Labor must freeze all AUKUS payments underwriting US Navy shipyards with taxpayer money
Mar 13, 2024
ALP rank-and-file activist group, Labor Against War, has called on the Albanese government to immediately freeze all planned AUKUS payments earmarked to underwrite the US Navy industrial shipyards.
The call comes after the US announced it has cut its budget for the Virginia-class submarine, slashing its 2025 construction plans in half for the nuclear-powered boats.
This is a potentially lethal blow to AUKUS. In order to have spare submarine capacity to sell Australia used submarines by 2032, the US needs to build at least two submarines every year, up from its average of 1.2 boats.
National Convenor of Labor Against War, Marcus Strom, said: “The Americans can’t afford their own nuclear submarines, so Australia has promised to ship billions to fit-out the US dockyards. Why should the Australian taxpayer foot the bill?
“We are on the hook to the tune of $3bn as soon as next year as a downpayment for subs that might never arrive and be useless on delivery.
“This Labor government managed to junk Scott Morrison’s tax plan. Why would it be so be so stupid to continue with his war plan?”
Last year’s budget earmarked $9bn for AUKUS over the next four years, with billions of that going to the US military industrial base. AUKUS in total will cost at least $368bn.
The government remains unclear as to when payments are due, but defence industry observers expect the first substantial payments to be made next year.
“Even the dimmest cheerleaders for AUKUS must see the writing is on the wall. With Donald Trump looking a possible return to the White House, the US proves time after time it is a completely unreliable ally for the Australian people,” Strom said.
The revelations come on the same day that new polling shows just 20 percent of Australians see the country’s future as primarily being as an ally of the United States.
“The government and opposition are completely out of step with popular opinion on AUKUS and the US drive to militarism in East Asia,” Strom said.
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