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Tag Archive for: AUKUS

US–Australia information sharing: a self-inflicted Achilles’ heel

The AUKUS agreement demonstrates how the deteriorating strategic environment is changing the nature of alliances among like-minded countries. Options that only a few years ago seemed like distant fantasy—such as the sharing of nuclear submarine technology—are today’s reality.

Yet despite the shattering of some of these age-old barriers, one obstacle stubbornly refuses to yield. The information- and intelligence-sharing processes and practices between partners—especially between Australia and the United States—reflect a strategic and technological age that has long since passed us by. It’s a self-inflicted Achilles’ heel.

The last really significant effort to reform allied information sharing was more than two decades ago, and it took a tragedy to bring the issue to the fore. The terrorist attacks of 11 September 2001, and the resulting allied commitment to ensure such an atrocity would never happen again, generated the immense level of political will and urgency required to shift long-held assumptions and spawn new approaches to information and intelligence sharing.

But these processes too have now aged. The intervening years have seen backsliding, and reforms designed to counter terrorism are in any case not readily adaptable to today’s challenges. It’s time to address this fundamental vulnerability now, before tragedy again forces us into action. Just as the 9/11 attacks provided the catalyst that drove collaborative change two decades ago, the current strategic environment, with a focus on countering China, provides a new generation of leaders with a similar vital catalyst to drive revolutionary change in information and intelligence sharing.

Proponents of the current sharing processes—which often require slow and cumbersome multilevel release approvals, frequently result in different ‘sharable’ and ‘non-sharable’ versions of the same information, and still see swathes of data locked up in unilateral channels—will argue that sovereign states must guard their sovereign secrets from the risk of compromise. But risk is a two-sided coin, and the risk equation has fundamentally shifted.

Not only do we face the most unstable strategic environment in more than 70 years, but the underlying technological character of that environment has also evolved profoundly. At the digital speed of information, disinformation and modern armed conflict, as witnessed right now in Ukraine, allies can’t afford not to have all the information at our shared fingertips at that same speed. Those who are quickest at identifying, aggregating and analysing valuable data to gain insights and knowledge will win in this team event.

At this digital speed of conflict, partners must have access to the same complete information picture, at the same time, and be able to coordinate responses based on that full and shared understanding. We simply can no longer afford the lack of clarity and misalignment our current processes generate. Our information sharing needs to operate at the speed of relevance, not at the speed of early 2000s bureaucracy.

The formal strategic guidance issued by both the Australian and US governments recognises this imperative, repeatedly highlighting the need to work effectively with allies and improve information sharing. Over the past few years, both governments have emphasised the need to improve processes.

For example, the 2016 defence white paper notes the Australian intent to ‘deepen our partnership with the United States, including enhancing our … cooperation in intelligence sharing’. The 2019 US national intelligence strategy emphasised the need for the US intelligence community to ‘optimize partnerships to enhance intelligence and better inform decisionmaking’. Australia’s 2020 defence strategic update recognises that ‘intelligence sharing … between Australia and the United States [is] critical to Australia’s national security’. Most recently, the White House’s 2022 Indo-Pacific strategy commits the US to ‘removing barriers and improving transparency and information-sharing’. Tellingly, the readout of the AUKUS joint steering group’s meetings in late July says that the partners ‘recommitted to deepening cooperation on information-sharing’.

Improving sharing is frequently discussed at the highest bilateral levels and is recognised as an area that requires progress—as evidenced by the strategic guidance. But it’s a complex bureaucratic undertaking to orchestrate change. Too often politicians and other senior leaders rotate out, focus shifts to other sovereign priorities, and the issue remains at status quo.

As a result, the strategic guidance hasn’t translated into working-level action. Instead, those responsible for developing guidelines for sharing and approving the release of information and intelligence are left to worry more about the potential negative consequences of ‘oversharing’.

That’s a reasonable concern when sharing too much can have severe legal and professional consequences, and when the impact of sharing too little is seldom overtly manifested. We rarely hear of the repercussions of delayed or undersharing, or of overclassifying. But these problems have strategic implications and affect myriad defence activities, including planning, intelligence analysis, tactical activities, technical cooperation and capability development. The risks compound as the effects of each individual decision not to share spread.

Moreover, decision-makers often suffer from a ‘situated appreciation’—they make decisions with the benefit of what they perceive as a complete picture and are unable to conceive what alternative analysis may be generated in the minds of counterparts working with only fragments of the information. They can’t escape their frame of reference and are challenged to understand the bigger strategic implications.

Leveraging AUKUS, we recommend that the allies lean forward now, challenge the status quo and set a cutting-edge agenda to challenge broader policies and revamp sharing practices to address the challenges of global competition and the spectrum of threats we now face.

The post-9/11 reforms demonstrated that political-level leadership is key, and so we urge our political and senior defence and intelligence leaders to take this challenge up directly. They may, for example, consider empowering a team of experts with the authority to identify and drive change on their behalf, leveraging quick wins to build momentum towards institutional-level reform.

They could, as part of this approach, consider overhauling the national caveats that are used to limit sharing with partners. One option could include limiting the use of the strictest caveats to diplomatic reporting and the very highest sovereign military and intelligence secrets, with approval for such exclusions set at an appropriate senior level.

Whatever the solutions, they must be more comprehensive and forward-leaning than the reforms adopted over the past 20 years. And they must be implemented urgently. Our strategic environment is degrading at an alarming rate, and the speed and diversity of modern threats we face—including misinformation, hypersonic missiles, cyberattacks, space threats and artificial-intelligence-enabled operations—make our current information- and intelligence-sharing practices look positively ancient.

Making the most of AUKUS

Australia is in style inside the Washington beltway. While AUKUS might not yet have a slogan like the ‘Throw another shrimp on the barbie’ that characterised earlier rounds of American Australophilia, it has captured the imagination of the DC policy elite. There’s broad goodwill for Australia’s bold ambition to acquire nuclear-powered submarines (SSNs).

One reason for the commitment is that the factors that drove the initial announcement are as pressing as ever. The growth of China’s military power continues unabated. The Chinese Communist Party’s willingness to extend its influence and exert coercive power over its neighbours continues. President Xi Jinping has reiterated his intent to unify Taiwan by whatever means necessary. Events such as the signing of a Chinese security pact with the Solomon Islands and the People’s Liberation Army’s demonstration of military power close to Taiwan in the wake of US House Speaker Nancy Pelosi’s visit to the island have only confirmed the need for AUKUS.

Since the original announcement in September last year, two of the three members’ leaders have been replaced. The UK’s political system is in turmoil and the government under new Prime Minister Rishi Sunak has other things to focus on than AUKUS. But Australian Prime Minister Anthony Albanese remains committed to AUKUS, having stated that the nuclear submarines are non-negotiable in the defence strategic review that’s now underway. Most importantly, since ultimately the agreement will stand or fall according to the US’s commitment, US President Joe Biden remains in the job and is still firmly backing AUKUS.

