This paper reviews the past performance of Australian naval shipbuilding, describes the pros and cons of a rolling production model, and unpicks the issues that the government will have to take into account. It concludes that we’re likely to see a bigger surface navy—potentially a much bigger one—as well as the sell-off of at least part of the currently government-owned ASC Pty Ltd. The paper also looks at strategies to manage the risks in the likely course of action and recommends mitigation strategies.