Abbott uninterested in shipyard jobs: ALP

The federal government has dismissed reports that up to 1400 naval shipbuilding jobs are to be lost because of a lack of sustainable work.

News Corp Australia reported on Wednesday that shipyards in Victoria and NSW were likely to close by the end of 2015.

While the opposition accused prime minister Tony Abbott of having no interest in saving the industry, the government says it's committed to increasing defence infrastructure spending.

"Reports of massive job losses in the industry are speculative and nothing more than cheap Labor scaremongering tactics," Defence Minister Kevin Andrews said in a statement.

"This government will continue to invest in its Defence industry to ensure the safety and security of all Australians."

Mr Andrews said more than $1 billion worth of work is continuing in South Australia.

He said up to $4.2 billion will be invested in building and sustaining Defence materiel over the next four years, but did not specify whether that would be spent in Australia.

But News Corp reported that 800 workers are likely to lose their jobs at Williamstown in Victoria and 660 in Newcastle in NSW over the next 12 months.

Acting Opposition Leader Penny Wong says the prime minister could have done more to ensure the shipyards had enough work to stay open.

"He could have brought forward the patrol ships, he could have brought forward the frigates," she said on Wednesday.

"He could have made sure that the Australian yards could bid for (naval) supply ships.

"But the government was more interested in denigrating our shipbuilders and in walking away from their promise to build submarines here in Australia."

Mr Andrews said when in government in 2009, Labor cut or deferred $16 billion from the Defence budget out to 2016-17.

Victorian Premier Daniel Andrews urged Mr Abbott to keep defence jobs in Australia.

Mr Andrews said the $12 billion LAND400 combat vehicle is an example of a project that should be built in Australia.

"It's being designed at Victoria Barracks, the project's being run at Victoria Barracks, this vehicle should be made in Victoria," he said.

Mr Andrews said Holden, Ford and Toyota workers - due to be retrenched in coming years - could be retrained to build the LAND400.

A spokeswoman for Mr Andrews said an open Request for Tender for the first stage of LAND400 combat reconnaissance vehicle would be released soon, and it would "seek to maximise Australian content."