Australia will pay French company Naval Group about $830 million (US$588 million) to settle a scrapped defence contract that would have seen it build submarines in South Australia.
Australia’s fleet of Collins submarines were going to be replaced by a conventional fleet constructed by Naval Group but that deal was abandoned by the Morrison government, which decided to instead pursue nuclear-powered submarines under the AUKUS partnership.
The decision in September 2021 to scrap the $90 billion (US$64.75) contract enraged the French government, resulting in a diplomatic stoush that included the recall of its ambassadors from Canberra and Washington.
Prime Minister Anthony Albanese said his government had reached a fair and equitable settlement with Naval Group that would “rule a line” under the torn-up contracts….