Fed: Govt delays sale of Submarine Corp stake

AAP General News (Australia)
12-19-2001
Fed: Govt delays sale of Submarine Corp stake

The sale of the federal government's stake in the Australian Submarine Corporation
has been delayed indefinitely.

In a joint statement, Defence Minister ROBERT HILL and Finance Minister NICK MINCHIN
says the government needs to concentrate on several critical issues concerning the ASC.

The ministers say the government will negotiate detailed commercial arrangements with
the ASC to meet the government's commitment to strengthen its capability to support the
troubled Collins Class submarines.

It also wants to negotiate and conclude arrangements for the introduction into the
ASC of General Dynamics/Electric Boat Corporation as a capability partner, and resolve
intellectual property and design authority issues.

During the November 10 election campaign, Prime Minister JOHN HOWARD announced the
ASC had won a seven-year, $420 million contract to service and re-fit the submarines.

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