Labor MPs demand answers from Prime Minister Anthony Albanese over the cost of the AUKUS project

Labor MPs have demanded answers from the Prime Minister over the cost of the AUKUS project, and how to avoid Adelaide-based construction pillaging workers from other industries.

Anthony Albanese has been forced to explain to his own ranks how the federal government will fund the $368bn AUKUS nuclear-powered submarine project, as concerns are raised that Adelaide-based construction could cannibalise other industries.

Addressing his party on Tuesday, the Prime Minister was pressed on the cost of the country’s biggest defence project in the nation’s history.

Mr Albanese was also asked to address concerns about whether Australia would have sovereign control over Virginia-class submarines purchased from the US in the 2030s.

It comes after Labor MP Josh Wilson broke ranks in parliament to voice concerns about the disposal of nuclear material and the project’s price tag of up to $368bn over 30 years.

During Labor’s regular caucus meeting in Parliament House on Tuesday, Mr Albanese assured MPs the $9bn allocated for AUKUS over the next four years would be fully offset, while defence expenditure would rise above 2 per cent of GDP.

He also told the Labor caucus the nuclear submarine project would cost less than 10 per cent of the Defence budget, but deliver “much more than 10 per cent” in defence capability, jobs and economic activity.

Prime Minister Anthony Albanese has faced questions from his own party on AUKUS. Picture: NCA NewsWire / Gary Ramage

Mr Albanese addressed a question about Australia’s sovereign control of up to five nuclear submarines to be purchased from the US, telling caucus: “When the Australian flag is on any piece of equipment, Australia is in control”.

“We have effectively had the alliance with the United States since John Curtin,” he added.

Mr Albanese responded to a question about the Adelaide-based nuclear submarine project taking workers away from other industries.

It’s understood The Prime Minister responded by saying “governments should always do what is needed to defend the country”.

He said Labor’s legislative agenda in parliament this week showed “the capacity of the government to deal with all of our national priorities”. Mr Albanese also praised Defence Minister Richard Marles’s work on AUKUS and described the announcement of the optimal pathway as a “full court press” performed by senior Labor members around the country.

The AUKUS project is expected to create 20,000 jobs nationwide over the next 30 years, including at least 5500 direct jobs in SA when submarine construction at the Osborne shipyard reaches its peak.

Left MPs Libby Coker and Michelle Ananda-Rajah reportedly raised the questions over sovereignty and cost in Tuesday morning’s caucus meeting.

Ms Coker said later in a statement: “The AUKUS plan is important for our security, it responds to the challenging times we face and it will create thousands of jobs for Australian workers. It has my support.”

On Monday night, Mr Wilson told parliament he harboured concerns about the “considerable risks and uncertainty” of the AUKUS project.

The Fremantle MP also sounded the alarm over Australia’s ability to satisfy stringent international non-proliferation rules.

“I’m not yet convinced that we can adequately deal with the non-proliferation risks involved in what is a novel arrangement by which a non-nuclear weapons state under the Non-Proliferation Treaty comes to acquire weapons-grade material,” Mr Wilson said.

Mr Albanese told caucus he invited US President Joe Biden to address federal parliament around the time of the Quad meeting of leaders from the US, Japan, India and Australia in May.

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Originally published as Labor MPs demand answers from Prime Minister Anthony Albanese over the cost of the AUKUS project