by Peter Yule
T H E C O L L I N S C L A S S S U B M A R I N E S T O RY
STEEL, SPIES AND SPIN
A unique and outstanding military and industrial achievement, the
Collins class submarine project was also plagued with difficulties and
mired in politics. Its story is one of heroes and villains, grand passions,
intrigue, lies, spies and backstabbing. It is as well a story of enormous
commitment and resolve to achieve what many thought impossible.
The building of these submarines was Australia’s largest, most
expensive and most controversial military project. From initiation in
the 1981–82 budget to the delivery of the last submarine in 2003, the
total cost was in excess of six billion dollars.
Over 130 key players were interviewed for this book, and the
Australian Defence Department allowed access to its classified archives
and the Australian Navy archives. Vividly illustrated with photographs
from the collections of the Royal Australian Navy and ASC Pty Ltd,
The Collins Class Submarine Story: Steel, Spies and Spin is a riveting and accessibly written chronicle of a grand-scale quest for excellence.
Peter Yule is a Research Fellow of the History Department of the
University of Melbourne.
Derek Woolner is a Visiting Fellow of the Strategic and Defence Studies Centre, Australian National University.
THE
COLLINS CLASS
SUBMARINE
STORY
S T E E L , S P I E S A N D S P I N
P E T E R Y U L E
D E R E K W O O L N E R
cambridge university press
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© Peter Yule and Derek Woolner 2008
This publication is in copyright. Subject to statutory exception
and to the provisions of relevant collective licensing agreements,
no reproduction of any part may take place without the written
permission of Cambridge University Press.
First published 2008
A catalogue record for this publication is available from the British Library National Library of Australia Cataloguing in Publication data
Yule, Peter
The Collins Class Submarine story: steel, spies and spin/authors, Peter Yule, Derek Woolner.
Cambridge; Port Melbourne, Vic.: Cambridge University Press, 2008.
978-0-521-86894-5 (hbk.)
Includes index.
Australia. Royal Australian Navy – Procurement.
Australia. Dept. of Defence – Procurement.
Collins Class (Submarine)
Submarines (Ships) – Australia.
Woolner, Derek, 1946–
359.93830994
isbn 978-0-521-86894-5 Hardback
Cambridge University Press has no responsibility for the persistence or
accuracy of URLs for external or third-party internet websites referred to in this publication, and does not guarantee that any content on such websites is, or will remain, accurate or appropriate. Information regarding prices, travel timetables, and other factual information given in this work is correct at
the time of first printing but Cambridge University Press does not guarantee
the accuracy of such information thereafter.
C O N T E N T S
List of key people
vii
List of acronyms
xv
Introduction
xvii
PART 1: YOU CAN’T BUILD SUBMARINES
IN AUSTRALIA
1
1. ‘The one class of vessel that it is impossible to build in
Australia’: Australia’s early submarines
3
2. Australia’s Oberon class submarines
11
3. The submarine weapons update program and the
origins of the new submarine project
20
4. The new submarine project
30
5. ‘We can’t build submarines, go away’: Eglo
Engineering and the submarine project
37
6. The acts of the apostles
44
7. ‘But how will you judge them?’: the tender evaluation
process 1984–85
58
8. Spies, leaks and sackings: from tender evaluation to
project definition study
76
9. The project definition study 1985–86
89
10. Debating the laws of physics: picking winners 1987
101
PART 2: THE HONEYMOON YEARS 1987–92
117
11. ‘Keen as mustard to do a good job’: setting to work
1987–89
119
v
vi
C O N T E N T S
12. Designing the Collins class
130
13. Building submarines
142
14. The automated integrated vision
152
15. Steel, sonars and tiles: early technological support for
the submarines
166
16. ‘On time and on budget’
181
PART 3: ‘A STRANGE SENSE OF UNEASE’ 1993–98
191
17. End of the honeymoon
193
18. The trials of Collins
205
19. ‘They were problems we didn’t expect’
221
20. The role of Defence Science: noise and diesels
235
21. ‘A patch on this and chewing gum on that’: the combat
system 1993–97
244
PART 4: RESOLUTION
255
22. ‘Hardly a day went by without the project getting a
hammering in the press’: the project in crisis 1997–98
257
23. ‘Bayoneting the wounded’: the McIntosh-Prescott
report
274
24. ‘That villain Briggs’ and the submarine ‘get-well’
program
287
25. ‘Inside the American tent’: the saga of the replacement
combat system
299
26. ‘We’ll do it and get rid of the buggers’: Kockums, ASC
and Electric Boat
310
27. ‘We would find that challenging’: comparison and
retrospect
319
Notes
330
Index
349
L I S T O F K E Y P E O P L E
Note: date/s of interviews with the authors are indicated in square
brackets following the names listed below.
