An aerial view of the Henderson shipyard defence precinct, south of Fremantle, where it is planned nuclear submarines will be sustained and frigates built after a $25 billion investment. Photo: ADF.
The Federal Government has announced an additional $12 billion will be poured into upgrading the Henderson shipyard defence precinct, south of Fremantle, to bolster its AUKUS submarine and frigate-shipbuilding ambitions.
The funding will allow construction of a dry dock capable of supporting a Virginia-class nuclear-powered attack submarine (SSN) or similar-sized surface vessel, as well as more shipbuilding facilities to support the build of up to eight new general-purpose frigates.
There will also be graving docks and other new facilities for the depot-level sustainment of large vessels, including SSNs, and to support the construction of new landing craft for the army.
The commitment comes on top of the government’s $127 million budget for the planning of the precinct, which it announced last October but which isn’t scheduled to be delivered until 2027. The government said the early commitment of the funding would provide certainty to industry for the construction of infrastructure and facilities, and would also kick-start early works while the more detailed planning and design work was finalised.
It also comes just a week before Prime Minister Anthony Albanese hopes to meet with US President Donald Trump on the sidelines of the UN General Assembly in Geneva, and follows repeated calls from the Trump administration for allies such as Australia to increase defence spending to more than 3.5 per cent of GDP.
The Prime Minister said the investment announcement was an example of how the government was delivering record defence funding to bolster Australia’s capabilities.
“This world-class precinct will create more than 10,000 local jobs and strong opportunities for local industry,” he said.
“There is no greater honour than serving our country in our nation’s uniform, and my government is dedicated to investing in the defence capabilities our nation requires.”
Defence Minister Richard Marles said: “Henderson will be critical to Australia’s shipbuilding and sustainment industry while supporting continuous naval shipbuilding in Western Australia and Australia’s nuclear-powered submarine pathway.
“In less than a year from our announcement to establish the defence precinct at Henderson, today we are announcing additional funding to start delivering on key programs for the ADF.
“The early estimates are that the entire cost of the Henderson Defence Precinct over a decade and more will be around $25 billion.
“So, today’s announcement of $12 billion represents a significant proportion of what we need to get this done.”
Minister for Defence Industry Pat Conroy added: “Western Australia already plays an important role in the delivery of capabilities for the ADF, and the consolidation of the Henderson precinct will be a significant boost for defence industry in the West.
“It will support around 10,000 highly skilled, well-paid jobs over the next two decades, helping people across Western Australia build great futures for themselves and their families.”
During media interviews after the announcement, and in line with comments he has made previously, Mr Marles refused to be drawn on how much the additional funding would contribute to Australia’s defence spending as a percentage of GDP, a measurement the US appears to be wedded to enforcing.
“Well, we are giving figures, which is that we committed an additional $12 billion …” he told the ABC’s Radio National on Monday morning (15 September).
“There are a whole lot of ways in which people can calculate percentages of GDP, and what you see, for example, is that, you know, by reference to how NATO calculates its GDP figure, before yesterday’s announcement, we’d be on 2.8 per cent of GDP.
“So, what actually matters here is the ultimate dollar figure that you’re spending.”
But Michael Shoebridge from Strategic Analysis Australia questioned whether the promised money was “vapourware”.
“Looking behind the curtain of the big number, though, shows a words-reality gap,” he wrote on LinkedIn on Sunday.
“It’s another case of promising things sometime in the distant future as if they are happening now, and putting big numbers out into the public debate hoping no one looks beyond them.
“I’d like to get a breakdown of the $12 billion ‘wow factor’ figure to make sure it’s not from the Utopia TV satire playbook.
“There seem to be references to this figure including expenditure on the Army landing craft project and general-purpose frigates, yet it’s being labelled an AUKUS downpayment.”
