Australian industry will benefit with thousands of jobs bankrolled from a nuclear submarine deal worth hundreds of billions of dollars.
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Prime Minister Anthony Albanese has unveiled the nation's plan to acquire eight-nuclear powered submarines alongside his US and UK counterparts.
The plan includes buying three US Virginia-class vessels during the 2030s before a new AUKUS class comes into construction late next decade.
The first of the new-generation subs will be built in the UK before Australia receives its initial vessel in around 2042.
Around $2 billion will be spent in South Australia over the next four years to develop facilities to build the next-generation submarines.
Building a submarine construction yard will support 4000 jobs at its peak, while 4000 to 5500 jobs will be supported to assemble the submarines at the height of that program.
Some $8 billion will be spent expanding the HMAS Stirling naval base at Garden Island, just south of Perth, to service submarines during their operations.
The work is expected to support 3000 workers, while 500 roles will be needed to uphold the base during rotations between 2027 and 2032.
A total of 20,000 new jobs across the nation are expected over the coming three decades.
Prime Minister Anthony Albanese said all three AUKUS nations would contribute to the task.
"Built by innovation, and extraordinary and emerging technologies, these boats will present a unique opportunity for Australian companies to contribute," he said standing alongside the US president and UK prime minister in San Diego.
"The scale, complexity and economic significance of this investment is akin to the creation of the Australian automotive industry in the post-World War II period."
South Australia Premier Peter Malinauskas said the significance of the investment couldn't be overstated.
"This is a transformational opportunity to increase our economic complexity," he said.
"That means more highly skilled, highly paid jobs across our economy that will help lift the standard of living for generations of South Australians."
NSW Premier Dominic Perrottet said he believed Port Kembla, south of Sydney, should be used as an east coast base for the submarines.
"It will provide a great economic opportunity for that region," he said.
But the Australian Shipbuilding Federation of Unions said the announcement raised more questions than it answered.
"The building of the Australian navy's next generation of submarines should propel Australia's shipbuilding industry towards sovereign capabilities that guarantee thousands of skilled jobs and apprenticeships for decades to come," national convenor Glenn Thompson said.
"We're concerned that today's AUKUS pact announcement will not deliver the necessary developments to Australia's shipbuilding and defence industrial capabilities ... by developing a workforce with thousands of jobs being created over the next several decades, including hundreds of apprenticeships and cadetships each year."
He said a joint industry-union workforce development program would be needed as well as reforms to skill and qualification portability.
Australian Associated Press
