Rudd's pledge to move navy from Garden Island 'a threat to NSW economy'

The Prime Minister says the move is part of a long-term plan to modernise the navy and respond to defence and security priorities.

But the announcement, which has been costed at $6 billion, is a policy u-turn for Labor, with Julia Gillard's 2013 defence white paper deciding against the move.

Mr O'Farrell says a 2011 review found Garden Island injected $470 million a year into the NSW economy and employed 6700 people, including up to 4000 jobs at the naval base.

"My concern today waking up to this news, without any advice beforehand, off the back of a defence review that said 'don't change the current arrangements', is this is going to be devastating for those families whose loved ones work there," he told ABC radio.

And it's going to be devastating for the state's economy."

Mr O'Farrell said even if Garden Island was used for tourism, it would never support the number of defence and private industry jobs associated with the base.

Coalition frontbencher Christopher Pyne dismissed the idea as another "Kevin Rudd thought bubble."

"It's entirely uncosted," he told ABC radio.

"It could cost anything up to several billion dollars and cost several thousand jobs in NSW."

Mr Rudd was revealing more details of his proposal to move the navy north over time, in a speech to the Lowy Institute in Sydney on Tuesday.

He says there are many reasons for a relocation.

"Of course the Port of Brisbane is a big port, the Port of Brisbane also has the great advantage strategically of the proximity of the army base at Enoggera, as does Townsville with the close location of Lavarack barracks," he told ABC radio.

Malcolm Turnbull said he would be sorry to see the navy leave Sydney's Garden Island, which is located in his se

at of Wentworth.

He said the decision represented a complete U-turn after the ''realistic'' advice of the White Paper and was just a desperate bid by Mr Rudd for votes in Queensland.

''This is just another desperate effort to shore up support in Queensland and it's another empty promise, uncosted,'' Mr Turnbull told ABC radio.

''Why is Rudd making this announcement today?

''It's obvious that he is worried about losing seats in Queensland.