$50 billion submarine deal with France to create thousands of jobs in Australia

A $50 billion submarine deal between Australia and France is set to create jobs within five years. Construction is expected to start in South Australia in 2021/22.

Australian Prime Minister Malcolm Turnbull told reporters in Paris that there will be thousands of jobs. French leader Emmanuel Macron previously said that the agreement was not just a contract as it lifted Australia and France’s economic relationship.

Turnbull described the project as the “largest and most ambitious military project in Australia's history." He added the Future Submarine Project is a multi-generational project and a national enterprise. Turnbull and Macron have held a joint media conference in Paris to address the deal.

It is believed the first submarines will be finished by early 2030s. The last submarines could be ready by 2050.

Australia and France’s economic ties

The submarines will be constructed in Adelaide in southern Australia. The area serves as home to the country’s naval defence and the ASC shipbuilding organisation. Australia’s defence minister Marise Payne said last year the deal would "set out the legal framework under which Australia and France will partner on the future submarine programme over the coming decades.”

Turnbull has headed to Cherbourg where an Australian office will be opened to guide the submarine project. The Aussie leader oversees the opening of the Cherbourg facility along with France's Armed Forces Minister Florence Parly.

Last year, the two countries sealed a deal that would allow French naval contractor DCNS to build a diesel-electric submarines based on its nuclear Barracuda. The deal had international, national and strategic outcomes, which includes creating jobs for the Australian industry.

Former Aussie leader Tony Abbott said another plan that involved nuclear-powered submarines has to be considered. The Turnbull government, however, has rejected the idea.

Last year, details from over 22,000 pages of documents related to submarines DCNS was building in India were published in The Australian newspaper. It has led to concerns about the company's ability to safeguard data, but the government believed DCNS’ processes are better now.

The Sydney Morning Herald reports France assuring it will do everything needed to meet the requirements of the contract. Along with the government's naval shipbuilding strategy, building these submarines in Australia is estimated to provide jobs for more than 5,000 people across the country.

The French government said that some 4,000 jobs could be generated in Cherbourg over the next six years. The future submarines are called Shortfin Barracuda.

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