French President Emmanuel Macron promises ‘full and complete’ commitment to Australia’s submarine deal
The French President has promised “full and complete” commitment to the troubled submarine deal, while also throwing his support behind Australia over China.
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French President Emmanuel Macron is vowing a “full and complete” commitment to Adelaide-built future submarines, promising the $89 billion program will go “further and faster if possible”.
Speaking alongside Prime Minister Scott Morrison, Mr Macron declared the 2016 deal with France’s Naval Group to design and build 12 future submarines was a pillar of the two nations’ partnership, in words which should ease tensions over the deal.
“I want to assure you of our full and complete commitment,” Mr Macron said ahead of the meeting in Paris.
“That of French companies, and American companies working with us … that of the whole French government in order to meet our common ambitions, to go further and faster if possible.”
The French president branded the agreement to build Attack class submarines at Osborne Naval Shipyard a “pillar of our partnership and the relationship of confidence between our countries”.
Ahead of the meeting, it was expected Mr Morrison would have frank discussions with the French President about the troubled submarine project, which has been delayed by drawn-out contract talks about the next phase of work.
This was expected to focus on ensuring the French keep their end of the deal, helping protect Australia’s national security and guarantee more than 1700 jobs to be created by the submarine project.
But Mr Macron’s emphatic commitment will hearten the embattled Adelaide-based Naval Group Australia and ease pressure on the project.
Mr Macron said the Naval program was “based on the transfer of know-how and technology and will bind us together for decades to come, with the aim of strengthening Australia’s position and contributing to Australia’s sovereignty and strategic autonomy.
“On the strength of this partnership and a more stable Indo-Pacific area, our overseas territories will thus benefit from an environment conducive to the development of economic, cultural and scientific relations in the countries of the region.”
A Plan B for the future submarines has been investigated in case the Naval project cannot go ahead, the Defence Department confirmed on June 2.
Defence Minister Peter Dutton on June 11 confirmed a complete rebuild of the six Adelaide-built Collins class submarines to extend their life for another decade, at a cost of up to $10 billion.
As revealed by the Sunday Mail, it is expected the life-of-type extension work will be done at the Osborne shipyard, along with a yet-to-be officially confirmed full-cycle docking program for the Collins boats – the latter saving more than 700 jobs in South Australia.
Mr Morrison said the French understood “liberty” better than anyone and declared affinity described the two nations’ partnership.
“An affinity across so many different areas of the relationship – on everything from countering terrorism to our partnership in the Indo-Pacific, where in recent times we have sailed together...,” Mr Morrison said.
“Every element of our partnership is about reinforcing the values and the beliefs we hold dearly.”
Mr Macron was considered an early mover on the looming geostrategic competition in the Indo-Pacific after declaring France and Australia could be the heart of a new regional power base during a visit to Sydney in 2018.
The French President on Tuesday also said Australia was choosing to “invest in the relationship with France in all its diversity and richness”.
He also welcomed a new road map which “aims to enhance our ambition in the areas of renewable energy, hydrogen, the protection of biodiversity and cultural and academic exchanges”.
But independent SA Senator Rex Patrick said the deal was beyond redemption and should be scrapped immediately.
Speaking on Sky News on Wednesday night, Senator Patrick said the deal was already late, would not meet sovereign industry expectations and was likely to blow out in costs when it was finally delivered in 2035. He urged the Defence Department to resort to its Plan B.
“There are slim pickings for Australian industry,” Senator Patrick said.
In a separate defence state budget commitment, Premier Steven Marshall announced a $7.9 million allocation for supporting defence-related research and innovation under a Defence Innovation Partnership.
Young Aussies front of mind in trade deal
- Claire Bickers
Young Australians aged up to 35 will be able to live and work in Britain for up to three years under an in-principle free-trade deal between the two countries.
Import taxes for Australian beef and sheep meat into the UK will also be slashed under a landmark deal unveiled by Prime Minister Scott Morrison and British counterpart Boris Johnson in London on Tuesday.
Mr Morrison said it was Australia’s “most comprehensive and ambitious” trade agreement ever and the “right deal” for both nations.
Under current rules, Australians aged 18 to 30 can only work in the UK for up to two years, while Britons can work in Australia for up to three years if they complete three to six months of specified work, such as fruit picking.
Both countries will allow people aged up to 35 to get a three-year working holiday visa under the new deal, which is expected to come into effect in July 2022.
Australia has agreed to exempt British backpackers from the requirement to do at least 88 days of specified work despite concerns it could reduce farmers’ access to about 10,000 overseas workers a year. Instead, a seasonal agricultural visa will be launched for both countries so shearers, for example, could work in Britain or Australia in their off season.
Mr Johnson joked there would be a “free exchange of British rent-a-Poms and indeed Australian campaign managers”, in reference to Australian political strategists Lynton Crosby and Isaac Levido, which helped his party win the 2019 election.
Import taxes for beef and lamb will be phased out over a decade, after British farmers campaigned against zero-tariffs.
There will be an extra five years of tariffs if exports boom after the initial phase-out period.
The two leaders finalised the deal over a meal of Australian wine, British lamb and Scottish salmon on Monday.
Meanwhile, South Australia will open a new trade office in Paris in bid to expand the state’s trade with the European Union.
Next week’s state budget will include $1.8m to establish the new office.
State Trade Minister Stephen Patterson said it was “crucial” for SA to have a strong presence in the EU, as well as a continued presence in the UK, following Brexit.
“This will grow our capacity to reach emerging markets in Europe by focusing on two-way trade and investment, and by driving services exports in key sectors for SA like hi-tech, creative industries, renewable energy, and space and defence,” he said.
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