Frigate report’s shock finding

The former Coalition government acquired the navy’s Hunter-class frigates without a value for money assessment, it’s been revealed.

The program, which at the time the Turnbull government signed the agreement in 2018 was estimated to cost $35bn, has already blown out to $46bn, and an Auditor-general report last week suggested the cost could climb further.

The report revealed the program – originally slated to ensure the submarine chasers were in the water by mid-2032 to replace the Anzac-class frigates – is already 18 months behind schedule due to the “immaturity” of the British-designed vessel, with the report warning of more delays.

The report prompted an extended session of the federal parliament’s Joint Committee of Public Accounts and Audit on Friday. It was told key records pertaining to the procurement process and related advisory processes were missing.

Officials told the committee on Friday that the Hunter program appeared to be the only defence procurement program audited since 2016 that did not have a value for money assessment.

Senior defence officials could not point to any other occasion where a value for money assessment wasn’t provided to ministers but said there was an internal review process under way. Finance officials said they would work to ensure such an oversight did not happen again.

Committee chair Julian Hill questioned how ministers reading the relevant cabinet papers at the time could have failed to notice the lack of a value for money assessment.

The frigates, based on the British Type 26 warship and being built in Adelaide, have already suffered serious design issues, including being heavier than originally designed and potentially slower.