Govt launches review of ill-fated subs

The federal government has released the terms of a review aimed at improving the reliability of the navy's six Collins submarines.

The review will be conducted by UK consultant John Coles, previously head of the UK Warship Support Agency, the body responsible for maintenance and repair of all Royal Navy submarines, ships and auxiliaries.

Defence Minister Stephen Smith and Minister for Defence Materiel Jason Clare said in a joint statement that sustaining the submarine fleet was vital to Australia's national security.

"It is a complex task that has proven challenging for Defence and for ASC, the prime contractor, for a lengthy period of time," they said in a statement.

"Sustainment of the Collins Class submarines is at the top of the Government's Projects of Concern list."

The submarines have faced persistent problems with breakdowns and maintenance that has severely limited their availability.

Under the terms of reference, Mr Coles will assess the optimal commercial arrangements for ensuring submarines are available and appropriate performance goals based on world's best practice.

He will also examine how to demonstrate value for money in sustainment activities and the supply chain and how to improve management arrangements between ASC, the Defence Materiel Organisation and the navy.

Mr Smith and Mr Clare said Mr Coles would present an interim report by December and the final report by April 2012.

"Just as the Rizzo Report, released on July 18, provides a plan to improve the repair and management of the Navy's amphibious fleet, Mr Coles will provide a plan to improve the repair and management of our submarine fleet," they said.

"This review will involve a detailed examination of complex engineering issues associated with submarine sustainment and is likely to involve support from international experts and companies in this field."