Carl Johan Åberg, Swedish Minister for Foreign Trade
mid-1980s [10 November 2006]
Marcos Alfonso (Commander RAN), submariner; engineer
HMAS Collins [2 August 2006]
Eoin Asker (Commodore RAN), submariner; fourth Project
Director 1997–2000 [14 June 2006]
Paul Armarego, lawyer for SMCT [16 May 2006]
Jack Atkinson, General
Manager Design and Engineering, ASC
[31 March 2006]
Tony Ayers, Secretary, Department of Defence 1988–98
John Bannon, Premier of South Australia 1982–92 [11 July
2006]
Paul Barratt, Secretary, Department of Defence 1998–99
[10 April 2006]
John Batten (Commander RAN), project office; developed
Australian industry involvement policy and contract
management system for project [2 March 2006]
Kim Beazley, Minister for Defence 1984–90 [28 February 2006]
Allan Behm, Defence policy analyst [20 April 2006]
Bo Benell, General Counsel, Kockums [21 November 2006]
Fred Bennett, Chief of Capital Procurement, Department of
Defence 1984–88 [8 March 2007]
Jim Berger, executive, CBI and ASC
Doug Bews, Production Manager, ASC
Kurt Blixt (Major General, Swedish army), Assistant
Under-Secretary for Procurement, Swedish Ministry for
Defence [14 November 2006]
vii
viii
L I S T O F K E Y P E O P L E
Richard Brabin-Smith, Chief Defence Scientist [16 February
2006]
Peter Briggs (Rear Admiral RAN), submariner; submarine policy
maker; head of SMCT [7 March 2006; 18 July 2006]
P ˚ar Bunke, executive, Kockums; Deputy Managing Director,
ASC 1990–93 [18 November 2006]
John Butler (Rear Admiral USN), led American assistance to the
project [1 February 2006]
John Button, Minister for Industry 1983–93 [25 October 2005]
Doug Callow, Senior Engineer, ASC [31 March 2006]
Rick Canham (Captain RAN), submariner; led project team in
Sweden
Roine Carlsson, Swedish Minister for Defence mid-1980s
[14 November 2006]
Laurie Carmichael, Australian Metal Workers Union, ACTU
Tony Carter (Captain RAN), Project Support Manager
Don Chalmers (Vice Admiral RAN), Chief of Navy 1997–99
[17 May 2006]
Graeme Ching, executive, CBI and ASC
G öran Christensson, engineer, Kockums and ASC
Bob Clark, Operational Software Manager, SWSC, project and
DMO [6 October 2006]
Peter Clarke (Rear Admiral RAN), ex-RN submariner; Project
Manager [18 May 2006]
Peter Climas, technical officer, DSTO
Janice Cocking, scientist, DSTO
Colin Cooper, ex-RN submariner; engineer; Combat System
Project Manager [18 April 2007]
Orm Cooper (Captain RAN), director of major procurement
projects in the early 1980s [30 March 2006]
Tim Cox (Commodore RAN), Director General of Maritime
Development [15 November 2006]
Harry Dalrymple (Commodore RAN), Director General of
Naval Design 1980–89 [10 March 2006; 3 April 2006]
Geoff Davis, Managing Director, Wormald Limited; first
Chairman ASC [14 August 2006]
Phil Davis (Rear Admiral USN), led USN assistance to Collins
project [28 February 2007]
Peter Dechaineux (Commodore RAN), engineer; prepared
history of project 1999 [18 May 2006]
L I S T O F K E Y P E O P L E
ix
Paul Dibb, Defence policy strategist [30 May 2006]
John Dickens, scientist, DSTO
Ron Dicker, Dutch submariner; managed Signaal bid; Combat
System Manager, ASC [24 July 2006; 31 August 2006]
John Dikkenberg (Captain RAN), submariner; squadron
commander, test and trials [15 August 2006]
Brian Dixon, scientist, DSTO
Bill Dovers (Rear Admiral RAN), logistics and personnel issues
[30 May 2006]
Jim Duncan (Commander RAN), managed South Australian bid
[27 April 2006]
Mick Dunne (Commodore RAN), submariner; critic of Collins
project [27 April 2006]
Ulf Edman, Swedish submariner; Commodore, Swedish
submarine squadron [14 November 2006]
Martin Edwards, engineer, ASC [10 July 2006]
David Elliston, Commercial Manager at project office [1 March
2006]
Bruce Fairlie, scientist, DSTO
Rod Farrow, Combat System Project Manager, CSA
[19 February 2007]
Rod Fayle (Commander RAN), submariner; Operational
Requirements Manager [26 April 2006]
David Ferguson, lawyer, Minter Ellison; acted for Kockums and
other Swedish companies [22 November 2005]
Mark Gairey, naval architect; sixth Project Director [22 August
2006]
Mike Gallagher (Commander RAN), first CO of Farncomb;
worked for STN and Raytheon [8 August 2006]
Paul Gashler (Captain RAN), Project Support Manager 1988–90
Mark Gobell, engineer, ASC [10 July 2006]
Geoff Goodwin, scientist, DSTO [18 June 2007]
Paul Greenfield (Commodore RAN), submariner; fifth Project
