![]() Jobsīut perhaps the main sticking point in the doomed deal was the dispute over local industry involvement. The agreement was eventually signed in February 2019. In 2018, the Australian government was so angry about a hold-up in signing a crucial strategic partnering agreement over disputes about warranties and technology transfer that then-Defense Minister Christopher Pyne reportedly refused to meet with French Armed Forces Minister Florence Parly and Naval Group executives when they visited Australia. Timelineĭelays also plagued the submarine project, with the Australian defense department and Naval Group having to extend multiple major contract milestones. ![]() To avoid a gap, the Australian government announced earlier this year that it would completely rebuild all six of its Collins-class submarines, at a cost of billions. But the first Barracuda couldn't be delivered until 2035 or later, with construction extending into the 2050s. Without subs, Australia would be left vulnerable at a time of increasing tensions with China. And that's before the government factored in the cost of maintenance - which in November 2019, the department of defense told a Senate committee would set Canberra back a further 145 billion Australian dollars (€90.1 billion) over the life of the subs.Īustralia urgently needed new subs to replace its six aging Collins-class submarines, which were slated for retirement in 2026. But that figure has since almost doubled.Īt last count, the Barracudas were going to cost around 90 billion Australian dollars (€56 billion). The project was meant to cost 50 billion Australian dollars (€31 billion). ![]() Budget blowoutĭespite that, Australia later that year signed its largest-ever defense deal with DCNS for 12 Shortfin Barracuda Block 1A conventional diesel submarines.Ĭanberra was reportedly particularly keen on the French bid because of the ability to switch the Barracudas from diesel to nuclear power - technology that was deemed political poison so recently after the Fukushima disaster in Japan, but that the government believed could become more palatable in time. The Australian defense department warned the submarine-builder it wanted top-level protection for its project.Īnd while politicians from Australia's ruling center-right Liberal Party sought to downplay the implications of the hack on the Barracuda subs, opposition figures jumped on the revelations, with some calling for negotiations with the French firm to be suspended. That August, before the Australian deal was formally signed but after it had been announced, the company DCNS admitted it had been hacked after 22,000 documents relating to the combat capacity of its Scorpene submarines being built in India were leaked, raising concerns about the security of its Australian project. Trouble began brewing almost immediately after Canberra chose the French bid ahead of alternate designs from Germany and Japan in April 2016. Here's why Australia wanted out of the contract - and what could happen next. There were reports dating back to the beginning of this year that Canberra was seeking to walk away. Moriarty's admission came after his government in April refused to sign a contract for the next phase of the French submarine project, giving Naval Group until this month to comply with its demands. over the last 15 to 12 months." He said his government had been considering its options, including what it could do if it was "unable to proceed" with the French deal. Questioned by a Senate committee about issues with the project, Australia's Defense Secretary Greg Moriarty said: "It became clear to me we were having challenges.
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