The Productivity Commission has cast doubt over the government’s decision to build nuclear-powered submarines in Australia, using its major report into the nation’s economy to argue for a complete re-appraisal of how the country meets its defence needs.
, the commission’s five-year review of productivity found that in most cases Australia was better off not developing its own defence production capability.
Part of the report focused on government infrastructure spending and procurement, particularly around defence, which it noted had for years suffered from “imperfect processes” and huge cost overruns. Under the AUKUS deal, Australia will obtain three Virginia-class submarines from the United States – to arrive in 2033, 2036 and 2039.In the 2040s, Australia will build a new type of submarine, the SSN AUKUS, based on an updated version of the current British Astute-class submarine and featuring American parts.
Since announcing the project, the government has been at pains to talk up its benefits to the Australian economy, particularly in South Australia and Western Australia.directly in Australia and “many tens of thousands” more through the broader economic impact of the project.Credit:“What this will do is highly sophisticated manufacturing will lead to a renaissance of high-value manufacturing in Australia. That money, that economic activity stays right here,” he told ABC radio.
Apart from an outside examination of defence spending, the commission also argued all government spending needed closer inspection. It backed the public release of cost-benefit analyses of public projects. The $100 billion cost range for the submarine project meant it faced the same problems as a major infrastructure project.
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