Tens of billions of dollars are to be spent over 20 years on turning WA’s Henderson shipyards into a defence precinct and home to Australia’s new nuclear-powered submarines.
The Federal and WA governments have signed a deal to create the precinct which they say will create 10,000 jobs.
According to PM Anthony Albanese, the precinct is to become a maintenance hub for nuclear-powered submarines under the AUKUS deal with the US and UK as well as Australia’s own subs, and to build landing craft for the Army and new frigates for the Navy.
“The Albanese Government’s commitment to the Defence Precinct at Henderson is a game changer for WA industry,” Mr Albanese says.
“Henderson already plays a critical role in the delivery and sustainment of Australian Defence Force capabilities and this will see the important role of WA industry grow further,” he says.
Deputy Prime Minister, Richard Marles calls the deal “the most consequential defence investment” in WA in almost 40 years.
“The Defence Precinct at Henderson will optimise Australia’s shipbuilding and sustainment industry while supporting continuous naval shipbuilding in Western Australia and Australia’s nuclear-powered submarine pathway,” he says.
Minister for Defence Industry and Capability Delivery Pat Conroy says the deal means decades of continuous shipbuilding in WA, providing “generational benefits” for locals.
“This investment by the Albanese Government will not only create thousands of high-skilled and well-paid jobs in Western Australia but also ensures a future made in Australia.”
STATE REACTION
WA Premier Roger Cook says the deal puts his state at the centre of the nation’s defence capability.
“The new Defence Precinct at Henderson will deliver tens of billions of dollars in investment and thousands of local jobs,” he says.
“It is a win-win for Western Australia and the nation.”
WA Minister for Defence Industry Paul Papalia says the state will become a defence powerhouse.”
“The Defence Precinct at Henderson will be the home of depot-level maintenance for nuclear-powered submarines as part of AUKUS. It will also be the maintenance hub for Australia’s nuclear submarines,” he explains.
“This historic agreement will result in generations of jobs and diversify the economy like never before.”
The maintenance function alone is expected to create around 3000 jobs to addition to the thousands of jobs created by construction of the precinct, shipbuilding and the new Submarine Rotational Force-West base at HMAS Stirling (which already attracted $8bn in federal funding for its expansion).
The federal government will spend $127 million over three years alone on planning, consultations, preliminary design, feasibility studies and early work for the precinct.