Waleed Aly Questions Finance Minister About AUKUS Nuclear Submarine Deal, As Beijing Warns Australia

The Project’s Waleed Aly questioned Finance Minister Katy Gallagher about the AUKUS nuclear submarine deal after a chilling threat from Beijing in response to the plan.

Australia will spend up to $368 billion on eight US-made nuclear-powered submarines to modernize its fleet amid concerns over China’s influence in the Indo-Pacific region.

Prime Minister Anthony Albanese announced the massive spending alongside US President Joe Biden and UK Prime Minister Rishi Sunak in San Diego on Tuesday.

But Aly questioned Ms Gallagher on whether the decision was the right decision for the country on Ten’s current affairs show on Tuesday.

“Big decisions have big consequences,” he said.

“We’re already seeing some, let’s say academics aligned with the Chinese government who are probably saying what the Chinese government thinks, saying that this puts a massive target now on Australia’s back and puts us on the front lines of US-American tensions. and China instead of a more comfortable place.

‘Is all this in our national interest?’

The finance minister explained that the deal was made to bolster defense capabilities to keep Australia safe in response to rising tensions in the Indo-Pacific.

“This decision is about making sure that we have the capacity that we need for the region that we live in,” he said.

“We know there has been a fairly (a) significant increase in equipment and operations in our region and we must respond in a way that keeps our country safe and I think that’s what nuclear-powered submarines give us the capability to do.”

Aly then doubled down on her questioning after Ms Gallagher failed to acknowledge the threats she relayed from Beijing.

“So, are you very happy if the consequence is that it puts us more in China’s crosshairs and puts us on the front line and that irritates China?” he asked.

“Well, no, I would say China’s response is their business,” he said.

“I’m saying the decisions we’ve made are about our national security, our sovereign interest and playing a role in this region where we want peace and prosperity, and making sure that we have the capacity that supports that.”

The AUKUS deal marks the largest defense investment in Australian history with an annual cost amounting to 0.15 per cent of GDP until the mid-2050s.

Canberra will acquire three US Virginia-class nuclear submarines, built by weapons manufacturer General Dynamics, from the United States beginning in about 2033, with an option to purchase two more.

Subsequently, a new SSN-AUKUS class hybrid vessel arrives in Australian waters roughly a decade later, built as part of the trilateral alliance with the UK and US.

The SSN-AUKUS will be similar to the US Virginia-class submarine in that it will have a US nuclear reactor. It will be built in the UK by BAE Systems.

Australian divers are already training in nuclear submarine technology in the US, Albanese revealed.

Meanwhile, a new submarine base to house the nuclear-powered AUKUS fleet will be created along the east coast with Port Kembla, in New South Wales, as the new location.

Chinese President Xi Jinping warned that the country would strengthen its military in response to the AUKUS plan.

He addressed the National People’s Congress on Monday saying the army would be reinforced to create a “great steel wall.”

Xi called security the “foundation of development” and accused Western powers of “national humiliation.”

“We should fully promote the modernization of the national defense and armed forces, and turn the people’s armed forces into a great steel wall that effectively safeguards national sovereignty, security and development interests,” he said.

Albanese said that the AUKUS agreement strengthens the military relationship with the US and the UK.

“A friendship built on our shared values, our commitment to democracy and our common vision of a peaceful and prosperous future,” he said.

“This is only the first time in 65 years and only the second time in history that the United States has shared its nuclear propulsion technology. And we thank you.

‘This is a genuine trilateral company. The three nations are ready to contribute and the three nations are ready to benefit.’

The cost to taxpayers of nuclear-powered submarines will be $268 to $368 billion over the next three decades, plus any increase in costs that are a common risk in such projects.

The spending will take $9 billion of the budget bottom line over the next four years and $50-58 billion over the next decade, at a time when the Reserve Bank is desperately trying to rein in spending-driven inflation. of the public and private sector.

The annual cost will then be around 0.15 percent of GDP until the mid-2050s, but there are caveats about the exact figure due to the unpredictability of inflation three decades from now.

Australia will become the seventh country to have nuclear-powered submarines, which Biden took pains to point out was different from having nuclear weapons.

“Australia is a state that prides itself on being nuclear-free, and is committed to remaining so,” he said.

‘These ships will not carry nuclear weapons of any kind.

“Each of us here today representing the United States, Australia and Great Britain are deeply committed to strengthening the nuclear non-proliferation regime.”

‘AUKUS has a primary objective. Enhance the stability of the Indo-Pacific amid rapidly changing global dynamics. In this first project, this first project is just beginning.’

Biden said the US could not ask for “better partners” in the Indo-Pacific than Australia and the UK, noting that it is the region where “much of our shared future will be written”.

“By forging this new partnership, we are demonstrating again how democracies can deliver, how our own security and prosperity not only for ourselves, but for the world,” he said.

A US submarine for Australia will roll off the production line every three years before the new AUKUS class is built at a similar rate from 2042.

As part of that deal, Australia will provide billions of dollars, at least $3 billion in the first four years, to upgrade US submarine production facilities.

These US-made submarines will replace the Collins-class submarines, which will cease service in the late 2030s.