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April 01, 2022

Senate Estimates has today revealed up to $5.5 billion will be wasted on a non-existent fleet of submarines. 

It seems every time federal Labor gets a chance to scrutinise this government, this figure continues to rise. 

SENATOR WONG: Basically we have a five and a half billion dollar budget provision, including about $3 billion spent to date and potential costs within that envelope. So taxpayers will be up for five and a half billion dollars and submarines that don't exist?

TONY DALTON: The final negotiated settlement will be within that price, Senator.

Australia has ordered and cancelled the Attack Class submarines, and for $5.5 billion of taxpayers’ money all we have to show for it is over 400 direct shipbuilding jobs lost and up to 600 construction jobs lost.

Defence expects some termination costs will be settled in April, and yet the Morrison Government won’t reveal this waste before the federal election.

In addition to termination costs, Defence testimony in Senate Estimates today revealed that Naval Group reserves its right for addition compensation, exposing taxpayers to additional costs. 

It is incumbent on the government to disclose what will be cut and what does Defence have to go without to pay for submarines that will never arrive.

The Government hasn’t made proper provisions in the Budget for termination costs, treating the budget papers as a voluntary exercise. 

Murky numbers from the Morrison Government on the Attack Class submarines is sadly unsurprising.  

This is a government that boasts about their spending on Defence but their cost blow outs run in to the billions of dollars. 

Scott Morrison’s focus is four weeks, not four years ahead and its incompetence is putting our national security at risk.