SA challenges commission on submarines

The South Australian government has rejected a Productivity Commission claim that submarines built in Adelaide will cost more than those made overseas.

The commission's latest report on trade and assistance says submarines built in Australia will cost about 30 per cent more than those built elsewhere.

But Defence Industries Minister Martin Hamilton-Smith says a 2014 report commissioned by the Weatherill government showed building locally would create jobs, cost no more and provide a $21 billion benefit to the national economy.