AUKUS preparations in WA threatened by ‘gobsmacking incompetence’, according to former defence minister

With just weeks remaining until the first American families arrive in Western Australia ahead of the planned deployment of US nuclear submarines, concerns are growing about local preparations for the massive AUKUS endeavour.

Submarine Rotational Force-West, or SRF-W as it’s known, is scheduled to begin in 2027, but alarm bells are already ringing across defence industry and with AUKUS partners about Australia’s readiness for the complex undertaking.

“I’m just astounded and dismayed at how incompetent and slow it all is,” says former defence minister Linda Reynolds, who has spent the past few weeks speaking to officials and industry representatives in both the United States and United Kingdom.

The recently retired Liberal senator has for several years kept a close eye on Western Australia’s planning for AUKUS, which was first announced in 2021 by the former Morrison government she served in.

Under SRF-W up to four US Virginia-class submarines and one British Astute-class boat will eventually be stationed at Perth’s HMAS Stirling Naval Base, while the nearby Henderson shipyard is being upgraded so it can provide vital support and maintenance.

As the massive Henderson Defence Precinct upgrade gets underway, the shipyard is also preparing for the construction of Landing Craft Medium and Heavy for the Army, as well as planning for the construction of Japanese-designed General Purpose Frigates.

Earlier this month Prime Minister Anthony Albanese unveiled $12 billion in funding to help build up the new Henderson Defence Precinct over the next decade, but his Government believes it will realistically require an investment of around $25b.

The Nightly can reveal discussions have begun with Australian superannuation funds to help privately finance the Henderson project, under a similar model used to construct Defence Headquarters Joint Operations Command outside Canberra in the 2000s.

This week The Nightly also revealed that despite the impending deployment of US nuclear submarines, the site boundaries and formal definition of the new Henderson Defence Precinct are yet to be finalised.

“Given no decision has been made by the Australian Government about the defence precinct definition, no briefings have occurred on potential impacts,” the Western Australian government confirmed in formal correspondence to State Parliament.

Following the revelations Defence Minister Richard Marles insisted work on revamping the shipyard south of Perth was happening “at a pace” and every milestone outlined in the 2023 AUKUS optimal pathway plan was being met.

“Progress in Western Australia, progress at HMAS Stirling (which is where we will see the Submarine Rotational Force – West will occur), and progress in relation to the Henderson Defence Precinct is all happening, and it is happening on time”, he said.

On Friday, Mr Marles again insisted that the Government expected the Henderson facility would be available for “the maintenance and sustainment” of American submarines deployed to HMAS Stirling.

The Defence Minister’s rosy assessment is not shared by Ms Reynolds, who served in the same portfolio until 2021 and is now calling for a complete overhaul of how the Henderson upgrade is handled.

“There’s no big vision plan, there’s no conductor making sure everyone’s doing what they should be doing, and it has to start with a proper budget,” Ms Reynolds told The Nightly.

“I estimate we need more like $20 billion up front as a bare minimum over the next four years to get this working.”

“All of the Henderson shipyard – except the Civmec sheds in the south – needs to move southwards and that will take time to develop and design – all while building we are trying to build the Army’s landing craft heavy – and that’s not going well.”

“Neither the state nor federal government understand what’s needed – they just don’t have the commitment needed. There’s a lack of will and understanding – wilful blindness.”

The former WA Senator believes the Australian Submarine Agency, which is leading the effort is too overwhelmed by the task and is not working well with the National Shipbuilding and Sustainment Group inside Defence.

“With the Australian Submarine Agency, the Government has given them far too much responsibility — they should instead be focusing on submarines, the building of the future SSN-AUKUS fleet and the transfer of US Virginia class boats,” she said.

“The NSSG and the ASA don’t play well together, there are jurisdictional issues, personality clashes and they’re still trying to recruit staff.”

Her pessimism is shared by defence experts such as Elizabeth Buchanan, who says the strategic planning for the Henderson upgrade should have developed precise definitions and site boundaries long ago.

“In a Hail Mary pass, at least SRF-W will be catered for at the adjacent HMAS Stirling naval base. But this is rapidly conjected space and Australia’s nuclear-submarine enterprise simply needs more space,” Dr Buchanan said.

However, Labor’s Defence Industry Minister Pat Conroy, who is taking a leading role in overseeing the transformation of Henderson shipyard, says any blame for slow progress in Western Australia sits squarely with the Coalition.

“The former Coalition government failed again and again to solve the issues which had plagued the shipbuilding industry in Western Australia,” Mr Conroy tells The Nightly.

“The Albanese Government has turned that around, with a continuous shipbuilding plan that is providing certainty for the industry and financial security for thousands of workers.

“When we first came to government, we inherited a fragmented and disjointed shipbuilding industry in Western Australia. This was caused by mismanagement from the former government.”

Despite the delays in drawing up site boundaries for the new Henderson Defence Precinct, a spokesperson for the West Australian Government says it completely backs the Commonwealth’s efforts in transforming the existing shipyard.

“The State Government strongly supports the Commonwealth Government’s $12b commitment to consolidate and develop the Henderson Defence Precinct, which will support 10,000 jobs here in Western Australia”.

“Per the joint cooperation agreement signed by the Commonwealth in October 2024, the State Government has and will continue to engage in good faith negotiations necessary to support the delivery and sustainment of defence capabilities critical to diversifying and strengthening WA’s economy.”

Henderson Alliance chair Rohan Green said the Government’s announcement had locked in continuous shipbuiding after false starts “for far too long”.

“(This) means certainty for the defence industry here in WA, including the many SMEs that are the backbone of the industry,” he said. “They can now confidently invest in their businesses. That in turn means financial security for the thousands of defence industry workers employed by SMEs across the state.

“Today, with a genuine initial commitment of $12 billion to the Henderson Precinct, we now have a strong signal that paves the way for a stable, prosperous, and confident Defence Industry, whose Administration has the foresight and political courage to demand a sustainable, economic return from the very considerable investment of its taxpayers’ dollars.”

Mr Green said he was confident milestones would be met, and any delays could be overcome.

“In a remarkably short time frame, we have seen the foundations laid for the modernisation and diversification of the Australian economy to establish continuous Naval Shipbuilding, and secure a future made and built here in WA,” he said.