Sub-text: Ten burning questions about the nuclear submarine project answered

The shock announcement that a fleet of nuclear-powered submarines will be built in SA has caused delight, and trepidation. So what does it all mean? We answer 10 vital questions.

The shock announcement on Thursday that a fleet of nuclear-powered submarines will be built in SA has caused both delight and trepidation. So what does it all mean? Here are the answers to 10 important questions.

While SA Premier Steven Marshall has hailed the project as a “jobs bonanza” for SA, it is a body blow for Naval Group, which had been charged with building improved conventional submarine in this state – a project which now won’t go ahead.

What does it mean for SA?
South Australia will be responsible for the country’s biggest leap in defence capability in recent history, at the forefront of a new defence alliance with the United Kingdom and United States. Starting this decade, the state will build at least eight nuclear-powered submarines, a mammoth project that will create a steady stream of thousands of local jobs over the coming years. SA also secured a suite of other maritime projects, becoming the undisputed home of shipbuilding in Australia. Defence estimates the industry will support more than 5000 jobs in SA by 2030. Prime Minister Scott Morrison said SA would be a “hub” of naval shipbuilding.

The Collins class full-cycle docking will continue to be conducted in SA, in a win for the state, saving 900 jobs. This will rise to 1300 jobs when the Collins life-of-type extension starts in 2026. A $5.1 billion upgrade to the Adelaide-built Hobart class destroyer combat management system will start from 2024, creating 300 jobs.

Are we better or worse off?
Depends on whose argument you believe. Prime Minister Scott Morrison is vowing more will be spent on naval shipbuilding, not less. The government is guaranteeing to redeploy the existing shipbuilding workforce throughout current and new programs, while emphasising the skilled worker shortage because of closed international borders during the pandemic.

White-collar workers at Naval Group, however, face an uncertain future. Hiring will not scale up as rapidly as it would have under the Naval program. Former Labor prime minister Paul Keating has warned Australia has had great difficulty running conventionally powered submarines and cautioned this problem will be multiplied with nuclear vessels. State Labor leader Peter Malinauskas has warned of “grave uncertainty about the future of thousands of South Australian jobs and tens of billions of dollars of investment” because of the Naval project scrapping.

What does it mean for WA?
Western Australia will continue to have a steady stream of local shipbuilding jobs, with more than 50 vessels planned to be constructed or upgraded in WA, but will not play a role in building the nuclear-powered submarines.

WA continues to build 10 Arafura class offshore patrol vessels, 21 Guardian class and six evolved Cape class patrol boats.

It has finally been confirmed that WA has lost its battle to steal SA’s 700 Collins full-cycle docking jobs, but the state’s workers continue to maintain important vessels, including the Anzac class frigates.

What happens to Naval Group and France?
Prime Minister Scott Morrison announced the $90bn Attack-class submarine program had been ditched, meaning French company Naval Group will no longer be needed.

There are currently about 350 Naval Group employees in SA working on the now-defunct program. It’s expected many of the company’s highly skilled workers will be absorbed by government-owned ASC, which is likely to play a major role in the nuclear-powered submarines.

Mr Morrison said he understood the decision was “disappointing” for France, but insisted the two countries would continue working together as important allies.

Australia spent $2.4bn on the Attack-class program before it was scrapped and will need to pay unknown compensation costs for scrapping the deal.

When will the subs hit the water?
The first of the eight nuclear-powered submarines is expected to go to sea in the late 2030s.

What will happen at Osborne Naval Shipyard?
The Osborne Naval Shipyard currently does not have the infrastructure to develop the submarines and will need to be expanded to accommodate the larger size of the nuclear-powered subs. Naval Group will wrap up work on the Submarine Construction Yard, which was meant to be the site for the construction of the Attack-class fleet. That part of the shipyard will essentially enter a holding pattern until decisions on exactly what infrastructure needs to be built are made.

Will Adelaide be a nuclear target?
Greens Senator Sarah Hanson-Young has declared this “puts a target on Adelaide’s back”. Defence strategists suggest, however, that the submarines will neither be nuclear-armed nor based in Adelaide, greatly diminishing this risk.

How will the submarines’ nuclear power system work?
The nuclear fuel cell will be imported fully sealed, meaning it will not be assembled in Australia. It will drive the submarine’s propulsion system and will not need to be recharged for the 30-plus-year life of the boat.

What happens in the next 18 months?
Australia will work with the US and UK to examine the design of the future submarine, which will determine the cost. The trio also will study “the full suite of requirements that underpin nuclear stewardship”, specifically focusing on safety, design, construction, operation, maintenance, disposal, regulation, training, environmental protection, installations, infrastructure, basing, workforce and force structure.

Will Australia adopt nuclear power or nuclear weapons?

Prime Minister Scott Morrison has ruled out both.

What questions do you have about today’s defence news? Post them below.