Defence Minister Richard Marles rejects speculation that $12b upgrade of Perth shipyard linked to sub deal

Defence Minister Richard Marles has rejected speculation the major announcement to pour $12 billion into upgrading a key Perth shipyard crucial to the AUKUS agreement was linked to securing the multi-billion dollar defence agreement to build nuclear-submarines, or to appease the US President Donald Trump ahead of an expected meeting with Anthony Albanese.

The news comes as Australia is under-pressure to lift defence spending from 2 per cent to 3.5 per cent, with funding for the Henderson shipyard to about $25bn over the coming decade.

The announcement also comes ahead of the Prime Minister’s potential meeting with Mr Trump, their first in-person meeting, during his trip to the United Nations General Assembly in New York.

While Mr Marles wouldn’t confirm whether the bilateral would occur, he said he expected that they would meet “in the not so distant future”.

Instead, Mr Marles spoke of the importance geo-strategic location of the Henderson Shipyard, and described Perth as the “fulcrum of the Indo Pacific,” crucial to warding off increased aggression from China.

“Today’s announcement is that it means that we can move full steam ahead on building the Henderson defence precinct immediately, and we need to do that,” he told Sky on Sunday.

“We are much closer here in Perth to places like the South China Sea and the East China Sea. To our north, we’re also at the gateway of the Indian Ocean, and the Indian Ocean itself is becoming a much more geo-strategically contested area.”

He also rejected questioning on whether the delivery of the AUKUS Virginia-class subs, slated for 2027, would mean Australia would be required to use them if the US launched an attack against China.

“I’m not about to speculate on any future scenarios and someone in my position shouldn’t,” he said.

“What we are doing in terms of the building of our capabilities is to deter conflict, and it is to provide for the peace and stability of our region.”

Mr Marles also avoided commenting on reports by The Washington Post that the US Secretary of State Marco Rubio had quietly confirmed to Mr Marles that the AUKUS defence pact would proceed, however Mr Marles said he was “real confident about the proceed of AUKUS under the Trump administration”.

This comes as Australia contends with the new Trump administration and continues to evade the US’ demands to increase defence spending from 2 per cent to 3.5 per cent, as well as a pending AUKUS review by the US administration which has been headed up by China hawk Elbridge Colby.

Referring to a previous meeting Mr Marles had with Mr Hegseth in August, Mr Marles said there were many “positive comments” about the deal.

He also said that while he knows when Mr Colby will complete the review, he said he did not “feel it’s my place to answer it here”.

“There was a positive sentiment there about how we’re proceeding with AUKUS and needing to get this done, and the announcement that we’re making today is obviously a step in that process,” he said.

“But there is an understanding, I think, across the board, of the strategic significance of AUKUS, not just for Australia, but for the United States.”

Senior Coalition frontbencher Anne Ruston said the announcement was a “welcome” but had been long demanded by the sector.

“For the government to suggest that sort of an early investment seems somewhat of a joke, given the sector has been calling for it for a very long time,” he said.

“Maybe this is just a communication to the US before the Prime Minister goes to the US, hoping that maybe the prime minister could eventually get an audience with the president of the US but nonetheless, the coalition does welcome this announcement today.”

The comments come as Mr Albanese is set to travel to Perth on Sunday to announce the $12bn in funding.

He said it was another government investment delivering record defence funding to bolster Australia’s capabilities.

“This world class precinct will create more than 10,000 local jobs and strong opportunities for local industry,” he said.

“There is no greater honour than serving our country in our nation’s uniform and my Government is dedicated to investing in the defence capabilities our nation requires.”

This funding is an addition to the Government’s initial $127m commitment to progress planning for the Defence Precinct that is considered to be a national strategic asset vital for national security.

Deputy Prime Minister Richard Marles, Defence Personnel Minister Matt Keogh and Premier Roger Cook will join the Prime Minister to make the announcement.

Mr Marles said the Albanese Government continued to increase defence spending to record levels to deliver Australia’s capability needs.

“Henderson will be critical to Australia’s shipbuilding and sustainment industry while supporting continuous naval shipbuilding in Western Australia and Australia’s nuclear-powered submarine pathway,” he said.

“In less than a year from our announcement to establish the Defence Precinct at Henderson, we are announcing additional funding to start delivering on key programs for the Australian Defence Force.”

Minister for Defence Industry Pat Conroy said Western Australia already played an important role in the delivery of capabilities for the Australian Defence Force.

“The consolidation of the Henderson precinct will be a significant boost for defence industry in the West,” he said.

“It will support around 10,000 highly skilled, well paid jobs over the next two decades, helping people across Western Australia build great futures for themselves and their families.”