Opinion: Wasting billions on net zero when our very security is at stake

Why would we spend billions on a net-zero target that almost no other country takes seriously over the defence of our country, asks Matt Canavan.

Australia’s defence strategy has put too much stake on getting nuclear submarines that would not be delivered until the 2040s, and now the Trump administration has put the AUKUS agreement under review.

The review follows a request from US Defence Secretary, Pete Hegseth, for Australia to lift its defence spending to 3.5 per cent of GDP. Secretary Hegseth made the request after a major speech he made to the Shangri-La Dialogue in Singapore last week.

Much of Secretary Hegseth’s speech focused on how the US intends to respond to increased Chinese bullying and aggression in our region.

We have been on the receiving end of China’s bellicose tactics. Last year, Chinese fighter jets released flares close to Australian pilots causing them to take dangerous evasive actions. Just a few months ago, the Chinese navy conducted live fire exercises beneath an Australian civilian plane route without warning.

What was less reported about Secretary Hegseth’s speech, however, was that the country he mentioned the most after China was Australia.

The US Defence Secretary made the point repeatedly that the United States wants to work with Australia to restore the industrial supply chains necessary to support our joint military needs.

As the Ukraine war has shown, the West lacks the ability to manufacture basic military hardware. Russia can produce more artillery shells (of the standard 152mm or 155mm type) in a year than all of the US and Europe combined.

So Secretary Hegseth explicitly mentioned that he wants to help Australia produce more of these type of basic artillery shells. He also flagged helping us make guided weapon and radar repair capabilities.

The stance of the Trump administration is positive for Australia given that we desperately need to restore our manufacturing strength.

The Prime Minister has talked much about his promised “Future Made in Australia” but after three years his plans have not produced much in the present.

Quite reasonably, American officials would like us to increase our defence spending if they are to make these investments in our military capabilities.

Anthony Albanese and Donald Trump

So, how did Prime Minister Anthony Albanese respond to America’s olive branch? He dismissively told them through our media that “we’re a sovereign nation. And the idea that we, you know, respond to every comment that’s made as if it’s new, what we do is serious policy.” It was an insult to refer to Secretary Hegseth’s considered speech to the most important security conference in the Asia-Pacific region as a “comment”.

Mr Albanese is right that we are a sovereign nation, but so are the US, and they are under no obligation to provide us with nuclear submarines. The cold hard truth is that we have only retained our sovereignty by working with our close allies like the US.

We currently spend $55bn a year on defence. The Australian government plans to increase spending to 2.3 per cent of GDP over the next 10 years. This is well short of the defence spending targets of the UK (3 per cent), Germany (3.5 per cent) and France (3 to 3.5 per cent).

To lift our defence spending to the planned 2.3 per cent of GDP we have to increase spending by almost $10bn per year. To lift our defence spending to the target requested by the US would require a $40bn increase.

Finding another $30bn a year would be difficult but not impossible alongside some of our other questionable spending priorities.

Last week research from the Institute of Public Affairs showed that the Australian Government now spends $9bn on various green energy schemes that we do not have a lot to show for.

Why would we spend billions on a net-zero target that almost no other country takes seriously over the defence of our country?

The Australian government now spends $300bn a year more than it did before Covid-19. That is an extra $27,500 for every Australian household. JobKeeper ended but the government just kept spending your money. Do you feel like you are getting $27,500 a year more in value from our hospitals, schools and roads?

While most of Secretary Hegseth’s speech was positive for Australia, he did say that “we know that many countries are tempted by the idea of seeking both economic co-operation with China and defence co-operation with the United States ... Economic dependence on China only deepens their malign influence and complicates our defence decision space during times of tension”.

Mr Albanese has put much stock in rebuilding our economic ties with China in his first term. A position that is looking increasingly unwise given the rising tensions in our region.

Later this week, Mr Albanese will meet Mr Trump for the first time since their re-election.

For all our sakes, let’s hope that he drops his petulant act and embraces the opportunity to rebuild our industrial capacity with support from our closest ally.

Matt Canavan is an LNP senator for Queensland

Originally published as Opinion: Wasting billions on net zero when our very security is at stake