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  1. #1
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    Australian government agrees to pay $835 million to French

    Australian government agrees to pay $835 million to French submarine contractor Naval Group over cancelled contract



    The Australian government will pay French shipbuilder Naval Group $835 million in compensation, after last year's decision to tear up a $90-billion contract to build 12 submarines.


    Key points:


    • Prime Minister Anthony Albanese says the total amount spent on the submarines program is now $3.4 billion
    • The scrapping of the French submarine contract was a result of Australia entering the AUKUS security alliance
    • The alliance gives Australia access to nuclear submarine technology



    Prime Minister Anthony Albanese made the announcement this morning, saying the total amount of money spent by Australian taxpayers on the program is now $3.4 billion.

    "This is a saving from the $5.5 billion that Senate estimates was told would result from that program," Mr Albanese said.

    "But it still represents an extraordinary waste from a government that was always big on announcement but not good on delivery, and from a government that will be remembered as the most wasteful government in Australia's history since federation."

    The scrapping of the French submarine contract last September was a result of Australia entering the AUKUS security alliance with the United States and the United Kingdom, and gaining access to nuclear submarine technology.

    The incident caused a deep fracture in diplomatic relations between Australia and France, with French President Emmanuel Macron going so far as to accuse then prime minister Scott Morrison of lying to him about the future of the contract.

    "I'm looking forward to taking up President Macron's invitation to me to visit Paris at the earliest opportunity, and we will make further announcements forthcoming about the dates in which that will occur," Mr Albanese said.

    "I see a personal meeting between myself and President Macron in France as being absolutely vital to resetting that relationship, which is an important one for Australia's national interests.

    "The tensions between Australia and France, I think, have been pretty obvious and they go from the top — I intend to have an honest relationship with France and one that is based upon integrity and mutual respect."

    Shadow Defence Minister Andrew Hastie was quick to question the merits of the deal, avoiding any ties to the $835 million figure and the previous government.

    "There were private conversations with Defence, but this is a settlement which Mr Albanese has come to," Mr Hastie said.

    "And he needs to explain to the Australian taxpayers how $830 million is a fair and equitable agreement.
    "We were aiming for a significantly lower figure."

    The Prime Minister used the announcement of compensation between the Australian government and Naval Group to take aim at the former defence minister Peter Dutton, after he angered the diplomatic and military communities during the week by divulging details of sensitive negotiations about the AUKUS deal.

    Mr Dutton took to the opinion pages of The Australian newspaper to spruik the prospect of Australia buying two US nuclear submarines this decade to cover a forecast capability gap for the Royal Australian Navy – something he said he believed would be a possibility.

    "He hinted, but he didn't say anything when he was defence minister, did he?" Mr Albanese responded.

    "Peter Dutton needs to recognise that he has a responsibility to put the national interest first, not to always be engaged in short-term political interests."

    When contacted for comment, the French shipbuilder said in a statement that "Naval Group and the Commonwealth of Australia have reached a fair and equitable settlement to bring a conclusion to the Future Submarine Program".

    French Defence Minister Sébastien Lecornu was questioned as to whether he was hopeful of any rapprochement between Australia and France.

    “I must admit that I was quite expecting this question, so I'm going to answer it very frankly,” he told the Shangri-La Defence dialogue in Singapore.

    “The given word is very important to us and the given word has a price has value.

    “New Caledonia is still French, it is one of the largest neighbours of Australia.

    “So we are neighbours — Paris is not close to Canberra, but undisputedly Noumea is close to Canberra.”

    He suggested the change in government could steer the relationship back to smoother waters.

    “There have been elections, elections in Australia, elections in France,” Mr Lecornu said.

    “In Australia, the previous majority was not re-elected, and in France Emmanuel Macron was re-elected, so, it gives us an interesting discussion framework.”

    Australian government agrees to pay $835 million to French submarine contractor Naval Group over cancelled contract - ABC News


    What a fine waste of Taxpayers money.

  2. #2
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    I've been amazed at the sheer audacity of these lnp kunts to just do whatever they please with no accountability to the taxpayer. Fucking unbelievable. And helped along by the Murdoch media and also the local media seems to have forgotten that there supposed to be journalists keeping the kunts honest. Instead there just presenters. Sad really. Any I'm pretty chuffed to see an albo led govt. The guys already kicked more goals in 4 weeks than scomo and crew done in 9 years. There's a lot to fix. One of the things I loved about living in asia was not having all this horseshit rammed down your throat daily. Here there's no getting away from it here in Australia. I reckon the lnp make most south East Asian governments look like amatuers when it comes to corruption.

  3. #3
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    A 10% discount for defaulting on a bill is a good deal.

  4. #4
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    That's a bargain to shut up the cheese eating surrender monkeys.

  5. #5
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    These nuclear subs are going to be a boondoggle

  6. #6
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    $3.4bn of taxpayers money pissed away for... nothing. That's $130 for every man, woman and child in the country. We're all doomed.

  7. #7
    Days Work Done! Norton's Avatar
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    Quote Originally Posted by sabang View Post
    $3.4bn of taxpayers money pissed away for... nothing. That's $130 for every man, woman and child in the country. We're all doomed.
    Maybe Albanese has the balls to cancel, with compensation, the nuc sub deal as well.

  8. #8
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    Australia remains a US ally, and wishes to remain so. What I reckon we should do is set up a decent sub base (including to service nukes) in the NE quadrant of Australia. Such tin as Oz can afford to buy is little in the scheme of things.

    Unless Australia decides to go 'full nuke'- which includes utilising some of the massive uranium reserves we are sitting on for power generation- we just plain lack the knowhow to operate nuclear submarines. We turned our back on nuclear in the 1970's, and have had basically no academic and technical capacity or training since then. We would have to start at Uni level. Another option might just be to lease from the US/UK.
    Last edited by sabang; 12-06-2022 at 06:01 AM.

  9. #9
    Days Work Done! Norton's Avatar
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    Quote Originally Posted by sabang View Post
    Australia remains a US ally, and wishes to remain so
    And the US can't afford to lose Aus as an ally. Pretty sure declining the nuc sub contract will not break the US/Aus alliance. The question should be, does Aus need subs for it's own security and if so, what is the most cost effective way to acquire the capability.
    "Whenever you find yourself on the side of the majority, it is time to pause and reflect,"

  10. #10
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    Our emphasis should obviously be on protecting our rather large shores- not projecting power in far flung places!

  11. #11
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    Quote Originally Posted by sabang View Post
    Our emphasis should obviously be on protecting our rather large shores- not projecting power in far flung places!
    Yep. 25,780 kilometres to protect is by no means an easy or inexpensive venture. Then, protect against what, will be the big cost driver. Invasion by a foreign nation being the most pricey.

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