AUKUS: Australian city of Newcastle favoured for future nuclear-powered submarine base

Political support is growing to build a future nuclear submarine base in the New South Wales city of Newcastle, but China’s part ownership of the local port remains a hurdle, and the Albanese government insists no decisions will be made until next decade.

Soon after unveiling the AUKUS plan, the then Morrison government released a shortlist of three potential sites for a new submarine base on Australia’s east coast, including Port Kembla, Newcastle and Brisbane.

The Nightly has confirmed the Defence Department’s initial preference was for Port Kembla south of Wollongong, but at the time Prime Minister Scott Morrison believed Newcastle would be better placed to support nuclear-powered technology.

The NSW South Coast Labor council has since led a vocal campaign against any move to establish a naval presence at Port Kembla, arguing it would put a military target on the region and displace existing manufacturing and renewable energy jobs.

In recent months however, Labor MPs whose electorates are in Newcastle, and the surrounding Hunter region, have expressed growing support for placing the future AUKUS facility in their area.

Government backbencher and Member for Hunter Dan Repacholi has told The Nightly that he would favour any initiative that helped deliver greater employment to his electorate.

“We want jobs, jobs, jobs in the Hunter and Newcastle region, and whether that comes from an East Coast base happening there, these are decisions that are made much, much higher than me and made in defence.”

“But I welcome anything that gives good, safe, secure employment into our area, and yes, if the conversation’s there to be had, we’ll happily have it”.

Defence Industry Minister Pat Conroy, who represents the seat of Shortland that also includes the Newcastle City Council, has also indicated support for having any future AUKUS base in the region.

Labor MP Meryl Swanson, who represents the federal electorate of Paterson just north of Newcastle says the industrial city is an ideal location for a submarine base, and would enjoy support from locals.

“The Hunter region is becoming the Defence capital of New South Wales, we have the F-35 aircraft at RAAF Base Williamtown and Kongsberg is now building Australia’s first guided weapons production factory in Newcastle”, she tells The Nightly.

During a Senate estimates hearing last month Defence confirmed other options for an east coast base had been considered, including further north in the Queensland town of Gladstone, but no further analysis was currently underway.

“The Port of Gladstone has capabilities. So there are other options. But we’re not, at this point, doing more investigative work on sites on the east coast to host a future base,” Deputy Defence Secretary Celia Perkins told the committee.

“We won’t be considering the siting or development of the east coast base until the 2030s. Our focus will remain on the priority infrastructure work at HMAS Stirling and the support work at Osborne in South Australia, and we won’t be returning to that investigative work until the early 2030s.”

Previously secret New South Wales Cabinet documents prepared under the former Coalition state government have highlighted the strategic concerns posed by China’s partial ownership of Newcastle Port.

“The Port of Newcastle (PON) is controlled by Australian company Gardior (50 per cent) and China Merchants Port Holdings Company (50 per cent) until 2112,” the briefing papers from 2022-2023 state.

“This ownership structure has been raised as a potential issue by investors, (including potential Japanese investors), as well as the Australian Government in considering PON for the future East Coast Base.”

During last year’s federal election Prime Minister Anthony Albanese pledged to end China’s ownership of Darwin Port and return it to Australian hands, but commercial negotiations have so far not secured a new operator, while Beijing is also vowing to fight the move.