team

  must be self-sufficient and not rely on others for expertise; and

  that changes to the specifications must be avoided. But those who

  worked with him on the submarine project are convinced that the

  overriding resolve he brought from the carrier project was a deter-

  mination not to be involved with another failure. He would knock

  down every door in Canberra, shout at mild-mannered Swedish

  engineers, or weld submarine hulls with his bare hands to ensure

  the project succeeded.

  As director general of naval production, Hughes was involved

  in the construction of the Fremantle class patrol boats by Aus-

  tralia’s most modern and innovative shipbuilder, North Queens-

  land Engineers and Agents in Cairns. The first two boats were built

  in Britain and Hughes recalls that there were ‘enormous problems

  in getting the UK shipbuilder/designer’s attention for the trans-

  fer of technology to support the Australian build program’ and

  this had an impact on ‘the whole eq
uipment supply and support

  chain involving hundreds of subcontractors’. As a result, Hughes

  ‘decided that we [the navy] would never again undertake or repeat

  a similar acquisition strategy’.13

  Hughes also saw that the navy’s experience with the construc-

  tion of HMAS Tobruk (a British design) and HMAS Success

  (a French design) revealed ‘the challenges of transferring

  86

  T H E C O L L I N S C L A S S S U B M A R I N E S T O R Y

  technology to Australia where the overseas designer had little

  if any responsibility for achieving such transfer’. Consequently,

  Hughes was determined that all six submarines would be built in

  Australia.

  Initially Hughes’ firm commitment to the submarine project

  and the importance of building in Australia was not recognised

  by the project team or the wider submarine community. They

  feared that, like many in the surface navy, Hughes would be anti-

  submarine and that the appointment represented an attempt by

  the naval hierarchy to curtail the buccaneering style of Graham

  White’s team. White’s removal was seen as revenge for his direct

  access to Kim Beazley. There was talk of mass resignations and

  several of the original team did leave, but the submarine com-

  munity quickly saw that Hughes was an effective advocate for

  the project and had his own strain of buccaneering spirit. Hughes

  considered that it was an advantage that he was not a submariner,

  because he was able to be more objective than the submariners,

  who he believed let emotion cloud their judgments.

  Andy Millar recalls submariners urging him to keep an eye on

  Hughes and not let him undermine the project, but after a year he

  was convinced that Hughes was fully committed to the project.

  Rod Fayle recalls that Hughes always listened to him and never

  once overrode him on operational requirements.

  Graham White stayed with the project after Hughes’ appoint-

  ment, but the two men were never able to work together and White

  was given another post in May 1986. Shortly after, he resigned

  from the navy for a job in John Button’s Industry Ministry,

  although he returned to the submarine project in 1993 to work

  for ASC.

  While the evaluation was grinding through Canberra’s bureau-

  cracy, the states were engaged in a bitter battle to be chosen as

  the location where the submarines would be built. The official

  policy of the project team was to be neutral between the states,

  and allow the winning consortium to choose the construction site.

  Consequently the prospective submarine builders were courted by

  state governments espousing the advantages of their state. Ross

  Milton recalls that the intensity of the lobbying prompted ASC

  to hold a briefing for all the states on ASC’s plans. The lunch-

  time briefing was held at the Manly Pacific Hotel in Sydney and

  Graeme Ching decided neutrality demanded ASC offer wine from

  S P I E S , L E A K S A N D S A C K I N G S

  87

  Chateau Hornsby of Alice Springs rather than from the Hunter or

  Barossa. As the slide show drew to a close, he said: ‘I’m now going

  to show you where we will build the submarines.’ The state rep-

  resentatives stiffened expectantly while the next slide appeared –

  a picture of Ayers Rock (Uluru) with a shipyard on top.

  The Labor Party came to power in South Australia in Novem-

  ber 1982 with the state’s manufacturing sector collapsing and

  company headquarters moving east. The new Premier, John

  Bannon, saw the submarines as a great engineering and manu-

  facturing opportunity and realised the state’s biggest advantage

  would be with a greenfields site. Additionally, he promoted the

  national opportunities, pointing to benefits flowing to all states

  through the use of modern modular construction methods.

  The South Australians promoted Port Adelaide to all con-

  tenders, but decided that Kockums and HDW were the most likely

  to win and concentrated their efforts on those companies. They

  also nurtured Eglo Engineering and its construction activities at

  Port Adelaide. Thus, by the time of the project definition stud-

  ies, South Australia was the preferred site for both submarine

  contenders.

