Months of negotiation over axed sub deal

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Negotiations with a French firm over the submarine deal Australia pulled out from would proceed for a number of months but, Defence Minister Peter Dutton says.

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Negotiations with a French firm following Australia pulling out of a submarine deal are more likely to prolong effectively into the following monetary yr, in keeping with the defence minister.

Peter Dutton on Monday conceded talks with Naval Group about compensation prices for scrapping the earlier $90 billion submarine deal would proceed for a number of months.

The submarine cope with the French firm was scrapped in 2021 in favour of nuclear-powered vessels as a part of the AUKUS safety pact.

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It was initially hoped the settlement between Australia and Naval Group could be completed by the top of the present monetary yr.

Nonetheless, Mr Dutton mentioned it might most certainly keep it up into the following monetary yr.

“It is going to be after the election, it’ll take a while,” Mr Dutton instructed reporters.

“The negotiations are beneath approach for the time being, so as soon as these figures have been settled, then we’ll present that data.”

Earlier this yr, a Senate estimates listening to was instructed termination prices as a part of the earlier submarine deal might be greater than $5.5 billion.

Taxpayers have already been slugged greater than $2.5 billion for Australia pulling out of the deal.

Mr Dutton mentioned he didn’t need to state the determine that was being negotiated with Naval Group.

“What occurs in a business negotiation is that if the opposite facet is aware of that you just’ve acquired a tough deadline, then they’ll maintain you over a barrel,” he mentioned.

The defence minister on Monday introduced a $381 million improve to the prevailing Collins class of submarines in South Australia.

The improve would see the Collins class fleet upgraded with new digicam programs.

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