Biden’s interim national security strategic guidance released in early 2021 set out the drivers that led to the formulation of the AUKUS agreement. Those drivers have now been confirmed in Biden’s recently released national security strategy. The document’s guiding theme of ‘integrated deterrence’ emphasises the need for ‘integration with allies and partners through investments in interoperability and joint capability development, cooperative posture planning, and coordinated diplomatic and economic approaches’. That’s AUKUS in a nutshell.

Washington wants to see Australia’s SSN ambitions succeed and is mobilising to help. Vice Admiral Jonathan Mead, the head of Australia’s nuclear-powered submarine taskforce, charged with developing the ‘optimal pathway’ for Australia’s nuclear submarine enterprise, has consistently reported that he is getting excellent support from his US interlocutors.

But establishing the capability will still be difficult and there is certainly no consensus yet on the way forward (at least in public). Early opinions that reduced the key decision to simply choosing the US’s Virginia-class design or the UK’s Astute class have given way to more informed understandings that appreciate the extent of the challenges.

In the US, as here, there’s growing awareness of the limitations of America’s industrial capacity. The US Navy has stood up its Columbia-class ballistic missile submarine program, which is essential to its nuclear deterrence and consequently is the navy’s highest priority. But there are signs it is already cannibalising resources from the Virginia-class SSN program. The US simply can’t build boats for Australia in the near term without it affecting its own submarine programs.

Support for AUKUS in the US will evaporate quickly if it’s simply a zero-sum game in which increases to Australian capability come at a cost to the US’s.

In the US, as here, there are a range of views on whether the solution is to increase US capacity, set up a production line in Australia, or pursue some kind of hybrid build approach. Mead’s task is to determine which will be of greatest benefit to all three AUKUS partners.

Establishing industrial capability in Australia raises another widely held concern in the US: whether Naval Reactors, the Jedi-like institution that safeguards the US Navy’s nuclear-propulsion technology and enforces the most rigorous safeguards, will support the establishment of construction and overhaul facilities in Australia.

While some US observers seem sceptical that Naval Reactors will allow it, most believe it won’t block it; there is, after all, the precedent of a US nuclear-powered aircraft carrier being maintained in Japan. But it will require Australia to meet the same high standards as the US Navy and its industry partners—standards that so far have resulted in a perfect safety record in the US nuclear-propulsion program.

Australia has taken that message on board—the mantra of Mead’s organisation is nuclear stewardship. But it will take only one misstep and, again, support will evaporate.

The exact way forward may not be clear for SSNs, but at least that line of AUKUS effort is making progress. The contrast with AUKUS’s second track, namely the areas of cooperation on advanced technology, is striking.

In April, the initial four areas were doubled to eight even before any actual outcomes had been announced for the original ones—and there still haven’t been any. A year into the enterprise and industry representatives are only now being brought into the fold. The other lines of effort simply don’t have the same profile as nuclear-powered submarines.

Moreover, significant developments in fields covered by AUKUS, such as undersea warfare, were happening anyway and don’t appear to have any connection to AUKUS. This includes Australia’s US$100 million ($159 million) contract with the US technology firm Anduril to develop prototypes for an extra-large uncrewed underwater vessel.

With AUKUS SSNs potentially decades away, it’s essential that the other lines of effort deliver quickly. So far, there’s no identifiable plan to point to. As here, there appears to be growing frustration in the US with that lack of progress.

That said, there is considerable optimism in the US that one of the new areas of collaboration, information sharing, will focus on addressing the US’s strict International Traffic in Arms Regulations, which are increasingly seen as preventing the timely sharing of information and technology with allies. Doing so, however, will likely require development of some joint projects that can serve as the battering ram to break down the regulations’ most onerous barriers.

In sum, there’s strong support in Washington for Australia’s SSN enterprise, provided it doesn’t have an impact on the US’s own plans. Regarding the other lines of effort, in the US as here, we are still in a position of wait and see.

Opportunities for Australia in Biden’s national security strategy

It’s almost clichéd to begin any discussion of geostrategic issues with a quote from the Chinese warrior-philosopher Sun Tzu. But in assessing the implications for Australia of US President Joe Biden’s national security strategy, it is warranted: ‘In the midst of chaos, there is also opportunity.’

The chaos arises from the relatively recent upending of the strategic assumptions that have underpinned Australia’s national security planning for at least the past 50 years. Gone is the assumption of US economic and military supremacy, gone is the prospect of general conformity with the rules-based world order put in place after the Second World War, and gone is the hope that the catastrophe of that war would guarantee that there could never be a third world war.

And for Australia, gone is the strategic comfort zone that enabled us to make national security plans with the cushion of 10 years’ advance warning of any significant military threat.

Instead, we are living through a period when a high-intensity state-on-state conflict is being fought in Europe even as we’re planning for a potential transition from cold war to hot war in Asia—and a much quicker transition than our national defence and industrial capability would be able to manage successfully.

Similarly, we are in the midst of a grey-zone conflict with China while preparing for multi-domain warfare in a future conflict that will be fought in space as well as in the land, air and sea domains, and is just as likely to be fought with ones and zeros as bombs and bullets.

It is into this strategically challenging environment for Australia that the US released its latest national security strategy—in effect, the Biden administration’s national security blueprint. And at a time when Australia has a bipartisan commitment to the criticality of the US alliance, Australian policymakers will be looking to the strategy and asking the obvious question: what’s in it for us?

The good news is that there’s much to like in this new US strategy. It repeatedly confirms the Biden administration’s commitment to leveraging US partnerships and alliances to maximise its strategic reach. It states quite simply: ‘America’s alliances and partnerships have played a critical role in our national security policy for eight decades, and must be deepened and modernized to do so in the future.’

That statement acknowledges the fundamental precondition for the success of the AUKUS agreement, which is that US politicians and policymakers must believe that strengthening Australia’s defence and industrial capability is a way of strengthening the US’s own security. To paraphrase Jack Lang, in the race for US strategic commitments and capability transfers, back self-interest—at least you know it’s trying!

The strategy calls out both Russia and China as ‘powers that layer authoritarian governance with a revisionist foreign policy’ and that pose a threat to the US and its allies by ‘waging or preparing for wars of aggression, actively undermining the democratic political processes of other countries, leveraging technology and supply chains for coercion and repression, and exporting an illiberal model of international order’. This is strong stuff, and a clear sharpening of language in setting out the nature of the strategic competition that lies at the heart of the document.

But it is China in particular that ‘presents America’s most consequential geopolitical challenge’, and this document is a clear rallying call for the US and its allies to effectively compete with the People’s Republic, ‘the only competitor with both the intent to reshape the international order and, increasingly, the economic, diplomatic, military, and technological power to advance that objective’.

Particularly welcome in Canberra will be the acknowledgement that the US will ‘place a premium on growing the connective tissue—on technology, trade and security—between our democratic allies and partners in the Indo-Pacific and Europe’. That is good news for Australia’s AUKUS planners, and a welcome confidence booster at a time when a viable pathway to delivering nuclear submarines to Australia under the AUKUS agreement remains hidden behind a classified wall of ‘no comment’s. The document also confirms the Biden administration’s commitment to the Quad with Australia, Japan and India (referred to as the ‘Indo-Pacific Quad’).

