SA Premier Malinauskas backs his defence state in face of ‘Whingeing Wendy’ Downer’s criticism
The South Australian Premier demands federal guarantees over AUKUS nuclear subs and frigates after Alexander Downer doubles down on criticisms.
South Australia’s status as the defence state is under attack on two fronts, with Premier Peter Malinauskas defending the $368bn nuclear submarines deal and demanding guarantees over the future of the $45bn Hunter-class frigate program.
The Premier told The Weekend Australian the nation could not afford a return to the uncertainty of the past with a “stop-start” approach to major shipbuilding projects. His comments follow the withering attack by former foreign minister Alexander Downer on the nuclear subs plan as a “white elephant” that would never happen.
The anxiety created in Adelaide over the comments by the SA Liberal elder statesman was compounded this week with unconfirmed reports Adelaide’s key role in delivering the Hunter-class frigates may come to an abrupt end, threatening 5000 local jobs.
Mr Malinauskas insisted both projects were wholly in the national interest and said both sides of politics must stay the course.
“Those who would seek to diminish the naval shipbuilding industry in SA should remember that the reasons there have been challenges in the past is through our lack of continuity of policy at the federal level under governments frankly of both political persuasions,” Mr Malinauskas told The Weekend Australian.
“For the first time in a long time we now have a bipartisan commitment at the federal level for a continuous shipbuilding industry in Australia, and the bulk of that in SA, because that’s the only way it works. We have learned lessons of the past and we know shipbuilding and submarine building works when it is continuous and you have got a constant supply chain.”
But Mr Downer doubled down on the remarks he made to The Australian’s Paul Kelly last week, saying on Friday that he was “completely unsurprised” both sides of politics in SA had come out against his criticisms of the AUKUS deal.
Mr Malinauskas and SA Opposition Leader David Speirs were quick to attack Mr Downer’s comments, which caused a furore in SA where the nuclear subs project enjoys strong bipartisan support.
“I am entirely indifferent to their criticism,” Mr Downer said. “It’s part of the pork-barrelling narrative of the state. I would expect Labor and Liberal to be singing from the same script. Bully for them, they don’t have to find the money. I would say both to Mr Malinauskas and Mr Speirs, where is the money coming from? It’s no disrespect to the Premier. It’s not his project, he’s not the architect of it, he’s not responsible for it.
“He is just a state premier who is putting forward the rent-seekers’ argument. There is simply no economic case for it.
“South Australians will only have to pay 8 per cent of the cost but it’s $368bn for the whole program. There is an opportunity cost here. Does SA want to be a place where we build eight submarines – eventually – or does SA want investment right now in other areas of social and economic activity? … What would you rather have?
“I’m a South Australian, I would rather see the money invested in other things and buy the submarines from the Americans.”
But Mr Malinauskas said Mr Downer failed to recognise the terms of the AUKUS deal meant Australia could not keep buying submarines from elsewhere.
“A central premise of the AUKUS pact is the building of a fourth nuclear supply chain outside of the three existing ones in the UK and US. The only reason the US is prepared to contemplate the sale of some Virginia-class submarines is in the context of Australia’s commitment to building its own nuclear submarine manufacturing capacity.”
“Mr Downer is advocating for a world that does not exist.” People who advocate for Australia simply purchasing nuclear submarines off the US into the future need to understand that the US isn’t up for selling nuclear subs on an ongoing basis because they are struggling to meet their own demand. It’s not an option that the commonwealth has to reject, because it is not even an option in the first place.”
Mr Downer harked back to Labor’s 1987 federal election advertisements featuring a suburban housewife dubbed “Whingeing Wendy” to attack the project on financial grounds.
“If you remember the 1987 election ad saying: ‘Where’s the money coming from Mr Howard?’, well, I am Whingeing Wendy on this. Where’s the money coming from?” he said.
“I have said repeatedly now that it just won’t happen, it’s just too much money. I have one message for our Premier, I’m sure he’s a good man and he is popular, but where is the money coming from?
“Even if it did I will be dead anyway before this all happens. Maybe not quite. Assuming I live to 90, I will probably see the launch of the first of them with foam coming out of my mouth at an Unley Road nursing home.”
Mr Downer pointed to the experience of the car industry as an example of throwing “good money after bad” for political gain.
“We put billions into the car industry because of South Australian votes,” he said. “There is no point putting money into loss making businesses. Defence by definition is a loss-making business. Building warships, I mean it’s not like you can hire them out for cruises.”
Mr Malinauskas rejected any suggestion of parochialism and said he had only ever championed the AUKUS deal on the basis of the national interest and SA’s capacity to deliver the jobs and skills required.
“If you accept that Australia must have nuclear submarines to strengthen its sovereignty into the long-term then you have to accept the responsibility of entering into the business of building them,” he said. “And there is nowhere else in the country that has the capability of building nuclear submarines apart from SA.
“This is a very significant undertaking. These are costs that are incurred over decades. Of course it is an expensive program but it has a specific, nation-defining outcome. South Australians do not approach the nuclear submarine program with a sense of entitlement but with a sense of ambition, which is what our national sovereignty and national security requires.”
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