Celebration for $368 billion AUKUS project as Defence begins fire sale of historic properties

Australia’s Defence Chief has joined politicians and weapons lobbyists at Parliament House to celebrate the $368 billion AUKUS project just hours after Labor announced its fire sale of dozens of historic military properties that will generate less than $2 billion.

On Wednesday Defence Minister Richard Marles confirmed the Government would sell off either wholly or in part 67 military sites, prompting an outcry from veterans and warnings it could harm recruitment or even risk long-term damage to national security.

Under the plan Labor insists proceeds from the sale of 35,000 hectares worth of defence land, including islands, golf courses and office blocks, will be put towards acquiring new military equipment and upgrades of essential bases.

Later in the day Mr Marles addressed a Parliamentary Friends of AUKUS event inside Parliament where he praised the expensive tri-lateral endeavour to acquire nuclear-powered submarines, declaring it would “absolutely change our military capability”.

Speaking to an audience of defence leaders, industry representatives, lobbyists and MPs, the Defence Minister said AUKUS was the biggest leap in this country’s military capability since the formation of the Royal Australian Navy before World War One.

“AUKUS is also the biggest industrial endeavour that our country has ever undertaken in seeking to build the most complex machines that humanity has ever constructed right here in Australia,” he said at the $100-per-head invitation only event.

Also attending the bi-partisan event was Shadow Defence Minister Angus Taylor who argued it was crucial for Australia to lift its military spending to 3 per cent of GDP “as a way of not just funding AUKUS, but everything else we need to do as a country.”

“It is not always obvious to Australians that by spending money today, we insure against threats, both today and in the future, and it is on every single one of us to talk to our colleagues, our friends, our family, about why that matters,” he said.

In front of an audience which included Defence Chief Admiral David Johnston, the US Embassy’s Chargé d’Affaires Erika Olson also praised the strategic partnership with Australia and the UK saying it would benefit all three nations in a dangerous world.

“AUKUS represents that next chapter for us all. It’s how we’re adapting our historic alliance to meet challenges; China’s military expansion, technological competition, economic coercion,” the American diplomat said.

The comments came after another US Congressional report last month flagged the possibility of not selling any nuclear submarines to Australia and instead operating them out of this country under American command.

Late last year the Albanese Government quietly sent another $1.5 billion to the US in a non-refundable down payment for AUKUS, which was the third instalment of a total of $4.5 billion Australia is contributing to help the production of nuclear submarines.

Under the AUKUS program Australia is expected to first acquire US Virginia-class boats during the 2030s before a new fleet of nuclear-powered submarines jointly designed with the British are launched in the 2040s.

During the private parliamentary reception on Wednesday evening British High Commissioner Dame Sarah MacIntosh also revealed details of an impending month-long visit to Western Australia by a Royal Navy Astute-class submarine.

Last month HMS Anson, which was commissioned in 2022, departed from a naval base in Gibraltar as it makes its way towards Perth’s HMAS Stirling naval base where it’s expected to arrive later this month.

“We are preparing for a United Kingdom Astute-class submarine to come over the coming months, it will be in Western Australia for around a month for planned sustainment and maintenance,” Dame MacIntosh told the Parliamentary reception.

On Thursday the Albanese government continued to defend the significant divestment of the defence estate, with the Prime Minister telling Parliament it was “not only good for defence capability, it will also be good for housing as well.”