Abbott: we don't want Russian subs

The last thing Tony Abbott wants to see is the Russians bidding for a $25 billion-plus contract to design and build Australia's next submarine fleet.

That's why the government has opted for a competitive evaluation process, and not the open tender a Liberal senator claimed the prime minister told him about at the weekend.

Mr Abbott argued there was quite a difference between the two terms, even though they were both a competitive process.

"An open tender is there for anyone and the last thing we would want to see is a Russian company, for argument's sake, bidding to produce an Australian submarine," he told reporters at Yass, in southern NSW, on Wednesday.

Australian shipbuilder ASC would be more than welcome to be involved.

Shadow treasurer Chris Bowen said the government had turned the issue into a "rolling farce of national significance".

He said the government's handling has been absolutely appalling given the ramifications for employment, revenue and defence.

"It would be laughable if it wasn't so serious," he told reporters in Canberra.