Director [1 March 2006]
Ken Greig (Captain RAN), submariner; Project Manager and
Senior Engineer [1 June 2006]
Steven Gumley, CEO, ASC and DMO [8 June 2006]
Ove Gustafsson, CEO, Pacific Marine Batteries [31 March
2006]
Kenneth H ˚akansson, welding engineer, Kockums
x
L I S T O F K E Y P E O P L E
John Halfpenny, Secretary, Amalgamated Metal Workers Union
1972–87
G östa Hardebring, General Manager, Saab Naval Systems
[15 November 2006]
Keith Harper, Project Design Manager 1983–85
Peter Hatcher (Commodore RAN), submariner; Combat System
Development Manager; Project Manager [23 August 2006]
Allan Hawke, Secretary, Department of Defence, 1999–2002
[4 August 2006]
Bill Hicklen, executive, CBI
Peter Hider, Deputy Project Director; negotiated contracts
[22 August 2006]
Ian Hill (Commander RAN), Combat System Project Manager
Robert Hill, Minister for Defence 2001–06
Tomy Hjorth, Managing Director, Kockums; Chairman of ASC
[13 November 2006]
Paddy Hodgman (Captain RAN), Chief Staff Officer to Chief of
Navy 1997–99 [2 March 2006]
Olle Holmdahl, headed Kockums design team; Deputy
Managing Director, ASC [29 August 2006]
Robert Holtsbaum, lawyer, Minter Ellison; acted for Kockums
[17 November 2005]
Peter Horobin (Lieutenant Commander RAN), submariner;
worked as consultant on many aspects of project [7 August
2006]
Mike Houghton (Captain RAN), submariner; engineer; liaison
officer with Kockums [1 February 2006]
Tony Houseman, Contracts Manager, CSA [19 June 2006]
Brian Howe, Minister for Defence Support 1983–84
[25 November 2005]
Mike Hudson (Vice Admiral RAN), Chief of the Navy
1985–91
Oscar Hughes (Rear Admiral RAN), engineer; second Project
Director 1985–93 [16 January 2005; 20 February 2007]
Peter Hugonnet (Captain RAN), submariner; engineer;
responsible for submarine safety system [8 June 2006]
Peter Jennings, Chief of Staff to Minister for Defence 1996–97
[19 July 2006]
John Jeremy, Managing Director, Cockatoo Island Dockyard
1981–91 [23 June 2005; 15 August 2006]
L I S T O F K E Y P E O P L E
xi
Andrew Johnson, combat syst
em software engineer, SWSC and
CSA [22 March 2006; 27 March 2006]
Doug Jones, lawyer, Clayton Utz [8 February 2007]
Garry Jones, Deputy Secretary Acquisition and Logistics,
1994–99
Wal Jurkiewicz, lawyer for SMCT [16 May 2006]
Bruce Kean, CEO, Boral; Director, ASC [12 December 2005]
Al Konetzni (Vice Admiral USN), Commander of Submarine
Force USN
John Kroll, manager, Bisalloy Industrial Steels
Robert Lemonius, senior engineer, ASC [7 August 2006]
John Lewis, DSTO scientist
Hans Peder Loid, naval architect, SSPA Sweden [23 November
2006]
Ian MacDougall (Vice Admiral RAN), first submariner to be
Chief of Navy [16 June 2006]
Malcolm McIntosh, Deputy Secretary Acquisition, co-author
McIntosh-Prescott Report
Ian McLachlan, Minister for Defence 1996–98
Ron McLaren, Project Financial Manager [18 December 2006]
Roger Mansell, executive, Wormald and ASC
Robert Mansfield, corporate raider
Andrew Millar (Commander RAN), staff officer to Project
Director [12 August 2005; 17 January 2006]
Chris Miller, software engineer, CSA [14 August 2006]
Mick Millington, combat system engineer with SWSC and CSA
[8 July 2006]
Ross Milton, executive, CBI and ASC [10 July 2006]
Dennis Mole (Commodore RAN), submariner; head of
submarine squadron [15 August 2006]
John Moore, Minister for Defence 1998–2000 [28 April 2006]
Maurice de Morton, scientist, DSTO
Jim Muth, executive, CBI and ASC
Rick Neilson, combat system engineer with SWSC, Rockwell
and Boeing [5 July 2006]
Ian Noble (Captain RAN), Operational Technical Requirements
Manager [22 August 2006]
Chris Norwood, scientist, DSTO [12 June 2007]
Hans Ohff, engineer; Managing Director of Eglo Engineering
and ASC [6 February 2006; 9 February 2007]
xii
L I S T O F K E Y P E O P L E
Gunnar Öhlund, Technical Director, Kockums [17 November
2006]
David Oldfield, scientist, DSTO [5 May 2006]
John O’Neill, executive, Kockums and ASC
Bill Owen (Captain RAN), ex-RN submariner; Director of
Submarine Policy 1971–76; head of submarine squadron
1976–79; critic of Collins project [16 May 2006]
Frank Owen (Commander RAN), submariner; Operational
Requirements Manager [17 May 2006]
Chris Oxenbould (Rear Admiral RAN), Deputy Chief of Navy
1997–99 [15 June 2006]
John Pascall, combat system engineer, SWSC and Rockwell [14
June 2006]
Stephanie Paul, Phillips Group; ran public relations for SMCT
