Australia throws $4.6 billion more at AUKUS shipyard following UK reassurance

The federal and South Australian governments have thrown an extra $4.6 billion at the construction of an AUKUS shipyard a day after Australia received reassurances about the expensive project from the UK’s new prime minister.

Defence Minister Richard Marles and South Australian Premier Peter Malinauskas announced more funding for the nuclear-powered submarine construction yard at Osborne on Friday.

It comes on top of the $3.9 billion allocated announced for what the government describes as one of the “most complex industrial undertakings in our nation’s history”.

The total cost of AUKUS is estimated to be $368 billion, spread over several decades.

“It is an investment in a giant leap in Australia’s defence capability,” Marles said at a press conference.

“This will contribute to a project which will be delivered over the course of the next decade, where we will see 50 different buildings constructed here at the submarine construction yard.”

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The nuclear-powered submarine program is expected to create almost 10,000 jobs in South Australian alone, with about 5000 workers already on the job.

Friday’s development comes just a day after Prime Minister Anthony Albanese spoke with his new UK counterpart Andy Burnham on their two countries’ friendship and partnership, including on AUKUS.

However, there have been widespread fears around the delivery of AUKUS, not aided by US President Donald Trump’s review of the pact and UK Defence Secretary John Healey’s abrupt resignation following his government’s so-called inadequate defence spending under previous prime minister Keir Starmer.

Questions were reignited about whether Canberra is getting value for money in May when it was revealed that Australia will only receive three second-hand submarines from the US under AUKUS, as opposed to the previously agreed-upon one new submarine and two second-hand ones.

A public inquiry is also currently under way across Australia to hear concerns on the agreement.

The government received assurance from the US in October when Trump said, “we’re just going now full steam ahead”.

Marles insisted on Friday that “AUKUS is happening” – a line he has been forced to repeat on several occasions.

It was a sentiment echoed by Defence Industry Minister Pat Conroy, who issued a message to critics of the project.

“To all the naysayers who say that AUKUS isn’t real. AUKUS is well and truly real, and it’s happening right now, right here in South Australia,” he said.

Some of those AUKUS critics made their concerns heard outside the Adelaide Convention Centre, where Labor is holding the second day of its national party conference.

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Dozens of people joined climate group Extinction Rebellion’s colourful protest against the defence pact, which saw an inflatable green submarine painted with dollar signs and people in hazmat suits with signs reading “AUKUS is toxic”.

AUKUS will be up for debate at the conference on Saturday, but there is unlikely to be much dissent and rather overwhelming support for the government’s backing.

“Three years ago at the national conference in Brisbane, we had a full-throated debate around AUKUS. That was months in the build-up,” Marles said.

“It was the signature debate of that conference, and the outcome wasn’t close. I think it was 70 to 75 per cent on the floor was supporting AUKUS.

“The statement of support by the party itself for the AUKUS program has been utterly clear and overwhelming, and that remains the case.”