So, too, the commitment to invest in ‘a range of advanced technologies including applications in the cyber and space domains, missile defeat capabilities, trusted artificial intelligence, and quantum systems’ will be great news for state and territory governments and Australian businesses hoping to profit from the grab bag of non-submarine advanced capabilities to be developed under AUKUS: AI, quantum, cyber and advanced underwater capabilities.

And there is something strikingly different in this strategy compared with the one Donald Trump’s administration issued: an emphasis on the importance of US engagement with multilateral trade arrangements, recognising the need to chart ‘new economic arrangements to deepen economic engagement with our partners, like the Indo-Pacific Economic Framework for Prosperity’. The Trump administration’s decision to withdraw from the US-designed Trans-Pacific Partnership left many questioning America’s commitment to any real ‘pivot to the Pacific’.

By contrast, the Biden administration has promoted the Indo-Pacific Economic Framework as a clear statement that the US is back in the multilateral trade game, noting that ‘America’s prosperity also relies on a fair and open trade and international economic system’.

Perhaps the one landmine for Australia buried in the document’s upbeat topography is the boosting of investment in America’s domestic industrial capacity. At times, the document reads like a stump speech for Democrats ahead of the mid-term elections due next month. It will be a real problem for Australia’s ability to generate industrial and investment momentum under AUKUS if strengthening America’s domestic capacity is code for a new protectionism—a policy generally associated with Democratic Party administration before the Trump-era aberration.

Australian diplomats will also welcome recognition by the US that the current strategic challenge is not a bipolar struggle for influence like the 20th-century ideological struggle with the Soviet Union. The strategy notes that there will be an international triangle of liberal democracies, illiberal autocracies and a third group of countries that fall somewhere between the two.

Countries in our region bridle at being asked to choose between the US (and Australia) and China, and bristle at attempts to enlist their support while criticising their suboptimal democratic credentials. The new US model recognises the need to ‘avoid the temptation to see the world solely through the prism of strategic competition’ and to ‘engage countries on their own terms’. This seems to be shorthand for: ‘We’ll tone down our criticism of your imperfect political systems in return for your support of our broad agenda for a “free and open Indo-Pacific”.’

This in turn affords Australia the opportunity to engage regional countries on AUKUS and related issues without carrying the baggage of a set of binary choices. Instead, the strategy allows for Australia and the US to build new regional alliances to tackle ‘shared challenges that cross borders—whether it is climate change, food insecurity, communicable diseases, terrorism, energy shortages, or inflation’.

China and Russia have few alliances, and the new US national security strategy is designed to keep it that way, while ensuring that America’s traditional alliances are strengthened and that new partnerships can emerge to deliver a decisive competitive advantage. In the words of the venerable Sun Tzu: ‘If an enemy has alliances, the problem is grave and the enemy’s position is strong; if he has no alliances, the problem is minor and the enemy’s position is weak.’ Let’s hope so.

Balancing the offensive and defensive in the AUKUS innovation agenda 

Intensifying geopolitical competition is having an adverse effect on the internet and innovation. Russia’s invasion of Ukraine, increasing Chinese aggression in the South China Sea and the lack of an Iran nuclear deal are contributing to the weaponisation of cyber technologies and the raising of technology barriers.

At the same time, Web3—a new iteration of the internet—and the technologies that enable it, such as blockchain, are developing systems that are increasingly decentralised, permissionless and not reliant on governments and organisations to facilitate trust. Amid these polarising tensions, Australia, the United Kingdom and the United States have proposed new levels of technology sharing through the AUKUS agreement.

‘Blocking’ the enemy has become a hallmark of modern hybrid warfare. The war in Ukraine has demonstrated the application of novel tactics and attempts by both sides to ‘unplug’ the adversary. Persistent, distributed denial-of-service attacks by Russian botnet armies, such as Killnet, against Ukraine and its supporters are now standard disruption and sabotage tactics. Ukraine’s more extreme approach of asking the Internet Corporation for Assigned Names and Numbers to restrict Russia’s internet access exemplifies a ‘digital iron curtain’ attempt to advance sovereign goals, the possible long-term consequences of which policymakers have yet to flesh out.

Outside of active conflicts, governments around the globe seek more digital sovereignty, self-sufficiency and, increasingly, restrictions on information sharing. The Chinese Communist Party has long sought to censor and disengage from the global internet through its ‘Great Firewall’, which involves a ban of Facebook and development of alternatives to Amazon, such as Alibaba. Beijing’s establishment of a ‘metaverse industry committee’ in November similarly speaks to a pre-emptive attempt to set the rules for the emergence of Web3 and metaverse-enabling technologies. Similar attempts have been made by AUKUS members. The ongoing campaign in the US to ban video-sharing platform TikTok is an example of geopolitical tensions and security concerns affecting the access developers and creators have to foreign technologies and networks.

President Joe Biden recently signed an executive order requiring the Committee on Foreign Investment in the United States to tighten its focus on advanced technologies, including information and communication technologies. The aim is to address the government’s concerns about what data Beijing can access, as well as to prevent supply-chain dependencies and the enabling of technology advances that aid Chinese military capabilities.

Similarly, the CHIPS and Science Act 2022 speaks to the Biden administration’s supply-chain concerns. The act announced US$52 billon in incentives for domestic production of semiconductors, which are used in computers and other electronic devices. Currently, 92% of the world’s supply is produced in Taiwan. The act also provides incentives for investment in critical sciences and technologies with the intention of strengthening homegrown capabilities.

What’s occurring is a trade-off between national security and access to global platforms, ideas and networks that aid innovation, and the market competitiveness that drives it. The by-product of innovation and market competition is more effective development of advanced technologies that have both commercial and defence applications. The need to develop compatible and effective channels for communication and technology sharing between AUKUS members is vital to the success of the agreement. Currently, however, this is not default government behaviour.

Despite the influence of geopolitical tensions on cyberspace and technology, entrepreneurs find ways to circumnavigate policy. Ukraine’s use of blockchain technology to fund defence efforts and Russia’s use to avoid economic sanctions demonstrate how these technologies operate without bias or morality. A hallmark of Web3 development is its resistance to censorship. Decentralised technology enables individuals to own their data and to select preferred platforms, since user communities rather than an overarching authority manage and moderate content and user data. The technology is still in its infancy, but the ability for governments to implement effective policy controls is limited. AUKUS is occurring in this context.

Under the AUKUS agreement, technology sharing is intended to result in increased capability among the three partners to strengthen regional deterrence against Chinese or other foreign adversary aggression. Using AUKUS as a vehicle to deepen ties between Australian, US and UK technology industrial bases is a sea change from traditional tendencies to favour sovereign capabilities over coordinated and open sharing of advanced technologies.

