Replacement of the RAN's aging 15 Fremantle Class patrol boats came a step closer earlier this month.

The Minister for Defence, Mr Peter Reith announced that in line with strategy commitments of the Defence White Paper, a "Request for Tender" for the next craft will be formally released in September.

The project will be worth up to $450 million to Australian industry.

The first boats are expected to be in service in late 2004, Mr Reith said.

He said the Fremantles have provided almost a quarter of a century of good service to Australia.

They, however, are becoming increasingly difficult to maintain and a replacement is needed.

The new boats will continue to provide vital operational training for RAN personnel and be on the front line of Australia's defences against people smuggling, illegal fishing, the narcotics trade and breaches of Australia's quarantine regulations.

The RAN contributes 1800 patrol boat "days" to Coastwatch operations annually, Mr Reith said.

He said the Government's preference is to have the new boats built in an existing Australian shipyard.

It has been specified they will be supported and maintained in Darwin and Cairns.

The Government is keen to pursue this project under private financing arrangements, capturing all the advantages this approach may provide.

However the Government must be satisfied it is receiving the best outcome for the investment of taxpayer dollars.

The invitation to tender will therefore seek bids under a privately financed arrangement or direct purchase by the Government.

It is expected that a single business entity will take responsibility for not only supplying the patrol boats, but also maintaining and supporting them for the duration of their 15 to 20 years life span.

The draft "Request for Tender" documentation will be released shortly for further comment by industry before it is finalised and formally release in September.

The replacement boats are expected to enter service in late 2004, Mr Reith said.

By Graham Davis