The United States, the United Kingdom, and Australia have recently unveiled their plan to build a new fleet of nuclear-powered submarines for Australia, a move touted as a significant effort to counter China's naval buildup in the Indo-Pacific region. The AUKUS defense and security contract will also reportedly include an option to buy two more submarines, making it the largest single-defense project in Australian history.
The Australian government has estimated that the program will cost between $268 billion and $368 billion over the next 30 years. At least $8 billion will go towards modernizing the naval facility HMAS Stirling in Western Australia, and $2 billion over the next four years will go towards upgrading the Osborne shipyards in South Australia. The Australian government will also provide $3 billion over the next four years to production lines in the US and the UK as part of its financial commitment.
The program's cost has caught the attention of military experts and netizens, with some divided on the enormous costs. Justin Bassi of the Australian Strategic Policy Institute claimed that the program's cost would be "eye-watering." However, he added, "The alternative is an even higher cost to Australia's security and sovereignty down the track," referring to the security risk posed to Australian security by China.
The Australian government maintains that the nuclear submarine will differ from previous defense projects that have run over budget and schedule. Defense Industry Minister Pat Conroy said that significant reforms to procurement were announced in October that would contribute to the performance of Defense. Additionally, a dedicated agency has been established to provide a laser-like focus on delivering the project, and the government has learned the lessons from past procurements, particularly with the Collins class.
The former Defense Minister of Australia, Peter Dutton, hit out at the Albanese government over cost overruns, stating that the Albanese government's claim that the AUKUS nuclear submarine proposal is cost-neutral over four years is "not credible" and that the government is preparing to "cannibalize" other projects with the $3 billion in defense cuts necessary to pay for the plan.
Despite the high cost of the acquisition of nuclear submarines, the Australian government admits that the price is high, but it maintains that the nuclear submarine will be worth the investment, as the alternative would be an even higher cost to Australia's security and sovereignty down the track. China's widespread expansion in the Pacific Island region, which Australia considers its traditional bastion, is alarming for Canberra, and the security risk posed to Australian security by China cannot be ignored.
In conclusion, the AUKUS pact between the US, UK, and Australia to build a new fleet of nuclear-powered submarines for Australia is a significant move to confront China's naval buildup in the Indo-Pacific region. The cost of the program is substantial, with estimates ranging from $268 billion to $368 billion over the next 30 years. However, the Australian government believes that the investment is necessary to maintain its security and sovereignty in the face of China's expansion in the Pacific Island region. The program's success will depend on the government's ability to manage costs and learn from past procurement experiences.