There is an opportunity and need to prioritise information and cyber technologies, such as Web3 and blockchain, that both aid in transparent and secure information sharing and ensure that innovation is compatible with their rapidly developing characteristics. The failure of AUKUS to do so could have a negative impact on the effectiveness of subsequent initiatives, already evidenced through the ability for emergent technologies to circumvent traditional policy and cyber barriers. It could also dampen industry’s incentive to innovate and commercialise these technologies, which could lead to an exodus of skilled labour to nations with laws that enable less constrained innovation and allow access to the necessary networks and data. For Australia, talent shortages are already a significant capability limitation that affects its ability to contribute to or retain technology gains achieved through AUKUS.

Eight of the 17 AUKUS working groups focus on advanced technology capabilities, and they should collectively consider the long-term implications of developments for industry and how they can focus on prioritising the strategies and frameworks that enable sharing between nations while strengthening their own commercial relationships. Ultimately, technology sharing, particularly in the advanced cyber, innovation, artificial intelligence and information-sharing working groups, should be constructive, be compatible with peacetime operations and reinforce secure and open digital connectivity with non-member nations, including long-term, stable engagement, at least commercially, with adversaries.

The internet and emergent technologies exist in a borderless domain. A defensive approach to innovation and ongoing efforts to block adversaries’ engagement in these spaces—or limit domestic engagement—are not sustainable. Technology will continue to find ways to overcome these efforts. Such behaviour is also likely to exacerbate tensions between governments and the private sector, which would be counterproductive to the cooperation required for technological advancement. AUKUS technology initiatives should be conscious of industry partners. The AUKUS members also need to think creatively about how defensive goals can be achieved in a way that’s compatible with the underlying characteristics of new technologies.

AUKUS’s technology-sharing goals represent a significant opportunity for Australia to bolster its capabilities, industry skills and expertise. The consequences will feed into the private sector. The challenge will be ensuring that defensive developments designed to protect AUKUS members are compatible with policy that encourages open but secure digital engagement.

Policy, Guns and Money: Is AUKUS too big to fail?

‘Too big to fail.’ How’s that for a bit of pressure on the AUKUS partnership on its first birthday?

In this episode, ASPI executive director Justin Bassi speaks with Becca Wasser, defence fellow and head of the Gaming Lab at the Center for a New American Security. Wasser says AUKUS is such an essential show of commitment between friends and allies that its failure would mean the failure of the US national defence strategy and potentially of the very idea of integrated deterrence.

They also talk about the Center for a New American Security’s war games, where failure is not just an option but is encouraged, and get into some deep questions about a potential Chinese invasion of Taiwan, including Australia’s role in deterrence and the million-dollar question—when might Beijing decide it’s the right time?

Whoever its PM, the UK is a vital partner for Australia

Later today, either Liz Truss or Rishi Sunak will be declared the winner of the Conservative Party leadership contest and the next prime minister of the United Kingdom. Whoever takes the honours, and whatever tribulations they face in the months ahead, we mustn’t lose sight of Australia’s vital and deepening strategic partnership with the UK.

The new prime minister will face an overflowing inbox, including—among other challenges—a cost-of-living crisis that is set to worsen over the northern hemisphere winter.

However, it would be a mistake to assume that the new leader will be so beleaguered with domestic woes that Australia has little to gain from early engagement. Australia has vital interests in how Britain positions itself on the international stage and the capacity to leverage British influence to further our aims.

Britain still matters. It remains an important, like-minded champion of liberal order and values, including free trade. The UK is ASEAN’s most recent dialogue partner, so its ministers will become frequent fliers to this region. They will add their voices to calls for maintenance of the rules-based order, the return to democracy in Myanmar and steadfastness in the face of Chinese coercion. Britain is ahead of China in the queue to join the Comprehensive and Progressive Agreement for Trans-Pacific Partnership, setting high standards for accession that Beijing and others will have to meet.

Crucially, the UK recognises Australia’s outsized contribution to international order and supports our place at the top table. For instance, as the G7 chair in 2021, the UK—in particular, Liz Truss as foreign secretary—invited Australia as a guest to help keep the group focused on the Indo-Pacific. Sadly, Germany hasn’t followed Britain’s example.

But the area on which Australia should focus its engagement with the UK is defence and security.

Britain is a veto-wielding, nuclear-armed member of the UN Security Council. The 2% of national income that the UK government spends on defence, which looks set to climb towards 3%, adds pressure on miserly NATO partners to better meet their commitments.

Our defence and intelligence officers work side by side every day through the Five Eyes arrangement to keep us safe. Crucially, the British government’s reversal of its original 5G decision, ensuring that the UK wouldn’t rely on Chinese telecommunications companies for critical technology, set the foundation for an even closer security and intelligence relationship and was the precursor to the AUKUS partnership.

The 5G decision also predated last year’s integrated review of Britain’s foreign and defence settings, which includes a surprisingly well fleshed out Indo-Pacific ‘tilt’, building on foundations that include the Five Power Defence Arrangements with Australia, Malaysia, New Zealand and Singapore.

Whatever our assessment of Brexit, Britain continues to help stiffen European backbones to confront Russia and China. For example, Britain effectively leads the Joint Expeditionary Force, a coalition of 10 northern European countries that has played an important role in responding to the Ukraine crisis. Britain has staunchly supported Ukraine in word and deed, including with a collaborative intelligence effort to expose Russian disinformation. Britain is Kyiv’s second most important military donor after the US and has contributed a higher proportion of GDP to helping Ukraine than Washington or any major European country. Despite Russian threats, Britain extended welcome security assurances to Finland and Sweden during their transition to NATO membership.

Canberra should take note of the plaudits London’s support for Ukraine has garnered from President Volodymyr Zelensky and other Eastern European and Baltic leaders. Not all pathways to European hearts and minds run through Brussels, Paris and Berlin.

Thankfully, all the signs are that Australia’s new government under Prime Minister Anthony Albanese recognises the importance of engaging Britain. AUKUS of course plays a part in this. With the deadline for a decision on a submarine design only seven months away, Deputy Prime Minister Richard Marles was in Britain last week visiting shipyards and striking a deal for the joint training of submariners. It may have been tempting to hold off visits until the new PM and cabinet were sworn in, but it was the right call by Marles, showing the Australia–UK relationship is substantive irrespective of who is leader.

AUKUS is about the joint delivery of advanced defence and security capability, not diplomatic grandstanding. However, the maintenance of a trilateral partnership over decades still requires sustained political care and attention. As security expert Euan Graham has pointed out, Australian strategists must be wary of misconceiving AUKUS solely as a deepening of the Australia–US alliance because that would overlook the real contribution Britain can make to shared capability, which is one of the reasons it has enjoyed a unique defence partnership with the US for decades.

Let’s also correct a myth: there is no need to choose between engaging Britain and seeking deeper relations with Europe. Albanese was right to restore good relations with France by making an early visit to Paris and paying the necessary dues for cancellation of the Attack-class submarine. Marles’s follow-up visit to France to ‘enhance military cooperation’ shows an understanding of the need to work with multiple like-minded partners.

