Madigan defends Aust submarine builders

Independent Senator John Madigan says it would be "bloody ridiculous" to stop building submarines in Australia.

The Federal Government is yet to make a final decision about whether or not it will continue with the local submarine-building program.

Senator Madigan said Australia, and particularly Adelaide, needed a vibrant manufacturing sector.

"We've got money to spend on helicopter rides, but we've got no money to spend on future jobs, our future training and our future skills and Australia's defence," he told ABC radio on Wednesday.

"It's absolutely bloody ridiculous."

South Australian-based shipbuilding company ASC earlier this month announced it would cut more than 100 jobs.