Labor jobs push ‘may sink subs’

Locking in local jobs demands could threaten the nuclear submarine program, experts warn.

British Astute-class submarine HMS Ambush.

The Labor Party will demand contractually enforceable levels of Australian industry involvement in the nation’s nuclear submarines in a move that will alarm defence strategists who warn such guarantees could put the program at risk.

Opposition defence spokesman Brendan O’Connor will tell the Submarine Institute of Australia on Tuesday that industry must get a substantial and measurable slice of the huge project.

“Labor has always been committed to Australian industry content to support and build a sovereign defence industry,” Mr O’Connor will say, according to an advance copy of his speech.

“If elected, Labor would ensure Australian industry content would not be an afterthought, and such requirements would be written into Defence contracts.”

After the government’s failure to initially set mandated local industry content levels in the now-axed Attack-class submarines, Mr O’Connor will warn the replacement nuclear submarine program is shrouded in uncertainty.

He will demand a commitment to growing the local defence industry with a focus on local jobs, noting Adelaide faces the loss of about 3000 direct jobs in the defence and construction sector as a result of the cancellation of the French-designed submarines.

“Currently we don’t know what type of submarine we are getting, let alone what the local content of any proposed submarines would be,” Mr O’Connor will say.

“So this government, having made the big announcement, now has questions to answer. It needs to explain to this industry and to this nation what it plans to do to address the capability gaps, the workforce shortages and the lack of industry involvement.”

Defence Industry Minister Melissa Price will tell the Submarine Institute’s annual conference that the government is committed to building the boats in Adelaide, with high levels of Australian industry involvement.

“There will be significant opportunities for Australian industry involvement in this program right across the country,” she will say.

“Our businesses and workforce have the capability to deliver strong results for this program, and I am determined to maximise their involvement and know-how wherever possible.”

The pledge comes despite huge question marks over the ability of Australia’s shipbuilding industry to build a nuclear submarine within 20 years, even with the support of the US and UK. Australia also faces a massive challenge to develop a nuclear compliance regime from scratch, together with the skills and infrastructure to service and maintain submarine reactors outside their sealed cores.

Australian Strategic Policy Institute executive director Peter Jennings said the government needed to avoid “last century’s preoccupation” with extracting local content guarantees, in favour of a more integrated approach with the two AUKUS partners.

“To get into fights about Australian industry 20 years out from the first submarine being built is the wrong debate,” he said. “It runs the risk that there could be vastly better ideas to explore before we lock into something like that.”

He said both sides of politics should heed the benefits of the Joint Strike Fighter model of industrial engagement, in which Australian firms supply components into the global JSF program.

“Why not think about Adelaide as a component producer for nuclear submarines used by three navies?”

He said Adelaide might have a future as a conventional submarine builder, given the major upgrades scheduled for the Collins-class boats, and the possibility that another diesel-electric submarine will be needed.