The Federal Government is fast-tracking shipbuilding to keep people in jobs.

Six new patrol boats will be built under a new $350 million Defence project intended to keep hundreds of local jobs afloat during the COVID-19 pandemic.

Defence Minister Linda Reynolds says shipbuilder Austal will construct additional Cape Class vessels for the Royal Australian Navy in Western Australia.

Currently, the Australian Border Force (ABF) runs eight Cape Class Patrol Boats, while the Navy leases another two. After this project, the nation's fleet will grow to 16.

There are some questions about the $350 million price tag for the six latest boats, given the ABF purchased its existing eight Cape Class vessels for $330 million.

Senator Reynolds says the extra vessels will help keep Australia's borders safe, in lieu of the Navy's next fleet of larger Arafura Class Offshore Patrol Vessels.

“These vessels will not only enhance national security but will provide important economic stimulus and employment continuity during the COVID-19 pandemic,” the Minister said.

“The ability to build more of these vessels in Australia will deliver Australian Industry Content of more than 65 per cent, providing significant opportunities for Australian industry and Defence, as well as more than 1,200 workers in the broader Australian supply chain,” she added.

Defence Industry Minister Melissa Price says building the six new patrol boats at the Henderson shipyard near Perth “to ensure continued employment opportunities for 400 of Austal's commercial shipbuilders in WA, with flow down benefits to Austal's supply chain”.

The first of 12 new Arafura Class OPVs will begin replacing the Navy's ageing Armidale Class Patrol boats and its two leased Cape Class vessels from 2021.

The ABF has previously experienced problems dispatching smaller watercraft from its Austal-built Cape Class patrol boats.