Tony Abbott has gone on the front foot over submarines to launch a remarkable attack on Labor, saying they would let the Russians or North Koreans build Australia's next fleet.
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But the Prime Minister faced continuing concern on his own side, with senior Liberal senator Arthur Sinodinos saying the government needed more "clarity" about its approach to buying the replacements for the Collins Class.
Mr Abbott, whose ministry has faced pressure in recent days as it struggled to explain its "competitive evaluation process" for the purchase, accused Labor of wanting an "open" tender – though the Opposition is actually calling for a "competitive" tender.
An open tender is widely regarded as unfeasible in defence circles for such sensitive military purchases as it would give anyone, including potential adversaries, the right to bid and thereby get information on what kind of capability Australia wants.
In parliament on Wednesday, Mr Abbott said Labor would allow Russia or North Korea to bid on the project valued at up to $40 billion.
"The Leader of the Opposition … might want the Russians to compete. The Putin-Class subs – that's what he wants … We could have Kim Jong-il Class submarines."
Kim Jong-il, the former North Korean dictator, died in 2011 and was replaced by his son, Kim Jong-un.
Mr Abbott is widely regarded as long having favoured buying submarines from Japan. But amid a backlash from South Australia – including Liberal MPs in the state – where the government shipbuilder ASC is based, the government has announced its "competitive evaluation process".
The process became mired in confusion after Liberal Senator Sean Edwards said he was backing Mr Abbott during this week's leadership crisis after Mr Abbott pledged an "open tender".
Mr Abbott has effectively contradicted this but has vowed that Australian firms such as ASC will be able to bid for work along with overseas shipbuilders – likely to be from Japan, Germany, France and Sweden.
Senator Sinodinos, a senior Liberal figure who previously served as John Howard's chief of staff, said on Sky News he though the Coalition needed "clarity over the process".
"What's always concerned me about this issue is that particularly in the run-up to Christmas, there was some uncertainty as to how South Australia might be dealt into the process … I think it's a matter than does need to be cleared up. I'm sure the government will clear it up," he said.
Labor Defence spokesman Stephen Conroy said of the Russia and North Korea jibes:
"This is a ridiculous accusation by an increasingly desperate Prime Minister who has been caught out trading submarines for votes to secure his leadership."
He pointed to his speech at last year's Submarine Institute of Australia Conference in which he said there should be a "proper competitive tender process", not an open tender process on the submarines.
