Subs not built here to cost economy $16bn

A defence industry group claims at least $16 billion of taxpayer money will go offshore if new submarines are built outside Australia.

Chris Burns, head of the South Australian Defence Teaming Centre and spokesman for the Australian Made Defence Campaign, told federal MPs in Canberra on Wednesday the $50 billion project was an opportunity to invest in the nation's future.

"This money could be a major stimulant for the Australian economy," he said in a statement.