As my ASPI colleague Daria Impiombato and I wrote recently, Europe is at an inflection point on China. Australia mustn’t miss this crucial opportunity to share our experience of Chinese coercion. Our aim should be locking Europe and NATO into recognising the strategic linkages between Euro-Atlantic and Indo-Pacific security, which is a top priority in this era of Sino-Russian ‘no limits’ partnership. To steer the European behemoth will take teamwork, working with partners in Europe as well as the US. We shouldn’t let ill-founded beliefs about British irrelevance on the continent blind us to the help the UK can provide.

Albanese and his cabinet have a busy and crucial summit season towards the end of this year. Britain will be part of that picture, with the new leader likely to attend the G20. Continuing to shift our bilateral relationship from one based on historical ties into one focused on the current and emerging substantive strategic and security challenges is in both our national interests.

Can a new conventional submarine smooth Australia’s transition to a nuclear-powered fleet?

The government has announced a defence strategic review to ensure Australia ‘has the right capabilities that are postured to meet the growing strategic challenges that Australia and its partner countries will face in the world in coming years’. Earlier in this series, we looked at Australia’s transition in undersea warfare capability and highlighted the risks involved in that long process. One of the review’s highest priorities will be to address those risks.

While there are several broad paths to mitigating them, the acquisition of a new conventional submarine has garnered the most public attention. It seems likely that the review will consider the merits of the concept. Its analysis will be informed by the nuclear-powered submarine taskforce’s assessment of the optimal pathway to acquire these nuclear-powered attack submarines (SSNs).

We look here at whether a new conventional submarine could address the transition risk. It would need to address three broad challenges to win the review’s support:

  • capability deficiencies, namely that the Collins-class submarine ceases to meet Australia’s undersea warfare requirements
  • platform availability, namely that the Royal Australian Navy no longer has sufficient submarines to meet its requirements
  • workforce availability, namely that the navy doesn’t have sufficient submarines to generate the uniformed workforce needed to transition to SSNs.

Of course, these are intertwined; there’s no point having lots of submarines if they’re not survivable, for example. There are quality and quantity risks, and we should be mindful of the transition from the Oberon class to the Collins. By the time the first Collins was commissioned in 1996, Australia’s submarine fleet had fallen from six to two and the navy was struggling to maintain its workforce. It took years to recover.

It’s hard to discuss quality issues, particularly since Defence itself doesn’t seem to have a clear view on what comprises a viable capability. For years, senior officials told the Senate the Attack class would remain a ‘regionally superior capability’. Yet, shortly after its cancellation, former prime minister Scott Morrison said it was the unanimous view of Defence’s senior leadership that the Attack class would have been obsolete the moment it was launched.

If our capability requirements can only be met by an SSN, then no conventional submarine can ever meet them. Nor can the Collins, even after going through a robust life-of-type extension (LOTE). But since many advanced nations are still designing, building and operating conventional submarines, it would appear there’s some life left in the concept.

One might argue that the LOTE program will ensure the Collins will continue to deliver adequate capability throughout its very long life with new diesel generators, main motors, electrical distribution systems and optronic sensors in place of periscopes.

But it’s unlikely that the LOTE will substantially improve available power, the submarine’s capacity to sustain longer patrols, faster transits or noise generated from the current hull shape. In addition, many more modern submarines have adopted impellor arrangements to reduce the noise and cavitation issues associated with their propellers. Defence has also rejected incorporating air-independent propulsion (AIP) that would allow the submarine to remain submerged for longer. It is highly doubtful that the Collins upgrades will keep pace with China’s growing submarine and anti-submarine capabilities, and those of other potential adversaries.

However, more modern submarine designs than the Collins are now available. Ten years ago, on Defence’s recommendation, the government rejected an off-the-shelf design for the Collins’ replacement, but submarine design has progressed significantly since then, and dramatically since the Collins design was completed in the 1990s. Certainly, smaller European designs don’t have the range of the Collins, let alone of the Attack class, but they do have enhancements such as AIP. And large conventional designs, such as those of the Japanese and Koreans, are in a similar class to the Collins while possessing advantages such as AIP and lithium–ion batteries.

But it’s highly likely Defence will have to moderate its requirements and accept the art of the possible. Arguably, the Attack class collapsed under the weight of its own contradictions because we sought to design a conventional boat with many SSN capabilities. If Defence follows the same path now, it will meet the same result.

One approach could be a high–low capability mix, with Collins then the SSN providing the high end and an off-the-shelf design providing the low end. Considering Chinese warships are now frequent visitors to our near region, a small but stealthy submarine could provide useful capability close to home.

Turning to quantity, or platform availability, it’s important to remember that with a minimum of three boats needed to reliably deploy one, the best we can hope for from the six-boat Collins fleet is two deployable boats—and that’s world’s best practice. That’s despite the government stating in the 2009 defence white paper that we need more submarine capability and every subsequent government reinforcing that assessment.

The LOTE can’t improve on that, and there’s a distinct possibility of availability declining. Each LOTE installation is intended to fit inside the two-year full-cycle-docking window currently built into the Collins’ maintenance cycle. But if technical risks associated with a very ambitious program of modification push that schedule out, the boats will spend more time out of the water and less time in training or on operations. And there’s no way the LOTE can replace every ageing component on boats that will need to serve into their forties. Unplanned defects will increasingly see boats out of service for maintenance. Australia’s submarine force could experience a re-run of the Oberon–Collins transition, with capability falling to catastrophic lows.

Delivering new conventional submarines could increase quantity—but only if Australia exercises discipline. Much of the benefit will be undone if we must wait until the mid- to late 2030s for any new boats. That means sticking as close as possible to an existing design and making hard prioritisation decisions, such as choosing a rapid schedule over integrating the US combat system.

It also means some very hard thinking about where to build them. There will no doubt be political pressure to construct them in Australia. There will also be concerns raised about our ability to build both the conventional boat and the SSN here. But we can’t procrastinate and repeatedly change course for 13 years and expect to have the same freedom of choice as when we started down the submarine replacement path in 2009. Just as we need to consider all industrial strategies when it comes to SSNs, we need to consider all approaches to the new conventional boat. We could prioritise building the SSNs here and acquire the new conventional boat overseas—or the other way around. But the days when the mere thought of building any vessels overseas was anathema are long gone.

The quantity of boats is closely related to the third risk: the number of submariners. It’s no coincidence that Defence and its industry partners’ efforts in achieving world’s best practice in submarine availability have allowed the navy to finally generate the number of submariners it needs to operate the Collins fleet. That’s around 750 (a crew of 56 times 6 boats times a redundancy factor of 2–2.5). But by the time the SSNs are all in service, that force will need to be more than 2,000, perhaps even 2,500. It goes without saying that the navy can’t get from 750 to 2,500 overnight. But even finding the personnel for the first SSN—potentially 140 for a single US boat—from a pool of 750 will be challenging when the bulk of that pool is still needed for the Collins.

