PM says no nuclear submarine decision before election, as new subs base planned for Australia's east coast

The Prime Minister has denied the nuclear submarine program is being rushed to suit his re-election campaign ahead of a May poll, as the government announces a new base for the fleet on the east coast.

A new submarine base will be built on Australia’s east coast to support the future nuclear-powered fleet being acquired under the AUKUS partnership, with Defence identifying Brisbane, Newcastle and Port Kembla as the most suitable locations.

Prime Minister Scott Morrison unveiled the plan in a national security speech today, where he warned the strategic, political, economic and social implications of Russia's invasion of Ukraine would "inevitably stretch to the Indo-Pacific".

Some critics, including former prime minister Malcolm Turnbull, questioned whether the massive project was being rushed to benefit the government in the coming election, after Defence Minister Peter Dutton said a fast-tracked decision on a supplier was expected within months.

But Mr Morrison poured cold water on the prospect of an announcement before voters go to the polls, saying the decision on whether to pursue a US or UK design would be made in partnership with both nations.

"We don't anticipate that decision will be made before the election … and no-one should expect it to," Mr Morrison said.

"This is a trilateral partnership, this is not a procurement contest — this is a partnership where the decisions are made together.

"But we have made a lot of progress."

Port Kembla the favourite for new base

Australia's fleet of six Collins-class submarines are currently based at Perth's HMAS Stirling (Fleet Base West), while the ageing boats also regularly operate out of Sydney's Garden Island Naval base (Fleet Base East).

During an address to the Lowy Institute, Mr Morrison confirmed the government has decided to establish "a future submarine base on the east coast of Australia to support basing and disposition of the future nuclear-powered submarines". 

"This is about additional national capacity, not relocating any existing or planned future capacity for Fleet Base West," Mr Morrison said in a virtual address from Kirribilli House, where he remains in isolation with COVID-19.

"Fleet Base West will remain home to our current and future submarines, given its strategic importance on the Indian Ocean."

The ABC understands Port Kembla in the New South Wales city of Wollongong is the preferred option the Defence Department has presented to cabinet's National Security Committee, ahead of Commonwealth negotiations with state governments.

Shadow Treasurer Jim Chalmers said the location of the base should be a bipartisan decision.

"I think ideally big announcements like this should be bipartisan if they can be … this has the potential to span multiple governments and so we'd expect to be briefed on it," Mr Chalmers told Channel Nine.

All three sites are close to sufficient infrastructure and large population centres, and are considered reasonably near Australia's primary maritime training and operational areas, deep water and weapons storage, and loading facilities.

A government source confirmed the Defence Department had recently identified Port Kembla as being the most suitable location, requiring the least amount of additional work.

The new facility would be the first new major defence base built in Australia since the Robertson Barracks in Darwin in the 1990s, with initial works expected to be completed by next year ahead of a final decision on the location.

Early estimates from Defence suggest more than $10 billion will be needed for facilities and infrastructure requirements to transition from Collins submarines to the future nuclear-powered fleet.

With the Coalition continuing to push national security as a major election issue against the backdrop of growing worldwide military tensions, Mr Morrison declared Australia faces its most difficult and dangerous security environment in 80 years.

He accused Russia and China of aligning to try and reshape the international order to create a "transactional world, devoid of principle, accountability and transparency".

"A new arc of autocracy is instinctively aligning to challenge and reset the world order in their own image," Mr Morrison said, invoking President George W Bush's 2002 declaration that Iran, North Korea, and Iraq formed an "axis of evil".

Dutton claimed sub decision coming in 'next couple of months'

On Sunday, Mr Dutton told the ABC's Insiders program the government would decide "within the next couple of months" what submarines it would acquire under the AUKUS partnership

He said the nuclear-powered boats would be in Australia "much sooner" than 2040 and there would be a plan to provide capability in the interim, although the government later played down suggestions a design would be announced before the election. 

Mr Dutton's initial suggestion of a pre-election decision on Australia's choice of nuclear-powered submarines caused shock among officials from AUKUS partners the United Kingdom and the United States.

"A lot of effort has gone into taking partisan politics out of the whole process – hopefully, this doesn't derail it," one diplomatic official told the ABC, speaking on the condition of anonymity.

Mr Turnbull, who secured the now-scrapped $90 billion contract with France for conventional submarines, said Mr Dutton's decision appeared to be timed to coincide with the election campaign.

"We are literally on the eve of an election, and rushing decisions that were meant to take 18 months into a six-month time frame to suit an election is just transparently political," Mr Turnbull said.

"The idea that you would be rushing decisions like this at this stage speaks only of politics, and I'm afraid that once again Mr Dutton and Mr Morrison are using national security very cynically as a political exercise."

Shadow Defence Minister Brendan O'Connor said the government needed to detail its plan.

"The suggestion for a base for nuclear-powered submarines is just another ploy from the Prime Minister to get a headline without providing any detail of how this will be implemented or even when it will be delivered," Mr O'Connor said.

"It seems like Scott Morrison is trying to divert attention from the fact the nuclear-powered submarines won’t come into effect for more than a decade, leaving Australia with a significant capability gap."