Australia will command a fleet of eight nuclear-powered submarines within the next three decades under a fast-tracked plan that will cost up to $368 billion.
Canberra will acquire three US Virginia-class nuclear submarines as a stop-gap from approximately 2033 before a new-generation hybrid submarine comes into production in a bid to deter Chinese aggression in the Indo-Pacific.
Prime Minister Anthony Albanese said the agreement was the single biggest investment in Australia’s defence capability and it would ensure the nation’s security for decades to come as part of the AUKUS alliance.
“What the United States, the United Kingdom and Australia hold in common is more fundamental and more universal than our shared histories,” he said as he announced the plan at the Point Loma naval base in San Diego.
“We are bound, above all, by our belief in a world … where peace, stability and security ensure greater prosperity and a greater measure of fairness for all.”
US President Joe Biden said the Indo-Pacific would be where the three nations’ futures were written.
“Forging this new partnership, we’re showing again how democracies can deliver our own security and prosperity and not just for us, but for the entire world,” he said.
The new-generation submarines will be based on the British Astute class, but it will be integrated with an American weapons system and technology.
“Top-of-the-line submarines are the vanguard of US naval power,” Mr Biden said.
“We’re putting ourselves in the strongest possible position to navigate the challenges of today and tomorrow, together.”
UK Prime Minister Rishi Sunak added the three navies would operate and maintain the boats together.
“For the first time ever, it will mean three fleets of submarines working together across both the Atlantic and Pacific, keeping our oceans free, open and prosperous for decades to come,” he said.
The cost to taxpayers of the trilateral deal with the US and UK will come in at an eye-watering $268-$368 billion over the coming three decades.
The plan will take $9b from the budget’s bottom line across the next four years and $50-58b within a decade.
However, the initial outlay won’t add to Australia’s deficit as $6b will be redirected from existing provisions for the cancelled French submarine contract, while the defence department will front the remaining $3b from its budget allocation.
An American submarine for Australia will roll off the production line every three years before the new AUKUS class will be built at a similar rate from 2042. The sale will need approval from Congress.
Australia’s current Collins-class submarines are due to come out of service in the late 2030s.
The plan ensures Australia will always have a baseline fleet of six submarines with the option to buy an additional two Virginia-class submarines should there be any delays.
The nuclear-powered submarines can stay at sea for as long as the crew have food, extending Australia’s capability from the weeks the Collins class can remain underwater.
It’s the first time the US has shared its nuclear technology in 65 years and only the second time in history.
The UK will construct and operate the first AUKUS submarine from the late 2030s and acquire an estimated eight to 12 of the same type.
It will take an estimated 100 to 110 people to crew the new AUKUS class, significantly higher than the 60 it takes to command Australia’s Collins submarines.
Four American nuclear-powered submarines and one UK vessel will begin rotating through Western Australian naval bases from as early as 2027 to boost Australia’s ability to operate its own vessels in the 2030s and 2040s.
Increased visits from US and UK nuclear submarines will also begin from next year.
Shipbuilders in Adelaide and Western Australia will join those in America and Britain in helping construct the new submarines, with shipyard upgrades to begin this year.
Radioactive waste will be managed in Australia, which has drawn protests from environmental campaigners.
© AAP 2023