  However, while the builders had a big influence on the final

  decision, politics also played a part. All the states lobbied the

  federal government to be given the project and it became the sub-

  ject of tense battles within the Labor Party, which was in power

  federally and in all the states that were serious contenders. At

  one meeting with John Bannon, Prime Minister Bob Hawke said,

  ‘Everyone wants this submarine. What should I do?’ to which

  Bannon replied, ‘Promise it to everyone but give it to us!’14

  All the states sent delegations to Canberra to state their claims.

  Geoff Rose sat in on their presentations and recalls some of the

  highlights:

  The Queensland guys . . . said, ‘It’s going to here on the

  Brisbane River’ and the chairman said ‘What about the

  environmental impact statement? ‘Oh there doesn’t need to

  be one.’ ‘Why? It’s on the Brisbane River. It’s just

  downstream from Brisbane.’ ‘Oh Mr. Bjelke-Petersen said

  there is not one required.’

  The Tasmanian guys, they turned up in Canberra in shirt

  sleeves on a lovely hot day and I said ‘Gee, you guys are

  88

  T H E C O L L I N S C L A S S S U B M A R I N E S T O R Y

  really on the ball – you’ve actually worked out . . . the

  weather . . . and you’ve worn your shirtsleeves. How clever is

  that?’ ‘Well, actually no, we locked our coats in the hire car

  at the airport and we couldn’t get them out,’ and I thought,

  ‘Goodness me, they’re going to run a pretty tight project!’

  The Victorians with their proposal down in Corio Bay,

  that was a very slick thing too and then the team from New

  South Wales were even slicker . . . And then there was Jim

  Duncan and the young lady who came with him and Jim

  Duncan was just so far more professional than all of the rest

  of them and he’d thought through so many things.

  There was never any chance that a Queensland bid could succeed

  with Labor in power federally, and Tasmania and Western Aus-

  tralia were seen as lacking the necessary industrial base. Victoria’s

  bid never gathered momentum and none of the builders liked its

  proposed site north of Geelong. The New South Wales campaign

  lacked focus in the early years, with Cockatoo Island, the Newcas-

  tle state dockyard and even Jervis Bay fighting to be the preferred

  site.

  A year before the decision the New South Wales Labor gov-

  ernment gave an open chequebook to the Newcastle bid, which

  had formidable support from the right-wing of the state ALP. One

  senior faction member allegedly told Geoff Davis of ASC: ‘You’ve

  got to understand about the ALP right – we make people or

  we break them. Do you want to be made or broken?’ However,

  the N
ewcastle bid was not helped by some bizarre campaigning.

  Barry Unsworth, who became premier in 1986, argued that the

  submarines should be built in Newcastle to scare the Russians. Jim

  Duncan retorted that the balance sheet of the hopelessly insolvent

  state dockyard would scare them more.

  Consequently, the South Australian campaign had sufficient

  momentum and economic logic to retain its lead and, in spite of

  some last minute scares, both submarine builders and the federal

  government supported Adelaide as the preferred site.15

  C H A P T E R 9

  The project definition study 1985–86

  Looking back on his lengthy involvement with the new submarine

  project, Oscar Hughes reflects:

  I think that the Government decisions in late May 1985 that

  led into the PDS [project definition studies] were significant

  and far reaching. Firstly, the Government accepted (albeit

  implicitly) the departure from the earlier strategy of basing

  the design of the new submarine on an ‘existing design’ and

  secondly, agreed that all submarines would be built in

  Australia. In my view these decisions sent a very clear

  message to both the German and the Swedish companies as

  well as Australian industry that the Navy was utterly serious

  in developing a new submarine for the mid-1990s and

  beyond. . . . The efforts of Graham White, John White, John

  Halfpenny and many others with Australian industry

  involvement had really paid off and also importantly it

  would not be a ‘build to print’ exercise . . . but one that

  offered the prospect of innovation, development, new design,

  new technology and the opportunity for Australian industry

  to work with overseas companies who were world leaders in

  their field. A great deal of the credit goes to Kim Beazley.1

  89

  90

  T H E C O L L I N S C L A S S S U B M A R I N E S T O R Y

  With Oscar Hughes in charge of the project office and the con-

  sortia in place, the new submarine project entered one of its most

  crucial and controversial periods. Most people with a background

  understanding of submarine design and development expected

  that IKL/HDW would be one of the participants in the project

  definition study; the inclusion of Kockums was startling. The

  promising but untested German design was not without risks and

 

‹ Prev