Luke Gosling (Solomon, Australian Labor Party) Share this | Link to this | Hansard source

I rise to speak about the significant AUKUS announcement and about Australia's acquisition of nuclear-powered but conventionally-armed submarines. It is the single-biggest investment in our defence capability in the history of our Commonwealth. It represents a transformational moment for our nation, for our Defence Force and for our entire economy. The agreement will strengthen Australia's national security and contribute to regional stability and prosperity in response to unprecedented strategic challenges and economic transformation. It will build a future made in Australia, which is a key component of what we took to the Australian public in last year's federal election. Coming out of this agreement there will be record investments in defence, skills, jobs and infrastructure. It will deliver superior capability and ensure that there is no capability gap after a decade of inaction and mismanagement, particularly in relation to submarines, from those opposite. The Japanese submarine deal and the French submarine deal were both quashed—wasting not only a decade but also much taxpayer funds.

The AUKUS agreement is broken up into three stages. Firstly, we'll see increased visits of US submarines, commencing in 2023, and UK submarines from 2026 and, beginning in 2027, rotations of both UK and US submarines to Australia. Secondly, from as early as the 2030s, Australia will take delivery of three US Virginia class nuclear-powered but conventionally-armed submarines, ensuring that there is no capability gap. Thirdly, Australia and the UK will deliver the SSN-AUKUS, a new, conventionally armed, nuclear powered submarine, based on a UK design and incorporating cutting edge Australian, UK and US technologies. The UK will deliver its own first SSN-AUKUS in the late 2030s, with the first SSN-AUKUS built in Australia delivered in the early 2040s.

It's the single biggest defence capability acquisition in our history and, given the strategic circumstances, it is not wise for us not to go down this path. Out to 2055, we currently estimate spending on this program to amount to around 0.15 percentage points of GDP per year averaged out over the life of the program. This will contribute to the government's commitment to lift defence spending to over two per cent of GDP per year. What you will see in the May budget is the initial estimate of $9 billion over the forward estimates to begin implementation of the pathway that I've just described.

Over the forward estimates, we estimate $6 billion will be invested in Australian industry and workforce. We will invest at least $2 billion in South Australia and a billion in infrastructure in Western Australia. An estimated $30 billion will be invested in Australia's industrial base alone, out to 2055, and that will reverberate through other industries, bringing enormous benefits.

Nuclear powered submarines will be an Australian sovereign capability commanded by the Royal Australian Navy and sustained by Australians in Australian shipyards. AUKUS will create around 20,000 direct jobs over the next 30 years, across industry, the ADF and the APS. While many of those will be in South Australia and Western Australia, for the construction of the SSN AUKUS, many other jobs will be created for Australians across a range of sectors of our economy, including in advanced technologies. It is understandable that much of the media attention on AUKUS to date has focused on the nuclear submarine element, but the technology and innovation dividend that will come from the second pillar, pillar 2, should not be underestimated—especially for the jobs that it'll drive in my electorate.

The NT economy is already gearing up to reap the benefits of AUKUS and of pillar 2 in particular. Last year, for example, the Northern Territory government, Charles Darwin University, RMIT and the federal government worked together to establish the first defence and aerospace digital Industry 4.0 Testlab at CDU. There is lots more to come for the Territory in both pillar 1 and pillar 2.

Question agreed to.

Federation Chamber adjourned at 12:07