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With Subs Facing Years In Port, Government Demands Compensation

February 12 2010

Australia

The Australian government has acknowledged that it is demanding compensation from the Australian Submarine Corp. (ASC) over submarine mechanical problems that have kept HMAS Collins in port, reports the Sydney Morning Herald.

The compensation demanded, amounting to Aus$5 million (US$4.4 million), is the maximum payable under an annual Aus$170 million (US$149 million) contract with the company, officials said.

The compensation demand emerged during parliamentary questioning. ...

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