'Worst investment ever': Expert reacts as first $4.2billion taxpayer-funded payment for nuclear subs paid to US

By CAITLIN POWELL - NEWS REPORTER and TESS IKONOMOU FOR AUSTRALIAN ASSOCIATED PRESS Published: 04:37, 24 April 2026 | Updated: 04:40, 24 April 2026 The Trump administration has signed off on the first AUKUS submarine contract, funded by a hefty taxpayer-funded payment from the Albanese government. The Pentagon confirmed on Friday that nuclear-powered submarine capabilities would be transferred from the United States to Australia. The contract, worth $276million ($US197million), will be covered by the Labor government's first down payment of $4.2billion ($US3billion), the ABC reports. The 2021 AUKUS pact is designed to counter China's growing influence in the Indo-Pacific and involves Australia acquiring Virginia-class nuclear-powered submarines from the US by 2032. However, the alliance relies on the US building enough defence vessels itself before some are sent to Australia. International politics expert and AUKUS critic, Professor Mark Beeson, said the contract epitomised Australia's dependence on American productivity. 'We keep forking out money for submarines I'm definitely not going to live to see, and I don't know if young people will live to see them ever arrive,' he told the Daily Mail.  'It's because, famously, the Americans can't build as many as they would like, or consider they need. There's going to be no spare capacity for these submarines.'  The Trump administration has awarded its first submarine contract for AUKUS with nuclear-powered submarine capabilities would be transferred from the US to Australia It will be covered by the Labor government's payment of $4.2billion to the US under AUKUS, a pact that will see Australia acquire Virginia-class nuclear-powered submarines The US Navy has set targets to almost double construction to 2.33 boats per year to build up its fleet, the ABC reports. But, during a series of congressional hearings this week, data revealed the pace of production has dropped to 1.1 boats per year due to construction delays.  Professor Beeson has made no secret of his concerns about the trilateral deal between Australia, the US and the United Kingdom.  'I think it's possibly the worst investment Australia's ever made in anything, but particularly in defence material,' he said. 'It is doubling down on something that was a bad idea to start with. 'The only way to get a more credible-looking outcome for AUKUS is by continuing to supply the Americans and eventually the British with lots of loot to rebuild shipyards and increase the production line for these submarines. 'If and when submarines ever did arrive, they would be undoubtedly redundant, overtaken by cheap and cheerful anti-submarine drone technology. 'If we build this base, it will undoubtedly be a prime nuclear target, because who wouldn't want to take out a couple of nuclear-armed submarines from America.' International politics expert and AUKUS critic, Professor Mark Beeson (pictured), slammed the news of the first contract due to Australia's dependence on American productivity The Australian-funded contract has been awarded to US Navy contractor General Dynamics Electric Boat, which will see construction take place on American soil at a Connecticut shipyard. The announcement comes just hours after opposition industry spokesman Andrew Hastie said Australia incurred 'strategic trade-offs' in doubling down on its alliance with Washington. 'We forgot the hard lessons of war, and outsourced our security to the United States,' he said at the Robert Menzies Institute in Melbourne on Thursday.  'It has cost us sovereign capabilities like a robust defence industry, and our strategic freedom of action in ways that we are now discovering.' A former special forces officer, Hastie pointed to the fuel crisis triggered by the Middle East conflict and Australia's de-industrialisation as examples of the nation betting too much on the dominance of the US. He warned that, if the security alliance with the US was to endure for another 75 years, Australia needed to urgently invest in its industrial base and defence force. 'We must grow our industrial might and hard power,' he said. No comments have so far been submitted. Why not be the first to send us your thoughts, or debate this issue live on our message boards. By posting your comment you agree to our house rules. 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