In welcoming the announcement by Prime Minister Malcolm Turnbull that Australian Navy’s Offshore Patrol Vessels would be constructed in Adelaide, Marshall said he needed confirmation from the Federal Government the submarines would also be built in South Australia.

Construction of the ships will begin in Adelaide from 2018 and transfer to Western Australia when the Future Frigate construction begins in Adelaide in 2020.

“However, we reiterate our calls for the Federal Government to build the 12 submarines at ASC in Adelaide,” Marshall said.

“Australia’s next generation of submarines will be critical to our nation’s defence capabilities and for employment opportunities in South Australia.”

SA Premier Jay Weatherill said securing the shipbuilding had been a “great win” for Adelaide.

“This has been I think a fantastic community effort, I mean every South Australian should be proud of this,” he told ABC 891.

But, added Weatherill, leaving a submarine announcement until the election was “political suicide”.

Marshall said the ship announcement was “great news for South Australia” as the state faced economic challenges and had the highest unemployment rate in the nation.

“This is another good step towards securing a continuous build for the ASC shipyards,” he said.

“These projects will create thousands of jobs and pump billions of dollars into the South Australian economy.

“The State Liberals will continue to lobby the Federal Government to secure the future of shipbuilding in South Australia and will continue to fight for local jobs on behalf of all South Australians.

“It is in our nation’s best interests that a continuous ship building program is based in Adelaide.”

State defence industries minister Martin Hamilton-Smith today addressed workers at Defence SA, to congratulate them on their advocacy of SA shipbuilding.

“Eighteen months ago we we’re facing a bleak future,” he said. “Yesterday’s news is a breakthrough for the future of the local industry. We now face new challenges to capitalise on the opportunities.”

Hamilton-Smith says his agency has been dealing directly with defence decision-makers in Canberra.

InDaily understands the DefenceSA advisory board, chaired by Sir Angas Houston, advised the State Government last week that a breakthrough was imminent.

Independent senator Nick Xenophon is less convinced, branding the South Australian leg of the Federal Government’s $40 billion naval vessel program a “flat pack Ikea exercise” that will add little value to the state’s economy.

At the same time, government backbenchers are spitting chips over the decision to overlook opportunities for far north Queensland centres to participate in the massive project.

Under the program a new fleet of 12 offshore patrol boats will be built in Adelaide from 2018 to replace the smaller Armidale-class vessels, which were built in WA.

The work then will go back to WA in 2020, when construction begins in Adelaide on the navy’s new frigates.

As well, Austal Ships in WA will build up to 21 replacement steel-hulled Pacific patrol boats at its Henderson shipyards.

Xenophon says there’s still no certainty for South Australia because contracts had yet to be signed.

“This is a desperate attempt by the coalition to shore up their support in South Australia,” he told reporters in Canberra on Tuesday.

“It could end up being a flat-pack Ikea exercise where we do the assembling in South Australia but there is very little added value – where the steel is cut somewhere else, where the blocks are built somewhere else.”

Xenophon believes there should be one centre of excellence for ship building in Australia.

But he denies being greedy for his state, saying the cost of moving production interstate would cost taxpayers millions.

SA Employment Minister Kyam Maher has hailed the job opportunities likely to flow from the boat projects.

However, Cairns-based Liberal MP Warren Entsch is gutted his city was overlooked.

“It’s fair to say that the customs boats built by Austal left a lot to be desired, given that we’re now seeing a lot of these aluminium vessels undergoing repairs for cracks.”

Townsville-based senator Ian MacDonald is also unhappy.

“The construction of the Pacific patrols boats would have been a wonderful employment generator and confidence boost for the north,” he said.

Cairns has won the contract for maintenance of the boats.

– with AAP