Why did the Royal Navy not build ships in Australia and later transfer them to the Royal Australian Navy?
Short answerBritish yards were cheaper and domestic employment made overseas Royal Navy orders politically unattractive; Australia needed to fund its own strategic industrial base.
NotesA British government would face an outcry for ordering abroad while domestic yards had room, and established British builders were cheaper. Royal Navy orders therefore followed British employment and procurement incentives. Australia's strategic interest was different: Canberra could justify paying more because the expenditure employed Australians and preserved sovereign industrial capability. Allied governments could make individually rational purchasing decisions that weakened their combined wartime production base.