Australian Defence officials knew future submarines would cost $80 billion five years ago

The Sydney Morning Herald newspaper is reporting that Australian Defence officials knew Australia’s new fleet of submarines would cost almost $80 billion AUD as early as 2015, despite publicly stating at the time that the estimated price tag was $50 billion.

Australian Defence officials budgeted for the Future Submarines project, SEA 1000, to cost $78.9 billion as far back as October 2015 – and during the same month Defence officials told a parliamentary hearing that the anticipated ‘out-turn cost’ was $50 billion.

After the proposed cost of the project increased by 60%, the Australian National Audit Office reviewed the project, in a report that identified flaws in the acquisition process. The proposed cost of the project now stands at $90 billion.

The cost (and opportunity cost) aside, there has also been an ongoing debate about the strategic rationale for the proposed new submarines.

Read the Sydney Morning Herald article.
Read Mike’s previous articles about the future submarines program.

Image: The (former) Australian prime minister and others, December 2016 (Naval Group)