In short, the navy needs a way to grow a workforce at an achievable rate at a time when Collins availability will likely be declining. We have examined a range of options to increase submariner numbers. While this analysis is not exhaustive, it indicates that an additional four conventional submarines supplementing the six Collins would provide the most achievable growth path to a fleet of eight nuclear boats. That scenario would require an ambitious but manageable average annual workforce growth of around 4%, smoothing out a growth rate that could be twice as high if the navy went straight from the Collins to SSNs.

Of course, no number of conventional submarines will address the other part of the workforce requirement, namely the ability to safely operate a nuclear submarine. That will require nuclear specialists within and outside Defence. The navy will need to learn how to operate submarines very differently, both tactically and strategically.

While some nascent workforce capability could be developed through participation in US and/or UK nuclear submarine programs and joint crewing, it will be difficult to establish and sustain a critical mass of nuclear-qualified workers until SSNs are available to Australia. It may be that the SSN delivery schedule is driven more by Australia’s capacity to expand its nuclear workforce than by construction capacity.

In sum, another conventional boat could mitigate some of the key risks we face in our long submarine transition. But the review team needs to remind Defence that the perfect (whether it be military capability or local industry involvement) is the enemy of the good and its quest for submarine perfection has so far delivered nothing. Australia’s ambitions in both areas must be moderated if it is to get a new conventional submarine in time to help address those risks.

The other unavoidable issue that must be factored into the review’s considerations is, of course, funding. An additional conventional submarine will come at great cost. We have previously outlined the pressures on the defence budget that SSNs will only exacerbate. With substantial new funding looking unlikely with the broader pressures on the public purse, finding the money for a new conventional submarine would involve cancelling other capabilities in Defence’s investment program. That will likely require strong recommendations from the review, and resolute backing from the government.

How to bridge the capability gap in Australia’s transition to nuclear-powered submarines

In a previous piece, we examined the broad schedule of Australia’s capability transition from conventional submarines to nuclear-powered submarines (SSNs). In planning the transition, we shouldn’t just be focusing on the point when the first SSN enters service, which appears to be around 2040 at the earliest, based on statements from the government. There are later, equally significant milestones, such as when Australia will have a viable SSN capability (likely requiring three or four boats), when the Collins-class submarines can be retired and when the final SSN enters service. Those things will occur in the late 2040s, 2050s or even 2060s. The key point is that we need to manage the capability risk across the entire transition.

We’ve also argued that the government should consider a broad range of industrial approaches to building the SSNs, including an enterprise approach with our strategic partner, whether that’s the UK or the US. We noted that the government might still decide on a domestic build if our strategic partner didn’t have sufficient capacity to build submarines for us. Deputy Prime Minister and Defence Minister Richard Marles has now said that the fastest way to acquire SSNs will be to build them here since ‘the industrial capabilities of both the United States and the United Kingdom when it comes to building subs are at full capacity’. Of course, it’s not yet clear what work will be performed here, but the government appears to have made an assessment that acquiring complete boats overseas is not viable.

And we’ve argued that Australia is facing a submarine capability gap, even if the Collins-class life-of-type extension is successful—a view shared by the government. It’s important to note that the risk in the submarine transition is compounded by a similar (if not quite as severe) risk in the Royal Australian Navy’s transition in its frigate force from the Anzac class to the Hunter. So we shouldn’t regard the surface fleet as a significant risk mitigator for the subsurface fleet.

Given the risk inherent in a capability transition involving the certainty of a decline in the existing capability and the uncertainty of the schedule for delivery of the new capability, combined with the high likelihood that the best-case scenario will involve a reduced number of submarines for a large part of the transition, it’s not surprising that many commentators have called for rapid capability acquisitions to manage the risk.

In subsurface capability, there are three high-level options. They’re not mutually exclusive, and the government will likely need to adopt a combination of them. Since the new government has confirmed its commitment to AUKUS and the acquisition of SSNs, cancelling the pursuit of an SSN capability is not one of the three.

The first option is to accelerate the establishment of the SSN capability. No doubt the government’s nuclear-powered submarine taskforce is examining options to do that, but it will be challenging. We have already discussed the issues involved in getting an existing US or UK boat or getting a boat already under construction on an overseas production line. Either approach would take capability away from our partners, contradicting the intent of AUKUS. And, as noted above, Marles has said our strategic partners don’t have the industrial capacity to build additional boats.

So, while getting SSNs early from overseas is worth exploring, it seems unlikely to happen. And while getting an SSN or two early may help manage some risks at the start of the transition (while also potentially introducing some new ones), by itself it won’t advance delivery of the rest of the capability, meaning the later milestones are just as far away.

Bringing those milestones forward would require accelerating the start of a local build. In our view it will be difficult to get the first locally built boat into service before 2040, even with significant help from our strategic partner. Before we can start, we need to build a shipyard and train a workforce. It’s currently taking the US eight years to build SSNs on mature production lines. It’s hard to see us doing better from a cold start. Even if we can shave a year or two off the process, we still get into the drumbeat issue: production capacity means submarines will likely be delivered on a three-year (or slower) drumbeat, getting us well into the 2040s before we have an actual capability. In short, this option alone won’t address the capability gap.

The second option is to acquire a conventional submarine as a gap-filler, which we’ll discuss in more detail in later articles, but before the government defaults to that option it should carefully examine a third option, namely, to look beyond submarines—as Marles has said he will. The key is to focus on the effects we seek from submarines and see how we can achieve them more quickly (and possibly more affordably) with other systems. For example, if one of the effects we seek from SSNs is a long-range strike capability that can act as a conventional deterrent against an aggressor, we could investigate other systems with that capability.

As ASPI’s most recent defence budget brief notes, there are many possibilities across the spectrum of cost and technological maturity. One high-end option would be the B-21 bomber that’s being developed for the US Air Force. It would deliver a massive capability boost. And, if we’re looking at effects, it can deliver a broad range of them, including anti-submarine warfare if we consider that it can be conducted by sinking boats in harbour or by air-delivered mines. The B-21 could potentially be delivered in useful timeframes, but the cost would be so large (indicatively, $25–30 billion for a squadron of 12 or so) that it could be met only by cancelling another megaproject (preferably one not already in contract) or by increasing Defence’s funding line significantly.

A more affordable option could be an uncrewed aerial vehicle capable of long-range strike. Nothing suitable exists yet, but investing in the development of a twin-engine, long-range version of Boeing’s Ghost Bat could be explored. Long-range missiles are another alternative, as are fleets of ‘the small, the smart and the many’ (that is, fleets of small, almost disposable systems that can be quickly built at scale, deployed, lost and replaced).

One path that the government should consider urgently is the possibility of ‘up-gunning’ the offshore patrol vessel fleet. These vessels are about to enter service, have sufficient space to carry lethal capability and can be produced quickly and at scale. One option could include installing the Kongsberg naval strike missile launcher that is already being acquired for larger surface combatants. Anti-submarine warfare sensors are another possibility. The RAN can’t afford the luxury of operating 1,800-tonne vessels with no warfighting capability.

But it’s hard to ignore the calls for our second option, a new conventional submarine. The proposals have ranged from a repeat of the current Collins class, built to the original design and standards—but presumably with the extensive upgrades installed since the original build, including those planned for the life-of-type extension—to an essentially new design, based on the Swedish A26, for example.

