https://michaelwest.com.au/aukus-9b-to-us-and-uk-shipyards-but-wait-theres-more/The Albanese Government is already pouring $9.1B of taxpayers’ money
into the US and UK submarine industrial base.
Yet a new FOI release from Washington reveals a secret deal
that means there’s even more money to be dispatched.
Rex Patrick reports.

Image: General Dynamics Electric Boat
Make Australia pay again?
The future of Whyalla’s steelworks is of vital national importance and should matter to all of us. It is critical to Australia’s manufacturing, construction and national security and resilience.
Being frank, the steelworks are in dire straits. They are 60 years old and have been on a rocky road for well over a decade. Its blast furnace has been out of action for over six months now, and whilst there is some optimism that they will get it back up and running it will not change the fact that the steelworks have been in operation for some six decades.
In 2016, when the previous owner, Arrium, went into administration with $4 billion in debts, UK billionaire Sanjeev Gupta’s GFG Alliance bought the steelworks, making lots of big promises for a bright future, but it was not to be. At the turn of the decade, Greensill Capital, GFG’s financier, collapsed and there’s been trouble ever since.
As it stands, the future of the steelworks and Whyalla is in the hands of a court-entangled foreign billionaire with a gaping chasm between his promises and delivery. Those promises of a 21st century industrial transformation look very much like ever receding mirages.
The Federal Government needs to have the SA Government bring matters to a head by putting GFG’s South Australian operations into administration (by calling for unpaid and overdue mining royalties), taking an equity stake in the steelworks alongside someone like BlueScope Steel, and investing the necessary billions to build a new green steel industry for Australia.
It would be a part of Make Australia pay again.
But that’s not happening. Instead, it’s
But that’s not happening. Instead, it’s
Make America great again!
Prime Minister Albanese’s focus is on investment in US industry, not Australian industry.
In September 2023, the Federal Government announced it was pouring $4.7 billion ($US3B) into the US submarine industrial base to assist the largest economy in the world in getting their submarine production rate up to 2.3 subs per annum (from the current rate of 1.4 subs).
Some $1.5 billion will be paid to the US this financial year and $1.8 billion next financial year. The remaining $1.4B will follow thereafter.
The geniuses in the Department of Defence have set up a regime where, if for any reason the US can’t deliver (it is highly unlikely they will ever make the 2.3 subs required) or won’t deliver (more on that possibility below), we get exactly none of the money back.
The Government is shy about spending money on steelworks, which they would have complete control over, in terms of success, but are happy to recklessly throw money at US shipyards.
Go figure!
Make Great Britain great again, too!
That’s not the end of the story, though.
The British are in on this deal of a lifetime too. They’ve managed to pull $4.4B (£2.4 billion) over the next decade from Australian consolidated revenue.
There is no clawback on payment to the United Kingdom either.
Everyone must be feeling pretty chuffed in Groton, Connecticut, and Barrow-in-Furness, England.
But wait, there’s more! ......................