(Australian Financial Review, 03.12)
The Pentagon has halved the number of AUKUS submarines [
ie Virginia class] it will build next year, casting doubt on the timetable to supply Australia with its first
nuclear-powered boats, in what a leading US congressman said was a “profound” blow to the pact.
The Biden administration’s draft budget funds construction on just one new Virginia-class submarine for 2025, despite promises to ramp up production so second-hand boats can be freed up for Australia’s navy in the 2030s.
“Given the new commitment the Department of Defence and Congress made last year to sell three submarines to our ally Australia, which I enthusiastically support, the ramifications of the navy’s proposal will have a profound impact on both countries’ navies,” US Democratic congressman Joe Courtney said.
To mark the anniversary, a US Los Angeles-class submarine has docked in Perth as part of a commitment to increase port visits to familiarise Australians with operating nuclear-powered boats.
Under the AUKUS plan, Australia is meant to receive the first of at least three Virginia-class submarines from the US in 2032 to avoid a capability gap while the first British-designed submarines are built in Adelaide.
However, the transfer of the American submarines hinges on production in the US increasing to an average of 2.33 boats a year. That will ensure the US Navy can replace its boats destined for Australia and avoid a reduction in the size of its fleet.
The US Navy needs to build two submarines a year to maintain its fleet numbers given the retirement of older vessels – a rate it doesn’t expect to achieve until 2028 – but production is languishing at 1.2 to 1.3 boats annually because of labour shortages and industrial bottlenecks.
As part of AUKUS, Australian taxpayers will invest $US3 billion (AUS$4.53 billion) to bolster the submarine industrial base, while the US will tip in a similar amount, although that funding is tied up in a political fight over other defence-related funding, such as US military aid to Ukraine.
The Pentagon budget, released on Tuesday (AEDT), asks Congress to approve a further $US4 billion for the US submarine industrial base in 2025, and $US11.1 billion over five years, describing it as a “historic” investment in suppliers, workforce development and infrastructure to expand production.
“These investments will also support the administration’s commitments under AUKUS, the first major deliverable of which was the historic decision to support Australia acquiring conventionally armed, nuclear-powered submarines,” a White House fact sheet said.
The budget request covers the 2025 fiscal year, which runs from October to September in the US.
But Mr Courtney, whose Connecticut district is home to one of two submarine yards, seethed that cutting production would remove one more submarine from a fleet that was already 17 submarines below the US Navy’s long-stated requirement of 66.
“At a time when the pace of all of navy shipbuilding – manned and unmanned, including carriers, submarines, destroyers and frigates – is recovering from the impact of the COVID pandemic and supply chain disruptions, the navy’s plan to cut a submarine that is already been partially paid for and built, makes little or no sense,” he said.
Mr Courtney said the proposal contradicted the Pentagon’s National Defence Industrial Strategy issued on January 11, which identified “procurement stability” as critical to achieving resilient supply chains.
Greens defence spokesman David Shoebridge said the Pentagon budget showed the AUKUS deal was “dead in the water”.
“The Liberals and ALP are just in blanket denial about what is going on in the US and meanwhile they are shovelling billions of dollars into this mess,” Senator Shoebridge said.
‘Seriously awkward for AUKUS’
“The US will simply not sell any nuclear submarines to Australia unless they have enough for themselves. This budget shows they are nowhere near achieving that goal.
“For AUKUS to work the US needs to make 2.3 Virginia class submarines a year and this year the US Navy has budgeted for just one. That maths is seriously awkward for AUKUS.”
Elbridge Colby, a former top defence official in the Trump administration, said the US should not authorise the transfer of submarines to Australia if it diminished availability of boats for the US in a potential war with China over Taiwan.
He said it would take a “Herculean effort” to increase production to meet the US need for replacement submarines as well as supply Australia’s navy.
“Nobody knows how a fight with China would go but we [the US] need to have every single attack submarine we can get our hands on,” Mr Colby told The Australian Financial Review.
“We need to preserve every ounce of our war-fighting capability, and you’re telling me we are going to transfer our most critical asset to Australia? How does that make sense?”
Strategic Analysis Australia director Michael Shoebridge said the budget request showed how badly shipbuilders were struggling to lift production.
“The US Navy budget request shows the nasty reality that despite efforts, the US submarine industrial base is not yet able to meet the US’ own needs for subs, and so isn’t yet on track to make the AUKUS ‘optimal pathway’ viable,” said Mr Shoebridge, a former Defence official.
“The problem is even bigger than this budget request. Because it’s taking the US eight years to build each Virginia sub, even starting to build more from now on doesn’t change much until well into the 2030s.”
Australian government sources argued that before any increase in production could be achieved, it had to be preceded by increased investment in the industrial base as part “responsible and methodical” steps towards accommodating more Virginia-class submarines on the production line.
“As we approach the one-year anniversary of AUKUS, Australia, the United States and United Kingdom remain steadfast in our commitment to the pathway announced last March, which will see Australia acquire conventionally armed, nuclear-powered submarines,” Mr Marles said.
“All three AUKUS partners are working at pace to integrate our industrial bases and to realise this historic initiative between our countries.”
‘Lost, slow and indecisive’
But opposition defence spokesman Andrew Hastie said the government was overwhelmed by AUKUS.
“They are lost, slow and indecisive on the basics. They can’t even get started on the submarine base in Perth,” he said, citing that preparation works on HMAS Stirling will not start until 2025, just two years before US and UK submarines are permanently rotated through the base.
“Labor is deaf to the concerns of defence industry, our allies and the Australian people. We can’t afford to fail at our first hurdle.”
/end