Peter Dutton welcomes AUKUS nuclear-powered submarines deal, but has more questions

Prime Minister Anthony Albanese on Tuesday announced Australia would gain at least eight conventionally-armed, nuclear-powered submarines over the next three decades, with total costs estimated at up to $368 billion.

Alongside US President Joe Biden and UK Prime Minister Rishi Sunak at a naval base in San Diego on Tuesday, Mr Albanese announced the "biggest single investment in Australia's defence capability in our history".

Mr Dutton paid tribute to former prime minister Scott Morrison, who negotiated the trilateral alliance between Australia, the United Kingdom and the United States in 2020.

"We live in a very difficult time and we should be very honest with the Australian people about that, and that has necessitated this deal," he said.

But Mr Dutton did say the Albanese government can't sugarcoat cost estimates for the program.

The opposition want more information about the $3 billion that Defence has been asked to offset elsewhere to support the deal.

"We have to make sure that there is transparency and honesty with the Australian people about the cost involved in AUKUS," Mr Dutton said.

"It's not credible for the government to say that there's no net impact, even over the forward estimates, we can't allow Labor to cannibalise the defence force to pay for AUKUS.

"It's not an either/or option."

The program will cost $9 billion over the next four years, $50 to $58 billion over the next decade and 0.15 per cent of GDP over its lifetime.

This total cost for the deal could range between $268 billion and $368 billion.

"Which services will be affected, which capabilities will be affected, what local defence industry businesses will be affected, and when will they be told?" opposition defence spokesperson Andrew Hastie said.

Mr Hastie also welcomed the announcement as a response to a "darkening strategic reality in the Indo-Pacific".

"We do have questions around the timing, the sequencing and, as Peter outlined just earlier, the budgetary costs of the AUKUS project," he said.

He said questions remained around scheduled works to extend the lifespan of Australia's six existing Collins class submarines.

Greens senator David Shoebridge criticised the estimated $368 billion spend on the deal, which he said would force cuts on public education, health, housing, First Nations justice and core services.

"Unlike the Coalition, the Greens will not be cooperating with the government to force budget savings on critical public services to pay for these submarines," Senator Shoebridge, the party's defence spokesperson, said in a statement.

"Until it is reversed, today's announcement will force Labor to deliver austerity budgets to funnel billions of dollars offshore to fund the US and UK nuclear submarine industries."

The Greens senator also lashed the move as a "reckless alliance" which would be detrimental to Australia's sovereignty.

"This political deal makes Australia a third-wheel to the US's regional ambitions while forcing us into an arms race that escalates tensions in our region, making us all less safe," he said.

"This reckless alliance, cooked up by the Morrison government and backed by Labor, fundamentally compromises Australia's sovereignty by aligning us with the military and nuclear strategies of the world's biggest powers."

In the same statement, the Greens' foreign affairs spokesperson Senator Jordon Steele-John slammed the United States as a "bad house guest" in the region.

"The US is operating in the Asia Pacific with no regard for national interest or sovereignty of countries involved," he said.

READ MORE AUKUS NEWS:

The union representing Australian shipbuilders also expressed concerns, saying the announcement had delivered more questions than answers about how the country would develop the workforce necessary to deliver the submarines.

Australia will build SSN-AUKUS submarines at the Osborne Naval Shipyard in South Australia, with one expected to be delivered every three years from 2042.

"We're concerned that today's AUKUS pact announcement will not deliver the necessary developments to Australia's shipbuilding and defence industrial capabilities," Australian Shipbuilding Federation of Unions national convenor Glenn Thompson said in a statement.

"We are calling on the Albanese government to spell out what local shipbuilding workers are going to build to ensure a base workforce of at least 5000 jobs at the commencement of the future submarine program."

South Australian Premier Peter Malinauskas said the project would be "a state-changing enterprise", as he welcomed the initial creation of 4000 jobs dedicated to building the submarine construction yards.

A further 5500 workers could be employed for the construction of the nuclear submarines.

"We're talking about massive amounts of jobs with vastly higher skills," Mr Malinauskas said.

"Higher skills means more security of employment and also better remuneration, and what that means is a better standard of living for thousands upon thousands of families across our state."

Our journalists work hard to provide local, up-to-date news to the community. This is how you can continue to access our trusted content: