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Shadow minister for defence industry Matt Keogh has called on the Commonwealth government to provide a roadmap for impacted workers and SMEs following the cancellation of the $90 billion contract with Naval Group, while opposition frontbenchers affirmed their support of Australia’s new AUKUS arrangements.
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Labor’s shadow minister for defence industry Matt Keogh has called on the Commonwealth government to provide a roadmap for the defence industry, concerned about the impact that the cancelled Attack Class submarine project would have on Australian defence SMEs and workers.
According to a release from the shadow minister’s office, Keogh reaffirmed Labor’s support for the AUKUS partnership, but urged the government to support Australian workers and defence businesses who may experience hardship due to the cancellation of the project.
“The previous Future Submarine programme initially promised 90 per cent Australian industry content, then it fell to 80 and then 60 per cent,” the release read.
“There are a lot of hard-working people who have already been engaged by Naval Group Australia, or were engaged in their supply chain, who had a restless night last night – their futures are now very uncertain.”
Keogh outlined that the new nuclear-powered submarine program must include Australian businesses using Australian intellectual property in order to bolster Australia’s sovereign defence industry.
“This new contract is an opportunity to ensure proper planning and commercial arrangements are set in concrete to ensure AIC is a priority, to provide a roadmap for Australian defence industry to have confidence they will be included in what’s expected to be the largest acquisition in our history,” the statement read.
Meanwhile, Opposition Leader Anthony Albanese, shadow foreign affairs minister Penny Wong and shadow defence minister Brendan O’Connor confirmed Labor’s commitment to the AUKUS partnership and Australia’s nuclear-powered submarine program. However, the trio used the opportunity to attack the government's management of the Attack Class submarine project.
“A program that is running 10 years late from its original schedule and $40 billion over budget,” a Labor Party release read.
“Eight years into this program and after three separate deals, Mr Morrison is now starting from scratch.
“In addition to a yet unknown cancellation fee for the Attack Class contract, up to $4 billion has already been spent. The government must be transparent about how much money has been burnt in the process.”
[Related: New subs decision sparks backlash]
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