Premier Peter Malinauskas says AUKUS submarine will be one of biggest decisions in South Australia’s history

Premier Peter Malinauskas is predicting one of the biggest decisions affecting South Australians in history will be made within weeks.

One of the most momentous decisions affecting South Australia in the state’s history will be made within weeks when a nuclear-powered submarine is chosen for Adelaide-based construction, says Premier Peter Malinauskas.

In a keynote speech detailing his government’s half-year agenda, Mr Malinauskas questioned whether South Australians appreciated the submarine project’s magnitude – one estimate has put the cost at $171bn.

Mr Malinauskas said the Osborne Naval Shipyard-based program would involve partnering “with some of the greatest technological providers anywhere in the world” and highlighted that nuclear submarine supply chains, once started, did not stop.

“In March we face the prospect of the Commonwealth making one of the most instructive decisions that will affect our state in our history. The AUKUS submarine decision is a big one,” he said, speaking at a Property Council lunch at Adelaide Oval.

“These are the most complex machines in the world and we are going to build them around about 20km from where we are now.

“This is a bit of a big deal, but because it’s always been coming, I don’t necessarily know if South Australians appreciate the magnitude of the challenge that this represents.”

Premier Peter Malinauskas arrives at Parliament House in Canberra on February 3. Picture: NCA NewsWire / Gary Ramage

Geopolitical instability was one of “the two biggest challenges of our time” and this meant defence, space and cyber industries were surging, Mr Malinauskas said, arguing SA was the best-placed state to capitalise.

SA was also best-placed to capitalise on the other big challenge, decarbonising the economy, and Mr Malinauskas argued both sectors would drive jobs and economic sophistication.

“One of the key tasks for the state isn’t just pursuing population growth. The task is to make sure that we are enjoying population growth but the population that we have is moving up the value chain,” he said.

United States’ Navy Virginia-class nuclear-powered submarine USS Mississippi arrives at Fleet Base West, Rockingham, Western Australia for a routine port visit.

Prime Minister Anthony Albanese is expected to travel to Washington in March for an AUKUS summit with US President Joe Biden and British Prime Minister Rishi Sunak, and an announcement of the type of nuclear-powered submarine selected for Adelaide construction.

Defence Minister Richard Marles on Wednesday said the nuclear-powered submarine construction would be a “genuinely collaborative effort” between the three AUKUS countries – Australia, the United Kingdom and United States.

“People will see that this is far from it being a competition between the US and the UK. In fact, it is both countries working hand in glove to help Australia acquire this capability,” he told Sky News.

Opposition Leader David Speirs said Mr Malinauskas had delivered “a lot of lofty talk” but “very little action”.

“As South Australians live through a ramping crisis, a cost-of-living crisis and a housing crisis they will be expecting 2023 to be a year that delivers more than spin and rhetoric,” he said.

“Twelve months ago every second word that came out of the-then Opposition Leader’s mouth was ‘health’ yet, interestingly, in a 30-minute keynote speech it wasn’t mentioned a single time and did not feature in the government’s agenda for the year.

“The Premier rightfully highlights that South Australia is well-positioned to take advantage of the opportunities in the defence and cyber industries, which only exist because of the work of the former Liberal Government.”