On job creation and workforce benefits, Prime Minister Anthony Albanese has presented AUKUS as the “most transformative industrial endeavour in Australian history” that will deliver 20,000 “well-paid, union jobs”. The federal and state governments have committed $150 million for workforce expansion. But this could be overwhelming for the relatively small number of vocational education and training providers in Adelaide and Perth, where the majority of the workforce is expected to be located.
Meanwhile, industry representatives have voiced concerns about whether the government is doing enough to avoid a “valley of death” that would limit the commercial support required for AUKUS to succeed.
Building and sustaining the social licence for AUKUS in Australian workers’ eyes is critical, especially when the benefits cannot be equitably distributed across the country. The National Reconstruction Fund will only impose further workforce demands on technically adjacent industries such as mining and clean energy where many core shipbuilding skills currently exist.
As it stands, concerns are growing about a “furious race against the clock” to find the estimated 8,000 engineers needed for AUKUS. Given industry reports that almost 60 per cent of Australian engineers are foreign-born, the conditions that government may enforce for security clearances to work within the tri-national enterprise will be contentious, as citizenship requirements are a common part of higher level vetting. In the late 2000s, courts granted Australian defence companies exemptions from anti-discrimination laws in order to work with the US defence industrial base.
Finally, the cost of the endeavour has so far generated the most angst. Both the former and current governments have struggled to clearly make a strategic case for AUKUS. Two years on, the latest Lowy Institute Poll shows only a quarter of Australians think AUKUS justifies the price tag of up to $368 billion. Australia is grappling with a cost-of-living crisis, an energy crisis and post-Covid debt repayments. Competing spending demands may steadily undermine the value-for-money justification for AUKUS.
The Albanese government has worked hard to sell AUKUS internationally, informing more than 60 countries ahead of the March announcement and regularly engaging the International Atomic Energy Agency.
It now needs to devote that same energy to winning over the Australian people. Without engaging in a frank and fearless conversation with the public about why Australia should stay the course with AUKUS, last week’s ALP National Conference may be just a taste of things to come.