Australia to pay $830million settlement to French submarine builder after Morrison government scuttled the deal in favour of AUKUS security pact
- The prime minister said compensation for subs builder is ‘fair and equitable’
- Scott Morrison ditched French-built submarines as part of AUKUS agreement
- Mr Albanese said the cost from the cancellation will total $3.4billion
- He said Australia’s troubled relationship with France will now be ‘re-set’
Published: 11:01 AEST, 11 June 2022 | Updated: 11:42 AEST, 11 June 2022
New Prime Minister Anthony Albanese has announced an $830million settlement between the Australian government and the French company whose contract to supply military submarines to our navy was cancelled.
Mr Albanese said the total cost of the cancellation will cost taxpayers $3.4billion but will ‘rule a line under the contracts’ with Naval Group.
‘This is a fair and an equitable settlement which has been reached,’ Mr Albanese said at a press conference in Sydney on Saturday.
‘It follows discussions that I’ve had with [French] President Macron and I thank him for those discussions and the cordial way in which we are re-establishing a better relationship between Australia and France.