Subs forge new bond: France

The French Prime Minister has said Australia’s submarine contract is the start of a new 50-year economic partnership.

Mr Valls told reporters the strategic relationship between France and Australia had just reached “another level”. Picture: AAP/ Sam Mooy.

The contract to build Australia’s new submarines will tie the nation to France in a 50-year economic partnership.

Prime Minister Malcolm Turnbull met his French counterpart Manuel Valls in Canberra on Monday to flesh out details of Australia’s largest-ever defence contract.

Their meeting comes a week after the government announced French industrial group DCNS would design and construct 12 submarines to replace Australia’s Collins class vessels, at a cost of around $50 billion.

Mr Valls told reporters the strategic relationship between France and Australia had just reached “another level” with that decision.

“It is a partnership that binds us for a very long time — 50 years at least,” he said.

“In the coming months we’ll be working with the Australian authorities to fix all the details of our partnership ... (and) conclude this contract as soon as possible.” Mr Valls confirmed that all 12 submarines would be built in Australia, saying there should be no confusion in the matter. “France will honour its commitment in terms of transfer of technology, ... infrastructure and job creation in Australia,” he said.

However, he said the contract represented a lot of work for DCNS staff in France and around the world.

Work on the submarines would give substantial spin-off benefits to Australian hi-tech businesses, Mr Turnbull said.

He denied the possibility the submarines could be nuclear-powered played any part in Australia’s decision.

A French reporter quizzed Mr Valls on why he had come to Australia given the contract is yet to be detailed.

The prime minister noted he was in New Zealand when the Australian announcement was made and had already delayed a trip Down Under earlier this year.

“The political life in Australia meant that unfortunately we could not postpone this meeting,” he said, referring to expectations Mr Turnbull will call an election shortly.

AAP