Concerns raised about the AUKUS nuclear-powered submarine project moving too slowly have been addressed by Defence Minister Richard Marles at an Adelaide conference today.
When asked about reports of lagging timelines, Marles acknowledged that “if we don’t keep to the timeline now the whole thing will blow out” but said work on building skills and infrastructure was moving forward on schedule.
“All we can do, and I’m talking about the subs, is be clear in the terms of the pathway leading to it and the government putting timelines around it,” he said.
Marles also said the nation needed “to get our skates on right now” in relation to obtaining its eight new nuclear-powered submarines at an estimated taxpayer cost of $268-$368 billion.
But he said the government was already involved in discussions and agreements around ensuring infrastructure was in place at Henderson in Western Australia where the submarines will be based.
The same was happening around infrastructure to ensure the building work at Osborne in South Australia met deadlines.
So too was work to create new pathways to deal with what Marles described as the greatest challenge to the program; finding enough skilled workers to build nuclear-powered submarines.
Marles told more than 200 people including state and federal MPs, defence leaders and academics at the 7th Submarine Institute of Australia Submarine Science, Technology and Engineering Conference that a “people movement piece” is also underway with partners the United States and the United Kingdom.
When asked about options of sending nuclear waste from the submarines back to the United States, Marles ruled it out saying under the AUKUS deal it was Australia’s responsibility to dispose of nuclear reactors from the submarines.
While he said “we have some time to put this in place”, Marles recognised that time will move quickly and the “hardest part” will be “finding a location”.
A more than a decade-long search to find a home for a National Radioactive Waste Facility was earlier this year scrapped despite more than $100 million already been spent on work to develop a site for low-level waste near Kimba in South Australia.
Marles was upbeat about the nuclear-powered submarine program creating a massive skills and technology uplift for the nation.
The federal government’s surface fleet review is expected to land next week. Marles said a response would be made at the beginning of 2023 and he acknowledged that the nation needs a “quicker and more nimble procurement process” in defence.
The crucial submarine program to replace the Collins Class has dragged on for years, with the former Morrison Government cancelling a deal with the French and signing up to the AUKUS alliance and submarines plan.
South Australia’s Trade and Investment Minister Nick Champion told the conference earlier this morning that defence companies have a unique opportunity to invest in the state due its pivotal role in building the AUKUS submarines.
Champion said that the state’s reputation as the shipbuilding capital of the nation continued to grow with the construction of two Offshore Patrol Vessels and the Hunter class frigates.
“The Hobart class destroyers will also return to Adelaide for a combat system capability upgrade to become one of the most potent ships in the world,” he said.
Champion said SA built the Collins class submarines – the first submarines to be built in Australia and considered the most sophisticated conventional submarines in the world.
He also referred to seven of the world’s top 10 defence companies already calling SA home, with plans to grow and form partnerships with US and UK partners to deliver the AUKUS deal.
This included Lockheed Martin, Raytheon, and Saab providing complex combat systems and last month, Babcock Australasia started construction on a new $31 million integrated manufacturing, warehouse and office facility in Adelaide’s western suburbs.
Kongsberg Defence Australia have also made a significant investment in South Australia with a new $15 million facility at Mawson Lakes.
This facility is set to boost the state’s capability in guided weapons and explosive ordinance – a key focus area of the Defence Strategic Review.
“We are home to around 400 small to medium enterprises who provide goods and services directly to Defence and deliver to supply chains of prime contractors in Australia and around the world,” Champion said.
“State and Federal governments have contributed $19 million to support this digital transformation through the Factory of the Future at the Tonsley Innovation District.
“The factory is the nation’s first industrial scale, high-value research and accelerator facility dedicated to modern shipbuilding techniques.”
He also said the state government was investing more than $200 million to develop five technical colleges in metro and regional South Australia. The first is set to open in 2024 in partnership with BAE Systems.