Finance Minister Mathias Cormann says the Federal Government is not currently pursuing a commission of audit recommendation to sell its Adelaide-based defence shipbuilding agency.
The audit released earlier this month recommended the government privatise ASC Pty Ltd, saying that the government ownership of a manufacturer is an anomaly.
Cormann told a Senate estimates hearing on Wednesday that the government had noted the recommendation but obviously not acted on it in the budget released two weeks ago.
“We have not had conversations with the ASC in relation to that recommendation because the government is not progressing it at this stage,” Cormann said.
He said the government had its hands full making sure its $8.5 billion air warfare destroyer (AWD) project was put on a more sustainable trajectory.
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The ASC’s corporate office said the question of privatisation is “a matter for the government”.
“We remain focussed on the programs we have delivering the AWDs and competing for future projects,” a spokeswoman said.
The ASC operates a high-tech submarine construction and maintenance facility at Osborne.
Its new ASC South shipbuilding facility is building Australia’s Hobart Class air warfare destroyers.
It is the most advanced and modern shipbuilding facility in Australia.
