The financial black hole that is AUKUS

Written by: Nick G. on 22 November 2024

Former Australian Defence Force head Sir Angus Houston, has warned that without a significant budget boost, the AUKUS arrangements will cause the government to “cannibalise” other “defence” projects.

He warned of signs of budget pressure emerging already. Earlier this month, Australia killed a $5.3 billion satellite contract with Lockheed Martin, with one analyst saying more cuts will likely have to happen as the true cost of AUKUS emerges. (“True cost” is an admission that there will be substantial blow-outs beyond the current projected cost of $368 billion, or $33.6 million per day over the next 30 years).

Houston is a loyal servant of US imperialism’s stranglehold on Australia and was not criticising AUKUS.

He was calling for an increase in the “defence” budget to accommodate the cost of AUKUS. 

As co-leader of the recent Defence Strategic Review, he had projected a $55.5 billion budget for 2024-25, rising to $67.9 billion in 2027-28 — roughly 2.2 percent of GDP. 

The government of US empire loyalists has pledged to increase defence spending by $50.3 billion over the next decade, with the plan being to hit $100 billion by 2033. That would put the country at 2.4 percent of GDP.  

Now Houston is calling for “defence” spending to be raised to “3% plus” of GDP going into the next decade.

“Three per cent plus” by 2030 would add tens of billions to the “defence” budget, billions that would have to be diverted from housing, health, country roads and other socially urgent budgetary requirements.

This is at a time when the economy is slowing, not growing.

Recent polls indicate that a growing number of Australians are questioning AUKUS.

We have to focus our mass work on raising questioning to the level of demands for the cancellation of AUKUS.

The goal of anti-imperialist independence and socialism is being brought into AUKUS discussions.

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