Any new conventional submarine introduced within the next decade is unlikely to be retired quickly. Depending on which point of the SSN transition it served until—and it’s possible the last of the first eight SSNs may not enter service until after 2060—a new conventional class of submarine could be in service for 30 years and hence be an enduring part of the defence force. It might better be referred to as a bridging capability, much like the F/A-18F Super Hornet’s introduction to manage the risks in the capability transition from the F/A-18A/B and F-111 fleets to the F-35A. Yet, the Super Hornet has proven its value and looks set to remain in service for a long time to come, well beyond the bridging period and delivery of the F-35A. So the simple term ‘new conventional submarine’ may help avoid potentially erroneous assumptions about the transitory nature of their service.

Whether we need to go down the path of a new conventional submarine will depend on a range of factors that need to be carefully weighed considering the enormous cost of such a move and the key strategic role submarines undertake for Australia. Having a clear understanding of what problem we are trying to solve will help answer whether such a move makes sense and what the most suitable approach to a new conventional submarine might be.

In our next article, we’ll look at the risks the government needs to address in the submarine transition and assess whether a new conventional submarine can achieve that.

Australia’s transition to nuclear-powered submarines could run into the 2060s

In our most recent article, we argued that the Australian government should widen the aperture of the lens through which it is scrutinising industrial strategies for acquiring and sustaining Australia’s nuclear-powered attack submarine (SSN) capability. We suggested that there are good reasons to consider building the submarines overseas.

But the government, when taking all elements of the wicked submarine problem into account, may choose to build the SSNs in Australia. Building here may deliver significant sustainment benefits. It may be necessary to develop the expertise needed to exercise responsible nuclear stewardship. Our strategic partner in the US or the UK may not have the capacity to build submarines for us. These are all issues that the nuclear-powered submarine taskforce will need to assess in preparing its advice to the government.

Whichever industrial path the government chooses, we are looking at a very long transition from the Collins class to the future SSN fleet. There are many key milestones on that path, and while most attention is directed towards when the first boat will arrive, that’s not necessarily the most important one; a single boat does not a capability make.

All capability transitions are difficult and the submarine one will be the most challenging that the Department of Defence (and the nation) has ever undertaken. It’s impossible to prepare for that transition without knowing how long the journey will last—and it will extend well past delivery of the first boat.

Our starting point is that an SSN has a useful life of 30–35 years. The Royal Navy’s most recent Trafalgar-class retirees were over 30. The most recent US Navy Los Angeles–class SSNs to be retired have averaged around 35 years of service. Some, like USS Bremerton and USS Jacksonville, served for 40 years. It’s true that in the 1990s and 2000s, some were retired at a much younger age as the US, like all Western countries, sought to harvest the post–Cold War peace dividend. But that’s not the world we are facing now. Western navies desperately need submarines and, considering the huge investment required, they want to maximise the return.

What does that mean for the schedule of a potential Australian build program? Let’s start with a continuous build program, that is, one that rolls straight into the replacement project once the first one is finished so that there are no ‘valleys of death’ in which production stops, workers are laid off and key skills are lost. Eliminating the ‘stop-start’ nature of Australian naval shipbuilding was one of the main goals of the previous government’s continuous naval shipbuilding program.

But such a program has disadvantages. One of the reasons that support for the 12-boat Attack-class program evaporated was the growing realisation that its two-year delivery drumbeat to support a continuous build program meant the new capability would be delivered too slowly, either to meet Australia’s worsening strategic circumstances or to mitigate the risk of a capability gap as the Collins aged out.

But the SSN drumbeat will likely be even slower than the Attack class was set to be. The previous government announced it would acquire ‘at least’ eight SSNs. If we assume a service life of 30–35 years for our SSNs, a continuous build program for a fleet of eight boats would require a four-year delivery drumbeat to stretch the program out so that the there’s no gap between the last boat of the initial build program and the first boat of the successor program. For a fleet of 10 boats, it would be between three and three-and-a-half years.

That’s borne out by the experience of the UK. The RN has a combined fleet of 11 nuclear boats between its SSNs and ballistic-missile submarines (SSBNs), which means it implements a delivery drumbeat to support a continuous build enterprise that alternates between SSN and SSBN programs (the Astute-class SSN program is nearing completion as the Dreadnought-class SSBN program ramps up).

But that delivery drumbeat has implications for capability (and the lack of it). If we assume the first boat is delivered in the late 2030s and enters service in 2040, that means boat two is between three and four years later—around 2043–44—and the third boat somewhere around 2046–48. If we assume the rule of threes (three vessels, squadrons, brigades, etc. are needed to reliably deploy one), then Australia won’t have an SSN capability until the second half of the 2040s, which is a quarter of a century away. That’s also the point at which the last of the Collins will reach its retirement date after having completed its life-of-type extension in 2038. We’d need to be confident that three SSNs would be a sufficient capability to move to the post-Collins world.

Table 1: Submarine transition plan—first SSN in service by 2040 (three-year drumbeat)
[click on image to enlarge]

The worst case, building on a four-year drumbeat to replace the first SSN when it is around 30 years old, means we wouldn’t have the full capability until close to 2070. That’s a really long way away.

Table 2: Submarine transition plan—first SSN in service by 2040 (four-year drumbeat)
[click on image to enlarge]

To achieve the full capability sooner, we could aim to build the SSNs faster than a three- or four-year drumbeat. On a two-year drumbeat we’d get the eighth boat in the mid- to late 2050s. Then there’s the question of whether that can actually be achieved. A Block V Virginia-class SSN is over 10,000 tonnes. The next generation of US Navy SSNs will be even bigger. That’s a lot of boat to build.

But even if we can achieve it, building faster also breaks the continuous build program. If we are building an eight-boat fleet on a two-year drumbeat, the last one arrives 14 years after the first, well before it’s time to replace it. You could retire and replace the first boat when it’s 16 years old, but only halfway through its economic life. Or you could keep the early boats in service and add to them, creating a bigger fleet. But that comes at a massive financial cost. If the RN can only afford seven SSNs, can we afford the 15 or more needed to support a two-year production drumbeat?

Table 3: Submarine transition plan—economic-build approach with first SSN in service by 2040 (two-year drumbeat)
[click on image to enlarge]

The other option is to stop building at eight or 10. But then we’d be back into the stop-start approach to shipbuilding that the previous government’s continuous naval shipbuilding program sought to address. We would be building in a valley of death from the outset.

How do we break out of this conundrum? One possibility is to not go down the path of building boats here in the first place and instead adopt the enterprise approach discussed in our previous post, which of course assumes our major partner has the capacity to build our boats for us. But even that approach will likely get us well into the 2050s by the time we have a full SSN capability.

Whichever way we look at it, we are facing a long transition, one that could potentially last into the 2060s. That fact has to be a central tenet of our planning. Once we accept that, we can chart a course that addresses any capability risks presented by the extended timeframe. The most obvious of those risks is the Collins class ageing out before the SSN capability is serviceable.

