Sources briefed on the findings of a review of the navy’s surface fleet, which was delivered to Defence Minister Richard Marles last week, said it had recommended slashing the planned number of Hunter-class frigates from nine to six, as current shipbuilding projects face cost overruns of up to $20 billion.
The Hunter-class frigates have blown out in size and cost since the program was announced in 2018, with critics saying the ships’ lack of missile cells would leave them seriously under-gunned in any conflict.
The surface fleet review, led by retired US vice-admiral William Hilarides, is said to call for the final three frigates to be replaced by air warfare destroyers, which could carry up to five times as many missiles as the Hunter-class ships.
“Hilarides definitely backed a further destroyer-type capability,” a source briefed on the contents of the review but not authorised to speak publicly said.
These ships could be made at Adelaide’s Osborne shipyards using the same hull as the Hunter-class frigates under a proposal to be submitted by BAE Systems, the British defence firm that designed the Hunter-class ships.
The review is also said to recommend acquiring three to six corvette-style ships, in line with the defence strategic review’s recommendation that the national fleet should have a mix of larger and smaller navy combatants.
The total cost of the additional ships would be an estimated $25 billion to $30 billion over 20 years, a difficult request as Treasurer Jim Chalmers looks for budget savings and the government prepares to spend up to $368 billion over 30 years on the AUKUS nuclear-powered submarines.