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The head of the AUKUS submarine program has refused to say whether an almost $5 billion government payment to the United States will be refunded if no nuclear-powered boats are delivered to Australia.
Under the tri-nation agreement, Australia is providing multi-billion-dollar contributions to the United States and United Kingdom to help expand their submarine industrial bases, but for months officials have declined to discuss details of the transfers.
During a Senate estimates hearing, Greens senator David Shoebridge attempted to extract details of the impending $4.7 billion payment to the US from the head of the Australian Submarine Agency, Vice Admiral Jonathan Mead.
Under questioning late on Thursday, the ASA boss repeatedly refused to say if a refund clause was included with Australia’s payment in case the United States fails to transfer Virginia class submarines in the 2030s.
“I just go back to the original statement — the US has committed to providing two US submarines from its submarine industrial base in the early 2030s and a third one on procurement,” the vice admiral told the committee.
“What if the United States determines not to give us a nuclear submarine? Is there a clawback provision in the agreement?” Senator Shoebridge then demanded to know.
“That’s a hypothetical and I’m not going to entertain … The US has committed to transferring two nuclear-powered submarines to Australia,” the ASA boss asserted.
“It may be embarrassing that you have entered into an agreement that sees Australian taxpayers shelling out $4.7 billion — which we don’t get back if we don’t get our nuclear submarines,” Senator Shoebridge responded.
Under the final stage of AUKUS the United Kingdom will help develop a new class of nuclear-powered submarine to be known as SSN-AUKUS, with Australia’s boats to be built locally in Adelaide.
Ahead of the ambitious venture, Australia will hand almost $5 billion to British industry over the next decade for design work and to expand production of nuclear reactors that will eventually be installed on AUKUS submarines.
Navy apologises to traditional land owners over nuclear expansion
Defence has apologised to traditional land owners in Western Australia who live around the Garden Island naval base for not consulting them about upgrades being made to accommodate visiting nuclear-powered submarines.
During Senate estimates, Greens senator Dorinda Cox, who is a Yamatji-Noongar woman, expressed concerns on behalf of her community about the AUKUS work that will soon occur at HMAS Stirling.
Chief of Navy Vice Admiral Mark Hammond told the Senator he wanted to discuss the matter on his next visit, an offer she accepted.
“I’m just surprised that this has been such an oversight for an extended period of time, I do apologise, I’m in Western Australia in a couple of weeks’ time and again in July. I’d like to formally engage with your concurrence.”