Defence Minister Richard Marles has said his mind is open on how to bridge a capability gap. There are a range of options. In our next post, we’ll start our consideration of the one that has attracted the most attention to date—a new conventional submarine.

Building overseas may be the best approach for Australia’s nuclear-powered submarines

In our previous post, we considered the likelihood of the US providing Australia with Virginia-class submarines this decade. Doing so would require the US Navy to give up two of its nuclear-powered attack submarines (SSNs) at a time it is facing a capability crunch of its own. While anything is possible, it seems unlikely, particularly when we also consider that Australia will also need to demonstrate that it can exercise responsible stewardship of the nuclear capability.

What, then, can Australia do to accelerate the development of a usable SSN capability? To really unpack that question, we first need to have an uncomfortable conversation about sovereignty. The term is almost omnipresent in discussions of defence capability and industry. In 2017, the previous government released 10 sovereign industrial capability priorities, which later grew to 14. It also announced a sovereign guided-weapons enterprise. But what people mean by sovereignty, what an acceptable level of sovereignty is (if there really is such a thing as partial sovereignty), and how we are to achieve it vary considerably.

The bottom line is that there are very few military capabilities in which Australia is truly sovereign. One of the original 10 sovereign industrial capability priorities was ‘Collins Class submarine maintenance and technology upgrade’ (although Defence still hasn’t released an industry and implementation plan for it). When measured by the percentage of Australian components used in the sustainment of the Collins class, a high degree of sovereignty has been achieved. But its Mark 48 heavyweight torpedo is American, and if we were denied resupply of torpedos in a conflict, that capability would degrade quickly.

There was little that was truly sovereign about the construction of the Collins even though it was done in Adelaide; we used an overseas design and most of the major components came from overseas. Similarly, the Collins life-of-type extension will install replacement diesel generators and main motors sourced overseas.

We are constantly making decisions about where we can accept dependence or reliance and where we want to spend the money, time and effort to achieve greater levels of sovereignty or self-reliance. The Royal Australian Air Force has felt no need to have a sovereign aircraft design and construction industry, instead preferring buying off the shelf and putting its effort into local sustainment. It’s an approach that has worked well.

In maritime capabilities, we’ve built ships here (on and off), but there’s no evidence to say that we need to do that in order to sustain them here. While local construction can be helpful for establishing local sustainment (although we’ve struggled to sustain some locally built vessels), the evidence would suggest that the additional cost of local construction has not led to commensurate sustainment savings.

When we look at SSNs, it’s important to accept up front that this is a capability where we will have relatively low levels of sovereignty. Certainly, we should aim for a level of sovereignty that enables an Australian captain to carry out the intent of the Australian government. We should aim for the ability to do as much sustainment as possible in Australia, including deep maintenance. It’s unacceptable to have to return a boat to the parent nation whenever maintenance is needed. But we also need to accept that we will always be dependent on supply chains back to the submarine’s parent nation.

One of the key questions the multi-agency nuclear-powered submarine taskforce will need to address is whether constructing SSNs here provides any benefits to the sovereign operation and sustainment of the capability in return for the significant increase in cost, schedule and overall risk that will inevitably arise from establishing local production. Our own sense is that any benefits are far outweighed by the costs.

Ultimately, this is a capability that can only be delivered, operated and sustained with a high level of ongoing cooperation with the parent navy and nation. Once we accept that, we can explore how conducting the SSN enterprise as a joint one between Australia, the UK and the US enhances the combined military capability of all three countries—which is, after all, the intent of AUKUS.

Before committing to build all of the SSNs here, we need to examine industrial strategies that better meet the intent of AUKUS. Once we open the aperture of the lens with which we are scrutinising possible industrial strategies to look beyond the approach of building all boats in Australia, new options come into view that can potentially accelerate the production schedule, increase alliance capability and, importantly, generate enduring industrial benefits for Australia.

The first of these options is the concept we discussed in our previous post of building the first boats on an existing production line in the parent country and then building the remaining boats in Australia. That has many benefits. From an industrial perspective, it allows the shipyard workforce to be trained by working in mature, functioning shipyards. It gets submarines delivered earlier. If we accept that the initial boas will primarily have a training function for the first five or so years, early boats can help develop a uniformed workforce on the job. It can also help develop the ‘nuclear mindset’ necessary for a mature SSN capability.

In the early years, novel approaches to command and crewing will be needed. The first boat may even need to remain a USN boat until Australia’s navy meets the high bar of nuclear stewardship. There will no doubt be challenging legal, political and cultural issues to tackle. But an extended transition period working with a small number of co-crewed SSNs will help mitigate the shock of the new. Can the Australian navy really move straight from an ageing Collins capability with a relatively small workforce to a conveyor belt of SSNs being delivered on a two- or three-year drumbeat? Such a rapid transition will likely break the submarine force.

When we open the aperture even further, another approach comes into view, which we termed ‘a joint submarine enterprise’. This approach starts by accepting that Australia’s SSN enterprise will never be separate from the parent nation’s. Consequently, rather than inefficiently seeking to duplicate the entire enterprise, it pursues a division of labour that benefits both nations. This approach would consciously avoid the cost, schedule and risk overhead of building boats here. Noting that the intent of the submarine taskforce appears to be acquiring precisely the same design as that operated by the parent navy, building here only introduces design risk since there will inevitably be modifications introduced into the design (as the sorry saga of the Hunter-class frigate forcefully reminds us).

That doesn’t mean Australian industry misses out. First, we could adopt a joint strike fighter approach of supplying components, subassemblies or even modules into overseas production lines. That involves Australian industry in the construction of a fleet of more than 60 boats (if we go with the US), rather than eight. This approach also benefits the US by expanding its own effective production capabilities. It also avoids the impossibly contorted gymnastics involved in trying to establish a viable continuous build program around a fleet of only eight boats. If those Australian-made components are ones that are essential to the sustainment of the boat, even better.

And that gets us to the key point. In an environment where our human, financial and industrial resources are limited, does it make sense to dilute them by splitting them between construction and sustainment? Sovereignty rests in our ability to sustain the boats, so that should be the priority. Even that will create huge industrial demand. Our earlier analysis (pages 55–56) noted that a deep-maintenance activity on a Virginia-class submarine was nearly three times as much effort as a Collins full-cycle docking. Indeed, the sustainment of a fleet of eight SSNs would likely involve more work than the build of the Attack class and the sustainment of the Collins class combined. Put another way, if we are trying to both build and sustain SSNs here, we may fall short of being able to do either.

Another element of the JSF approach is that Australia has become a regional maintenance hub for the international F-35 fleet. By taking this approach with SSNs, we can provide significant value to our AUKUS partners. The USN is facing a huge maintenance backlog for its nuclear submarine force. By focusing Australia’s industrial efforts on sustainment, we not only avoid adding to that problem, but can potentially help to reduce it. Again, there are significant, unprecedented issues here around the USN’s willingness to have maintenance done at an overseas yard, but if it means that its boats spend less time out of service then it would be a win for all partners.

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