Former US Navy Secretary hits out at Australia’s lack of urgency in preparations for massive AUKUS project

A former US Navy Secretary has hit out at Australia’s lack of urgency in preparations for the massive AUKUS project.

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Andrew Greene
The Nightly
Greg Moriarty has officially presented his credentials to President Donald Trump in an Oval Office ceremony, marking the start of his tenure as Australia's ambassador to the United States.

A former US Navy Secretary has hit out at Australia’s lack of urgency in preparations for the massive AUKUS project and warned crucial planning work to overhaul Western Australia’s Henderson shipyard is progressing too slowly.

Richard Spencer, who now serves as Chairman of Perth-based shipbuilder Austal, says the government should appoint a powerful official to coordinate the complex nuclear-submarine endeavour, like America’s celebrated World War Two Admiral Rickover.

During two appearances at an international defence conference in Perth, the former US Navy Secretary has also urged Australia to take a stronger stance when dealing with Washington.

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“We need this concept of a (Admiral) Rickover to be in Australia, someone who is just laser focussed on this program,” Mr Spencer told the Indian Ocean Defence and Security Conference (IODS).

Under the AUKUS program Australia has already transferred $US3 billion ($4.2b) to Washington to help double its submarine production rates ahead of the scheduled transfer of Virginia-class boats to this country in the 2030s.

Mr Spencer argues that Australia must now behave like a “client” and demand answers from the US administration about what it is doing to ensure it properly delivers on its commitments to deliver nuclear-powered submarines.

“I’ve given you $3 billion US, what are you doing about the supply chain that’s holding Electric Boat (US defence company) up from making these submarines?”

“Your maintenance program on submarines is falling so far behind you can get three more submarines out to the fleet if you increased your maintenance flow through. That has nothing to do with construction, but you still get the better benefit.”

“We aren’t having the in-depth conversation as a client, because at the end of the day we are the client. This isn’t the benevolence of the United States. You have paid for these, act like a client.”

In the first phase of AUKUS, nuclear-powered submarines from the US and UK are scheduled to begin regular rotations out of WA’s HMAS Stirling in 2027, before the Australian Navy hopes to acquire its own Virginia-class boats early next decade.

As part of preparations for AUKUS, the Commonwealth is redeveloping WA’s Henderson shipyard into a massive new Defence precinct, but the project is being plagued by delays involving the state government which also uses the facility for civilian projects.

Mr Spencer, whose company Austal is soon expected to construct large military shipbuilding projects at Henderson including army landing craft and Mogami frigates says proper funding and plans need to be locked in quickly.

“There are absolute tidal waves of money from the private sector to fund infrastructure, and this is exactly what the problem is with Henderson right now – there’s no plan. We must get the plan.”

“I have not heard the word ‘urgency’ used once in any conversation. We have to interject that now.”

Defence Minster Richard Marles, who on Wednesday also flew into Perth for the IODS conference, played down concerns about AUKUS progress and insisted the government was moving with urgency.

“We have injected an additional $117 billion into the planning decade, with an additional $30 billion over the forward estimates. So all of that is in the budget, all of it’s in the budget.”

“In four years, we have done 12 times as much as what the former Coalition government did in nine, and they faced much of the same strategic landscape that we face today,” Mr Marles told reporters when asked about Mr Spencer’s comments.

“Now, I would say that that evidences urgency. I mean, public money for defence is not won in these forums, it’s not won in the public commentary, it’s won around the budget table, and we’ve been winning it”.

Mr Marles also took a swipe at former Liberal Defence Minister Linda Reynolds, describing her as a “mouse” after she warned Labor must immediately move to spending 3 percent of GDP on the military, and eventually boost it to an unprecedented 5 per cent.

“It’s easy to be a lion from the cheap seat when, in fact, when they were in government they were mice,” he said.

“History will not judge what Linda says today. History will judge what Linda did as Defence Minister and that’s how I will be judged.

“We are spending more on defence than Canada, Germany, France, Britain, Spain, Italy.”

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